HomeMy WebLinkAboutItem No. 07 Second Reading Ordinance Auth Tax Levy CFD 2021-1 (Tuscany Valley/CrestCity Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-059
Agenda Date: 2/8/2022 Status: Approval FinalVersion: 1
File Type: Council Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 7)
Second Reading of an Ordinance Authorizing the Levy of Special Taxes Within Improvement
Areas of CFD No. 2021-1 (Tuscany Valley/Crest)
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF CITY OF
LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2021-1 OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)
AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN IMPROVEMENT AREA NO. 1 AND
IMPROVEMENT AREA NO. 2 OF THE DISTRICT.
Page 1 City of Lake Elsinore Printed on 2/3/2022
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Candice Alvarez, MMC, City Clerk
Date: February 8, 2022
Subject: Second Reading of an Ordinance Authorizing the Levy of Special Taxes
Within Improvement Areas of CFD No. 2021-1 (Tuscany Valley/Crest)
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF
CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF LAKE ELSINORE
(TUSCANY VALLEY/CREST) AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN
IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 OF THE DISTRICT.
Background/Discussion
At its Regular meeting on January 25, 2022, the City Council introduced by title only and waived
further reading of the Ordinance.
Exhibit
Exhibit A – Ordinance
ORDINANCE NO. 2022-1466
AN ORDINANCE OF THE CITY COUNCIL OF CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF LAKE ELSINORE
(TUSCANY VALLEY/CREST) AUTHORIZING THE LEVY OF SPECIAL TAXES
WITHIN IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 OF
THE DISTRICT
Whereas, on March 23, 2021, the City Council of the City of Lake Elsinore (the “City
Council”) adopted Resolution No. 2021-25 (the “Resolution of Intention”) stating its intention to
form Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest)
(“Community Facilities District No. 2021-1” or the “District”) and designate Improvement Area No.
1 (“Improvement Area No. 1”) and Improvement Area No. 2 (“Improvement Area No. 2” and
together with Improvement Area No. 1, the “Improvement Areas”) therein 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, on March 23, 2021, the City Council also adopted Resolution No. 2021-26
stating its intention to incur bonded indebtedness within Improvement Area No. 1 in the amount
not to exceed $14,000,000 and within Improvement Area No. 2 in the amount not to exceed
$10,000,000 to finance the facilities and improvements identified in Resolution No. 2021-53
(collectively, the “Improvements”), and the incidental expenses to be incurred in financing the
Improvements and forming and administering the District (the “Incidental Expenses”); and
Whereas, a notice calling a public hearing on April 27, 2021, was published as required
by law relative to the intention of the City Council to establish Community Facilities District
No. 2021-1 and to incur bonded indebtedness within Community Facilities District No. 2021-1 for
the Improvement Areas; and
Whereas, on April 27, 2021, the City Council conducted a noticed public hearing to
determine whether it should proceed with the establishment of Community Facilities District
No. 2021-1, issue bonds for the benefit of Community Facilities District No. 2021-1 to pay for the
Improvements and Incidental Expenses and authorize the rate and method of apportionment of
the special taxes for Improvement Area No. 1 in the form attached as Attachment C to Resolution
No. 2021-25 (the “Improvement Area No. 1 Rate and Method”) and the rate and method of
apportionment of the special taxes for Improvement Area No. 2 in the form attached as
Attachment D to Resolution No. 2021-25 (the “Improvement Area No. 2 Rate and Method”) to be
levied within Improvement Area No. 1 and Improvement Area No. 2, respectively, for the purposes
described in the Resolution of Formation (defined below); and
Whereas, at the April 27, 2021, public hearing all persons desiring to be heard on all
matters pertaining to the establishment of Community Facilities District No. 2021-1, the levy of
the special taxes in accordance with the Improvement Area No. 1 Rate and Method and the
Improvement Area No. 2 Rate and Method and the issuance of bonds within Community Facilities
District No. 2021-1 for Improvement Area No. 1 and Improvement Area No. 2 to pay for the cost
of the proposed Improvements and Incidental Expenses were heard and a full and fair hearing
was held; and
Whereas, after the public hearing, on April 27, 2021, the City Council adopted Resolution
Nos. 2021-53 (the “Resolution of Formation”) and 2021-54 which formed the District, designated
Improvement Area No. 1 and Improvement Area No. 2 therein and called a special election on
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April 27, 2021, within each of Improvement Area No. 1 and Improvement Area No. 2 on
propositions relating to the levying of the special taxes, the incurring of bonded indebtedness and
the establishment of an appropriations limit for the District, which were approved by more than
two-thirds vote by the qualified electors on April 27, 2021; and
Whereas, pursuant to Resolution No. 2021-55, adopted on April 27, 2021, the City
Council, acting as the legislative body of Community Facilities District No. 2021-1, declared the
results of the special elections and directed the recording of notices of special tax liens within
Improvement Area No. 1 and Improvement Area No. 2 of Community Facilities District No. 2021-
1; and
Whereas, the District received a petition signed by SPT- AREP III Tuscany Associates,
LLC, a Delaware limited liability company (the “Owner”), which owns all of the land within
Community Facilities District No. 2021-1, the boundaries of which are described herein in the
Resolution of Intention (defined below), which petition meets the requirements of Section 53332
of the Act, requesting that the District initiate proceedings to approve the new rate and method of
apportionment for Improvement Area No. 1, attached to the Resolution of Intention (as defined
below) as Attachment “B” (the “First Amended and Restated Improvement Area No. 1 Rate and
Method”) and the new rate and method of apportionment for Improvement Area No. 2, attached
to the Resolution of Intention as Attachment “C” (the “First Amended and Restated Improvement
Area No. 2 Rate and Method” and together with the First Amended and Restated Improvement
Area No. 1 Rate and Method, the “Rates and Methods” and each a “Rate and Method”); and
Whereas, on December 14, 2021, the City Council, acting as the legislative body of
Community Facilities District No. 2021-1, adopted Resolution No. 2021-130 (the “Resolution of
Intention”), stating its intention to consider the approval of the Rates and Methods; and,
Whereas, a notice calling a public hearing on January 25, 2022, was published as
required by law relative to the intention of the City Council to consider the approval the Rates and
Methods; and,
Whereas, on January 25, 2022, this Council conducted a noticed public hearing to
determine whether it should proceed with the approval of the Rates and Methods; and,
Whereas, at the January 25, 2022, public hearing all persons desiring to be heard on all
matters pertaining to the approval of the Rates and Methods were heard and a full and fair hearing
was held; and
Whereas, on January 25, 2022, following the close of the public hearing, the City Council
adopted Resolution No. 2022-9 (the “Change Resolution”), which called a special election on
January 25, 2022 within Improvement Area No. 1 on the approval of the First Amended and
Restated Improvement Area No. 1 Rate and Method and within Improvement Area No. 2 on the
approval of the First Amended and Restated Improvement Area No. 2 Rate and Method; and
Whereas, on January 25, 2022, a special election was held within Improvement Area No.
1 at which the qualified electors approved by more than a two-thirds vote, Proposition A, approving
the First Amended and Restated Improvement Area No. 1 Rate and Method for Improvement
Area No. 1; and
Whereas, on January 25, 2022, a special election was held within Improvement Area No.
2 at which the qualified electors approved by more than a two-thirds vote, Proposition B, approving
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the First Amended and Restated Improvement Area No. 2 Rate and Method for Improvement
Area No. 2.
NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF LAKE ELSINORE
(TUSCANY VALLEY/CREST), ORDAINS AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the City Council authorizes and levies
special taxes within Improvement Area No. 1 in accordance with the First Amended and Restated
Improvement Area No. 1 Rate and Method and within Improvement Area No. 2 in accordance
with the First Amended and Restated Improvement Area No. 2 Rate and Method pursuant to
Sections 53328 and 53340 of the Act at the rates therein, which Rates and Methods are
incorporated by reference herein.
Section 3. The City Council is hereby further authorized to determine in each
subsequent fiscal year, by ordinance, or by resolution if permitted by then applicable law, on or
before August 10 of each year, or such later date as is permitted by law, the specific special tax
rate and amount to be levied on each parcel of land in an Improvement Area pursuant to the
applicable Rate and Method. The special tax rates to be levied pursuant to each Rate and Method
shall not exceed the applicable maximum rates set forth therein, but the special tax may be levied
at a lower rate.
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 the applicable Rate and Method. No other properties or entities are exempt from
the special tax unless the properties or entities are expressly exempted in the Resolution of
Formation and the Change Resolution, or in a resolution of consideration to levy a new special
tax or special taxes or to alter the rate or method of apportionment of an existing special tax as
provided in Section 53334 of the Act.
Section 5. All of the collections of the special tax pursuant to the Rates and Methods
shall be used as provided for in the Act, the Resolution of Formation and the Change Resolution.
The special tax shall be levied within an Improvement Area only so long as needed for the
purposes described in the Resolution of Formation and in the Change Resolution.
Section 6. The special tax levied pursuant to the Rates and Methods 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 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 issued by the District for an Improvement Area (including
any bonds issued to refund such 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 such Bonds (including any bonds issued to
refund such Bonds), order that the same be collected by an action brought in the superior court
Ord. No. 2022-1466
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to foreclose the lien of such special tax within the applicable Improvement Area, as authorized by
the Act.
Section 8. The Mayor shall sign this Ordinance and 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 a newspaper of general circulation published and circulated in the City
of Lake Elsinore.
Section 9. This Ordinance relating to the levy of the special tax within the District shall
take effect 30 days following its final passage, and the specific authorization for adoption is
pursuant to the provisions of Section 53340 of the Act. Upon effectiveness, this Ordinance shall
supersede Ordinance No. 2021-1456 previously approved by the City with respect to the levy of
special taxes of the District.
Section 10. 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 11. The City Clerk is hereby authorized to transmit a certified copy of this
ordinance to the Riverside County Assessor and Treasurer-Tax Collector, 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.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the
City of Lake Elsinore, California, on this 8th day of February 2022.
Timothy J. Sheridan
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
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Ord. No. 2022-1466
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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
Ordinance No. 2021-1465 was introduced by the City Council of the City of Lake Elsinore,
California, at its Regular meeting of January 25, 2022 and adopted at its Regular meeting of
February 8, 2022 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk