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HomeMy WebLinkAboutItem No. 08 Adopt Ord Special Tax Levy CFD No. 2019-1 Westlake City of Lake Elsinore 130 South Main Street __ Lake Elsinore,CA 92530 II www.lake-elsinore.org vv°"` IKo- Text File File Number: RES 2019-39 Agenda Date: 8/27/2019 Version: 1 Status: Council Consent Calendar In Control: City Council/Successor Agency File Type: Council Resolution Agenda Number: 8) City of Lake Elsinore Page 1 Printed on 812212019 CITY OF LAKE COLSMOKE DREAM E, TI�I:ML. TN 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: August 27, 2019 Subject: Adopt Ordinance Authorizing the Levy of Special Taxes Within Community Facilities District (CFD) No. 2019-1 of the City of Lake Elsinore (Westlake) Recommendations Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF LAKE ELSINORE (WESTLAKE) Background and Discussion The developer, Pardee Homes (Developer), property owner of a tract proposed for 163 residential units within the City (TR 33267 located north of the intersection of Riverside Dr. and Grand Ave.) has requested that the City form a Community Facilities District (CFD or District) to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds in an amount not to exceed $8,000,000. The landowner has requested that the area shown on the project map presented at this meeting and more particularly described in Attachment A of Resolution No. 2019-058 adopted by the City Council on June 25, 2019 (Resolution of Intention) be the boundaries of the CFD, and that special taxes be levied within the CFD in accordance with the Rate and Method of Apportionment (RMA) as described in Attachment C to the Resolution of Intention. The Resolution of Intention called for a public hearing to be held on August 13, 2019, for the City Council to formally consider the approval of the formation of the CFD and the approval of the levy of the special taxes within the CFD. Notice of the public hearing was published in the Press Enterprise and mailed to the property owner in accordance with the Mello-Roos Act. In connection with the public hearing, Spicer Consulting Group prepared a CFD Public Hearing Report describing and analyzing the facilities to be financed by the CFD and the estimated costs of such facilities. Following the close of the public hearing, the City Council adopted the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt which, together, approved the formation of the CFD and the levy of the special taxes in accordance with the RMA and determines the necessity for the CFD to issue bonds in an amount not to exceed $8,000,000. Such resolutions called for an election to submit to the qualified voters in CFD No. 2019-1 (Westlake) August 27, 2019 Page 2 of 2 the CFD ballot measures on the approval of the special taxes, the issuance of the bonds and an appropriations limit for the CFD. In addition, the Resolution of Formation, approved the execution and delivery of the following agreements in the forms presented to the City Council: (i) the Funding Agreement with the Developer (the "Funding Agreement"); and (ii) the Joint Community Facilities Agreement with the Developer and Elsinore Valley Municipal Water District (JCFA). The Funding Agreement sets forth the terms, among others, pursuant to which the CFD will finance improvements to be constructed by the City. In accordance with the Mello-Roos Act, the approval and execution of the Joint Community Facilities Agreement allows for the CFD to finance improvements to be owned and operated by Elsinore Valley Municipal Water District which benefit the development within the District. Following the City Council approval of the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt, a property owner election was conducted and the City Council adopted the Resolution Certifying the Election Results. Based on upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results directed the City Clerk to record a notice of special tax lien on the property within the CFD. The City Council then introduced the Ordinance authorizing the levy of the special tax within the CFD in accordance with the RMA. Second reading of the Ordinance is scheduled for City Council adoption on August 27, 2019. Fiscal Impact The District will be required to annually levy special taxes on all of the taxable property within the CFD in order to pay for the costs of facilities, debt service on bonds and administration of the CFD. Any bonds issued by the District are NOT obligations of the City and will be secured solely by the special taxes levied in the CFD. Pardee Homes made a deposit to pay for the costs of forming the CFD. The Resolution of Intention approved a form of a Reimbursement Agreement to reimburse the developer for these costs if and when bonds are issued for CFD. Exhibits A— Ordinance Authorizing the Levy of Special Tax ORDINANCE NO. 2019 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF LAKE ELSINORE (WESTLAKE) AUTHORIZING THE LEVY OF SPECIAL TAXES Whereas, on June 25, 2019, the City Council (the "City Council") of the City of Lake Elsinore (the "City") adopted Resolution No. 2019-058 declaring its intention to form Community Facilities District No. 2019-1 of the City of Lake Elsinore (Westlake) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Act"), and its Resolution No. 2019-059 declaring its intention to incur bonded indebtedness for the District; and, Whereas, on August 13, 2019, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 2019- and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of up to $8,000,000 of bonded indebtedness as described in Resolution No. 2019- ; and, Whereas, at the August 13, 2019 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 2019-058 and to secure the payment of up to $8,000,000 of bonded indebtedness of the District as described in Resolution No. 2019-059 (the "Bonds") were heard and a full and fair hearing was held; and, Whereas, on August 13, 2019, the City Council adopted Resolution Nos. 2019- and 2019- which formed the District and called a special election within the District on August 13, 2019 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and, Whereas, on August 13, 2019, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of a special tax within the District for the purposes described in Resolution No. 2019- 058, the issuance of the Bonds as described in Resolution No. 2019-059 and establishing an appropriations limit for the District. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF LAKE ELSINORE (WESTLAKE) ORDAINS AS FOLLOWS: Section 1. The above recitals are all true and correct. Ord. No. 2019 - Page 2 of 3 Section 2. By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 2019-058, which is incorporated by reference herein (the "Rate and Method"). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District, and payment of all costs of administering the District. Section 3. Each of the Mayor, the City Manager, the Assistant City Manager, or their written designees (each, an "Authorized Officer"), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year, and with respect to Special Tax, until the Bonds are paid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs of the District. Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 2019- or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act. Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 2019- Section 6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time. Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act. 2 Ord. No. 2019 - Page 3 of 3 Section 8. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the "City Clerk") shall attest to the Mayor's signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Lake Elsinore. Section 9. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act. Section 10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance. Section 11. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage. Section 12. This Ordinance shall take effect thirty days after its final passage. Passed and Adopted on this 27th day of August, 2019. Steve Manos, Mayor Attest: Mark Mahan Deputy City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Mark Mahan, Deputy City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2019- was introduced at the Regular meeting of the City Council of August 13, 2019, and adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of August 27, 2019 and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mark Mahan Deputy City Clerk 3