HomeMy WebLinkAboutItem No. 22 Establish of CFD No. 2019-1 WestlakeText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: RES 2019-37
Agenda Date: 8/13/2019 Status: Public HearingVersion: 1
File Type: ResolutionIn Control: City Council / Successor Agency
Agenda Number: 22)
Page 1 City of Lake Elsinore Printed on 8/8/2019
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 13, 2019
Subject: Establishment of Community Facilities District (CFD) No. 2019-1 of the City
of Lake Elsinore (Westlake)
Recommendations
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, CALLING AN
ELECTION AND APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED
THERETO; and,
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN
AMOUNT NOT TO EXCEED $8,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO.
2019-1 OF THE CITY OF LAKE ELSINORE (WESTLAKE) AND CALLING AN ELECTION
THEREIN; and,
ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, CERTIFYING ELECTION RESULTS FOR COMMUNITY FACILITIES DISTRICT
NO. 2019-1 OF THE CITY OF LAKE ELSINORE (WESTLAKE); and,
Introduce 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
CFD No. 2019-1 (Westlake)
August 13, 2019
Page 2 of 3
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 has prepared a CFD Public
Hearing Report which describes and analyzes the facilities to be financed by the CFD and the
estimated costs of such facilities. Following the close of the public hearing, the City Council will
be asked to adopt the Resolution of Formation and the Resolution Determining the Necessity to
Incur Debt which, together, approves 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 call for an election to submit to the qualified
voters in the CFD ballot measures on the approval of the special taxes, the issuance of the
bonds and an appropriations limit for the CFD.
In addition, the Resolution of Formation, approves 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.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying
that there are no registered voters residing within the boundaries of the CFD. Accordingly, under
the Mello-Roos Act, only property owners owning land in the District are eligible to vote at the
election with each owner having one vote for each acre (or portion thereof) that they own within
the CFD. The Developer has executed a consent and waiver of certain election procedures,
including certain timing requirements with respect to the election, and the City Clerk (or the
Deputy City Clerk (referred to herein as the City Clerk) has executed a certificate concurring to
the holding of the election on this date, all in accordance with the Mello-Roos Act. Accordingly, if
the City Council approves the Resolution of Formation and the Resolution Determining the
Necessity to Incur Debt, the City Clerk will conduct the election. The City Clerk will announce
the election results and the City Council will be asked to adopt 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 directs the City Clerk to
record a notice of special tax lien on the property within the CFD. The City Council will then be
asked to introduce the Ordinance authorizing the levy of the special tax within the CFD in
accordance with the RMA.
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 has made a deposit to pay for the
CFD No. 2019-1 (Westlake)
August 13, 2019
Page 3 of 3
costs of forming the CFD. The Resolution of Intention approved a form of a Reimbursement
Agreement to reimburse the developer for these costs if and when bonds are issued for CFD.
Exhibits
A - Resolution Establishing of Formation
B - Resolution Necessity to Incur Debt
C - Resolution Certifying the Election Results
D - Ordinance Authorizing the Levy of Special Tax
E - Certificate of the Registrar of Voters
F - Landowner Waiver
G - Public Hearing Report
H – Funding Agreement
I - Joint Community Facilities Agreement
JOINT COMMUNITY FACILITIES AGREEMENT
among
CITY OF LAKE ELSINORE
and
ELSINORE VALLEY MUNICIPAL WATER DISTRICT
and
PARDEE HOMES
a California corporation
relating to
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2019-1
(WESTLAKE)
JOINT COMMUNITY FACILITIES AGREEMENT
THIS JOINT COMMUNITY FACILITIES AGREEMENT (the “Agreement”) dated as of
_______ 1, 2019, 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 water district (the “Water District”), and PARDEE HOMES, a California corporation (the
“Company”), and relates to Community Facilities District No. 2019-1 of the City of Lake Elsinore
(Westlake) (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 163 residential units on the
Property and to provide the required infrastructure for such units and improvements. The required
infrastructure includes the Water District Facilities, some of which may be funded with water and
sewer capacity and connection fees of the Water District (“Water District Fees”) or proceeds of
bonds to be issued by the District. One of the Water District Facilities is a water line to be
constructed on behalf of the Company pursuant to a Participation Agreement between the
Company and Water District (the “Participation Agreement”) and which is referred to herein as
the “Acquisition Facility.”
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
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operating the Water District Facilities is delegated to the Water District to the extent set forth
herein.
G.The parties hereto intend to have the District assist in financing the Water District
Facilities by transferring to the Company (with respect to the Acquisition Facility) and to the Water
District (with respect to the other Water District Facilities) 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 through the payment of Water District Fees.
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 of the District (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 nondisbursement 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 with respect to the issuance of
the Bonds 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, the City shall notify the Water District
and the Company, in writing, as to the amount of Bond proceeds so deposited and the yield on
the Bonds. All interest earnings on amounts in the District’s Water District Facilities Account of
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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.
(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. With respect to all Water District Facilities other than the Acquisition Facility, 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. With respect to the Acquisition Facility, upon its
completion and acceptance pursuant to the terms of the Participation Agreement, the Water
District shall request a disbursement of Bond proceeds to the Company in an amount equal to
the actual cost of the Acquisition Facility less the amount to be reimbursed to the Company by
the Water District pursuant to the Participation Agreement. Such disbursement request shall be
in the form attached hereto as Exhibit C-1.
(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 General Manager or Director of Strategic Programs, or his
5
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 previously funded through the payment of Water District Feesfor residential units
or lots within the District and not yet reimbursed with special taxes or Bond proceeds of the
District, and/or (ii) to pay the Water District for Water District Facilities in an amount up to the
Water District Fees for 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 Fees 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. Except for the Acquisition Facility, 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. Except for the Acquisition Facility, 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 Acquisition Facility shall be design constructed and inspected in accordance with the terms
of the Participation Agreement. 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 City 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. 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
6
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.
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; provided,
however, the Participation Agreement establishes the terms for construction of the Acquisition
Facility and reimbursement of the Company by the Water District for a portion of its costs.
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:Pardee Homes
1250 Corona Pointe Court, Suite 600
Corona, CA 92879
Attn: Jeff Chambers
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.
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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
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 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 and be of no further force or effect
upon the earlier of (i) ten (10) years following the issuance of building permits for all dwelling units
expected to be built within the District, (ii) the funding of all Water District Facilities pursuant to
this Agreement, or (iii) December 31, 2029. Notwithstanding the foregoing, this Agreement shall
not terminate pursuant to (iii) of the previous sentence if, on December 31, 2029, all of the building
permits within the District have been pulled, construction within the District, as contemplated by
the parties hereto, is ongoing, and the Company has not yet has not been fully reimbursed for
Water District Facilities pursuant to Section 3(e) above. If the District is unable to sell the first
series of Bonds after diligent, commercially reasonable efforts to do so, this Agreement shall
terminate and be of no further force and effect.
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.
[SIGNATURE PAGES FOLLOW]
S-1
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:
Grant Yates, Acting City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY OF THE CITY OF LAKE ELSINORE
By:
David Mann, City Attorney
[SIGNATURES CONTINUED ON FOLLOWING PAGES]
S-2
[SIGNATURE PAGE CONTINUED]
ELSINORE VALLEY MUNICIPAL WATER
DISTRICT
By:
Its:John Vega, General Manager
ATTEST:
By:
Its:Terese Quintanar, Board Secretary
APPROVED AS TO FORM:
By:
Its:John Brown, General Counsel
S-3
[SIGNATURE PAGE CONTINUED]
PARDEE HOMES, a California corporation
By:
Its:Michael Taylor, Division President
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. (as set forth in the County of Riverside Assessor’s Fiscal Year 2018-19
Roll):
379-050-034
379-050-006
B-1
4850-8768-9352v34/022042-0025
EXHIBIT B
DESCRIPTION OF WATER DISTRICT FACILITIES
The proposed types of Water District 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 “Water
District 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 Water District Facilities;
b.Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Water District Facilities.
The Acquisition Facility is an 8-inch water transmission line in Grand Avenue east of
Machado Street of approximately 1,650 linear feet.
C-1
EXHIBIT C
DISBURSEMENT REQUEST FORM
1.Community Facilities District No. 2019-1 of the City of Lake Elsinore (Westlake)
(“CFD No. 2019-1”) 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. 2019-1 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 planning, designing, engineering, constructing and/or 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.
2019-1 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. 2019-1 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, Pardee Homes and the Elsinore Valley
Municipal Water District dated as of _________, 2019 (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.
2019-1, 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.
C-2
Executed by an authorized representative of the Elsinore Valley Municipal Water District.
By:
Name:
Title:
Date:
Request No.
C-1-1
EXHIBIT C-1
DISBURSEMENT REQUEST FORM
(Acquisition Facility)
1.Elsinore Valley Municipal Water District (“EVMWD”) hereby requests that, in accordance
with the terms of the Joint Community Facilities Agreement by and among EVMWD, Pardee
Homes and the City of Lake Elsinore (“City”) dated _______, 2019 (the “JCFA”), Community
Facilities District No. 2019-1 of the City (“CFD”) disburse from the Water District Facilities
Account of the Acquisition and Construction Fund the sum set forth in 3 below.
2.The undersigned certifies that the amount requested is with respect to the Acquisition
Facility.
3.Amount requested: $__________
4.The name and address of the person or entity to whom payment is to be made is as
follows:
Pardee Homes
1250 Corona Pointe Court, Suite 600
Corona, CA 92879
5.The full amount to be paid constitutes costs of the Acquisition Facility described in
paragraph 2 above and has not been the subject of a prior EVMWD payment request. Such
Acquisition Facility was constructed in accordance with EVMWD’s Participation Agreement with
Pardee Homes and, as such, EVMWD has determined it was constructed as if it had been
constructed under the direction and supervision, or under the authority of, EVMWD.
Pardee Homes,
a California corporation
By:
Name:
Title:
Date:
Elsinore Valley Municipal Water District
By:
Name:
Title:
Date:
D-2
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. 2019-1 (Westlake) (“CFD No. 2019-1”) 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. 2019-1 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: ______________________________
RESOLUTION NO. 2019- ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF
THE CITY OF LAKE ELSINORE (WESTLAKE), AUTHORIZING THE LEVY OF A
SPECIAL TAX THEREIN, CALLING AN ELECTION AND APPROVING AND
AUTHORIZING CERTAIN ACTIONS RELATED THERETO
Whereas, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) has
heretofore adopted Resolution No. 2019-058 stating its intention 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, as
amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the
State of California (the “Act”); and,
Whereas, a copy of Resolution No. 2019-058 setting forth a description of the proposed
boundaries of Community Facilities District No. 2019-1, the facilities and incidental expenses to
be financed by the District and the rate and method of apportionment of the special tax
proposed to be levied within the District is on file with the City Clerk; and,
Whereas, notice was published and mailed to all landowners of the land proposed to be
included within the District as required by law relative to the intention of this City Council to form
proposed Community Facilities District No. 2019-1 and to levy a special tax (the “Special Tax”)
and to incur bonded indebtedness in the amount of up to $8,000,000 therein to finance the
facilities and incidental expenses described in Resolution No. 2019-058; and,
Whereas, on August 13, 2019, this City Council conducted a noticed public hearing as required
by law relative to the proposed formation of Community Facilities District No. 2019-1, the levy of
the Special Tax therein and the issuance of bonded indebtedness by the District; and,
Whereas, at the August 13, 2019 public hearing there was filed with this City Council a report
containing a description of the facilities necessary to meet the needs of the District and an
estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s
Report”); and,
Whereas, at the August 13, 2019 public hearing all persons desiring to be heard on all matters
pertaining to the formation of Community Facilities District No. 2019-1, the levy of the Special
Tax and the issuance of bonded indebtedness were heard, and full and fair hearings were held;
and,
Whereas, following the public hearing, this City Council has determined to authorize the
formation of the District to finance the types of facilities (the “Facilities”) and the incidental
expenses (the “Incidental Expenses”) set forth in Attachment A hereto, which are described in
more detail in the Engineer’s Report; and,
Whereas, at the public hearing evidence was presented to this City Council on the matters
before it, and the proposed Special Tax to be levied within the District was not precluded by a
majority protest of the type described in Section 53324 of the Act, and this City Council at the
conclusion of the hearing was fully advised as to all matters relating to the formation of the
District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and,
CC Res. No. 2019-___
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2
Whereas, this City Council has determined, based on a Certificate of Registrar of Voters of the
County of Riverside on file in the office of the City Clerk, that no registered voters have been
residing in the proposed boundaries of Community Facilities District No. 2019-1 for each of the
90 days prior to August 13, 2019 and that the qualified electors in Community Facilities District
No. 2019-1 are the landowners within the District; and,
Whereas, on the basis of all of the foregoing, this City Council has determined to proceed with
the establishment of Community Facilities District No. 2019-1 and to call an election therein to
authorize (i) the levy of Special Tax pursuant to the rate and method of apportionment of the
special tax, as set forth in Attachment C to Resolution No. 2019-058 (the “Rate and Method”),
(ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the
establishment of an appropriations limit for Community Facilities District No. 2019-1; and,
Whereas, in order to facilitate the funding of the Facilities, the legislative body of the District
desires to enter into a Funding Agreement (the “Funding Agreement”) with Pardee Homes, a
California corporation (the “Developer”) and the form of the Funding Agreement is on file with
the City Clerk; and,
Whereas, in connection with the proposed formation of the District, the City proposes to enter
into a Joint Community Facilities Agreement (the “JCFA”) with the Elsinore Valley Municipal
Water District (the “Water District”) and the Developer, relating to certain facilities proposed to
be financed by the District and owned and operated by the Water District and the form of the
JCFA is on file with the City Clerk.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1.Each of the above recitals is true and correct.
Section 2.A community facilities district to be designated “Community Facilities District No.
2019-1 of the City of Lake Elsinore (Westlake)” is hereby established pursuant to the Act. The
City Council hereby finds and determines that all prior proceedings taken with respect to the
establishment of the District were valid and in conformity with the requirements of law, including
the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
Section 3.The boundaries of Community Facilities District No. 2019-1 are established as
shown on the map designated “Amended Boundary Map of Community Facilities District No.
2019-1 (Westlake) City of Lake Elsinore, County of Riverside, State of California”, which map is
on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of
the Streets and Highways Code in the County Book of Maps of Assessment and Community
Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in
Book No. 83 Page No. 96 on July 3, 2019 as Instrument No. 2019-0244989.
Section 4.The types of Facilities and Incidental Expenses authorized to be provided for
Community Facilities District No. 2019-1 are those set forth in Attachment A attached hereto.
The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the
Engineer’s Report, which estimates may change as the Facilities are designed and bid for
construction and acquisition, as applicable.
The City is authorized by the Act to contribute revenue to, or to construct or acquire the
Facilities, all in accordance with the Act. The City Council finds and determines that the
CC Res. No. 2019-___
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proposed Facilities are necessary to meet the increased demand that will be placed upon local
agencies and public infrastructure as a result of new development within the District and that the
Facilities to be financed, including those to be financed pursuant the JCFA to be entered into
with the Water District, benefit residents of the City and the future residents of the District.
Section 5.Except where funds are otherwise available, it is the intention of this City Council,
subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the
rates set forth in the Rate and Method on all non-exempt property within the District sufficient to
pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds
proposed to be issued to finance the Facilities and Incidental Expenses, including the
establishment and replenishment of reserve funds, any remarketing, credit enhancement and
liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act;
and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already
incurred, Incidental Expenses in connection with the creation of the District, the issuance of
bonds, the levying and collecting of the Special Tax, the completion and inspection of the
Facilities and the annual administration of the bonds and the District. The Rate and Method is
described in detail in Attachment C to Resolution No. 2019-058 and incorporated herein by this
reference, and the City Council hereby finds that the Rate and Method contains sufficient detail
to allow each landowner within the District to estimate the maximum amount that may be levied
against each parcel. As described in greater detail in the Engineer’s Report, which is
incorporated by reference herein, the Special Tax is based on the expected demand that each
parcel of real property within Community Facilities District No. 2019-1 will place on the Facilities
and on the benefit that each parcel will derive from the right to access the Facilities and,
accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each
assessor’s parcel in accordance with the Rate and Method provided, however, that the Special
Tax shall not be levied after Fiscal Year 2059-60. The Special Tax is apportioned to each
parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is
not on or based upon the ownership of real property or the assessed value of real property.
If Special Taxes of the District are levied against any parcel used for private residential
purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be
calculated and established not later than the date on which the parcel is first subject to the
Special Tax because of its use for private residential purposes and shall not be increased over
time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied
after Fiscal Year 2059-60, and (iii) under no circumstances will the Special Tax levied against
any such parcel used for private residential uses be increased as a consequence of delinquency
or default by the owner or owners of any other parcel or parcels within the District by more than
ten percent above the amount that would have been levied in that fiscal year had there never
been any such delinquencies or defaults.
The City Manager of the City of Lake Elsinore will be responsible for preparing annually, or
authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s
parcel number and will be responsible for estimating future special tax levies pursuant to
Section 53340.2 of the Act.
Section 6.In the event that a portion of the property within Community Facilities District No.
2019-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax
specified in the Rate and Method, or in the event of delinquencies in the payment of Special
Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2019-1,
increase the levy to the extent necessary and permitted by law and these proceedings upon the
remaining property within Community Facilities District No. 2019-1 which is not exempt or
CC Res. No. 2019-___
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4
delinquent in order to yield the required debt service payments on any outstanding bonds of the
District, or to prevent the District from defaulting on any of its other obligations or liabilities;
provided, however, under no circumstances will the Special Tax levied against any parcel used
for private residential uses be increased as a consequence of delinquency or default by the
owner or owners of any other parcel or parcels within the District by more than ten percent
above the amount that would have been levied in that fiscal year had there never been any such
delinquencies or defaults. The amount of the Special Tax will be set in accordance with the
Rate and Method. The obligation to pay Special Taxes may be prepaid only as set forth in
Section G of the Rate and Method.
Section 7.Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the
Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall
attach to all non-exempt real property in the District and this lien shall continue in force and
effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled
in accordance with law or until collection of the Special Tax by the District ceases.
Section 8.Consistent with Section 53325.6 of the Act, the City Council finds and determines
that the land within Community Facilities District No. 2019-1, if any, devoted primarily to
agricultural, timber or livestock uses and being used for the commercial production of
agricultural, timber or livestock products is contiguous to other land within Community Facilities
District No. 2019-1 and will be benefited by the Facilities proposed to be provided within
Community Facilities District No. 2019-1.
Section 9.It is hereby further determined that there is no ad valorem property tax currently
being levied on property within proposed Community Facilities District No. 2019-1 for the
exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred
to finance the construction of capital facilities which provide the same services to the territory of
Community Facilities District No. 2019-1 as are proposed to be provided by the Facilities to be
financed by Community Facilities District No. 2019-1.
Section 10.Written protests against the establishment of the District have not been filed by
one-half or more of the registered voters within the boundaries of the District or by the property
owners of one-half (1/2) or more of the area of land within the District. The City Council hereby
finds that the proposed Special Tax has not been precluded by a majority protest pursuant to
Section 53324 of the Act.
Section 11.An election is hereby called for Community Facilities District No. 2019-1 on the
propositions of levying the Special Tax on the property within Community Facilities District No.
2019-1 and establishing an appropriations limit for the District pursuant to Section 53325.7 of
the Act and shall be consolidated with the election on the proposition of incurring bonded
indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the
propositions to be placed on the ballot is attached hereto as Attachment B.
Section 12.The date of the election for Community Facilities District No. 2019-1 on the
propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and
establishing an appropriations limit for the District shall be August 13, 2019, or such later date
as is consented to by the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”)
of the City of Lake Elsinore; provided that, if the election is to take place sooner than 90 days
after August 13, 2019, then the unanimous written consent of each qualified elector within the
District to such election date must be obtained. The polls shall be open for said election
immediately following the close of the public hearing on August 13, 2019. The election shall be
CC Res. No. 2019-___
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conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be
conducted in accordance with the provisions of law regulating elections of the City of Lake
Elsinore insofar as such provisions are determined by the City Clerk to be applicable. The City
Clerk is authorized to conduct the election following the adoption of this resolution, and all
ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the
election day; provided the election shall be closed at such earlier time as all qualified electors
have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act,
the ballots for the special election shall be distributed in person, or by mail with return postage
prepaid, to the qualified electors within Community Facilities District No. 2019-1. The City Clerk
has secured a certificate from the Registrar of Voters of the County of Riverside certifying that
there were no registered voters within the District as of June 27, 2019. Accordingly, since there
were fewer than 12 registered voters within the District for each of the 90 days preceding
August 13, 2019, 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. 2019-1, 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
August 13, 2019, which waiver is on file with the City Clerk.
Section 13.The preparation of the Engineer’s Report is hereby ratified. The Engineer’s
Report, as submitted, is hereby approved and was made a part of the record of the public
hearing regarding the formation of Community Facilities District No. 2019-1. The Engineer’s
Report is ordered to be kept on file with the transcript of these proceedings and open for public
inspection.
Section 14.The form of the Funding Agreement on file with the City Clerk is approved as to
form, and each of the City Manager, Assistant City Manager, and their written designees, is
authorized to execute the Funding Agreement in substantially the form on file with the City
Clerk, together with such changes as are approved by the officer executing the same, with the
approval of such changes to be conclusively evidenced by the execution and delivery thereof.
Section 15.The form of the JCFA on file with the City Clerk is approved as to form, and each
of the City Manager, Assistant City Manager, and their written designees, is authorized to
execute the JCFA in substantially the form on file with the City Clerk, together with such
changes as are approved by the officer executing the same, with the approval of such changes
to be conclusively evidenced by the execution and delivery thereof.
Section 16.This Resolution shall be effective upon its adoption.
CC Res. No. 2019-___
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Passed and Adopted on this 13th 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
Resolution No. 2019-______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of August 13, 2019 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Mark Mahan
Deputy City Clerk
A-1
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.
B-1
ATTACHMENT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
SPECIAL TAX AND SPECIAL BOND ELECTION
August 13, 2019
PROPOSITION A: Shall Community Facilities District
No. 2019-1 of the City of Lake Elsinore (Westlake) (the
“District”) incur an indebtedness and issue bonds in the
maximum principal amount of $8,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the
Incidental Expenses described in Resolution No. 2019-
058 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.
2019-058 of the City Council of the City of Lake Elsinore
be levied to pay for the Facilities, Incidental Expenses
and other purposes described in Resolution No. 2019-
058, including the payment of the principal of and
interest on bonds issued to finance the Facilities and
Incidental Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2020-21, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2019-1 be an amount equal to $3,000,000?
YES______
NO_______
RESOLUTION NO. 2019- _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO.
2019-1 OF THE CITY OF LAKE ELSINORE (WESTLAKE) DETERMINING THE
NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO
EXCEED $8,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF
THE CITY OF LAKE ELSINORE (WESTLAKE) AND CALLING AN ELECTION
THEREIN
Whereas, on June 25, 2019, the City Council of the City of Lake Elsinore (the “City Council”)
adopted Resolution No. 2019-058 stating its intention 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, as amended (the “Act”);
and,
Whereas, on June 25, 2019, the City Council also adopted Resolution No. 2019-059 stating its
intention to incur bonded indebtedness in the amount of up to $8,000,000 within proposed
Community Facilities District No. 2019-1 to finance (1) the purchase, construction, modification,
expansion, improvement or rehabilitation of public facilities identified in Attachment B to
Resolution No. 2019-058, 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. 2019-058; and,
Whereas, notice was published as required by law relative to the intention of the City Council to
form proposed Community Facilities District No. 2019-1 and to incur bonded indebtedness in
the amount of up to $8,000,000 within the boundaries of proposed Community Facilities District
No. 2019-1; and,
Whereas, on August 13, 2019, this City Council conducted a noticed public hearing to
determine whether it should proceed with the formation of Community Facilities District No.
2019-1, issue bonds to pay for the facilities and incidental expenses described in Resolution
No. 2019-058 and authorize the rate and method of apportionment of a special tax to be levied
within Community Facilities District No. 2019-1 for the purposes described in Resolution No.
2019-058; and,
Whereas, at said hearing all persons desiring to be heard on all matters pertaining to the
formation of Community Facilities District No. 2019-1, the levy of a special tax and the issuance
of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a
full and fair hearing was held; and,
Whereas, the City Council subsequent to such hearing adopted Resolution No. 2019-___
establishing Community Facilities District No. 2019-1 (the “Resolution of Formation”) and
authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the
“Incidental Expenses”) described in Attachment B thereto; and,
Whereas, the City Council desires to make the necessary findings to incur bonded
indebtedness within the District, to declare the purpose for said debt, and to authorize the
submittal of a proposition to issue bonded indebtedness to the voters of the District, being the
landowners within the proposed District, all as authorized and required by law.
CC Res. No. 2019-__
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE HEREBY
FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1.It is necessary to incur bonded indebtedness in a maximum aggregate principal
amount not to exceed $8,000,000 within Community Facilities District No. 2019-1.
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 Community Facilities District No. 2019-1, 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 Community Facilities District No. 2019-1, other
than property exempted from the special tax pursuant to the provisions of the rate and method
of apportionment attached to Resolution No. 2019-058 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. 2019-1 on the proposition of incurring the bonded
indebtedness. The proposition relative to incurring bonded indebtedness in the maximum
aggregate principal amount of $8,000,000 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 Community Facilities District No. 2019-1 on
the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax
and setting an appropriations limit shall be August 13, 2019, or such later date as is consented
to by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”);
provided that, if the election is to take place sooner than 90 days after August 13, 2019, 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
CC Res. No. 2019-__
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on August 13, 2019. 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 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. 2019-1. 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 13, 2019. Accordingly, since there were
fewer than 12 registered voters within the District for each of the 90 days preceding August 13,
2019, 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. 2019-1, 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 August 13,
2019, which waiver is on file with the City Clerk.
Section 9.This Resolution shall be effective upon its adoption.
Passed and Adopted on this 13th day of August, 2019.
_____________________________
Steve Manos, Mayor
Attest:
_____________________________
Mark Mahan
Deputy City Clerk
CC Res. No. 2019-__
Page 4 of 6
4
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
Resolution No. 2019-___ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of August 13, 2019 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Mark Mahan
Deputy City Clerk
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
SPECIAL TAX AND SPECIAL BOND ELECTION
August 13, 2019
PROPOSITION A: Shall Community Facilities District
No. 2019-1 of the City of Lake Elsinore (Westlake) (the
“District”) incur an indebtedness and issue bonds in the
maximum principal amount of $8,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the
Incidental Expenses described in Resolution No. 2019-
058 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.
2019-058 of the City Council of the City of Lake Elsinore
be levied to pay for the Facilities, Incidental Expenses
and other purposes described in Resolution No. 2019-
058, including the payment of the principal of and
interest on bonds issued to finance the Facilities and
Incidental Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2020-21, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2019-1 be an amount equal to $3,000,000?
YES______
NO_______
RESOLUTION NO. 2019 -______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF LAKE ELSINORE
(WESTLAKE) CERTIFYING ELECTION RESULTS
Whereas, the City Council of the City of Lake Elsinore called and duly held an election on
August 13, 2019 within the boundaries of Community Facilities District No. 2019-1 of the City of
Lake Elsinore (Westlake) (“Community Facilities District No. 2019-1” or the “District”) pursuant
to Resolution Nos. 2019-__ and 2019-__ for the purpose of presenting to the qualified electors
within the District Propositions A, B and C, attached hereto as Attachment A; and
Whereas, there has been presented to this City Council a certificate of the City Clerk or Deputy
City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of
which is attached hereto as Attachment B;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE HEREBY
FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1.Each of the above recitals is true and correct and is adopted by the legislative
body of the District.
Section 2.Propositions A, B and C presented to the qualified electors of the District on
August 13, 2019 were approved by more than two-thirds of the votes cast at said election and
Propositions A, B and C each has carried. The City Council, acting as the legislative body of
the District, is hereby authorized to levy on the land within the District the special tax described
in Proposition B for the purposes described therein and to take the necessary steps to levy the
special tax authorized by Proposition B and to issue bonds in an amount not to exceed
$8,000,000 specified in Proposition A.
Section 3.The City Clerk is hereby directed to record in the Assessor-County Clerk-
Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of
special tax lien with respect to the District which Bond Counsel to the District shall prepare in
the form required by Streets and Highways Code Section 3114.5.
CC Res. No. 2019 - ___
Page 2 of 4
2
Section 4.This Resolution shall be effective upon its adoption.
Passed and Adopted on this 13th 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
Resolution No. 2019-______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of August 13, 2019 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Mark Mahan
Deputy City Clerk
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
SPECIAL TAX AND SPECIAL BOND ELECTION
August 13, 2019
PROPOSITION A: Shall Community Facilities District
No. 2019-1 of the City of Lake Elsinore (Westlake) (the
“District”) incur an indebtedness and issue bonds in the
maximum principal amount of $8,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the
Incidental Expenses described in Resolution No. 2019-
058 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.
2019-058 of the City Council of the City of Lake Elsinore
be levied to pay for the Facilities, Incidental Expenses
and other purposes described in Resolution No. 2019-
058, including the payment of the principal of and
interest on bonds issued to finance the Facilities and
Incidental Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2020-21, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2019-1 be an amount equal to $3,000,000?
YES______
NO_______
ATTACHMENT B
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
I, Grant Yates, Acting City Clerk of the City of Lake Elsinore, do hereby certify that I have
examined the returns of the Special Tax and Bond Election for Community Facilities District
No. 2019-1 (Westlake) of the City of Lake Elsinore (the “City”). The election was held in the
Lake Elsinore Cultural Center at 183 North Main Street, Lake Elsinore, California, on August 13,
2019. I caused to be delivered ballots to each qualified elector. ____ (__) ballots were
returned.
I further certify that the results of said election and the number of votes cast for and
against Propositions A, B and C are as follows:
PROPOSITION A PROPOSITION B PROPOSITION C
YES:YES:YES:
NO:NO:NO:
TOTAL:TOTAL:TOTAL:
Dated this 13th day of August, 2019.
Grant Yates
Grant Yates, Acting City Clerk
City of Lake Elsinore
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
2
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.
Ord. No. 2019 - _____
Page 3 of 3
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 13th 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 13, 2019 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Mark Mahan
Deputy City Clerk
1
WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
The undersigned, ______, acting on behalf of the Pardee Homes, a California
corporation (the “Owner”), hereby certifies to the City of Lake Elsinore (the “City”), with respect
to the proposed formation of Community Facilities District No. 2019-1 of the City of Lake
Elsinore (Westlake) (the “District”), as follows:
1.The undersigned has been duly authorized by the Owner and possesses all
authority necessary to execute this Waiver on behalf of the Owner in connection with the
election to be called by the City Council of the City with respect to the District. The Owner
hereby appoints ________ to act as its authorized representative to vote in the election referred
to herein and certifies that his true and exact signature is set forth below:
Signature of _______: __________________________________
2.The Owner is the present owner of 19.47 acres of land located within the
proposed boundaries of the District. There are no registered voters residing within the territory
owned by the Owner and have been none during the 90-day period preceding August 13, 2019.
3.The Owner has received notice of the August 13, 2019 public hearing to be held
by the City Council of the City regarding the levy of a special tax in the District and the incurring
of bonded indebtedness by the District. The Owner agrees that it received adequate notice of
the August 13, 2019 hearing.
4.The Owner has received from the City and the City has made available to the
Owner necessary and relevant information regarding the proposed formation of the District and
the imposition of the special tax and the issuance of bonded indebtedness, as set forth in
Resolutions No. 2019-058 and 2019-059 adopted by the City Council on June 25, 2019
(together, the “Resolutions”) to finance the facilities as set forth in the Resolutions.
5.The undersigned understands that if the District is formed on or after August 13,
2019, an election will be held by the District on the propositions set forth in the sample ballot
attached hereto as Exhibit “A” less than 90 days after the close of the August 13, 2019 public
hearing as in accordance with Section 53326 of the Government Code, without the preparation
of an impartial analysis, arguments or rebuttals concerning the election as provided for by
Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate
statement as provided in Section 9401 of the Elections Code and without further notice of such
election as required pursuant to the Elections Code or the Government Code. Having been fully
advised with respect to the election, in accordance with the authority contained in Government
Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of
the Elections Code and Government Code, with any time limits or other procedural
requirements pertaining to the conduct of the election which are not being complied with and
consents to having the election on any date on or after the close of the August 13, 2019 public
hearing and consents to the closing of the election as soon as all ballots are received by the
City Clerk or Deputy City Clerk.
2
6.The undersigned hereby represents that compliance with the procedural
requirements for conducting the election, including the receipt of any ballot arguments and
impartial analysis and the time limitations which apply in connection with scheduling, mailing
and publishing notices for such an election, are unnecessary in light of the fact that the
undersigned has received sufficient information regarding the imposition of the special tax and
the issuance of bonded indebtedness as set forth in the Resolutions to allow it to properly
complete the attached ballot. The Owner further waives its right to make any protest or
complaint or undertake any legal action challenging the validity of the election, the validity of any
bonded indebtedness issued by the District as approved at the election, or the validity of the
authorization of the special tax to finance facilities for the benefit of the District or to repay
bonded indebtedness issued by the District in accordance with the rate and method of
apportionment of special taxes provided in Resolution No. 2019-058 of the City Council of the
City.
Dated: August 13, 2019
PARDEE HOMES, a California corporation
By:
[Name] [Title]
A-1
EXHIBIT A
SAMPLE
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
SPECIAL TAX AND SPECIAL BOND ELECTION
August 13, 2019
PROPOSITION A: Shall Community Facilities District No.
2019-1 of the City of Lake Elsinore (Westlake) (the “District”)
incur an indebtedness and issue bonds in the maximum
principal amount of $8,000,000, with interest at a rate or rates
not to exceed the maximum interest rate permitted by law, to
finance the Facilities and the Incidental Expenses described
in Resolution No. 2019-058 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. 2019-058 of
the City Council of the City of Lake Elsinore be levied to pay
for the Facilities, Incidental Expenses and other purposes
described in Resolution No. 2019-058, including the payment
of the principal of and interest on bonds issued to finance the
Facilities and Incidental Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal
Year 2020-21, shall the appropriations limit, as defined by
subdivision (h) of Section 8 of Article XIII B of the California
Constitution, for Community Facilities District No. 2019-1 be
an amount equal to $3,000,000?
YES______
NO_______
WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
The undersigned, Michael Taylor, acting on behalf of the Pardee Homes, a California
corporation (the "Owner"), hereby certifies to the City of Lake Elsinore (the "City"), with respect
to the proposed formation of Community Facilities District No. 2019-1 of the City of Lake
Elsinore (Westlake) (the "District"), as follows:
1. The undersigned has been duly authorized by the Owner and possesses all
authority necessary to execute this Waiver on behalf of the Owner in connection with the
election to be called by the City Council of the City with respect to the District. The Owner
hereby appoints Michael Taylor to act as its authorized representative to vote in the election
referred to herein and certifies that his true and exact signature is set forth below:
Signature of Michael TaylaF.-
2. The Owner is the present ow of 19.47 acres of land located within the
proposed boundaries of the District. There are no registered voters residing within the territory
owned by the Owner and have been none during the 90-day period preceding August 13, 2019.
3. The Owner has received notice of the August 13, 2019 public hearing to be h6ld
by the City Council of the City regarding the levy of a special tax in the District and the incurring
of bonded indebtedness by the District. The Owner agrees that it received adequate notice of
the August 13, 2019 hearing.
4. The Owner has received from the City and the City has made available to the
Owner necessary and relevant information regarding the proposed formation of the District and
the imposition of the special tax and the issuance of bonded indebtedness, as set forth in
Resolutions No. 2019-058 and 2019-059 adopted by the City Council on June 25, 2019
(together, the "Resolutions") to finance the facilities as set forth in the Resolutions.
5. The undersigned understands that if the District is formed on or after August 13,
2019, an election will be held by the District on the propositions set forth in the sample ballot
attached hereto as Exhibit "A" less than 90 days after the close of the August 13, 2019 public
hearing as in accordance with Section 53326 of the Government Code, without the preparation
of an impartial analysis, arguments or rebuttals concerning the election as provided for by
Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate
statement as provided in Section 9401 of the Elections Code and without further notice of such
election as required pursuant to the Elections Code or the Government Code. Having been fully
advised with respect to the election, in accordance with the authority contained in Government
Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of
the Elections Code and Government Code, with any time limits or other procedural
requirements pertaining to the conduct of the election which are not being complied with and
consents to having the election on any date on or after the close of the August 13, 2019 public
hearing and consents to the closing of the election as soon as all ballots are received by the
City Clerk or Deputy City Clerk.
1
4819-3453-7608v4/022042-0025
6. The undersigned hereby represents that compliance with the procedural
requirements for conducting the election, including the receipt of any ballot arguments and
impartial analysis and the time limitations which apply in connection with scheduling, mailing
and publishing notices for such an election, are unnecessary in light of the fact that the
undersigned has received sufficient information regarding the imposition of the special tax and
the issuance of bonded indebtedness as set forth in the Resolutions to allow it to properly
complete the attached ballot. The Owner further waives its right to make any protest or
complaint or undertake any legal action challenging the validity of the election, the validity of any
bonded indebtedness issued by the District as approved at the election, or the validity of the
authorization of the special tax to finance facilities for the benefit of the District or to repay
bonded indebtedness issued by the District in accordance with the rate and method of
apportionment of special taxes provided in Resolution No. 2019-058 of the City Council of the
City.
Dated: August 13, 2019
PARDEE HOMES, a California corporation
By:
Michael Tay! , Division President
2
4819-3453-7608v4/022042-0025
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
SPECIAL TAX AND SPECIAL BOND ELECTION
August 13, 2019
You are entitled to cast 20 votes.
To vote, stamp a cross (+) in the voting square after the word "YES" or after the word
"NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and
make the ballot void.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain
another.
PROPOSITION A: Shall Community Facilities District No. 2019-1 of
the City of Lake Elsinore (Westlake) (the "District") incur an
indebtedness and issue bonds in the maximum principal amount of
$8,000,000, with interest at a rate or rates not to exceed the YES
maximum interest rate permitted by law, to finance the Facilities and
the Incidental Expenses described in Resolution No. 2019-058 of NO
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. 2019-058 of the City
Council of the City of Lake Elsinore be levied to pay for the YES
Facilities, Incidental Expenses and other purposes described in
Resolution No. 2019-058, including the payment of the principal of NO
and interest on bonds issued to finance the Facilities and Incidental
Expenses?
PROPOSITION C: For each year commencing with Fiscal Year
2020-21, shall the appropriations limit, as defined by subdivision (h) YES
of Section 8 of Article XIII B of the California Constitution, for
Community Facilities District No. 2019-1 be an amount equal to NO
$3,000,000?
4825-1212-5854v2/022042-0025
ATTACHMENT B
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
I, Mark Mahan, Deputy City Clerk of the City of Lake Elsinore, do hereby certify that I have
examined the returns of the Special Tax and Bond Election for Community Facilities District
No. 2019-1 (Westlake) of the City of Lake Elsinore (the "City"). The election was held in the Lake
Elsinore Cultural Center at 183 North Main Street, Lake Elsinore, California, on August 13, 2019.
1 caused to be delivered ballots to each qualified elector. L.--) ballots were returned.
I further certify that the results of said election and the number of votes cast for and
against Propositions A, B and C are as follows:
PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:
NO: NO: NO:
TOTAL: TOTAL: TOTAL:
Dated this 13th day of August, 2019.
Mark Mahan
City of Lake Elsinore
CITY OF LAKE ELSINORE
Public Hearing Report
CFD NO. 2019-1 (WESTLAKE)
AUGUST 13, 20 19
Table of Contents
Sections Page _____________________________________________
1 Introduction ________________________________________________ 1
2 Description of Facilities ______________________________________________ 2
3 Cost Estimate ________________________________________________ 3
4 Proposed Development _____________________________________________ 4
5 Rate and Method of Apportionment ____________________________________ 5
6 Certifications ________________________________________________ 6
Tables Page
3-1 Cost Estimate ________________________________________________ 3
Appendices Page _____________________________________________
A Rate and Method of Apportionment _____________________________________
B Boundary Map _________________________________________________
C Resolution of Intention _______________________________________________
1 Introduction Page | 1
City of Lake Elsinore
CFD No. 2019-1 (Westlake)
Public Hearing Report
Background
On June 25, 2019, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”), adopted a Resolution of
Intention to form Community Facilities District No. 2019-1 (Westlake) of the City of Lake Elsinore (the “CFD No. 2019-1”),
Resolution No. 2019-058, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter
2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (the “Act”).
CFD No. 2019-1 is currently comprised of two parcels and approximately 19.47 gross acres. A tentative Tract Map 33267
includes 163 proposed detached condominium residential properties. The properties are located north of the intersection of
Riverside Drive and Grand Avenue.
For a map showing the boundaries of CFD No. 2019-1 please see Appendix B.
Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains
the following:
1. A brief description of CFD No. 2019-1;
2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2019-1.
3. A brief description of the Boundaries of CFD No. 2019-1; and
4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation
of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs
otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other
incidental expenses to be paid through the proposed financing.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in
Appendix C.
2 Description of Facilities Page | 2
City of Lake Elsinore
CFD No. 2019-1 (Westlake)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed
responsible officer, or person directed to prepare this Report, does hereby submit the following data:
Description of the Facilities
A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special
assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge,
or assessment levied, provide for the purchase, construction, expansion, or rehabilitation for any real or other tangible
property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed
upon local agencies as a result of development and/or rehabilitation occurring within the District.
The types of facilities that are proposed by CFD No. 2019-1 and financed with the proceeds of special taxes and bonds
issued by CFD No. 2019-1 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement
of (i) drainage, library, park, 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.
Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and
b) All costs, including costs of the property owner petitioning to form the District, associated with the creation
of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and
costs otherwise incurred in order to carry out the authorized purposes of the District; and
c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and
inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of
Special Taxes for the District.
All costs associated with the creation of CFD No. 2019-1, the issuance of bonds, the determination of the amount of special
taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2019-1, including legal fees, fees
of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2019-1 and any obligations.
The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.
The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order
to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change
or modification in the proceedings relating to CFD No. 2019-1.
3 Cost Estimate Page | 3
City of Lake Elsinore
CFD No. 2019-1 (Westlake)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District.
a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2019-
1 Bonds is estimated to be $6,285,000 based upon current dollars (Fiscal Year 2019-20).
b) For further particulars please reference Table 3-1 below and incorporated herein by reference.
c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2019-1 may
be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the
Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount
of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry
out the authorized purposes of the District. The incidental expenses associated with the annual administration of
CFD No. 2019-1 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental
expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental
expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate
City of Lake Elsinore Total Bond Allocation(1)
Traffic Impact Fee $156,317 $156,317
Fire Facilities $99,756 $99,756
Park Fee (Quimby) $260,800 $260,800
City Hall & Public Works Facilities $65,852 $65,852
Community Center Facilities $44,336 $44,336
Marina Facilities $63,407 $63,407
Animal Shelter Facility $28,362 $28,362
Library Capitol Improvement Fund Fee $24,450 $24,450
Storm Drain Capital Impact Fund Fee $117,373 $117,373
Total City Fees $860,653 $860,653
Elsinore Valley Municipal Water District Total Bond Allocation(1)
Water & Sewer Connection Fee (3/4” Meter) $2,207,020 $2,207,020
Sewer Capacity Fee $1,271,400 $1,271,400
Irrigation Capacity Fee (1.5" Meter) $44,765 $44,765
Water Facilities (Yellow Line - 100%) $291,097 $291,097
Water Facilities (Pink Line - 100%) $323,510 $323,510
Water Facilities (Red Line - 25%) $150,522 $150,522
Total EVMWD $4,288,314 $4,288,314
Total Eligible Fees/Improvements $5,148,967 $5,146,967
Incidental Financing Costs $1,136,033
Total Funded by Bond Proceeds $6,285,000
Total Fees/Improvements to be Funded by Developer $0
(1) Amounts are allocated based upon estimated bond sizing and may change abased upon market conditions at the time
of bond issuance.
4 Proposed Development Page | 4
City of Lake Elsinore
CFD No. 2019-1 (Westlake)
Public Hearing Report
The CFD No. 2019-1 includes approximately 19.47 gross acres on two undeveloped assessor’s parcels in Tract 33267
located in the City. The property within CFD No. 2019-1 is expected to be developed with 163 single family residential
condominium units. The District is located just north of the corner of Riverside Drive and Grand Avenue. As of Fiscal Year
2019-20 the proposed CFD No. 2019-1 includes the following Assessor's Parcel Numbers:
Assessor
Parcel Number
379-050-006
379-050-034
A map showing the boundaries of CFD No. 2019-1 is included in Appendix B.
5 Rate and Method of Apportionment Page | 5
City of Lake Elsinore
CFD No. 2019-1 (Westlake)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2019-1 to estimate the annual Special
Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established
pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected
in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties,
the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may
directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet
the financial obligations of CFD No. 2019-1, and provided further that CFD No. 2019-1 may covenant to foreclose and may
actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No. 2019-1, unless exempted by law or by the Rate and Method proposed for CFD
No. 2019-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for
CFD No. 2019-1 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special
Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any
property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized
services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned
on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may
choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the
Rate and Method (“Prepayment of Special Tax”).
For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If
any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the
extent necessary to reimburse CFD No. 2019-1 for uncollected Special Taxes associated with the levy of such Special
Taxes, but the Special Tax shall not be levied after 2059-2060 Fiscal Year.
For particulars as to the Rate and Method for CFD No. 2019-1, see the attached and incorporated in Appendix A.
6 Certifications Page | 6
City of Lake Elsinore
CFD No. 2019-1 (Westlake)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary
to meet increased demands placed upon the City of Lake Elsinore as a result of development occurring within the CFD No.
2019-1 and benefits the lands within said CFD No. 2019-1. Further, it is my opinion that the special tax rates and method
of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: August 13, 2019 SPICER CONSULTING GROUP, LLC
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF LAKE ELSINORE
RIVERSIDE COUNTY
STATE OF CALIFORNIA
APPENDIX A
Rate and Method of Apportionment
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (WESTLAKE)
OF THE CITY OF LAKE ELSINORE
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to
each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) ("CFD No. 2019‐1"). The amount of Special Tax to
be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of
Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2019‐1, by applying the
appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and
Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real
property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the
purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or
if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final
map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square
footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello‐Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State
of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to
the administration of CFD No. 2019‐1, including but not limited to: the costs of computing the Special
Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or
both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting
Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the
duties required of it under the Indenture; the costs to the City, CFD No. 2019‐1 or any designee thereof
of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2019‐1 or any designee
thereof of complying with disclosure requirements of the City, CFD No. 2019‐1 or obligated persons
associated with applicable federal and state securities laws and the Act; the costs associated with
preparing Special Tax disclosure statements and responding to public inquiries regarding the Special
Taxes; the costs of the City, CFD No. 2019‐1 or any designee thereof related to an appeal of the Special
Tax; the costs associated with the release of funds from an escrow account; and the City’s annual
administration fees and third party expenses. Administration Expenses shall also include amounts
estimated by the CFD Administrator or advanced by the City or CFD No. 2019‐1 for any other
administrative purposes of CFD No. 2019‐1, including attorney’s fees and other costs related to
commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final
Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being
levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel
Map for the individual lot included on the Final Map, and (iii) that have not been issued a building
permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 2
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an
assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for
purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds,
notes, certificates of participation, long‐term leases, loans from 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 of CFD No. 2019‐1 have been pledged.
"Building Permit" means the first legal document issued by a local agency giving official permission for
new construction. For purposes of this definition, “Building Permit” may or may not include any
subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are
issued or changed by the City after the first original issuance, as determined by the CFD Administrator as
necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such
determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property
will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated
annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the
Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
"CFD” or “CFD No. 2019‐1" means Community Facilities District No. 2019‐1 (Westlake) established by
the City under the Act.
“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. 2019‐1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 4285.
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 3
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final
Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being
levied, and (ii) has an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for
the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued
on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as
provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or
recordation of a Condominium Plan pursuant to California Civil Code Section 1352 that creates individual
lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to
which Bonds are issued, as modified, amended and/or supplemented from time to time, and any
instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D.
"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in
accordance with Section D below, that can be levied by CFD No. 2019‐1 in any Fiscal Year on such
Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit
has been issued for the purpose of constructing a building or buildings comprised of attached
Residential Units available for rental by the general public, not for sale to an end user, and under
common management, as determined by the CFD Administrator.
"Non‐Residential Property" or “NR” means all Assessor's Parcels of Taxable Property for which a
building permit(s) was issued for a non‐residential use. The CFD Administrator shall make the
determination if an Assessor’s Parcel is Non‐Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax
obligation for an Assessor’s Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an
Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual
Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property,
(ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the
same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional
Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 4
per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped
Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would
otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be
classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property
below the required minimum Acreage set forth in Sections F.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit
has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by
one or more persons, as determined by the CFD Administrator.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than
Multifamily Property.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2019‐1 pursuant to
the Act to fund the Special Tax Requirement.
"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or
the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year,
(ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account,
(iv) any amount required to replenish any reserve funds established in association with the Bonds, (v) an
amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) for the collection or
accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2019‐1 or
the payment of debt services on Bonds anticipated to be issued, provided that the inclusion of such
amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped
Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt
service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2019‐1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final
Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed
Property, Approved Property, Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2020‐2021 and for each subsequent Fiscal Year, the City Council shall levy
Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax
Requirement.
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 5
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2020‐2021, each Assessor’s Parcel within CFD No. 2019‐1
shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable
Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or
Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or
Non‐Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a
Single Family Residential Property, or Multifamily Property. Each Assessor’s Parcel of Single Family
Residential Property shall be further categorized into Land Use Categories based on its Building Square
Footage and assigned to its appropriate Assigned Special Tax rate.
In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the
County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance
with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy
on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator
shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on
the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax
levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall
be determined based on the Developed Property Special Tax rates and shall be taxed as Developed
Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the
Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal
to: (A) the percentage of the Maximum Special Tax rate levied on all other Undeveloped Property
multiplied by the total of the amount determined in clause (1), less the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any
Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Non‐Residential Property or Multifamily
Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property, or
Non‐Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax
applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1
below.
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 6
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit
1. Single Family Residential Property RU Less than 1,900 sq. ft $2,142.00
2. Single Family Residential Property RU 1,900 sq. ft to 2,100 sq. ft $2,255.00
3. Single Family Residential Property RU Greater than 2,100 sq. ft $2,332.00
4. Multifamily Property Acre N/A $34,929.00
5. Non‐Residential Property Acre N/A $34,929.00
On each July 1, commencing July 1, 2021, the Assigned Special Tax rate for Developed Property shall
be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use
Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum
Special Tax for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s
allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified or to be classified as
Single Family Property shall calculated according to the following formula.
B = (U x A) / L
The terms above have the following meanings:
B = Backup Special Tax per per Assessor’s Parcel within the Final Map
U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below
A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time
of calculation, as determined by the Administrator
L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as
determined by the Administrator.
In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all
Assessor’s Parcels within such changed or modified area shall be $34,929 per Acre.
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of the CFD,
the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $34,929 per Acre. The
Backup Special Tax shall not apply to Multifamily Residential Property, or Non‐Residential Property.
On each July 1, commencing July 1, 2021, the Backup Special Tax rate shall be increased by two
percent (2.00%) of the amount in effect in the prior Fiscal Year.
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 7
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified
as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified
as Multifamily Residential Property or Non‐Residential Property shall be $34,929 per Acre.
On each July 1, commencing July 1, 2021, the Maximum Special Tax rate for Approved Property shall
be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property
pursuant to the provisions of Section F
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional
Undeveloped Property that is not Exempt Property shall be equal to the product of $34,929
multiplied by the Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2021, the Maximum Special Tax rate for Undeveloped and
Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect
in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2020‐2021 and for each subsequent Fiscal Year, the City Council shall levy
Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed
Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy
the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first
step has been completed, the Special Tax shall be levied Proportionately on each
Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax
applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax
Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, the Annual Special Tax shall be levied Proportionately
on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special
Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax
Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Special Tax levy on each Assessor's Parcel of
Developed Property for which the Maximum Special Tax is the Backup Special Tax shall
be increased Proportionately from the Assigned Special Tax up to 100% of the Backup
Special Tax as needed to satisfy the Special Tax Requirement.
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 8
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first
four steps have been completed, the Special Tax shall be levied Proportionately on each
Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum
Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax
Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year
against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the
Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above
the amount that would have been levied in that Fiscal Year had there never been any such delinquency
or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which
are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of
California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are
used as places of worship and are exempt from ad valorem property taxes because they are owned by a
religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication,
encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or
utility easements making impractical their utilization for other than the purposes set forth in the
easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely
for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City
Council, provided that no such classification would reduce the sum of all Taxable Property to less than
11.68 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 11.68 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 11.68 Acres will be classified as Provisional Undeveloped
Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $7,000,000 expressed in 2020 dollars, which shall increase by the
Construction Inflation Index on July 1, 2021, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized bonding
program for CFD No. 2019‐1, or (ii) determined by the City Council concurrently with a covenant that it
will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of
Apportionment.
“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 to be financed by CFD No. 2019‐1.
“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
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 9
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 funded by the Outstanding Bonds, and minus public
facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of
prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax
which will remain outstanding after the first interest and/or principal payment date following the
current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior
prepayments of Special Tax.
1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels
of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which
a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building
Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s
Association Property, or Provisional Undeveloped Property that are not Exempt Property pursuant to
Section F. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid
and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described
herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with
respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending
to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD
Administrator with written notice of intent to prepay, and within 5 business days of receipt of such
notice, the CFD Administrator shall notify such owner of the amount of the non‐refundable deposit
determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as
defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non‐refundable deposit, the
CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.
Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be
redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined
below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 10
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the
Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which
a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as
though it was already designated as Developed Property, based upon the Building Permit which has
been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or
Undeveloped Property for which a Building Permit has not been issued, Public Property, Property
Owner’s Association Property, or Provisional Undeveloped Property to be prepaid compute the
Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of
Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels
of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of
Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has
been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the
Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the
Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to
paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the
“Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first
bond interest and/or principal payment date following the current Fiscal Year until the earliest
redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax
prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which
have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the
investment of the Bond Redemption Amount and the Redemption Premium from the date of
prepayment until the redemption date for the Outstanding Bonds to be redeemed with the
Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived
pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, including the cost of computation of
the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the
Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum
Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the
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Community Facilities District No. 2019‐1 (Westlake) Page 11
“Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected
reduction in the reserve requirement (as defined in the Indenture), if any, associated with the
redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by
subtracting the new reserve requirement (as defined in the Indenture) in effect after the
redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve
fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the
Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative
Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and
Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture
and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities
Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall
be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such
event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate
fund established under the Indenture to be used with the next redemption from other Special Tax
prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to
paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the
Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum
Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in
compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release
of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such
Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of
Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the
proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will
remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the
terms and conditions established by the City Council pursuant to the Act. However, the use of Bond
tenders shall only be allowed on a case‐by‐case basis as specifically approved by the City Council.
2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property
or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment
amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 12
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1
F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the
Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation
for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay
the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such
owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any.
Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the
amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in
calculating the amount of a partial prepayment. Within 15 business days of receipt of such
non‐refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial
Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less
than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds
of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid,
the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of
Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the
Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining
percentage (1.00 ‐ F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s
Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s
Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2059‐2060 Fiscal Year,
however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has
determined (i) that all the required interest and principal payments on the CFD No. 2019‐1 Bonds have
been paid; (ii) all authorized facilities of CFD No. 2019‐1 have been acquired and all reimbursements to
the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other
obligations of CFD No. 2019‐1 have been satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided, however, that CFD No. 2019‐1 may collect Special Taxes at a different time or
in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and
may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD
Administrator, provided that the appellant is current in his/her payments of Special Taxes. During
pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date
established when the levy was made. The appeal must specify the reasons why the appellant claims the
City of Lake Elsinore
Community Facilities District No. 2019‐1 (Westlake) Page 13
Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the
CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD
Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or
reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid
Special Taxes shall be made.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations
relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as
herein specified.
APPENDIX B
Boundary Map
APPENDIX C
Resolution of Intention
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2019-1
(WESTLAKE)
FUNDING AGREEMENT
THIS AGREEMENT dated August 13, 2019, is made and entered into by and between
CITY OF LAKE ELSINORE (the “City”), acting for and on behalf of itself and COMMUNITY
FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF LAKE ELSINORE (WESTLAKE) (the
“Community Facilities District” or “CFD”), and PARDEE HOMES, a California corporation (the
“Developer”), each individually a “Party” and collectively the “Parties.”
WHEREAS, the City has formed the CFD pursuant to the provisions of the Mello-Roos
Community Facilities Act of 1982, as amended (the “Act”), authorized special taxes and issuance
of bonded indebtedness to finance certain public improvements to be owned, operated or
maintained by the City and the Elsinore Valley Municipal Water District and Incidental Expenses
in accordance with the Act; and
WHEREAS, in order to proceed in a timely way with development of the property within
the Community Facilities District which is attached as Exhibit “A”(the “Developer Property”),
Developer desires to fund through the Community Facilities District (i) improvements included in
the City’s fee programs (the “City Improvements”), as more particularly set forth and described in
the Description of Cost Estimates attached hereto as Exhibit “B”and (ii) if applicable, any
improvements unrelated to the City Improvements described and governed by the terms
contained in Exhibit “E”hereto (the “Miscellaneous Improvements”) (collectively the
“Improvements”); and
WHEREAS, the City is authorized by the Act to form the CFD and to issue bonds to fund
the Improvements; and
WHEREAS, the City Council has adopted its “Statement of Goal and Policies for the Use
of the Mello-Roos Community Facilities Act of 1982,” which sets forth the City’s policies and
procedures concerning the use of special district financing programs to finance City facilities (the
“Policy”); and
WHEREAS, the purpose of this Agreement is to constitute a formal understanding
between Developer and the City (pursuant to the requirements of Government Code
Section 53313.51 and other provisions of the Act and the Policy) concerning financial and other
obligations and responsibilities related to the Improvements to be financed by the Community
Facilities District to the extent funds are available, and to set forth the conditions upon which (1)
the Community Facilities District will fund the Improvements and (2) the Community Facilities
District will also fund any Miscellaneous Improvements, if applicable, described in Exhibit “E.”
NOW, THEREFORE, it is mutually agreed between the respective parties as follows:
SECTION 1. DEVELOPER DEPOSIT
At Developer’s request, the City undertook the formation of the Community Facilities
District. The Developer has advanced to the City a sum of money related to the costs of such
formation proceedings, all of which shall be eligible for reimbursement from the CFD. The City
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will provide to Developer on request a summary of how the advances have been spent and the
unexpended balance remaining. The amounts advanced by Developer and, to the extent
determined reasonable and appropriate by the City, expenses incurred by Developer for
engineering consultant costs in connection with the formation of the Community Facilities District
and the issuance of bonds, will be reimbursable to Developer, without interest, from the proceeds
of bonds (the “Bonds”) issued by the Community Facilities District. In the event that Bonds are
not issued to provide a source of reimbursement to Developer, the City shall not have any liability
to Developer to reimburse it for any of the amounts previously advanced by Developer and
expended by the City.
Prior to the issuance of the Bonds, the City will request a final advance for any unpaid
expenses incurred during preparatory technical, financial and legal work; and following payment
of such expenses, the City shall promptly release the balance, if any, of the advance to Developer.
Should the City’s expenses exceed the remaining balance, the City will bill Developer for the
difference, which Developer agrees to pay within 10 days following receipt of such billing, subject
to the conditions of paragraph one of this section.
SECTION 2. SALE OF BONDS
2.1 City Policy and Requirements for the Issuance of Bonds. The Policy sets forth the
City’s policies and procedures concerning the use of special district financing programs to finance
the Improvements. Pursuant to the Policy, the total annual amount of the special taxes to be
collected with respect to a parcel within the CFD and all other taxes and assessments which will
be collected with respect to such parcel must not exceed two percent (2%) of the expected
assessed value of such parcel within the Community Facilities District upon the completion of all
expected structural improvements to such parcel.
The parties hereby agree that, unless waived by the City, at the time of issuance of the
Bonds, the following requirements shall be met: (1) the ratio of the value of all parcels of property
for which the Bonds are being issued to the amount of outstanding community facilities district or
assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less
than four-to-one (4:1) and (2) at least 50% of the proposed residential units within the Community
Facilities District shall have been completed and conveyed to individual homeowners. The fair
market value of the property within the Community Facilities District for purposes of determining
the foregoing ratio will be determined based on the assessed value of the property or the
appraised value of the property based on the appraisal made by an appraiser selected by the City
with a valuation date within ninety (90) days of the issuance of the Bonds. Subject to satisfaction
of the Policy and the requirements of this Agreement, the City shall use its best efforts to issue
and sell the Bonds in one or more series in an amount sufficient to fund the Improvements in
accordance with the schedule for development of the Developer Property.
2.2 Security for Payment of Special Taxes.
(a)Concurrently with the issuance and sale of each series of the Bonds, the owner of
any land within the Community Facilities District, together with land owned by any affiliate
(collectively, an “Account Party”), for which the expected levy of the Special Tax (as defined in
the Rate and Method of Apportionment of Special Tax for the Community Facilities District (the
“Rate and Method) in the fiscal year following the fiscal year in which the Bonds are issued are
equal to or exceed 20% of the total expected Special Tax levy for such fiscal year, shall deliver to
the City either (i) a renewable, irrevocable instrument of credit from a financial institution (rated
“A” or better) or (ii) cash in-lieu thereof (a “Security”). The Security shall be in an amount equal
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to 100% of the expected Special Tax levy on the property owned by such Account Party in the
two fiscal years following the fiscal year in which the Bonds are issued, based on ownership status
as of a date that is within 60 days prior to the date of issuance of the Bonds (the “Stated Amount”).
The Security shall be maintained by the Account Party in each fiscal year until terminated in
accordance with Section 2.2(c) below. While the Security is still required, the Stated Amount of
such Security shall be reduced as set forth in a “Certificate of Reduction or Termination (as
defined in Section 2.2(c) below).
The Security shall name the City, or its designee, as a beneficiary and shall provide that
the City, or its designee, may draw an amount equal to any delinquencies in payment of
semiannual installments of the Special Taxes levied on property owned by the Account Party in
the Community Facilities District. The total amount to be drawn under the Security shall not
exceed an amount equal to the Special Taxes owed by the Account Party with respect to property
within the Community Facilities District that is delinquent at the time the draw is made. The
amount drawn on the Security shall be applied in the same manner and for the same purposes
as the delinquent Special Taxes would have been applied; provided, however the payment of a
draw under the Security will not be deemed to cure the delinquency in payment of the Special
Taxes.
If, subsequent to a draw on the Security and prior to the satisfaction of any
reimbursements due to the institution providing the Security (the “Security Provider”) pursuant to
this Agreement, the City receives payment of all or a portion of the delinquent Special Taxes or
the proceeds of a sale of delinquent real property pursuant to foreclosure proceedings
(“Delinquency Proceeds”) for a parcel for which the Security has been drawn, the Security
Provider shall be reimbursed for such draws to the extent of Delinquency Proceeds net of the
City’s costs of collection, provided that the Security is or has been concurrently reinstated to, or
a Substitute Security (as defined below) provided for, the then applicable Stated Amount. The
Security Provider is intended by the Parties to be a third-party beneficiary of this Section 2.2.
(b)The Security shall be renewed, or a substitute Security reasonably satisfactory to
the City (a “Substitute Security”) provided, not less than thirty (30) calendar days prior to the
expiration of the Security or Substitute Security then in effect. If the Account Party provides a
Substitute Security to the City, then the City or its designee, shall return any existing Security on
the effective date of the Substitute Security to the Security Provider.
If the Security is not renewed within thirty (30) days prior to its expiration date and the
requirements for release or termination of the Security as set forth in Section 2.2(c) below have
not then been met, the full amount of the Security may be drawn by the City and deposited in an
account established under the Indenture (as hereinafter defined) or in such account established
with a financial institution selected by the City. Thereafter, amounts in such account shall be held
as security, and if Special Taxes owed by the Account Party with respect to property within the
Community Facilities District are not paid prior to delinquency, then such amounts in such account
may be applied by the City to pay the delinquent Special Taxes owed by the Account Party with
respect to such property on the same terms and conditions applicable hereunder to draws on the
Security.
At such time as the Security is renewed, or a Substitute Security is accepted by the City,
or the requirement for the Security has been terminated pursuant to this section, the City or its
designee, shall release all amounts in the Security account to the Security Provider within ten (10)
calendar days from the date of renewal or acceptance.
4
(c)Following the sale or transfer by the Account Party of any property to a person
other than the Account Party, or upon the prepayment of the Special Tax obligation for a parcel
owned by the Account Party, the Account Party shall notify District of such event, in writing, and,
if requested by the Account Party, the Stated Amount of the Security shall be reduced and be
recalculated in accordance with this Section 2.2; provided, however, that City shall be required to
recalculate such amount and reduce the Security a maximum of two times each calendar year
and any costs associated with the recalculation and reduction shall be borne by the Account Party.
The Security shall be terminated when (i) the expected levy on the land owned by the Account
Party in the Community Facilities District is responsible for less than 20% of the Special Tax levy
in the current fiscal year and the Account Party is not delinquent in the payment of any Special
Taxes, (ii) the Account Party has paid all Special Taxes in the current fiscal year and the property
owned by the Account Party in the Community Facilities District is expected to be responsible for
less than 20% of the Special Tax in the next fiscal year or (iii) the Account Party has paid all
Special Taxes in the current fiscal year and in the following fiscal year, the District will not levy
the Special Tax on property within the Community Facilities District owned by the Account Party.
Reduction or termination of a Security shall occur automatically upon submission
to the Security Provider by the City of a “Certificate of Reduction or Termination.” The City shall
deliver to the Security Provider, such Certificate of Reduction or Termination promptly upon
receiving from the Account Party a certification which shall be made under penalty of perjury and
which shall indicate (i) the legal description of all land owned by the Account Party, and either
(ii) a recalculation of the new Stated Amount that the Account Party proposes be applicable to the
Security or (iii) if termination of the Security is requested, a statement that one of the requirements
set forth in (i) through (iii) of the preceding paragraph have been satisfied.
The Account Party shall notify the City of any events that will result in a reduction of the
Stated Amount of the Security and shall provide the City with verification of said events. The
Account Party may provide the City with a Substitute Security in the reduced amount, and the
City shall release and return to the Security Provider the Security then in effect. The Parties
expressly acknowledge that the Account Party’s failure to so notify the City or to reduce the
Security at the times prescribed herein shall in no way effect or invalidate sale or transfer of
property, or recordation of maps on property.
(d)If property is sold or transferred by an Account Party with the result that the land
owned by the transferee or any of its affiliates (“Transferee”) is responsible for twenty percent
(20%) or more of the Special Tax in the current fiscal year, a Security on the same terms specified
herein will be furnished by Transferee with respect to all land owned by such Transferee in the
Community Facilities District. Any applicable purchase and sale agreement and/or escrow
instructions shall notify the Transferee of this Security requirement and obligate the Transferee to
provide such Security, if applicable. The Security of the Account Party will not be reduced to
reflect the sale or transfer of land until a Security is furnished by the Transferee and accepted by
the City. The issuing financial institution and the form and terms of said Security will be subject
to reasonable prior approval by the City. All terms provided in this Section 2.2 are applicable to
the Transferee by replacing the term “Account Party” at each place where it occurs in each section
with the term “Transferee.” Each provider of a Security for a Transferee shall be an express third-
party beneficiary of the provisions of this Section 2.2.
Any costs related to the holding or maintaining the Security, including any fees of
a fiscal agent, trustee or other depository shall be borne by the Account Party.
5
2.3 Major Landowner Initial and Continuing Disclosure. An owner of land which is
responsible for twenty percent (20%) or more of the Special Tax in the fiscal year in which the
Bonds are issued or in the fiscal year following the fiscal year in which the Bonds are issued (a
“Major Landowner”) will be required to provide all information regarding the development of its
property, including the financing plan for such development, which is necessary to ensure that
the official statement for such Bonds complies with the requirements of Rule 15c2-12 of the
Securities and Exchange Commission (the “Rule”) and all other applicable federal and state
securities laws. Additionally, Developer acknowledges that, if it is a Major Landowner at the time
of issuance of the Bonds, it will be necessary that Developer enter into a continuing disclosure
agreement to provide such continuing disclosure pertaining to the development of the land owned
by Developer within the Community Facilities District as necessary to assist the underwriter in
complying with the continuing disclosure requirements of the Rule and/or to assist in the
marketing of the Bonds.
2.4 Bond Issuance Parameters. The terms and conditions upon which each series of
the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the Bonds
shall be determined solely by the City in its reasonable discretion in conformance with the
requirements of Government Code Section 53313.5, the Act, the Policy, and this Agreement. The
Bonds shall be issued with a term not to exceed 31 years and annual debt service on the Bonds
shall be permitted to escalate by two percent (2%) per year consistent with the annual escalation
of the Special Tax. The proceeds of the Bonds shall be used in the following priority to (1) fund
a reserve fund for the payment of principal and interest with respect to the Bonds in an amount
equal to the least of (i) ten percent (10%) of the total bond issue, (ii) maximum annual debt service
on Bonds, or (iii) 125% of average annual debt service; (2) fund up to eighteen (18) months of
capitalized interest; (3) pay for costs of issuance of the Bonds including, without limitation,
underwriter’s discount, bond counsel and disclosure counsel fees, appraisal and special tax
consultant fees, printing, and fiscal agent fees; (4) pay for the costs of forming the Community
Facilities District and any change proceedings for the Community Facilities District; and (5) pay
for the actual costs of the Improvements. The Community Facilities District shall maintain records
relating to the disbursements of proceeds of the sale of the Bonds. The Indenture or Resolution
(hereinafter “Indenture”) for the Bonds shall establish an acquisition and construction fund or
improvement fund (herein, the “Improvement Fund”) into which shall be deposited initially the
proceeds of the Bonds net of the amount of proceeds required to fund items (1) through (4) in the
second preceding sentence. The Indenture shall also establish separate accounts of the
Improvement Fund designated the “City Improvements Account”, and any Miscellaneous
Improvement Accounts with respect to funds for the facilities described in Exhibit “E” if
applicable, into which shall be deposited such portions of the Improvement Fund as directed by
the City pursuant to consultation with the Developer and in writing at or subsequent to the closing
of the sale of the Bonds consistent with the following priorities:
(a)An amount sufficient to fund the reasonable, current estimated cost of the
City Improvements anticipated to be funded out of the Bonds being issued shall be deposited in
the City Improvements Account;
(b)If applicable, an amount sufficient to fund the reasonable, current estimated
cost of any Miscellaneous Improvements anticipated to be funded out of the Bonds being issued
shall be deposited in the applicable Miscellaneous Account(s), if any, described in Exhibit “E”
hereto.
The Indenture shall provide that amounts remaining in the Improvement Fund after funding
all proposed Improvements or sooner, as specified by the City, shall be deposited in the special
6
tax fund or bond service fund and be applied to pay debt service on the Bonds and/or to call
Bonds in advance of maturity.
SECTION 3. ALLOCATION OF SPECIAL TAXES
Prior to the issuance of Bonds, the City Council of the City, acting as the legislative body
of the Community Facilities District, shall levy Special Taxes at the assigned special tax rate on
all parcels classified as Developed Property pursuant to the Rate and Method. Such Special
Taxes collected by the City shall first be applied to fund annual administrative expenses of the
Community Facilities District and then to fund Improvements in the same manner as the proceeds
of Bonds as set forth in Section 5 and Section 6 below. Prior to the issuance of Bonds, such
Special Taxes collected by the City each fiscal year in excess of that required to fund annual
administrative expenses of the Community Facilities District shall be deposited in a special fund
of the City, which shall also be referred to as the City Improvements Account. Upon the issuance
of the Bonds, such City Improvements Account shall be closed and all funds then remaining in it
shall be transferred to the City Improvements Account of the Improvement Fund that is
established with the issuance of the Bonds. Upon sale and delivery of the Bonds, the City shall
annually levy the Special Tax as provided for in documents pursuant to which the Bonds were
issued. Following the issuance of the Bonds, the City shall have no obligation to levy Special
Taxes to reimburse the Developer for the costs of any Improvements not paid for from Bond
proceeds. The entire amount of any Special Tax levied by the Community Facilities District to
repay the Bonds and recover costs and expenses allowable pursuant to Government Code
Section 53313.5, shall be allocated to the Community Facilities District.
SECTION 4. NOTICE OF SPECIAL TAX
Developer, or Developer’s successors or assigns, shall provide written notice to all
potential purchasers of lots advising of the special tax obligation applicable to the Developer
Property in the form required by Section 53341.5 of the Government Code. A sample copy as
prepared by Developer is attached as Exhibit “C.”
SECTION 5. CITY IMPROVEMENTS
The Developer may be required pursuant to the conditions of development or the City’s
development impact fee ordinance to pay certain City fees (the “City Fees”) relating to the
Improvements prior to the availability of proceeds of the Special Taxes or Bonds to pay for such
Improvements. In the event such City Fees are paid prior to the availability of Special Taxes or
Bond proceeds, the amounts paid to the City shall be deemed to be deposits (each a “Deposit”)
that are subject to refund by the City to the Developer in accordance with this Agreement. The
City shall place each Deposit in a capital facilities account(s). If the Developer has made any
Deposits to the City, then following deposit of Special Taxes or Bond proceeds in the City
Improvements Account, the City shall return to the Developer, from the capital account in which
the Deposits were deposited an equal amount of the Deposits not previously returned, without
interest or other earnings thereon. The City shall be so obligated to return such Deposits only to
the extent that an equivalent amount of the Deposits to be returned is deposited in the City
Improvements Account from Bond proceeds.
Bond proceeds used to finance Improvements which relate to the City Fees shall be
allocated first for return of all Deposits prior to being allocated to the payment of City Fees not
previously deposited by the Developer. Any Deposits that have not been returned to the
Developer at the time it is determined that there will be no further Bond proceeds available (i.e.
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when the final series of Bonds to finance the Improvements have been issued) shall be retained
by the City and may be used for the purposes for which the City Fee was required, and the
unrefunded Deposits shall constitute full and final payment for such City Fees, without any
increase of any kind.
Any City Fees paid (as Deposits) by the Developer shall be made with the understanding
that such Deposits will be returned to the Developer if, and when, Special Taxes and Bond
proceeds have been deposited to the City Improvements Account. The City shall expend any
amounts disbursed to it from the City Improvements Account on capital facilities. The payment
of Deposits prior to the availability of the Special Taxes and Bond proceeds in the City
Improvements Account shall not be construed as a dedication or gift of the City Fees, or a waiver
of the return of the Deposits, it being the intention that the City Fees be paid by Special Taxes
and Bond proceeds to the extent of such Bond proceeds.
SECTION 6. MISCELLANEOUS IMPROVEMENTS.
Improvements unrelated to the City Improvements, if applicable, will be supplemented by
the terms contained in an addendum which will appear as Exhibit “E”hereto. The amounts
deposited in the applicable Miscellaneous Improvement Account(s), if any, will be disbursed for
the acquisition or construction of Miscellaneous Improvements in accordance with the provisions
in the applicable Joint Community Facilities Agreement(s), if any. Any amounts in the applicable
Miscellaneous Improvement Account(s) shall be disbursed at the written direction of the City upon
Developer’s submittal of an addendum which will appear as the applicable entity’s Certificate and
the Disbursement Request Form provided for in the Joint Community Facilities Agreement(s).
Upon receipt of the Disbursement Request Form, the City shall submit a written requisition for
payment of the requested amount to trustee for the Bonds pay the amount requested to the
applicable entity.
SECTION 7. INDEPENDENT CONTRACTOR
In performing this Agreement, Developer is an independent contractor and not the agent
of the City. The City shall not have any responsibility for payment to any contractor or supplier of
Developer. It is not intended by the parties that this Agreement create a partnership or joint
venture among them and this Agreement shall not otherwise be construed.
SECTION 8. INDEMNIFICATION
Developer shall assume the defense of, indemnify and hold harmless, the City, its officers,
employees and agents, and the Community Facilities District, its officers, employees and agents,
from and against all actions, damages, claims, losses or expenses of every type and description
to which they may be subject or put, by reason of, or resulting from the Developer’s performance
of its obligations under this Agreement, the issuance of the Bonds, the construction of the
Improvements, the failure of the Developer to provide notice of the special tax to be levied by the
Community Facilities District pursuant to Section 53341.5 of the Act (but only if the Developer is
required by law to provide such notice), or arising out of any alleged misstatements of fact or
alleged omission of a material fact made by the Developer, its officers, directors, employees or
agents to the City, the Community Facilities District, the underwriter of the Bonds and its counsel,
the appraiser, the special tax consultant, the market absorption consultant or bond counsel
regarding the Developer, its proposed developments, its property ownership, and any contractual
arrangement it may enter into in a disclosure document describing the Community Facilities
District and the risks relating to the Bonds. No provision of this Agreement shall in any way limit
8
the extent of Developer’s responsibility for payment of damages resulting from the operations of
Developer and its contractors; provided, however that Developer shall not be required to assume
the defense or indemnify and hold harmless the City, its officers, employees or agents, or the
Community Facilities District, its officers, employees or agents, as to actions, damages, claims,
losses or expenses resulting from negligence or willful misconduct of such person or entity.
SECTION 9. CONFLICT WITH OTHER AGREEMENTS
Except as specifically provided herein, nothing contained herein shall be construed as
releasing Developer from any condition of development or requirement imposed by any other
agreement with City. In the event of a conflicting provision, such other agreement shall prevail
unless such conflicting provision is specifically waived or modified in writing by City.
SECTION 10. TERMINATION
The provisions of this Agreement related to the financing of the Improvements shall
terminate and be of no further force or effect upon the earlier of (i) ten (10) years following the
issuance of building permits for all dwelling units expected to be built within the Community
FacilitiesDistrict, (ii) the funding of all Improvements pursuant to this Agreement, or (iii) December
31, 2029. Notwithstanding the foregoing, this Agreement shall not terminate pursuant to (iii) of
the previous sentence if, on December 31, 2029, all of the building permits within the Community
Facilities District have been pulled, construction within the Community Facilities District, as
contemplated by the parties hereto, is ongoing, and the Developer has not yet received a full
return of all Deposits or full reimbursement for the Miscellaneous Improvements from Special
Taxes. If the Community Facilities District is unable to sell the first series of Bonds after diligent,
commercially reasonable efforts to do so, this Agreement shall terminate and be of no further
force and effect.
SECTION 11. 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 (72) hours following deposit of the same in any United States Post Office in California,
registered or certified, postage prepaid. Any notice to the Community Facilities District or the City
shall be addressed to City of Lake Elsinore, 130 South Main Street, Lake Elsinore, CA 92530,
Attention: Assistant City Manager. Any notice to Developer shall be addressed to Pardee Homes,
1250 Corona Pointe Court, Suite 600, Corona, CA 92879, Attention: Jeff Chambers.
Each party may change its address for delivery of notice by delivering written notice of
such change of address to the other party hereto.
SECTION 12. GENERAL PROVISIONS
(a)Amendment. This Agreement may be amended at any time but only in
writing signed by each party hereto.
(b)Exhibits. All exhibits attached hereto are incorporated into this Agreement
by reference.
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(c)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.
(d)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 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.
(e)No Third-Party Beneficiaries. Except as provided explicitly in this
Agreement, no person or entity 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 City, the Community Facilities District, and Developer (and their respective successors
and assigns), any rights, remedies, obligations or liabilities under or by reason of this Agreement.
(f)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.
(g)Assignment. Developer 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 Developer, in a form reasonably acceptable to
Developer 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 Developer
pursuant to this Agreement and to be bound thereby.
(h)Governing Law. This Agreement and any dispute arising hereunder shall
be governed by and interpreted in accordance with the laws of the State of California.
(i)Construction of Agreement. This Agreement has been reviewed by legal
counsel for both the City and Developer and shall be deemed for all purposes to have been jointly
drafted by the City and Developer. No presumption or rule that ambiguities shall be construed
against the drafting party shall apply to the interpretation or enforcement of this Agreement.
(j)Attorneys’ Fees. In the event of any action or proceeding, including an
arbitration or a reference pursuant to Section 638, et seq., of the Code of Civil Procedure brought
by any Party against any other under this Agreement, the prevailing Party shall be entitled to
recover its actual attorneys’ fees and all fees, costs and expenses incurred for prosecution,
defense, consultation, or advice in such action or proceeding. In addition to the foregoing, the
prevailing Party shall be entitled to its actual attorneys’ fees and all fees, costs and expenses
incurred in any post-judgment proceedings to collect or enforce the judgment. This provision is
separate and several and shall survive the merger of this Agreement into any judgment on this
Agreement.
(k)Venue and Forum. Any action at law or in equity arising under this
Agreement brought by any Party hereto for the purpose of enforcing, construing or determining
the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the
County of Riverside, State of California, and the Parties waive all provisions of law providing for
the filing, removal or change of venue to any other Court.
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(l)Entire Agreement. Except as provided in an addendum, which if
applicable, will appear as Exhibit “E”hereto, this Agreement sets forth and contains the entire
understanding and agreement of the parties. There are no oral or written representations,
understandings, undertaking or agreements, which are not contained or expressly referred to
herein, and any such representations, understandings or agreements are superseded by this
Agreement. No evidence of any such representations, understandings or agreements shall be
admissible in any proceeding of any kind or nature relating to the terms or conditions of this
Agreement, its interpretation or breach.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first set forth above.
CITY OF LAKE ELSINORE, a political subdivision of
the State of California
By:
Assistant City Manager
ATTEST:
By:
Grant Yates, Acting City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY OF THE CITY OF LAKE ELSINORE
By:
David Mann, City Attorney
[SIGNATURES CONTINUED ON NEXT PAGE.]
S-2
[SIGNATURE PAGE CONTINUED]
PARDEE HOMES,
a California corporation
By:
Michael Taylor, Division President
LIST OF EXHIBITS
EXHIBIT A -DESCRIPTION OF DEVELOPER PROPERTY
EXHIBIT B -DESCRIPTION OF COST ESTIMATES
EXHIBIT C -NOTICE OF SPECIAL TAX (as prepared by Developer)
EXHIBIT D -DISBURSEMENT REQUEST FORM
EXHIBIT E -ADDENDUM
A-1
EXHIBIT A
DESCRIPTION OF DEVELOPER PROPERTY
LEGAL DESCRIPTION
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as
follows:
Assessor’s Parcel Nos. (as set forth in the County of Riverside Assessor’s Fiscal Year 2018-19
Roll):
379-050-034
379-050-006
B-1
EXHIBIT B
DESCRIPTION OF COST ESTIMATES
The Improvements consist of the City Improvements, as described below. Any other types
of Improvements will be described in an addendum to this Agreement appearing as Exhibit “E.”
I.CITY IMPROVEMENTS.
City facilities included in the City’s development fee programs used to finance expansion
projects, exclusive of in-tract facilities constructed by a property owner, but including and not
limited to the following.
Estimated Cost of the City Improvements
Description Estimated Cost
Traffic Facilities $156,317
Library Facilities 24,450
City Hall & Public Works Facilities 65,852
Community Center Facilities 44,336
Marina Facilities 63,407
Animal Shelter Facilities 28,362
Fire Facilities 99,756
Park Facilities 260,800
Storm Drainage Facilities 117,373
Total Fees $860,653
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EXHIBIT C
NOTICE OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT 2019-1
OF THE CITY OF LAKE ELSINORE (WESTLAKE)
COUNTY OF RIVERSIDE, CALIFORNIA
NOTICE OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (WESTLAKE)
OF THE CITY OF LAKE ELSINORE
COUNTY OF RIVERSIDE, CALIFORNIA
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
TRACT NO. 33267, LOT NO. ____
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO
PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE AND TO
OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY
OF THIS NOTICE.
(1) This property is subject to a special tax, which is in addition to the regular property taxes and any other
charges, fees, special taxes, and benefit assessments on the parcel. The Special Tax is imposed on this property
because it is a new development, and may not be imposed generally upon property outside of this new development.
If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to
provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS
TAX AND THE BENEFIT FROM THE FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT
IN DECIDING WHETHER TO BUY THIS PROPERTY.
(2) The property you are purchasing (the “Property”) is within the boundaries of Community Facilities
District No. 2019-1 (Westlake) of the City of Lake Elsinore (the “CFD”) and is subject to an annual Special Tax
pursuant to the Rate and Method of Apportionment (the “RMA”) for the CFD, which has been recorded against the
Property. The annual Maximum Special Tax which may be levied against the Property to pay for public facilities
during any given Fiscal Year will depend on whether the Property is classified as “Developed Property”, “Approved
Property” or “Undeveloped Property” during such Fiscal Year. Developed Property is defined as “all Assessor’s
Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1
st preceding
the Fiscal Year in which the Special Tax is being levied, and (ii) has an Assessor’s Parcel Number from the County
shown on an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot
included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1st preceding
the Fiscal Year in which the Special Tax is being levied.” Approved Property is defined in the RMA as “all Assessor’s
Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1
st preceding
the Fiscal Year in which the Special Tax is being levied, and (ii) has an assigned Assessor’s Parcel Number from the
County shown on an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual
lot included on the Final Map, and (iii) that have not been issued a building permit on or before May1st preceding the
Fiscal Year in which the Special Tax is being levied.” In each Fiscal Year prior to the first Fiscal Year in which the
Property is classified as Developed Property or Approved Property, the Property will be classified as Undeveloped
Property. Each of the capitalized terms not defined herein shall have the meanings set forth in the RMA.
Undeveloped Property
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If the Property is classified as Undeveloped Property in Fiscal Year 2019-2020, the annual Maximum Special
Tax authorized to be levied against the Property by the CFD to pay for public facilities during such Fiscal Year shall
be $31,245 per Acre. On each July 1, commencing July 1, 2020, the Assigned Special Tax Rate for Undeveloped
Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
Approved Property
If the Property is classified as Approved Property in Fiscal Year 2019-2020, the annual Maximum Special
Tax authorized to be levied against the Property by the CFD to pay for public facilities during such Fiscal Year shall
be $31,245 per Acre. On each July 1, commencing July 1, 2020, the Assigned Special Tax Rate for Approved Property
shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
Developed Property
If the Property is classified as Developed Property in Fiscal Year 2019-2020, annual Maximum Special Tax
authorized to be levied against the Property by the CFD to pay for public facilities during such Fiscal Year shall be
the greater of (i) the applicable Fiscal Year 2019-2020 Assigned Special Tax for Developed Property as set forth in
the Table 1, which is reproduced in pertinent parts on the following page, or (ii) the Fiscal Year 2019-2020 annual
Backup Special Tax applicable to the Property which the seller of the Property (“the Seller”) has calculated to be
$2,238.91 per unit.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
(FISCAL YEAR 2019-2020)
Land Use Category Building Square Footage Assigned Special Tax
Per Taxable Unit
1. Single Family Residential Property Less than 1,900 sq. ft.$1,904.00
2. Single Family Residential Property 1,900 sq. ft. to 2,100 sq. ft.$2,016.00
3. Single Family Residential Property Greater than 2,100 sq. ft.$2,096.00
In the event that it is necessary to levy the annual Backup Special Tax against the Property, the CFD
Administrator will independently calculate the annual Backup Special Tax pursuant to the methodology set forth in
Section D.1.(c) of the RMA for the purpose of levying the annual Backup Special Tax against the Property. It is
possible that the CFD Administrator’s calculation of the annual Backup Special Tax may be more or less than the
Seller’s calculation. On each July 1, commencing July 1, 2020, the Assigned Special Tax Rate for Developed Property
and the annual Backup Special Tax shall be increased by two percent (2.00%) of the amount in effect in the prior
Fiscal Year. For each Fiscal Year that any Bonds are outstanding, the Special Tax shall be levied on all Assessor’s
Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2059-2060 Fiscal Year, however,
the Special Tax 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 the CFD Bonds have been paid; (ii) all authorized facilities of the CFD
have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain
uncollected and (iv) all other obligations of the CFD have been satisfied.
(3) The authorized facilities which are being paid for by the special taxes and the money received from the
sale of Bonds which are being repaid by the special taxes, include, but are not limited to: (a) paying for the cost of
the construction, purchase, modification, expansion, rehabilitation and/or improvement of (1) drainage, library, park,
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 (2) 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 to finance the incidental expenses (the “Incidental Expenses”)
to be incurred, including: (b) (1) the cost of engineering, planning and designing the Facilities; (2) all costs, including
C-3
costs of formation of 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 (3) any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities; and (c) paying for the principal and interest and other
periodic costs on the bonds to be issued to finance the Facilities and Incidental Expenses. These facilities may not yet
have been all constructed or acquired and it is possible that some may never be constructed or acquired.
YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZED
CREATION OF THE CFD, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS
APPORTIONED AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE CITY OF LAKE
ELSINORE BY CALLING (951) 674-3124. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO
EXCEED THE REASONABLE COST OF PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY OF
THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITH
RESPECT TO THE ABOVE REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY
TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER
RECEIVING THIS NOTICE IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL
BY GIVING WRITTEN NOTICE OF TERMINATION TO THE OWNER, SUBDIVIDER, OR AGENT SELLING
THE PROPERTY.
Dated: _______________By: __________________________
Name: ________________________
Dated: _______________By: __________________________
Name: ________________________
D-1
EXHIBIT D
CFD NO. 2019-1 (WESTLAKE)
OF THE CITY OF LAKE ELSINORE
DISBURSEMENT REQUEST FORM
1.City of Lake Elsinore Community Facilities District No. 2019-1 (Westlake) of (the
“CFD”) is hereby requested to pay from the City Improvements Account, or any applicable account
or sub-account thereof, established by the CFD in connection with its [20__] Special Tax Bonds
(the “Bonds”) to City of Lake Elsinore (the “City”) as payee, the sum set forth below :
$_____________________ (the Requested Amount”)
2.The Requested Amount represents the payment of City Fees for ___ lot(s) within
the boundaries of the CFD (the “Property”).
(Tract No. __________, Lot Nos. ________________).
3.The Requested Amount is due and payable, has not formed the basis of any prior
request or disbursement.
4.The Requested Amount shall be payable to _______________ (the “Developer”),
pursuant to the wiring instructions attached hereto.
5.The Requested Amount is authorized and payable pursuant to the terms of the
certain Funding Agreement (the “Agreement”) between the City, acting for and on behalf of itself
and the CFD and Developer.
D-2
6.Capitalized undefined terms used herein shall have the meaning ascribed to them
in the Agreement.
Dated:DEVELOPER:
PARDEE HOMES, a California Corporation
By:
Name:
Title:
Dated:CITY OF LAKE ELSINORE
By:
Its:
[ATTACH WIRING INSTRUCTIONS]
E-1
EXHIBIT E
ADDENDUM
DESCRIPTION AND COST ESTIMATES OF THE MISCELLANEOUS IMPROVEMENTS
I.ELSINORE VALLEY MUNICIPAL WATER DISTRICT IMPROVEMENTS.
1.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.
2.The acquisition of an 8-inch water transmission line in Grand Avenue east of
Machado Street of approximately 1,650 linear feet.
Estimated Cost of the Water District Improvements
Description Estimated Cost
Water Capacity Fees (3/4” Meter)$ 2,207,020
Sewer Capacity Fees 1,271,400
Irrigation Capacity Fees 44,765
Water Facilities (Water Transmission Line) 765,129
Total Fees $4,288,314