Loading...
HomeMy WebLinkAboutCC Reso No 2008-017RESOLUTION NO. zoos_i~ A RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS AND ESTABLISHING CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-6 (HOLIDAY INN EXPRESS) WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has heretofore adopted Resolution No. 2007-205 ("Resolution of Intention") stating its intention to form City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"); and WHEREAS, a copy of the Resolution of Intention is on file with the City Clerk and incorporated herein by reference; and WHEREAS, pursuant to the Act and in accordance with applicable laws, this Council held a public hearing on the formation of the CFD; and WHEREAS, at said hearing all persons not exempt from the Special Tax desiring to be heard on all matters pertaining to the formation of the CFD were heard and a full and fair hearing was held; and WHEREAS, at said hearing evidence was presented to the Council on said matters before it, and this Council at the conclusion of said hearing is fully advised in the premises. NOW, THEREFORE, the City Council of the City of Lake Elsinore, California, does hereby resolve as follows: Section 1. Pursuant to Section 53325.1(b) of the Government Code, the Council ., finds and determines that the proceedings prior hereto were valid and in conformity with the requirements of the Act. Section 2. A community facilities district to be designated "City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express)" is hereby established pursuant to the Act. Section 3. The description and map of the boundaries of the CFD on file in the City Clerk's office and as described in the Resolution of Intention and incorporated herein by reference, shall be the boundaries of the CFD. The map of the proposed boundaries of the CFD has been recorded in the Office of the County Recorder of 1 Riverside County, California (Book 72 of Maps of Assessment and Community Facilities District at page 73 and as Instrument No. 2008-0013363). Section 4. The facilities proposed to be financed by the CFD are public infrastructure facilities and other governmental facilities with an estimated useful life of five years or longer, which the CFD is authorized by law to construct, own or operate and that are necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within the proposed CFD, including, without limitations, grading, street improvements, domestic water, sanitary sewer and parks and recreation facilities, and related costs including design, inspections, professional fees, annexation fees, connection fees and acquisition costs (the "Facilities"). Such Facilities need not be physically located within the CFD. Section 5. Except where funds are otherwise available, it is the intention of the Council to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax") sufficient to pay for the costs of financing the acquisition and/or construction of the Facilities, including the principal of and interest on the bonds issued to finance the Facilities and other periodic costs, the establishment and replenishment of reserve funds, the remarketing, credit enhancement and liquidity fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, interest on bonds due and payable prior to the expiration of one year from the date of completion of facilities (but not to exceed two years), election costs and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel, financing consultants and printing costs, and all other administrative costs of the tax levy and bond issue. The Special Tax will be secured by recordation of a continuing lien against all real property in the CFD. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in Exhibit A attached hereto. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or partially, from the levy of the Special Tax, the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not delinquent or exempt in order to yield the required payments, subject to the maximum tax. Under no circumstances, however, shall the Special Tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD by more than 10 percent. Furthermore, the maximum special tax authorized to be levied against any parcel used for private residential purposes shall not be increased over time in excess of 2 percent per year. 2 Section 6. 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 real property in the CFD, and the lien with respect to the Special Tax shall continue in force and effect until the Special Tax obligation is prepaid or otherwise permanently satisfied and the lien canceled in accordance with law. Section 7. The proposed Special Tax to be levied in the CFD has not been precluded by protests by owners of one-half or more of the land in the territory included in the CFD pursuant to Government Code Section 53324. Section 8. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the Council hereby establishes the following accountability measures pertaining to the levy by the CFD of the Special Tax: (a) Such Special Tax shall be levied for the specificpurposes set forth herein. (b) The proceeds of the levy of such Special Tax shall be applied only to the specific purposes set forth herein. (c) The CFD shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited. (d) The City Manager, or his or her designee, acting for and on behalf of the CFD, shall annually file a report with the Council as required pursuant to Government Code Section 50075.3. Section 9. The City Manager, 130 S. Main Street, Lake Elsinore, California 92530, (951) 674-3124, or his designee, is designated to be responsible for preparing or causing to be prepared annually a current roll of Special Tax levy obligations by assessor's parcel number and for estimating future Special Tax levies pursuant to Section 53340.1 of the Government Code. Section 10. The voting procedure with respect to the imposition of the Special Tax shall be by hand delivered or mailed ballot election. Section 11. The City Clerk is directed to certify and attest to this Resolution and to take any and all necessary acts to call, hold, canvass and certify an election on the levy of the Special Tax. Section 12. This Resolution shall take effect from and after the date of its passage and adoption. 3 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 22nd ~y of January 2;OCy$. a MAYOR ATT ST: ~ ~ VIVIAN M. MUNSON CITY CLERK APPROVED AS TO FORM: Bf4RBARA ID LEIBOLD ~ CITY ATfORNEY 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the Ciry of Lake Elsinore, California, hereby certify that Resolution No. zoos-1~ was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 22nd day of January 2008, and that the same was adopted by the following vote: AYES: MAYOR HICKMAN, MAYOR PRO TEM KELLEY, COUNCILMEMAER AUCKLEY, COUNCILMEMBER MAGEE, COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NorrE ABSTAIN: NoNE ~. ~ VIVIAN M. MUNSON CITY CLERK EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2007-6 OF THE CITY OF LAKE ELSINORE (HOLIDAY INN EXPRESS) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes of the City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) ("CFD No. 2007-6"). The Special Tax shall be levied on and collected each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within CFD No. 2007-6 unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION 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 similar instrument. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "AcY' means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "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 1 St preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before May 1 St preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcei" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number valid at the time the Special Tax is enrolled for the Fiscal Year for which the Special Tax is being levied. "Assessor's Parcel Map" rneans 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. City of Lake Elsinore November 27, 2007 Communiry Facilities District No. 2007-6 (Holiday Inn Express) Page 1 "Backup Special Tax" means the Special Tax of that name described in Section E below "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes for Facilities within CFD No. 2007-6 have been pledged. "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, ordesignee thereof, responsible for (i) determining the Special Tax Requirement for Facilities, (ii) determining the Special Tax Requirement for Services, as defined in Section L, as applicable, and (iii) providing forthe levy and collection of the Special Taxes. "CFD No. 2007-6" means Community Facilities District No. 2007-6 (Holiday Inn Express) 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. 2007-6, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property, not classified as Approved Property, Undeveloped Property, Provisional Undeveloped Propertythat are not Exempt Property pursuant to the provisions of Section I. below :(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) a building permit for new construction has been issued on or before May 15t 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 pursuant to Section I, below. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. Ciry of Lake Elsinore November 27, 2007 Communiry FacIlities District No. 2007-6 (Holiday Inn Express) Page 2 "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2007-6 in any Fiscal Yearon anyAssessor's Parcel. "Proportionately" means that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special Tax under step four of Section F, "Proportionately" in step four means that the quotient of (a) actual Special Tax less the Assigned Special Tax divided by (b) the Backup Special Tax less the Assigned Special Tax, is equal for all applicable Assessor's Parcels. "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 I, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section I. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2007-6 pursuant to the Act. "Special Tax RequiremenY' means $5,000 for FY 2008-09, and on each July 1, commencing July 1, 2009, shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. "Taxabie Property" means all Assessor's Parcels within the boundaries of CFD No. 2007- 6, which have are not Exempt Property. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year2008-09, each Assessor's Parcel within CFD No. 2007-6 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. SECTION C MAXIMUM SPECIAL TAX FOR FACILITIES 1. Developed Propertv The Maximum Special Tax for each Assessor's Parcel of Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. City of Lake Elsinore November 27, 2007 Communiry Facilities District No. 2007-6 (Holiday Inn Express) Page 3 2. Approved Propertv, Undeveloped Propertv and Provisional Undeveloped Propertv The Maximum Special Tax for each Assessor's Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the applicable Assigned Special Tax. SECTION D ASSIGNED SPECIAL TAX FOR FACILITIES Developed Propertv Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2008-09 shall be $3,401.36 per Acre. 2. Approved Propertv, Undeveloped Propertv and Provisional Undeveloped Propertv Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Special Tax. The Assigned Special Tax rate for an Assessor's Parcel classified as Approved Property, Undeveloped Propertyand Provisional Undeveloped Propertyfor Fiscal Year 2008-09 shall be $3,401.46 per Acre. 3. Increase in the Assiqned Special Tax On each July 1, commencing July 1, 2009, the Assigned Special Tax rate for Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP SPECIAL TAX The Backup Special Tax shall be calculated annually based on the annual Special Tax Requirement. The Special Tax Requirement shall be apportioned to each Assessor's Parcel based on Acreage. City of Lake Elsinore November 27, 2007 Communiry Facilities District No. 2007-6 (Holiday Inn Express) Page 4 SECTION F METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2008-09 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 on each Assessor's Parcel of Developed Property at up to 100°/a of the Maximum Special Tax rates for Developed Property. If the amount of Special Taxes generated is greater than the Special Tax Requirement, the Special Taxes for each Assessor's Parcel shall be reduced Proportionately until the total Special Taxes equal 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 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 on each Assessor's Parcel of Developed Property whose 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. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax for Facilities 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. SECTION G PREPAYMENT OF SPECIAL TAX Prepayment of the special tax shall not be permitted. Ciry of Lake Elsinore November 27, 2007 Communiry Facilities District No. 2007-6 (Holiday Inn Express) Page 5 SECTION H TERMINATION OF SPECIAL TAX The Special Tax shall cease not later than the 2047-2048 Fiscal Year, however, the Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on Bonds for which the Special Tax has been pledged have been paid; (ii) all authorized facilities for CFD No. 2007-6 have been acquired, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2007-6 have been satisfied. SECTION I EXEMPTIONS The City shall classify as Exempt Property, in orderof priority, (i) Assessor's Parcels which are owned by, irrevocably offered fordedication, encumbered by or restricted in use bythe State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are used as places of vvorship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessors 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 1.47 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 aIl Taxable Property to less than 1.47 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 1.47 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. SECTION J MANNER OF COLLECTION OF SPECIAL TAX 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. 2007-6 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. City of L.ake $Isinore November 27, 2007 Community Facilities District No. 2007-6 (Holiday Inn Express) Page 6 SECTION K APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not laterthan twelve months after having paid the first installment of the Special Tax that is disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the CFD Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). The City Council may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration and levy of the Special Taxes and any landowner or residenYs appeals. Any decision of the City Council shall be final and binding as to all persons. City of Lake Elsinore November 27, 2007 Community Facilities District No. 2007-6 (Holiday Inn Express) Page 7