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HomeMy WebLinkAbout2021-023 CFD 2015-1 Safety Services Annexation No. 9 Intention RESOLUTION NO. 2021-23 ARESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF LAKE ELSINORE (SAFETY SERVICES),DECLARING ITS INTENTION TO CONSIDER ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF LAKE ELSINORE (SAFETY SERVICES) Whereas, on March 8, 2016, the City Council (the “City Council”) of the City of Lake Elsinore adopted Resolution No. 2016-022 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2015-1 of the City of Lake Elsinore (Safety Services) (“Community Facilities District No. 2015-1” 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 Title5 of the Government Code of the State of California (the “Act”); and, Whereas, after a duly noticed public hearing, the City Council adopted Resolution No. 2016-035 (the “Resolution of Formation”) establishing Community Facilities District No. 2015-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “A” attached to the Resolution of Intention (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2015-1; and, Whereas, the City Council has received a signed petition from SPT-AREP III Tuscany Associates,LLC, aDelaware limited liability company(the “Owner”), requesting (i) the annexation of the territory within the boundaries set forth in Attachment “A,” hereto (the “Annexation Territory”) to the District; (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Attachment “B,” hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method toreflect prior annexations to the District and theannexation described herein and (iii) the waiving certain election requirements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING HAS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) OF THE CITY OF LAKE ELSINORE, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: .Each of the above recitals is true and correct. Section 1 Section 2.The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory. Section 3.The map showing the original boundaries of the District designated as “Map of Proposed Boundaries of Community Facilities District No. 2015-1 of the City of Lake Elsinore (Safety Services),” 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 City of 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. 79 Page No. 45-46, on March 14, 2016 as Instrument No. 2016-00978338. CC Res. 2021-23 Page 2of4 The boundaries of the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown on the annexation map set forth in Attachment “A” hereto (the “Boundary Map”). The City Clerk is hereby directed to sign the Boundary Map and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California. Section 4.The Services (as defined in the Rate and Method) proposed to be provided for the benefit of the Annexation Territory are public services as defined in the Act, and this City Council finds and determines that the Services to be financed, upon annexation to the District, will be in addition to those provided in the territory the Annexation Territory, and do not supplant services already available within the Annexation Territory. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the Annexation Territory, to understand what the funds of the District may be used to finance. The Administrative Expenses (as defined in the Rate and Method) expected to be incurred within the Annexation Territory are set forth in the Rate and Method. The amount and termof the special tax to be levied by the District within the Annexation Territory and the Services to be provided by the District within the Annexation Territory shall be identical to those within the original boundaries of the District. Section 5.Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the Annexation Territory, sufficient to pay for the Services and the Administrative Expenses. The rate and method of apportionment and manner of collection of the special taxes set forth in Attachment“A” allows each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel. The special taxes for Services may be increased based on the consumer price index by an amount not to exceed four percent (4%) per year to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Attachment “B” hereto. The special taxes are based on the expected demand that each parcel of real property within the Annexation Territory will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police, fire, rescue and paramedic services in the City as a result of the developmentof the land proposed for annexation to the District. The City Council hereby determines the rate and method of apportionment of the special taxes set forth in Attachment “B” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section53325.3 of the Act and such special taxes are not on or based upon the value or ownership of real property. Section 6.A public hearing (the “Hearing”) on the annexation of the Annexation Territory to the District, the levy of the special tax within the Annexation Territory in accordance with the Rate and Method to finance the Services shall be held at 7:00p.m., or as soon thereafter as practicable, on April 27, 2021, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Notwithstanding the foregoing, consistent with the Governor of the State of California’s Executive Order N-29-20 or other applicable directives, the Hearing may be held remotely with public participation via methods to be set forth in the City Council’s agenda. Should the City Council determine to annex the Annexation Territory to the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in CC Res. 2021-23 Page 3of4 Government Code Section53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the Annexation Territory at the close of the Hearing, or the authorized representative thereof, having onevote for each acre or portion thereof owned within the Annexation Territory. Ballots for the special election may be distributed by mail or by personal service. Section 7.The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act. Section 8.At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Annexation Territory, may appear and be heard. Section 9.The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section6061 of the Government Code in a newspaper of general circulation published in the area of the Annexation Territory. The City Clerk is further directed to mail a copy of the Notice to each landowner within the Annexation Territory at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. Section 10.This Resolution shall be effective upon its adoption. Passed and Adoptedat a regular meeting of the City Council of the City of Lake Elsinore, rd California,this 23day of March 2021. Robert E. Magee Mayor Attest: Candice Alvarez, MMC City Clerk CC Res. 2021-23 Page 4of4 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss. CITY OF LAKE ELSINORE) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2021-24was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of March 23, 2021 and that the same was adopted by the following vote: AYES:Council Members Tisdale, Johnson, and Manos; Mayor Pro Tem Sheridan; and Mayor Magee NOES:None ABSENT:None ABSTAIN:None Candice Alvarez, MMC City Clerk 1 - A ATTACHMENT “A” BOUNDARY MAP OF ANNEXATION TERRITORY 0035 - 23 - 9118v3/022042 - 1460 - Res. 2021 CC 4815 CCRes. 2021-23 ATTACHMENT “B” RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) OF THE CITY OF LAKE ELSINORE A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) inCommunity Facilities District No. 2015-1 (Safety Services) (the “CFD No. 2015- 1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2016, in an amount determined by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2015-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2015-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein. A.DEFINITIONS “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2015-1 including, but not limited to:the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2015-1, or any designee thereof associated with fulfilling the CFD No. 2015-1 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2015-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2015-1 for any other administrative purposes of CFD No. 2015-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator”means the City Manager of the City of Lake Elsinore, or his or her designee. “Assessor’s Parcel”means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “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 the identification number assignedto a parcel by the County Assessor of the County of Riverside. “CFD” or“CFD No. 2015-1”means the City of Lake Elsinore Community Facilities District No. 2015-1 (Safety Services). “City”means the City of Lake Elsinore. “County” meansthe County of Riverside. “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. B-1 4815-1460-9118v3/022042-0035 CCRes. 2021-23 “Developed Multi-Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Developed Single Family Property” means any residential property other than a Developed Multi-Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section E. st “Fiscal Year” means the period from and including July 1of any year to and including the th following June 30. “Maximum Special Tax”means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year. “Future Annexation Area”means any area included inside the boundaries of the proposed boundary map included in Appendix C. “Proportionately”means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “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 Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2015-1 as set forth in Appendix B. “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property. "Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2015-1in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection and suppression services, (iii) paramedic services, (iv) fund an operating reserve for thecosts of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property"means all Assessor’s Parcels within CFD No. 2015-1, which are not Exempt Property. B-2 4815-1460-9118v3/022042-0035 CCRes. 2021-23 “Taxable Unit”means a Residential Unit. B.RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2016, the Council shall determine the Special Tax Requirement and shall levy theSpecial Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Single Family Property or a Developed Multi- Family Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. The Maximum Special Tax for Fiscal Year 2016-2017 for a Developed Single Family Property and aDeveloped Multi-Family Property are shown below in Table 1. TABLE 1 MAXIMUM SPECIAL TAX RATES FISCAL YEAR 2016-2017 TaxableMaximum DescriptionUnitSpecial Tax Developed Single Family PropertyRU$685 Developed Multi-Family PropertyRU$419 Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2017 the Maximum Special Tax for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles -Riverside -Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater. No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2015-1 is an ExemptProperty. C.FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2015-1 from time to time. Pursuant to California Government Code section 53339 et seq., the rate and method adopted for the annexed property shall reflect the Maximum Special Tax rateat the then current year’s Maximum Special Tax rate as set forth in Appendix A. D.TERM OF SPECIAL TAX For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2015-1. B-3 4815-1460-9118v3/022042-0035 CCRes. 2021-23 E.EXEMPTIONS The City shall classify as Exempt Property within CFD No. 2015-1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Developed Single Family Property or a Developed Multi- Family Property. F.APPEALS Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. TheAdministrator 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 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, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). G.MANNER OF COLLECTION The Maximum Special Taxes levied in each Fiscal Year 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 delinquencyas is provided for ad valorem taxes. However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code. B-4 4815-1460-9118v3/022042-0035 CCRes. 2021-23 APPENDIX A CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) ANNEXATION SUMMARY Safety Services-It is estimated that the cost of providing police, fire protection, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2015-1 (Safety Services) will be as follows for the Fiscal Year 2016-2017: $685 per residential unit for Developed Single Family Residential Property $419 per residential unit for Developed Multi-Family Residential Property Annual Escalation-On each July 1, commencing on July 1, 2017 the Maximum Special Tax for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles -Riverside -Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater. No. of Maximum TaxabSpecial AnneFiscalDevelopmenLand UseTax at le x. #YearTractt NameUnitsCategory Annex. Subdivider Terracina Developed Origin2016-Investors, LLC & 36557Terracina452Single Family $685.00 al17C/O Spectrum Property Communities Developed Origin2016- 36682Senterra74Single Family $685.00Pardee Homes al17 Property Developed 2016-Makenna 13348681Single Family $685.00SAM-McKenna 17Court Property 28214Skypointe at Developed 2016- 2-6,-7,Alberhill 82Single Family $685.00KB Homes 17 -8RanchProperty Developed 2018-Running SAM-Running 33195796Single Family $740.90 19DeerDeer Property 37381Developed 2018-Wasson 4&272Single Family $740.90Ava Karras 19Canyon II 37382Property Developed 2019- 533267Westlake163Single Family $770.53Pardee Homes 20 Property Developed 2019-Nichols SingleNichols RD 637305168$770.53 20RanchFamily Partners, LLC Property B-5 4815-1460-9118v3/022042-0035 CCRes. 2021-23 Developed Three Strands 30698 2020-SingleProperties & 7&Rosetta Hills178$801.35 21Family Spectrum 32129 PropertyCommunities Developed 2021-Single 833370Tessera90$833.41JLJ, LP 22Family Property Developed 33725Tuscany SPT-AREP III 2021-Single 9&Valley/335$833.41Tuscany 22Family 25475CrestAssociates Property B-6 4815-1460-9118v3/022042-0035 CCRes. 2021-23 APPENDIX B CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2015-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “AdministrativeExpenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator. The above services shall be limited to those provided within the boundaries of CFD No. 2015-1 and the Future Annexation Area of CFD No. 2015-1 or for the benefit of the properties within the boundaries of CFD No. 2015-1 and the Future Annexation Area of CFD No. 2015-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2015-1 before CFD No. 2015-1 was created. B-7 4815-1460-9118v3/022042-0035 CCRes. 2021-23 APPENDIX C CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) PROPOSED BOUNDARIES AND BOUNDARIES -FUTURE ANNEXATION AREA B-8 4815-1460-9118v3/022042-0035 CCRes. 2021-23 B-9 4815-1460-9118v3/022042-0035