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HomeMy WebLinkAboutItem No. 14 - PH Election Change Proceedings CFD No. 2015-4 (Terracina)City Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 22-101 Agenda Date: 3/8/2022 Status: Approval FinalVersion: 1 File Type: Council Public Hearing In Control: City Council / Successor Agency Agenda Number: 14) Public Hearing and Election for Change Proceedings for Community Facilities District No. 2015-4 (Terracina) 1.Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), APPROVING A FIRST AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT AND CALLING AN ELECTION THEREIN; 2.Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), CERTIFYING THE RESULTS OF THE MARCH 8, 2022 SPECIAL ELECTION; and 3.Introduce by title only and waive further reading of 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. 2015-4 (TERRACINA) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN SUCH DISTRICT. Page 1 City of Lake Elsinore Printed on 3/4/2022 4883-8701-6977v2/022042-0011 net REPORT TO CITY COUNCIL TO: Honorable Mayor and Members of the City Council FROM: Jason Simpson, City Manager DATE: March 8, 2022 SUBJECT: Change Proceedings for Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) Recommendations 1) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), APPROVING AN AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR THE DISTRICT AND CALLING ELECTIONS THEREIN. 2) Adopt A 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. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), CERTIFYING THE RESULTS OF THE MARCH 8, 2022 SPECIAL ELECTION. 3) Introduce 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. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA) AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN THE DISTRICT. Background The City of Lake Elsinore (the “City”) formed Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”) in 2016 according to the Mello-Roos Community Facilities District Act of 1982. The District is approximately 151 acres planned for 401 homes. The property is located in the development known as Terracina and is located north of Lakeshore Drive and east of Terra Cotta Road, as shown in the attached Project Map. KB HOME Coastal Inc., a California Corporation is the current landowner within the District (the “Developer”). Development within the District has not yet commenced. Due to revisions in the proposed product mix within the District since it was formed in 2016, the Developer has requested that the District undertake proceedings to amend the Rate and Method of Apportionment of Special Taxes with the First Amended and Restated Rate and Method of Apportionment attached to Resolution No. 2022-8 adopted by the City Council on January 25, 2022 (the “Amended RMA”). Change Proceedings CFD 2015-4 March 8, 2022 Page 2 4883-8701-6977v2/022042-0011 The current annual Special Tax rates to finance facilities for a single-family home within the District range from $1,866 to $3,487. If the Amended RMA is approved, the annual Special Tax rates for a single-family home within the District will range from $2,600 to $3,300. The existing rate and method of apportionment of special tax for the District include a special tax to fund maintenance services, which is referred to therein as the Special Tax B. The current annual Special Tax B rate is $322 per single-family home. If the First Amended RMA is approved, the annual Special Tax B rate will be $675 per single-family home. The existing rate and method of apportionment of special tax for the District also include a special tax to fund certain maintenance services which are only levied in the event the property owner association for the project does not provide such services (referred to therein as the Special Tax C (Contingent). The current annual Special Tax C (Contingent) rate is $299 per single-family home. If the First Amended RMA is approved, the annual Special Tax C (Contingent) rate will be $74 per single-family home. On January 25, 2022, the City Council adopted Resolution No. 2022-8 stating its intention to consider approval of the Amended RMA and called for a public hearing to be held on the approval of such matters. Documents to be Approved Following the close of the public hearing, the City Council will be asked to adopt a resolution approving each First Amended RMA which approves the levy of the special taxes in accordance with the applicable First Amended RMA. The City has received a certificate from the Registrar of Voters certifying that there are less than 12 Registered Voters residing within the District during the 90 days before the time of the public hearing. Accordingly, the election to be held will be a landowner election pursuant to which the landowners are the sole eligible voters within the District. The Developer is the sole landowner within the District and has executed consent and waiver to certain election law requirements, which allows the election to be conducted immediately following the public hearing. Following the holding of the election, the City Council will be asked to certify the election results and assuming approval of the Amended RMA, introduce the Ordinance authorizing the levy of the special tax in accordance with the Amended RMA. Fiscal Impact The Developer has made a deposit to pay for the costs of the change proceedings described above. The District will annually levy special taxes on all of the taxable property within the District in accordance with the Amended RMA to pay for the costs of facilities, debt service on bonds, the services, and administration of the District. Any bonds issued by the District are not obligations of the City and will be secured solely by the Special Taxes levied in the District. Attachments: A - Resolution Approving First Amended Rate and Method B - Resolution Certifying Election Results C - Ordinance Levying Special Taxes D - Landowner Waiver E - Certificate of Registrar of Voters F - Project Map RESOLUTION NO. 2022-______ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), APPROVING A FIRST AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT AND CALLING AN ELECTION THEREIN Whereas, on March 8, 2016, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2016-023 stating its intention to form Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (“Community Facilities District No. 2015-4” 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, on March 8, 2016, the City Council also adopted Resolution No. 2016-024 stating its intention to incur bonded indebtedness within the District in the amount not to exceed $20,000,000 to finance the facilities and improvements identified in Resolution No. 2016-023 (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 12, 2016, was published as required by law relative to the intention of the City Council to establish Community Facilities District No. 2015-4 and to incur bonded indebtedness within Community Facilities District No. 2015-4; and Whereas, on April 12, 2016, the City Council conducted a noticed public hearing to determine whether it should proceed with the establishment of Community Facilities District No. 2015-4, issue bonds for the benefit of Community Facilities District No. 2015-4 to pay for the Improvements and Incidental Expenses, authorize the levy of special taxes to pay for certain services set forth in the Resolution of Formation (as defined below) (the “Services”) and to authorize the rate and method of apportionment of the special taxes in the form attached as Attachment “A” to the Resolution of Formation (the “Rate and Method”) to be levied within Community Facilities District No. 2015-4 for the purposes described in the Resolution of Formation; and Whereas, at the April 12, 2016, public hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2015-4, the levy of the special taxes in accordance with the Rate and Method and the issuance of bonds within Community Facilities District No. 2015-4 to pay for the cost of the proposed Improvements and Incidental Expenses, and the levy of special taxes to pay for the Services, were heard and a full and fair hearing was held; and Whereas, after the public hearing, on April 12, 2016, the City Council adopted Resolution Nos. 2016-037 (the “Resolution of Formation”) and 2016-038 which formed the District and called a special election on April 12, 2016, within the District 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 12, 2016; and Whereas, pursuant to Resolution No. 2016-039, adopted on April 12, 2016, the City Council, acting as the legislative body of Community Facilities District No. 2015-4, declared the results of the special election and directed the recording of a notice of special tax lien within Community Facilities District No. 2015-4; and Whereas, the District received a petition signed by KB HOME Coastal Inc., a California Corporation (the “Owner”), which owns all of the land within Community Facilities District No. 2015-4, 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 Community Facilities District No. 2015-4, attached to the Resolution of Intention (as defined below) as Attachment “B” (the “First Amended and Restated Rate and Method”); and Whereas, on January 25, 2022, the City Council, acting as the legislative body of Community Facilities District No. 2015-4, adopted Resolution No. 2022-8 (the “Resolution of Intention”), stating its intention to consider the approval of the First Amended and Restated Rate and Method; and, Whereas, a notice calling a public hearing on March 8, 2022, was published as required by law relative to the intention of the City Council to consider the approval the First Amended and Restated Rate and Method; and, Whereas, on March 8, 2022, this Council conducted a noticed public hearing to determine whether it should proceed with the approval of the First Amended and Restated Rate and Method; and, Whereas, at the March 8, 2022, public hearing all persons desiring to be heard on all matters pertaining to the approval of the First Amended and Restated Rate and Method were heard and a full and fair hearing was held; and, Whereas, the City Council has determined that there have been fewer than twelve registered voters residing in the District for the period of 90 days prior to March 8, 2022, and that the qualified electors in the District are the landowners within the District; and, Whereas, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the approval of the First Amended and Restated Rate and Method as described herein. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Each of the above recitals is true and correct. Section 2. The City Council hereby adopts the First Amended and Restated Rate and Method as the rate and method for Community Facilities District No. 2015-4. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within Community Facilities District No. 2015-4, to levy the proposed special taxes at the rates for Community Facilities District No. 2015-4 set forth in the First Amended and Restated Rate and Method on all non-exempt property within Community Facilities District No. 2015-4 sufficient to pay for (i) the Improvements and the Services, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued by the District to finance the Improvements and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), administrative expenses and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The First Amended and Restated Rate and Method is described in detail in Attachment “B” to the Resolution of Intention which is incorporated herein by this reference, and the City Council hereby finds that the First Amended and Restated 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. The Special Tax A, Special Tax B and Special Tax C (Contingent) (each as defined in the First Amended and Restated Rate and Method) shall be levied on each assessor’s parcel in accordance with the First Amended and Restated Rate and Method provided, however, that the Special Tax A shall not be levied after Fiscal Year 2063-64. Section 3. Upon recordation of a first amended and restated 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 taxes 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 4. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Improvements, as described in the Resolution of Formation, financing the Incidental Expenses, and carrying out the powers and purposes of Community Facilities District No. 2015-4, 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 (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), administrative expenses and other expenses of the type authorized by Section 53345.3 of the Act. Section 5. Written protests against the approval of the First Amended and Restated Rate and Method 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 or more of the area of land within the boundaries of the District. The City Council hereby finds that the approval of the First Amended and Restated Rate and Method with respect to Community Facilities District No. 2015-4 has not been precluded by a majority protest pursuant to Section 53337 of the Act. Section 6. An election is hereby called for Community Facilities District No. 2015-4 on the proposition of approving the First Amended and Restated Rate and Method. The proposition to be placed on the ballot for the District is attached hereto as Attachment “A.” Following certification of a landowner vote in favor of the adoption of the First Amended and Restated Rate and Method, the District shall record a first amended and restated notice of special tax lien for the District. Section 7. The date of the foregoing election for the District shall be March 8, 2022, or such later date as is consented to by the City Clerk and the landowners within the District. The City Clerk shall conduct the election. Except as otherwise provided by the Act, the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable. Section 8. It is hereby found that there are not more than twelve registered voters within the territory of the District, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within the District. Section 9. This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 8th day of March, 2022. _____________________________ Timothy J. Sheridan, Mayor Attest: _____________________________ Candice Alvarez, MMC City Clerk 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. 2022-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of March 8, 2022 and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ Candice Alvarez, MMC City Clerk ATTACHMENT “A” SAMPLE BALLOT COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF CITY OF LAKE ELSINORE (TERRACINA) SPECIAL ELECTION March 8, 2022 This ballot represents ___ votes. To vote, write or stamp a cross (“+” or “X”) 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 of City of Lake Elsinore and obtain another. PROPOSITION A: Shall special taxes with a First Amended and Restated Rate and Method of apportionment (the “First Amended and Restated Rate and Method”) as provided in Attachment “B” to Resolution No. 2022- 8 adopted by the City Council of the City of Lake Elsinore on January 25, 2022 (the “Resolution of Intention”), acting as the legislative body of Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”), be levied to pay for the Improvements, Services, Incidental Expenses (as such terms are defined in the Resolution of Intention) and other purposes described in Resolution No. 2016-037, including the payment of the principal of and interest on bonds issued to finance the Improvements and Incidental Expenses for the District? YES______ NO_______ RESOLUTION NO. 2022- ________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), CERTIFYING THE RESULTS OF THE MARCH 8, 2022, SPECIAL ELECTION Whereas, the City Council (the “Council”) of City of Lake Elsinore (the “City”), acting as the legislative body of Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (“CFD No. 2015-4” or the “District”) called and duly held an election on March 8, 2022, within the boundaries of the District pursuant to Resolution No._____ for the purpose of presenting to the qualified electors within the District the proposition attached hereto as Attachment “A”; and, Whereas, there has been presented to the Council a certificate of 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, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA), DOES HEREBY RESOLVE, DETERMINE AND ORDER 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. Proposition A presented to the qualified electors of the District on March 8, 2022, was approved by more than two-thirds of the votes cast at the election held for the District, and Proposition A has carried. The Council is hereby authorized to levy on the land within the District the special taxes described in Proposition A for the purposes described therein and to take the necessary steps to levy the special taxes authorized by Proposition A. Section 3. The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a first amended and restated notice of special tax lien which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5. Section 4. This Resolution shall take effect immediately upon its adoption. Passed and Adopted on this 8th day of March, 2022. _____________________________ Timothy J. Sheridan, Mayor Attest: _____________________________ Candice Alvarez, MMC City Clerk 2 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. 2022-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of March 8, 2022 and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ Candice Alvarez, MMC City Clerk ATTACHMENT A SAMPLE BALLOT COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF CITY OF LAKE ELSINORE (TERRACINA) SPECIAL ELECTION March 8, 2022 This ballot represents ___ votes. To vote, write or stamp a cross (“+” or “X”) 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 of City of Lake Elsinore and obtain another. PROPOSITION A: Shall special taxes with a First Amended and Restated Rate and Method of apportionment (the “First Amended and Restated Rate and Method”) as provided in Attachment “B” to Resolution No. 2022- 8 adopted by the City Council of the City of Lake Elsinore on January 25, 2022 (the “Resolution of Intention”), acting as the legislative body of Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”), be levied to pay for the Improvements, Services, Incidental Expenses (as such terms are defined in the Resolution of Intention) and other purposes described in Resolution No. 2016-037, including the payment of the principal of and interest on bonds issued to finance the Improvements and Incidental Expenses for the District? YES______ NO_______ ATTACHMENT B CERTIFICATE OF CITY CLERK AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, do hereby certify that I have examined the returns of the Special Tax Election for City of Lake Elsinore Community Facilities District No. 2015-4 (Terracina). The election was held in the Lake Elsinore Cultural Center at 183 North Main Street, Lake Elsinore, California, on March 8, 2022. 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 Proposition A are as follows: PROPOSITION A YES: NO: TOTAL: Dated this 8th day of March, 2022. __________________________ Candice Alvarez, MMC, City Clerk City of Lake Elsinore ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN SUCH DISTRICT Whereas, on March 8, 2016, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2016-023 stating its intention to form Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (“Community Facilities District No. 2015-4” 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, on March 8, 2016, the City Council also adopted Resolution No. 2016-024 stating its intention to incur bonded indebtedness within the District in the amount not to exceed $20,000,000 to finance the facilities and improvements identified in Resolution No. 2016-023 (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 12, 2016, was published as required by law relative to the intention of the City Council to establish Community Facilities District No. 2015-4 and to incur bonded indebtedness within Community Facilities District No. 2015-4; and Whereas, on April 12, 2016, the City Council conducted a noticed public hearing to determine whether it should proceed with the establishment of Community Facilities District No. 2015-4, issue bonds for the benefit of Community Facilities District No. 2015-4 to pay for the Improvements and Incidental Expenses, authorize the levy of special taxes to pay for certain services set forth in the Resolution of Formation (as defined below) (the “Services”) and to authorize the rate and method of apportionment of the special taxes in the form attached as Attachment “A” to the Resolution of Formation (the “Rate and Method”) to be levied within Community Facilities District No. 2015-4 for the purposes described in the Resolution of Formation; and Whereas, at the April 12, 2016, public hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2015-4, the levy of the special taxes in accordance with the Rate and Method and the issuance of bonds within Community Facilities District No. 2015-4 to pay for the cost of the proposed Improvements and Incidental Expenses, and the levy of special taxes to pay for the Services, were heard and a full and fair hearing was held; and Whereas, after the public hearing, on April 12, 2016, the City Council adopted Resolution Nos. 2016-037 (the “Resolution of Formation”) and 2016-038 which formed the District and called a special election on April 12, 2016, within the District 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 12, 2016; and 2 Whereas, pursuant to Resolution No. 2016-039, adopted on April 12, 2016, the City Council, acting as the legislative body of Community Facilities District No. 2015-4, declared the results of the special election and directed the recording of a notice of special tax lien within Community Facilities District No. 2015-4; and Whereas, the District received a petition signed by KB HOME Coastal Inc., a California Corporation (the “Owner”), which owns all of the land within Community Facilities District No. 2015-4, 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 Community Facilities District No. 2015-4, attached to the Resolution of Intention (as defined below) as Attachment “B” (the “First Amended and Restated Rate and Method”); and Whereas, on January 25, 2022, the City Council, acting as the legislative body of Community Facilities District No. 2015-4, adopted Resolution No. 2022-8 (the “Resolution of Intention”), stating its intention to consider the approval of the First Amended and Restated Rate and Method; and Whereas, a notice calling a public hearing on March 8, 2022, was published as required by law relative to the intention of the City Council to consider the approval of the First Amended and Restated Rate and Method; and Whereas, on March 8, 2022, this City Council conducted a noticed public hearing to determine whether it should proceed with the approval of the First Amended and Restated Rate and Method; and Whereas, at the March 8, 2022, public hearing all persons desiring to be heard on all matters pertaining to the approval of the First Amended and Restated Rate and Method were heard and a full and fair hearing was held; and Whereas, on March 8, 2022, following the close of the public hearing, the City Council adopted Resolution No. _____ (the “Change Resolution”), which called a special election on March 8, 2022 within Community Facilities District No. 2015-4 on the approval of the First Amended and Restated Rate and Method; and Whereas, on March 8, 2022, a special election was held within Community Facilities District No. 2015-4 at which the qualified electors approved by more than a two-thirds vote, Proposition A, approving the First Amended and Restated Rate and Method for Community Facilities District No. 2015-4; and NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA), 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 the levy of special taxes within Community Facilities District No. 2015-4 at the maximum rates and in accordance with the First Amended and Restated Rate and Method. 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 3 August 10 of each year, or such later date as is permitted by law, the specific special tax rates and amounts to be levied on each parcel of land in the District pursuant to the First Amended and Restated Rate and Method. The special tax rates to be levied pursuant to the First Amended and Restated Rate and Method shall not exceed the applicable maximum rates set forth therein, but the special taxes may be levied at lower rates. Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special taxes, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and the First Amended and Restated Rate and Method. No other properties or entities are exempt from the special taxes 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 taxes pursuant to the First Amended and Restated Rate and Method shall be used as provided for in the Act, the Resolution of Formation and the Change Resolution. The special taxes shall be levied within the District only so long as needed for the purposes described in the Resolution of Formation and in the Change Resolution. Section 6. The special taxes levied pursuant to the First Amended and Restated Rate and Method 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 any bonded indebtedness of the District, 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, order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax. 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 taxes 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. 2016-1357 previously approved by the City with respect to the levy of special taxes of the District. Section 10. 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. 4 Passed and Adopted on this ___ day of ____, 2022. _____________________________ Timothy J. Sheridan, Mayor Attest: _____________________________ Candice Alvarez, MMC City Clerk 5 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. 2022-______ was introduced at the Regular meeting of the City Council of March 8, 2022, and adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of _________, 2022 and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ Candice Alvarez, MMC City Clerk 1 4877-5225-3711v2/022042-0011 WAIVER OF CERTAIN ELECTION PROCEDURES WITH RESPECT TO LANDOWNER ELECTION FOR COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA) The undersigned, Scott Hansen, acting on behalf of KB HOME Coastal Inc., a California Corporation (the “Owner”), hereby certifies to the City of Lake Elsinore (the “City”), with respect to the proposed change proceedings for Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (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 Scott Hansen 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 Scott Hansen: __________________________________ 2. The Owner is the present owner of 151.01 acres of land located within the 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 March 8, 2022. 3. The Owner has received notice of the March 8, 2022 public hearing to be held by the City Council of the City regarding the approval of a new rate and method of apportionment for the District (the “Change Proceedings”). The Owner agrees that it received adequate notice of the March 8, 2022 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 Change Proceedings, as set forth in Resolution No. 2022-8 adopted by the City Council on January 25, 2022 (the “Resolution”). 5. The undersigned understands that if the Change Proceedings are undertaken on or after March 8, 2022, an election will be held by the District on the proposition set forth in the sample ballot attached hereto as Exhibit “A” less than 90 days after the close of the March 8, 2022 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 March 8, 2022 public hearing and consents to the closing of the election as soon as all ballots are received by the City Clerk. 2 4877-5225-3711v2/022042-0011 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 as set forth in the Resolution 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, or the levy of the special taxes to finance facilities and services for the benefit of the District or to repay bonded indebtedness issued by the District. Dated: February __, 2022 KB HOME Coastal Inc., a California Corporation By: Name: Scott Hansen Title: VP, Forward Planning A-1 4877-5225-3711v2/022042-0011 EXHIBIT A SAMPLE BALLOT COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF CITY OF LAKE ELSINORE (TERRACINA) SPECIAL ELECTION March 8, 2022 This ballot represents ___ votes. To vote, write or stamp a cross (“+” or “X”) 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 of City of Lake Elsinore and obtain another. PROPOSITION A: Shall special taxes with a First Amended and Restated Rate and Method of apportionment (the “First Amended and Restated Rate and Method”) as provided in Attachment “B” to Resolution No. 2022- 8 adopted by the City Council of the City of Lake Elsinore on January 25, 2022 (the “Resolution of Intention”), acting as the legislative body of Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”), be levied to pay for the Improvements, Services, Incidental Expenses (as such terms are defined in the Resolution of Intention) and other purposes described in Resolution No. 2016-037, including the payment of the principal of and interest on bonds issued to finance the Improvements and Incidental Expenses for the District? YES______ NO_______ REBECCA SPENCER Registrar of Voters REGISTRAR OF VOTERS COUNTY OF RIVERSIDE State of California ) $s County of Riverside ) ART T1NOCO Assistant Registrar of Voters I, Rebecca Spencer, Registrar of Voters of said County, hereby certify that: (A) I have been furnished a map describing the proposed boundary of Community Facilities District No. 2015-4 (Terracina), of the City of Lake Elsinore, of the County of Riverside, State of California. (B) On December 15, 2021 1 conducted, or caused to be conducted, a review of the voter registration records of the County of Riverside for the purpose of determining the number of voters registered to vote within the proposed boundary of Community Facilities District No. 2015- 4 (Terracing), of the City of Lake Elsinore, of the County of Riverside. (C) There are 0 registered voters residing within the proposed boundary of Community Facilities District No. 2015-4 (Terracina), of the City of Lake Elsinore, of the County of Riverside. IN WITNESS WHEREOF, I have executed this Certificate on this 1W" day of December 2021. Rebecca Spence Registrar qff( tters ;� Art �T k Assistant kar of Voters 2720 Gateway Drive I Riverside, CA 92507-0921 Mailing address: 2724 Gateway Drive I Riverside, CA 92507-0918 (951) 486-7200 1 FAX (951) 486-7320 1 California Relay Service (Dial 711) www.voteinfo.net PROJECT MAP COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA) CHANGE PROCEEDING