HomeMy WebLinkAboutCC Reso No 2019-059 Incur Bonded Indebtedness $8,000,000 2019-1(Westlake)RESOLUTION NO. 2019 -059
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF THE CITY
OF LAKE ELSINORE, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS IN AN
AMOUNT NOT TO EXCEED $8,000,000 WITHIN PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 2019 -1 OF THE CITY OF LAKE ELSINORE (WESTLAKE)
AND TO RESCIND RESOLUTION NO. 2019 -005
Whereas, the City Council of the City of Lake Elsinore (the "City Council ") upon receipt of a
petition from Pardee Homes, a California corporation ( "Pardee ") as provided in Sections 53318
and 53319 of the Government Code of the State of California instituted proceedings to form
Community Facilities District No. 2019 -1 of the City of Lake Elsinore (Westlake) ( "Community
Facilities District No. 2019 -1" or the "District') pursuant to the Mello -Roos Community Facilities
Act of 1982 (the "Act'), as amended, pursuant to Resolution No. 2019 -004 adopted by the City
Council on February 12, 2019; and,
Whereas, on February 12, 2019, the City Council of the City of Lake Elsinore (the "City ") also
adopted Resolution No. 2019 -005, declaring its intention to incur bonded indebtedness in an
amount not to exceed $7,000,000 within the District; and,
Whereas, Resolution Nos. 2019 -004 and 2019 -005 called a public hearing on matters related to
the formation of the District and the incurring of bonded indebtedness within the District; and,
Whereas, subsequent to the adoption of Resolution Nos. 2019 -004 and 2019 -005 but prior to the
public hearing mentioned above, Pardee notified the City that additional public facilities are
required with respect to the development in the proposed District which necessitates revisions to
the rate and method of apportionment of special tax for the District attached to Resolution No.
2019 -004 and an increase in the amount of bonded indebtedness to be incurred in the District to
finance such facilities; and,
Whereas, the public hearing called pursuant to Resolution Nos. 2019 -004 and 2019 -005 was
cancelled; and,
Whereas, the City Council, upon receipt of a new petition from Pardee as provided in Sections
53318 and 53319 of the Act, reinstituted proceedings to form the District pursuant to the Act,
pursuant to Resolution No. 2019 -059 (the "Resolution of Intention to Establish ") adopted by the
City Council on the date hereof to finance (1) the purchase, construction, modification, expansion,
improvement and /or rehabilitation of public facilities identified in Attachment "A" hereto and
incorporated herein by this reference, including all furnishings, equipment and supplies related
thereto (collectively, the "Facilities ") and (2) the incidental expenses to be incurred in financing
the Facilities and forming and administering the District (the "Incidental Expenses "); and,
Whereas, the City Council desires to rescind Resolution No. 2019 -005 and to adopt this
Resolution in accordance with Section 53345 declaring the intention to incur bonded
indebtedness within the District; and,
Whereas, the City Council estimates that the amount required to finance the Facilities and
Incidental Expenses is approximately $8,000,000; and,
Whereas, in order to finance the Facilities and Incidental Expenses, the City Council intends to
authorize the issuance of bonds in the maximum aggregate principal amount of $8,000,000, the
CC Res. No. 2019 -059
Page 2 of 4
repayment of which is to be secured by special taxes levied in accordance with Section 53328 of
the Act on all property in the proposed Community Facilities District No. 2019 -1, other than those
properties exempted from taxation in the rate and method of apportionment set forth in
Attachment "C" to the Resolution of Intention to Establish.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. The City Council hereby rescinds Resolution No. 2019 -005 and this Resolution
shall supersede Resolution No. 2019 -005 in all respects and for all purposes in connection with
the incurring of bonded indebtedness within the District.
Section 3. It is necessary to incur bonded indebtedness within the boundaries of proposed
Community Facilities District No. 2019 -1 in an amount not to exceed $8,000,000 to finance the
costs of the Facilities and Incidental Expenses, as permitted by the Act.
Section 4. The indebtedness will be incurred for the purpose of financing the costs of the
Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds
for the bonds, the financing of costs associated with the issuance of the bonds and all other costs
and expenses necessary to finance the Facilities which are permitted to be financed pursuant to
the Act.
Section 5. It is the intent of the City Council to authorize the sale of bonds in one or more
series, in the maximum aggregate principal amount of $8,000,000 and at a maximum interest rate
not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate
permitted by law at the time that the bonds are issued. The term of the bonds of each series shall
be determined pursuant to a resolution of this City Council acting in its capacity as the legislative
body of the District authorizing the issuance of the bonds of such series, but such term shall in no
event exceed 35 years from the date of issuance of the bonds of such series, or such longer term
as is then permitted by law.
Section 6. A public hearing (the "Hearing ") on the proposed issuance of bonded indebtedness
shall be held at 7:00 p.m. or as soon thereafter as practicable, on August 13, 2019, at the City
Cultural Center, 183 North Main Street, Lake Elsinore, California.
Section 7. At the time and place set forth in this Resolution for the Hearing, any interested
persons, including all persons owning land or registered to vote within proposed Community
Facilities District No. 2019 -1, may appear and be heard.
CC Res. No. 2019 -059
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Section 8. The City Clerk is hereby directed to publish a notice (the "Notice ") of the Hearing
pursuant to Section 6061 of the Government Code in a newspaper of general circulation published
in the area of the proposed Community Facilities District No. 2019 -1. Such publication shall be
completed at least seven days prior to the date of the Hearing. The City Clerk is further directed
to mail a copy of the Notice to each of the landowners within the boundaries of proposed
Community Facilities District No. 2019 -1 at least 15 days prior to the Hearing.
Passed and Adopted on this 251h day of June 2019.
Brian Tistrale,
Mayor Pro -Tem
Attest:
Mark Mahan
Deputy City Clerk
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF LAKE ELSINORE)
I, Grant Yates, Acting City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2019 -059 was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of June 25, 2019 and that the same was adopted by the following vote:
AYES: Council Members Sheridan and Magee; Mayor Pro-Tern Tisdale
NOES: None
ABSENT: Council Member Johnson and Mayor Manos
ABSTAIN: None
Mark Mahan
Deputy City Clerk
ATTACHMENT A
Types of Facilities to Be
Financed by Community
Facilities District No. 2019 -1
The proposed types of public facilities and expenses to be financed by the District
include:
The construction, purchase, modification, expansion, rehabilitation and /or improvement of
(i) drainage, library, park, fire, roadway, traffic, administration and community center facilities,
marina and animal shelter facilities, and other public facilities of the City, including the foregoing
public facilities which are included in the City's fee programs with respect to such facilities and
authorized to be financed under the Mello -Roos Community Facilities Act of 1982, as amended
(the "City Facilities ") and (ii) water and sewer facilities including the acquisition of capacity in the
sewer system and /or water system of the Elsinore Valley Municipal Water District which are
included in Elsinore Valley Municipal Water District's water and sewer capacity and connection
fee programs (the "Water District Facilities" and together, with the City Facilities, the "Facilities "),
and 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.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate
and Method of Apportionment of Special Taxes for the District.
Idl