HomeMy WebLinkAboutItem No. 26 Establishment of CFD No. 2022-1 (Alberhill Ranch)City Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-173
Agenda Date: 4/26/2022 Status: Approval FinalVersion: 1
File Type: Council Public
Hearing
In Control: City Council / Successor Agency
Agenda Number: 26)
Establishment of Community Facilities District No. 2022-1 of the City of Lake Elsinore (Alberhill
Ranch)
1.Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2022-1 OF THE CITY OF
LAKE ELSINORE (ALBERHILL RANCH), AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN,
CALLING AN ELECTION, AND APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED
THERETO;
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.
2022-1 OF THE CITY OF LAKE ELSINORE (ALBERHILL RANCH), DETERMINING THE
NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED
$15,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2022-1 OF THE CITY OF LAKE
ELSINORE (ALBERHILL RANCH) AND CALLING AN ELECTION THEREIN;
3.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. 2022-1 OF THE CITY OF LAKE ELSINORE (ALBERHILLL RANCH),
CERTIFYING ELECTION RESULTS; and
4.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. 2022-1 OF THE CITY OF LAKE ELSINORE
(ALBERHILL RANCH), AUTHORIZING THE LEVY OF SPECIAL TAXES.
Page 1 City of Lake Elsinore Printed on 4/21/2022
CFD 2022-1 (Alberhill Ranch)
April 26, 2022
REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
FROM: Jason Simpson, City Manager
DATE: April 26, 2022
SUBJECT: Establishment of Community Facilities District No. 2022-1 of the City of
Lake Elsinore (Alberhill Ranch)
Recommendations
1. Adopt Resolution establishing Community Facilities District No. 2022-1 of the City of Lake
Elsinore (Alberhill Ranch).
2. Adopt Resolution determining the necessity to incur bonded indebtedness for Community
Facilities District No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch).
3. Adopt Resolution certifying election results for Community Facilities District No. 2022-1 of
the City of Lake Elsinore (Alberhill Ranch).
4. Introduce Ordinance authorizing the levy of special taxes within Community Facilities District
No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch)
Background and Discussion
The developer, Alberhill Development, LLC, a California limited liability company (the
“Developer”), owns 138 gross acres of property in the City which is proposed to be developed
into 344 single-family residential homes. Such property is generally located on the southeastern
corner of Nichols Road and Alberhill Ranch Road. The Developer has requested that the City
form a Community Facilities District (“CFD” or “District”) on such property to finance the costs of
certain public improvements through the levy of a special tax and the issuance of bonds in an
amount not to exceed $15,000,000.
The Developer has requested that: (1) the area shown in Attachment A of Resolution No. 2022-
28 adopted by the City Council on March 22, 2022 (the “Resolution of Intention”) be the
boundaries of the CFD, and (2) special taxes be levied within the District per the rate and
method of apportionment of special taxes as described in Attachment C to the Resolution of
Intention. Such rate and method of apportionment of special taxes are referred to herein as the
“RMA.”
The Resolution of Intention called for a public hearing to be held on April 26, 2022. The
purpose of the public hearing is for the City Council to formally consider the approval of the
formation of the CFD and the approval of the levy of the special taxes within the District. Notice
of the public hearing was published in the Press-Enterprise and mailed to the property owner
per the Mello-Roos Act.
CFD 2022-1 (Alberhill Ranch)
April 26, 2022
In connection with the public hearing, Spicer Consulting Group has prepared a CFD Public
Hearing Report which describes and analyzes the facilities to be financed by the CFD and the
estimated costs of such facilities. Following the close of the public hearing, the City Council will
be asked to adopt the Resolution of Formation and the Resolution Determining the Necessity to
Incur Debt which, together, approves the formation of the CFD, the levy of the special taxes in
the District per the RMA and determines the necessity for the CFD to issue bonds in an amount
not to exceed $15,000,000 for the District. Such resolutions call for an election to submit to the
qualified voters the District ballot measures on the approval of the special taxes, the issuance of
the bonds, and an appropriations limit for the CFD.
In addition, the Resolution of Formation approves the execution and delivery of the Acquisition,
Construction, and Funding Agreement with the Developer (the “Funding Agreement”) in the form
presented to this Council. The Funding Agreement sets forth the terms, among others,
according to which the CFD will finance improvements to be constructed by the Developer and
acquired by the City or to be constructed by the City.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying
that no registered voters are residing within the boundaries of the CFD. Accordingly, under the
Mello-Roos Act, only property owners owning land in the District are eligible to vote in the
election for the District with each owner having one vote for each acre (or portion thereof) that
they own within the District. The Developer has executed consent and waiver of certain election
procedures concerning the election, including certain timing requirements for the election, per
the Mello-Roos Act. Accordingly, if the City Council approves the Resolution of Formation and
the Resolution Determining the Necessity to Incur Debt, the City Clerk will conduct the election.
The City Clerk will announce the election results and the City Council will be asked to adopt the
Resolution Certifying the Election Results. Based upon certification that 2/3rds of the votes cast
are in favor of the propositions voted upon in the District, the Resolution Certifying the Election
Results directs the City Clerk to record a notice of special tax lien on the property within the
District. The City Council will then be asked to introduce the Ordinance authorizing the levy of
the special tax within the District per the Rate and Method.
Fiscal Impact
The District will be required to annually levy special taxes on all of the taxable property within
the District to pay for the costs of facilities, debt service on bonds, and administration of the
CFD. Any bonds issued by the District are NOT obligations of the City and will be secured solely
by the special taxes levied in the District. The Developer has made a deposit to pay for the
costs of forming the CFD. The Funding Agreement provides the terms under which the
Developer may be reimbursed for these costs if and when bonds are issued for CFD.
Exhibits
A - Resolution Establishing of Formation
B - Resolution Necessity to Incur Debt
C - Resolution Certifying the Election Results
D - Ordinance Authorizing the Levy of Special Tax
E - Certificate of the Registrar of Voters
F - Landowner Waiver
G - Public Hearing Report
H – Funding Agreement
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE, CALIFORNIA, ESTABLISHING COMMUNITY
FACILITIES DISTRICT NO. 2022-1 OF THE CITY OF LAKE
ELSINORE (ALBERHILL RANCH), AUTHORIZING THE LEVY
OF A SPECIAL TAX THEREIN, CALLING AN ELECTION, AND
APPROVING AND AUTHORIZING CERTAIN ACTIONS
RELATED THERETO
Whereas, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) has
heretofore adopted Resolution No. 2022-28 stating its intention to form Community Facilities
District No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch) (“Community Facilities District
No. 2022-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as
amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government C ode of the
State of California (the “Act”); and
Whereas, a copy of Resolution No. 2022-28 setting forth a description of the proposed
boundaries of Community Facilities District No. 2022-1, the facilities and incidental expenses to
be financed by the District and the rate and method of apportionment of the special tax
proposed to be levied within the District is on file with the City Clerk; and
Whereas, notice was published and mailed to all landowners of the land proposed to be
included within the District as required by law relative to the intention of this City Council to form
proposed Community Facilities District No. 2022-1 and to levy a special tax (the “Special Tax”)
and to incur bonded indebtedness in the amount of up to $15,000,000 therein to finance the
facilities and incidental expenses described in Resolution No. 2022-28; and
Whereas, on April 26, 2022, this City Council conducted a noticed public hearing as required by
law relative to the proposed formation of Community Facilities District No. 2022-1, the levy of
the Special Tax therein and the issuance of bonded indebtedness by the District; and
Whereas, at the April 26, 2022 public hearing there was filed with this City Council a report
containing a description of the facilities necessary to meet the needs of the District and an
estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s
Report”); and
Whereas, at the April 26, 2022 public hearing all persons desiring to be heard on all matters
pertaining to the formation of Community Facilities District No. 2022-1, the levy of the Special
Tax and the issuance of bonded indebtedness were heard and full and fair hearings were held;
and
Whereas, following the public hearing, this City Council has determined to authorize the
formation of the District to finance the types of facilities (the “Facilities”) and the incidental
expenses (the “Incidental Expenses”) set forth in Attachment A hereto, which are described in
more detail in the Engineer’s Report; and
Whereas, at the public hearing evidence was presented to this City Council on the matters
before it, and the proposed Special Tax to be levied within the District was not precluded by a
majority protest of the type described in Section 53324 of the Act, and this City Council at the
conclusion of the hearing was fully advised as to all matters relating to the formation of the
District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and
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Whereas, this City Council has determined, based on a Certificate of Registrar of Voters of the
County of Riverside on file in the office of the City Clerk, that no registered voters have been
residing in the proposed boundaries of Community Facilities District No. 2022-1 for each of the
90 days prior to April 26, 2022 and that the qualified electors in Community Facilities District No.
2022-1 are the landowners within the District; and
Whereas, on the basis of all of the foregoing, this City Council has determined to proceed with
the establishment of Community Facilities District No. 2022-1 and to call an election therein to
authorize (i) the levy of Special Tax pursuant to the rate and method of apportionment of the
special tax, as set forth in Attachment C to Resolution No. 2022-28 (the “Rate and Method”), (ii)
the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the
establishment of an appropriations limit for Community Facilities District No. 2022-1; and
Whereas, in order to facilitate the funding of the Facilities, the legislative body of the District
desires to enter into an Acquisition, Construction and Funding Agreement (the “Funding
Agreement”) with Alberhill Development, LLC, a California limited liability company (the
“Developer”) and the form of the Funding Agreement is on file with the City Clerk; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. A community facilities district to be designated “Community Facilities District No.
2022-1 of the City of Lake Elsinore (Alberhill Ranch)” is hereby established pursuant to the Act.
The City Council hereby finds and determines that all prior proceedings taken with respect to
the establishment of the District were valid and in conformity with the requirements of law,
including the Act. This finding is made in accordance with the provisions of Section 53325.1(b)
of the Act.
Section 3. The boundaries of Community Facilities District No. 2022-1 are established as
shown on the map designated “Boundary Map of Community Facilities District No. 2022-1
(Alberhill Ranch) City of Lake Elsinore, County of Riverside, State of California”, which map is
on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of
the Streets and Highways Code in the County Book of Maps of Assessment and Community
Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in
Book No. 88 Page No. 58 on March 23, 2022 as Instrument No. 2022-0141268.
Section 4. The types of Facilities and Incidental Expenses authorized to be provided for
Community Facilities District No. 2022-1 are those set forth in Attachment A attached hereto.
The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the
Engineer’s Report, which estimates may change as the Facilities are designed and bid for
construction and acquisition, as applicable.
The City is authorized by the Act to contribute revenue to, or to construct or acquire the
Facilities, all in accordance with the Act. The City Council finds and determines that the
proposed Facilities are necessary to meet the increased demand that will be placed upon local
agencies and public infrastructure as a result of new development within the District and that the
Facilities to be financed benefit residents of the City and the future residents of the District.
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Section 5. Except where funds are otherwise available, it is the intention of this City Council,
subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the
rates set forth in the Rate and Method on all non-exempt property within the District sufficient to
pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds
proposed to be issued to finance the Facilities and Incidental Expenses, including the
establishment and replenishment of reserve funds, any remarketing, credit enhancement and
liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act;
and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already
incurred, Incidental Expenses in connection with the creation of the District, the issuance of
bonds, the levying and collecting of the Special Tax, the completion and inspection of the
Facilities and the annual administration of the bonds and the District. The Rate and Method is
described in detail in Attachment C to Resolution No. 2022-28 and incorporated herein by this
reference, and the City Council hereby finds that the Rate and Method contains sufficient detail
to allow each landowner within the District to estimate the maximum amount that may be levied
against each parcel. As described in greater detail in the Engineer’s Report, which is
incorporated by reference herein, the Special Tax is based on the expected demand that each
parcel of real property within Community Facilities District No. 2022-1 will place on the Facilities
and on the benefit that each parcel will derive from the right to access the Facilities and,
accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each
assessor’s parcel in accordance with the Rate and Method provided, however, that the Special
Tax shall not be levied after Fiscal Year 2064-65. The Special Tax is apportioned to each
parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is
not on or based upon the ownership of real property or the assessed value of real property.
If Special Taxes of the District are levied against any parcel used for private residential
purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be
calculated and established not later than the date on which the parcel is first subject to the
Special Tax because of its use for private residential purposes and shall not be increased over
time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied
after Fiscal Year 2064-65, and (iii) under no circumstances will the Special Tax levied against
any such parcel used for private residential uses be increased as a consequence of delinquency
or default by the owner or owners of any other parcel or parcels within the District by more than
ten percent above the amount that would have been levied in that fiscal year had there never
been any such delinquencies or defaults.
The City Manager of the City of Lake Elsinore, will be responsible for preparing annually, or
authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s
parcel number and will be responsible for estimating future special tax levies pursuant to
Section 53340.2 of the Act.
Section 6. In the event that a portion of the property within Community Facilities District No.
2022-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax
specified in the Rate and Method, or in the event of delinquencies in the payment of Special
Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2022-1,
increase the levy to the extent necessary and permitted by law and these proceedings upon the
remaining property within Community Facilities District No. 2022-1 which is not exempt or
delinquent in order to yield the required debt service payments on any outstanding bonds of the
District, or to prevent the District from defaulting on any of its other obligations or liabilities;
provided, however, under no circumstances will the Special Tax levied against any parcel used
for private residential uses be increased as a consequence of delinquency or default by the
owner or owners of any other parcel or parcels within the District by more than ten percent
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above the amount that would have been levied in that fiscal year had there never been any such
delinquencies or defaults. The amount of the Special Tax will be set in accordance with the
Rate and Method. The obligation to pay Special Taxes may be prepaid only as set forth in
Section G of the Rate and Method.
Section 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the
Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall
attach to all non-exempt real property in the District and this lien shall continue in force and
effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled
in accordance with law or until collection of the Special Tax by the District ceases.
Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines
that the land within Community Facilities District No. 2022-1, if any, devoted primarily to
agricultural, timber or livestock uses and being used for the commercial production of
agricultural, timber or livestock products is contiguous to other land within Community Facilities
District No. 2022-1 and will be benefited by the Facilities proposed to be provided within
Community Facilities District No. 2022-1.
Section 9. It is hereby further determined that there is no ad valorem property tax currently
being levied on property within proposed Community Facilities District No. 2022-1 for the
exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred
to finance the construction of capital facilities which provide the same services to the territory of
Community Facilities District No. 2022-1 as are proposed to be provided by the Facilities to be
financed by Community Facilities District No. 2022-1.
Section 10. Written protests against the establishment of the District have not been filed by
one-half or more of the registered voters within the boundaries of the District or by the property
owners of one-half (1/2) or more of the area of land within the District. The City Council hereby
finds that the proposed Special Tax has not been precluded by a majority protest pursuant to
Section 53324 of the Act.
Section 11. An election is hereby called for Community Facilities District No. 2022-1 on the
propositions of levying the Special Tax on the property within Community Facilities District No.
2022-1 and establishing an appropriations limit for the District pursuant to Section 53325.7 of
the Act and shall be consolidated with the election on the proposition of incurring bonded
indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the
propositions to be placed on the ballot is attached hereto as Attachment B.
Section 12. The date of the election for Community Facilities District No. 2022-1 on the
propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and
establishing an appropriations limit for the District shall be April 26, 2022, or such later date as
is consented to by the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) of
the City of Lake Elsinore; provided that, if the election is to take place sooner than 90 days after
April 26, 2022, then the unanimous written consent of each qualified elector within the District to
such election date must be obtained. The polls shall be open for said election immediately
following the close of the public hearing on April 26, 2022. The election shall be conducted by
the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in
accordance with the provisions of law regulating elections of the City of Lake Elsinore insofar as
such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized
to conduct the election following the adoption of this resolution, and all ballots shall be received
by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the
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election shall be closed at such earlier time as all qualified electors have voted as provided in
Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special
election shall be distributed in person, or by mail with return postage prepaid, to the qualified
electors within Community Facilities District No. 2022-1. The City Clerk has secured a
certificate from the Registrar of Voters of the County of Riverside certifying that there were no
registered voters within the District as of February 23, 2022. Accordingly, since there were
fewer than 12 registered voters within the District for each of the 90 days preceding April 26,
2022, the qualified electors shall be the landowners within the District and each landowner, or
the authorized representative thereof, shall have one vote for each acre or portion thereof that
such landowner owns within Community Facilities District No. 2022-1, as provided in Section
53326 of the Act. The sole landowner within the District has executed and delivered a waiver of
certain election law requirements and consenting to the holding of the election on April 26,
2022, which waiver is on file with the City Clerk.
Section 13. The preparation of the Engineer’s Report is hereby ratified. The Engineer’s
Report, as submitted, is hereby approved and was made a part of the record of the public
hearing regarding the formation of Community Facilities District No. 2022-1. The Engineer’s
Report is ordered to be kept on file with the transcript of these proceedings and open for public
inspection.
Section 14. The form of the Funding Agreement on file with the City Clerk is approved as to
form, and each of the City Manager, Assistant City Manager, and their written designees, is
authorized to execute the Funding Agreement in substantially the form on file with the City
Clerk, together with such changes as are approved by the officer executing the same, with the
approval of such changes to be conclusively evidenced by the execution and delivery thereof .
Section 15. This Resolution shall be effective upon its adoption.
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Passed and Adopted on this 26th day of April, 2022.
_____________________________
Timothy J. Sheridan, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
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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 Resolution No. 2022-______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of April 26, 2022 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
A-1
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ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2022-1
The proposed types of public facilities and expenses to be financed by the District
include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement
of drainage, library, park, fire, roadway, traffic, administration and community center facilities,
marina and animal shelter facilities, and other public facilities of the City, including the foregoing
public facilities which are included in the City’s fee programs with respect to such facilit ies and
authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended
(the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing
Facilities, including the cost of engineering, planning, designing, materials testing, coordination,
construction staking, construction management and supervision for such Facilities, and to
finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the
Rate and Method of Apportionment of Special Taxes for the District.
B-1
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ATTACHMENT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1
OF THE CITY OF LAKE ELSINORE (ALBERHILL RANCH)
SPECIAL TAX AND SPECIAL BOND ELECTION
April 26, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch)
(the “District”) incur an indebtedness and issue bonds in
the maximum principal amount of $15,000,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities
and the Incidental Expenses described in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore
be levied to pay for the Facilities, Incidental Expenses
and other purposes described in Resolution No. 2022-
28, including the payment of the principal of and interest
on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2021-22, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2022-1 be an amount equal to $5,000,000?
YES______
NO_______
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RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE, CALIFORNIA, ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2022-1 OF THE CITY OF LAKE ELSINORE (ALBERHILL
RANCH), DETERMINING THE NECESSITY TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED
$15,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO.
2022-1 OF THE CITY OF LAKE ELSINORE (ALBERHILL
RANCH) AND CALLING AN ELECTION THEREIN
Whereas, on March 22, 2022, the City Council of the City of Lake Elsinore (the “City Council”)
adopted Resolution No. 2022-28 stating its intention to form Community Facilities District No.
2022-1 of the City of Lake Elsinore (Alberhill Ranch) (“Community Facilities District No. 2022-1”
or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the
“Act”); and
Whereas, on March 22, 2022, the City Council also adopted Resolution No. 2022-29 stating its
intention to incur bonded indebtedness in the amount of up to $15,000,000 within proposed
Community Facilities District No. 2022-1 to finance (1) the purchase, construction, modification,
expansion, improvement or rehabilitation of public facilities identified in Attachment B to
Resolution No. 2022-28, and (2) the incidental expenses to be incurred in financing such public
facilities and services and forming and administering the District, as identified in Attachment B to
Resolution No. 2022-28; and
Whereas, notice was published as required by law relative to the intention of the City Council to
form proposed Community Facilities District No. 2022-1 and to incur bonded indebtedness in
the amount of up to $15,000,000 within the boundaries of proposed Community Facilities
District No. 2022-1; and
Whereas, on April 26, 2022, this City Council conducted a noticed public hearing to determine
whether it should proceed with the formation of Community Facilities District No. 2022-1, issue
bonds to pay for the facilities and incidental expenses described in Resolution No. 2022-28 and
authorize the rate and method of apportionment of a special tax to be levied within Community
Facilities District No. 2022-1 for the purposes described in Resolution No. 2022-28; and
Whereas, at said hearing all persons desiring to be heard on all matters pertaining to the
formation of Community Facilities District No. 2022-1, the levy of a special tax and the issuance
of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a
full and fair hearing was held; and
Whereas, the City Council subsequent to such hearing adopted Resolution No. 2022-___
establishing Community Facilities District No. 2022-1 (the “Resolution of Formation”) and
authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the
“Incidental Expenses”) described in Attachment A thereto; and
Whereas, the City Council desires to make the necessary findings to incur bonded
indebtedness within the District, to declare the purpose for said debt, and to authorize the
2
4880-6944-4635v2/022042-0042
submittal of a proposition to issue bonded indebtedness to the voters of the District, being the
landowners within the proposed District, all as authorized and required by law;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. It is necessary to incur bonded indebtedness in a maximum aggregate principal
amount not to exceed $15,000,000 within Community Facilities District No. 2022-1.
Section 2. The indebtedness is to be incurred for the purpose of financing the costs of
purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and
financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out
the powers and purposes of Community Facilities District No. 2022-1, including, but not limited
to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds
and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the
type authorized by Section 53345.3 of the Act.
Section 3. The whole of the property within Community Facilities District No. 2022-1, other
than property exempted from the special tax pursuant to the provisions of the rate and method
of apportionment attached to Resolution No. 2022-28 as Attachment C, shall pay for the bonded
indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.
Section 4. The maximum term of the bonds to be issued shall in no event exceed 35 years
or such longer term as is then permitted by law.
Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum
interest rate permitted by law, payable annually or semiannually, or in part annually and in part
semiannually, except the first interest payment may be for a period of less than six months, wi th
the actual rate or rates and times of payment to be determined at the time or times of sale
thereof.
Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable
rate or fixed rate shall not exceed the maximum rate permitted by Sect ion 53531 of the Act, or
any other applicable provision of law limiting the maximum interest rate on the bonds.
Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for
Community Facilities District No. 2022-1 on the proposition of incurring the bonded
indebtedness. The proposition relative to incurring bonded indebtedness in the maximum
aggregate principal amount of $15,000,000 shall be in the form of Proposition A set forth in
Attachment A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the
election shall be consolidated with the special election called on the proposition of levying a
special tax within the District as described in the Resolution of Formation, which proposition
shall be in the form of Proposition B set forth in Attachment A, and on the proposition of
establishing an appropriations limit for the District, which proposition shall be in the form of
Proposition C set forth in Attachment A.
Section 8. The date of the special election for Community Facilities District No. 2022-1 on
the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax
and setting an appropriations limit shall be April 26, 2022, or such later date as is consented to
by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”);
provided that, if the election is to take place sooner than 90 days after April 26, 2022, then the
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4880-6944-4635v2/022042-0042
unanimous written consent of each qualified elector within the District to such election date must
be obtained. The polls shall be open for said election immediately following the public hearing
on April 26, 2022. The election shall be conducted by the City Clerk. Except as otherwise
provided by the Act, the election shall be conducted in accordance with the provisions of law
regulating elections of the City of Lake Elsinore insofar as such provisions are determined by
the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the
adoption of the Resolution of Formation, and this resolution and all ballots shall be received by
and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the
election shall be closed at such earlier time as all qualified electors have voted as provided in
Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special
election shall be distributed in person, or by mail with return postage prepaid, to the qualified
electors within Community Facilities District No. 2022-1. The City Clerk has secured a
certificate of the Registrar of Voters of the County of Riverside certifying that there were no
registered voters within the District as of February 23, 2022. Accordingly, since there were
fewer than 12 registered voters within the District for each of the 90 days preceding April 26,
2022, the qualified electors shall be the landowners within the District and each landowner, or
the authorized representative thereof, shall have one vote for each acre or portion thereof that
such landowner owns within Community Facilities District No. 2022-1, as provided in Section
53326 of the Act. The sole landowner within the District has executed and delivered a waiver of
certain election law requirements and consenting to the holding of the election on April 26,
2022, which waiver is on file with the City Clerk.
Section 9. This Resolution shall be effective upon its adoption.
Passed and Adopted on this 26th day of April, 2022.
_____________________________
Timothy J. Sheridan, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
4
4880-6944-4635v2/022042-0042
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 April 26, 2022 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
4880-6944-4635v2/022042-0042
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1
OF THE CITY OF LAKE ELSINORE (ALBERHILL RANCH)
SPECIAL TAX AND SPECIAL BOND ELECTION
April 26, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch)
(the “District”) incur an indebtedness and issue bonds in
the maximum principal amount of $15,000,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities
and the Incidental Expenses described in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore
be levied to pay for the Facilities, Incidental Expenses
and other purposes described in Resolution No. 2022-
28, including the payment of the principal of and interest
on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2021-22, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2022-1 be an amount equal to $5,000,000?
YES______
NO_______
4860-2491-8043v2/022042-0042
RESOLUTION NO. 2022-
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. 2022-1 OF THE CITY OF LAKE ELSINORE
(ALBERHILLL RANCH), CERTIFYING ELECTION RESULTS
Whereas, the City Council of the City of Lake Elsinore called and duly held an election on April
26, 2022 within the boundaries of Community Facilities District No. 2022-1 of the City of Lake
Elsinore (Alberhilll Ranch) (“Community Facilities District No. 2022-1” or the “District”) pursuant
to Resolution Nos. 2022-__ and 2022-__ for the purpose of presenting to the qualified electors
within the District Propositions A, B and C, attached hereto as Attachment A; and
Whereas, there has been presented to this City Council a certificate of the City Clerk or Deputy
City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of
which is attached hereto as Attachment B;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. Each of the above recitals is true and correct and is adopted by the legislative
body of the District.
Section 2. Propositions A, B and C presented to the qualified electors of the District on April
26, 2022 were approved by more than two-thirds of the votes cast at said election and
Propositions A, B and C each has carried. The City Council, acting as the legislative body of
the District, is hereby authorized to levy on the land within the Dist rict the special tax described
in Proposition B for the purposes described therein and to take the necessary steps to levy the
special tax authorized by Proposition B and to issue bonds in an amount not to exceed
$15,000,000 specified in Proposition A.
Section 3. The City Clerk is hereby directed to record in the Assessor-County Clerk-
Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of
special tax lien with respect to the District which Bond Counsel to the District shall pre pare in
the form required by Streets and Highways Code Section 3114.5.
2
4860-2491-8043v2/022042-0042
Section 4. This Resolution shall be effective upon its adoption.
Passed and Adopted on this 26th day of April, 2022.
_____________________________
Timothy J. Sheridan, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
3
4860-2491-8043v2/022042-0042
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 April 26, 2022 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
4860-2491-8043v2/022042-0042
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1
OF THE CITY OF LAKE ELSINORE (ALBERHILLL RANCH)
SPECIAL TAX AND SPECIAL BOND ELECTION
April 26, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch)
(the “District”) incur an indebtedness and issue bonds in
the maximum principal amount of $15,000,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities
and the Incidental Expenses described in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore
be levied to pay for the Facilities, Incidental Expenses
and other purposes described in Resolution No. 2022-
28, including the payment of the principal of and interest
on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2021-22, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2022-1 be an amount equal to $5,000,000?
YES______
NO_______
4860-2491-8043v2/022042-0042
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 and Bond Election for Community Facilities
District No. 2022-1 (Alberhilll Ranch) of the City of Lake Elsinore (the “City”). The election was
held in the Lake Elsinore Cultural Center at 183 North Main Street, Lake Elsinore, California, on
April 26, 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 Propositions A, B and C are as follows:
PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:
NO: NO: NO:
TOTAL: TOTAL: TOTAL:
Dated this 26th day of April, 2022.
Candice Alvarez, MMC
Candice Alvarez, MMC, City Clerk
City of Lake Elsinore
4863-9526-1979v2/022042-0042
ORDINANCE NO. ___-___
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. 2022-1 OF THE CITY OF LAKE ELSINORE
(ALBERHILL RANCH), AUTHORIZING THE LEVY OF SPECIAL
TAXES
Whereas, on March 22, 2022, the City Council (the “City Council”) of the City of Lake Elsinore
(the “City”) adopted Resolution No. 2022-28 declaring its intention to form Community Facilities
District No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch) (the “District”) pursuant to the
Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of
Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its
Resolution No. 2022-29 declaring its intention to incur bonded indebtedness for the District; and
Whereas, on April 26, 2022, after providing all notice required by the Act, the City Council
conducted a noticed public hearing required by the Act relative to the proposed f ormation of the
District, the proposed levy of a special tax therein to finance certain public facilities described in
Resolution No. 2022-___ and to secure the payment of any bonded indebtedness of the District,
and the proposed issuance of up to $15,000,000 of bonded indebtedness as described in
Resolution No. 2022-____; and
Whereas, at the April 26, 2022 public hearing, all persons desiring to be heard on all matters
pertaining to the formation of the District and the proposed levy of the special tax to finance the
facilities described in Resolution No. 2022-28 and to secure the payment of up to $15,000,000
of bonded indebtedness of the District as described in Resolution No. 2022-29 (the “Bonds”)
were heard and a full and fair hearing was held; and
Whereas, on April 26, 2022, the City Council adopted Resolution Nos. 2022-___ and 2022-___
which formed the District and called a special election within the District on April 26, 2022 on
three propositions relating to the levy of a special tax within the District, the issuance of the
Bonds and the establishment of an appropriations limit within the District; and
Whereas, on April 26, 2022, a special election was held within the District at which the qualified
electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy
of a special tax within the District for the purposes described in Resolution No. 2022-28, the
issuance of the Bonds as described in Resolution No. 2022-29 and establishing an
appropriations limit for the District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2022-1 OF THE CITY OF LAKE ELSINORE (ALBERHILL RANCH) ORDAINS
AS FOLLOWS:
2
4863-9526-1979v2/022042-0042
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 the District pursuant to Sections 53328 and 53340 of the Act at the rates and in
accordance with the rate and method of apportionment set forth in Attachment C to Resolution
No. 2022-28, which is incorporated by reference herein (the “Rate and Method”). The special
taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in
each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to
refund the Bonds), payment of all costs of the public facilities and services authorized to be
financed by the District, and payment of all costs of administering the District.
Section 3. Each of the Mayor, the City Manager, the Assistant City Manager, or their written
designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each
fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal
year on each parcel of real property within the District, in the manner and as provided in the
Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method
shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the
special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and
directed to provide all necessary information to the Treasurer-Tax Collector of the County of
Riverside and to otherwise take all actions necessary in order to effect proper billing and
collection of the special tax, so that the special tax shall be levied and collected in sufficient
amounts and at times necessary to satisfy the financial obligations of the District in each fiscal
year, and with respect to Special Tax, until the Bonds are paid in full, the facilities have been
paid for, and provision has been made for payment of all of the administrative costs of the
District.
Section 4. Properties or entities of the state, federal or other local governments shall be
exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of
the Act and Section F of the Rate and Method. No other properties or entities are exempt from
the special tax unless the properties or entities are expressly exempted in Resolution No. 2022-
___ or in a resolution of consideration to levy a new special tax or special taxes or to alter the
rate or method of apportionment or an existing special tax as provided in Section 53334 of the
Act.
Section 5. All of the collections of the special tax shall be used as provided for in the Act,
the Rate and Method and Resolution No. 2022-___.
Section 6. The special tax shall be collected in the same manner as ordinary ad valorem
property taxes are collected and shall be subject to the same penalties and the same
procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes
(which such procedures include the exercise of all rights and remedies permitted by law to make
corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as
such procedure may be modified by law or by this City Council from time to time.
Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the
interest or principal of the Bonds (including any bonds issued to refund the Bonds), together
with any penalties and other charges accruing under this Ordinance, are not paid when due, the
City Council may, not later than four years after the due date of the last installment of principal
on the Bonds (including any bonds issued to refund the Bonds), order that the same be
collected by an action brought in the superior court to foreclose the lien of such special tax, as
authorized by the Act.
3
4863-9526-1979v2/022042-0042
Section 8. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City
Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause
the same to be published within fifteen (15) days after its passage at least once in The Press
Enterprise, a newspaper of general circulation published and circulated in the City of Lake
Elsinore.
Section 9. The specific authorization for adoption of this Ordinance is pursuant to the
provisions of Section 53340 of the Act.
Section 10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance
to the Treasurer-Tax Collector of the County of Riverside, and to perform all other acts which
are required by the Act, this Ordinance or by law in order to accomplish the purpose of this
Ordinance.
Section 11. A full reading of this Ordinance is dispensed with prior to its final passage, a
written or printed copy having been available to the City Council and the public a day prior to its
final passage.
Section 12. This Ordinance shall take effect thirty days after its final passage.
Passed and Adopted on this ___th day of ________, 2022.
_____________________________
Timothy J. Sheridan, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
4
4863-9526-1979v2/022042-0042
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
April 26, 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
REBECCA SPENCER
Registrar of Voters
State of California
) ss
County of Riverside )
s
p
�fgr9, 1
REGISTRAR OF VOTERS
COUNTY OF RIVERSIDE
ART TINOCO
Assistant Registrar of Voters
1, 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. 2022-1 (Alberhill Ranch), of the City of Lake Elsinore, of the County of
Riverside, State of California.
(B) On February 23, 2022, 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. 2022-
1 (Alberhill Ranch), 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. 2022-1 (Alberhill Ranch), of the City of Lake Elsinore, of the County of
Riverside.
IN WITNESS WHEREOF, I have executed this Certificate on this 23rd day of February
2022.
Rebecca Sr
Registrar o�
9
By;
Registfar 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 I California Relay Service (Dial 711)
www.voteinfo.net
1
4857-0025-2699v1/022042-0042
WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-1
OF THE CITY OF LAKE ELSINORE (ALBERHILL RANCH)
The undersigned, Gregory P. Lansing, acting on behalf of Alberhill Development, LLC, a
California limited liability company (the “Owner”), hereby certify to the City of Lake Elsinore (the
“City”), with respect to the proposed formation of Community Facilities District No. 2022-1 of the
City of Lake Elsinore (Alberhill Ranch) (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 Gregory P. Lansing 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 Gregory P. Lansing: __________________________________
2. The Owner is the present owner of 138.4 acres of land located within the
proposed boundaries of the District. There are no registered voters residing within the territory
owned by the Owner and have been none during the 90-day period preceding April 26, 2022.
3. The Owner has received notice of the April 26, 2022 public hearing to be held by
the City Council of the City regarding the levy of a special tax in the District and the incurring of
bonded indebtedness by the District. The Owner agrees that it received adequate notice of the
April 26, 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 formation of the District an d
the imposition of the special tax and the issuance of bonded indebtedness, as set forth in
Resolution Nos. 2022-28 and 2022-29 adopted by the City Council on March 22, 2022
(together, the “Resolutions”) to finance the facilities as set forth in the Resolutions.
5. The undersigned understands that if the District is formed on or after April 26,
2022, an election will be held by the District on the propositions set forth in the sample ballot
attached hereto as Exhibit “A” less than 90 days after the close of the April 26, 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 April 26, 2022 public
hearing and consents to the closing of the election as soon as all ballots are received by the
City Clerk or Deputy City Clerk.
2
4857-0025-2699v1/022042-0042
6. The undersigned hereby represents that compliance with the procedural
requirements for conducting the election, including the receipt of any ballot arguments and
impartial analysis and the time limitations which apply in connection with scheduling, mailing
and publishing notices for such an election, are unnecessary in light of the fact that the
undersigned has received sufficient information regarding the imposition of the special tax and
the issuance of bonded indebtedness as set forth in the Resolutions to allow it to properly
complete the attached ballot. The Owner further waives its right to make any protest or
complaint or undertake any legal action challenging the validity of the election, the validity of any
bonded indebtedness issued by the District as approved at the election, or the validity of the
authorization of the special tax to finance facilities for the benefit of the District or to repay
bonded indebtedness issued by the District in accordance with the rate and method of
apportionment of special taxes provided in Resolution No. 2022-28 of the City Council of the
City.
Dated: April 26, 2022
ALBERHILL DEVELOPMENT, LLC, a California
limited liability company
By: Lansing Industries, Inc.,
a California corporation, its Manager
By:
Gregory P. Lansing, President
A-1
4857-0025-2699v1/022042-0042
EXHIBIT A
SAMPLE
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2022-1
OF THE CITY OF LAKE ELSINORE (ALBERHILL RANCH)
SPECIAL TAX AND SPECIAL BOND ELECTION
April 26, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch)
(the “District”) incur an indebtedness and issue bonds in
the maximum principal amount of $15,000,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities
and the Incidental Expenses described in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2022-28 of the City Council of the City of Lake Elsinore
be levied to pay for the Facilities, Incidental Expenses
and other purposes described in Resolution No. 2022-
28, including the payment of the principal of and interest
on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2021-22, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2022-1 be an amount equal to $5,000,000?
YES______
NO_______
CITY OF LAKE ELSINORE
Public Hearing Report
CFD NO. 2022-1 (ALBERHILL RANCH)
APRIL 26, 2022
Table of Contents
Sections Page _____________________________________________
1 Introduction ________________________________________________ 1
2 Description of Facilities ______________________________________________ 2
3 Cost Estimate ________________________________________________ 3
4 Proposed Development _____________________________________________ 4
5 Rate and Method of Apportionment ____________________________________ 5
6 Certifications ________________________________________________ 6
Tables Page
3-1 Cost Estimate ________________________________________________ 3
Appendices Page _____________________________________________
A Rate and Method of Apportionment _____________________________________
B Boundary Map _________________________________________________
C Resolution of Intention _______________________________________________
1 Introduction Page | 1
City of Lake Elsinore
CFD No. 2022-1 (Alberhill Ranch)
Public Hearing Report
Background
On March 22, 2022, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”), adopted a Resolution
of Intention to form Community Facilities District No. 2022-1 (Alberhill Ranch) of the City of Lake Elsinore (the “CFD No.
2022-1”), Resolution No. 2022-28, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being
Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (the “Act”).
CFD No. 2022-1 is currently comprised of five parcels and approximately 138 gross acres. A Tract Map 28214-9 includes
344 proposed detached residential properties. The properties are generally located on the southeastern corner of Nichols
Road and Alberhill Ranch Road.
For a map showing the boundaries of CFD No. 2022-1 please see Appendix B.
Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains
the following:
1. A brief description of CFD No. 2022-1;
2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2022-1.
3. A brief description of the Boundaries of CFD No. 2022-1; and
4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation
of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs
otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other
incidental expenses to be paid through the proposed financing.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in
Appendix C.
2 Description of Facilities Page | 2
City of Lake Elsinore
CFD No. 2022-1 (Alberhill Ranch)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed
responsible officer, or person directed to prepare this Report, does hereby submit the following data:
Description of the Facilities
A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special
assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge,
or assessment levied, provide for the purchase, construction, expansion, or rehabilitation for any real or other tangible
property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed
upon local agencies as a result of development and/or rehabilitation occurring within the District.
The types of facilities that are proposed by CFD No. 2022-1 and financed with the proceeds of special taxes and bonds
issued by CFD No. 2022-1 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement
of drainage, library, park, roadway, traffic, administration and community center facilities, marina and animal shelter facilities,
and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs
with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as
amended (the “Facilities”) and all appurtenances and appurtenant work in connection with the foregoing Facilities, including
the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management
and supervision for such Facilities.
Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and
b) All costs, including costs of the property owner petitioning to form the District, associated with the creation
of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and
costs otherwise incurred in order to carry out the authorized purposes of the District; and
c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and
inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of
Special Taxes for the District.
All costs associated with the creation of CFD No. 2022-1, the issuance of bonds, the determination of the amount of special
taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2022-1, including legal fees, fees
of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-1 and any obligations.
The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.
The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order
to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change
or modification in the proceedings relating to CFD No. 2022-1.
3 Cost Estimate Page | 3
City of Lake Elsinore
CFD No. 2022-1 (Alberhill Ranch)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District.
a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2022-
1 Bonds is estimated to be $11,230,000 based upon current dollars (Fiscal Year 2022-23).
b) For further particulars please reference Table 3-1 below and incorporated herein by reference.
c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2022-1 may
be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the
Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount
of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry
out the authorized purposes of the District. The incidental expenses associated with the annual administration of
CFD No. 2022-1 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental
expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental
expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate
City of Lake Elsinore Fees Total Bond Allocation(1)
Traffic Impact Fee $470,936 $470,936
Library $51,600 $51,600
Development Agreement Fee $774,000 $774,000
Supplemental DA Fee $72,240 $72,240
Median Landscaping In-Lieu Fee $87,360 $87,360
Drainage Fee $868,038 $868,038
Total City Fees $2,324,174 $2,324,174
City of Lake Elsinore Facilities Total Bond Allocation(1)
Alberhill Ranch Road/Nichols Road $8,666,831 $7,318,476
Traffic Signals $849,719 $0
Storm Drain Improvements $2,378,244 $0
Total City Facilities $11,894,794 $7,318,476
Total Eligible Fees/Improvements $14,218,968 $9,642,650
Incidental Financing Costs $1,587,350
Total Funded by Bond Proceeds $11,230,000
Total Fees/Improvements to be Funded by Developer $4,576,318
(1) Amounts are allocated based upon estimated bond sizing and may change abased upon market conditions at the time
of bond issuance.
4 Proposed Development Page | 4
City of Lake Elsinore
CFD No. 2022-1 (Alberhill Ranch)
Public Hearing Report
The CFD No. 2022-1 includes approximately 138 gross acres on five undeveloped assessor’s parcels in Tract 28214-9
located in the City. The property within CFD No. 2022-1 is expected to be developed with 344 single family residential units.
The District is located on the southeastern corner of Nichols Road and Alberhill Ranch Road. As of Fiscal Year 2022-23 the
proposed CFD No. 2022-1 includes the following Assessor's Parcel Numbers:
Assessor
Parcel Number
389-090-012 (portion of)
389-090-015 (portion of)
389-121-001
389-121-002
389-121-003
A map showing the boundaries of CFD No. 2022-1 is included in Appendix B.
5 Rate and Method of Apportionment Page | 5
City of Lake Elsinore
CFD No. 2022-1 (Alberhill Ranch)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2022-1 to estimate the annual Special
Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established
pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected
in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties,
the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may
directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet
the financial obligations of CFD No. 2022-1, and provided further that CFD No. 2022-1 may covenant to foreclose and may
actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No. 2022-1, unless exempted by law or by the Rate and Method proposed for CFD
No. 2022-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for
CFD No. 2022-1 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special
Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any
property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized
services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned
on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may
choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the
Rate and Method (“Prepayment of Special Tax”).
For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If
any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the
extent necessary to reimburse CFD No. 2022-1 for uncollected Special Taxes associated with the levy of such Special
Taxes, but the Special Tax shall not be levied after 2064-2065 Fiscal Year.
For particulars as to the Rate and Method for CFD No. 2022-1, see the attached and incorporated in Appendix A.
6 Certifications Page | 6
City of Lake Elsinore
CFD No. 2022-1 (Alberhill Ranch)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary
to meet increased demands placed upon the City of Lake Elsinore as a result of development occurring within the CFD No.
2022-1 and benefits the lands within said CFD No. 2022-1. Further, it is my opinion that the special tax rates and method
of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: April 26, 2022 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF LAKE ELSINORE
RIVERSIDE COUNTY
STATE OF CALIFORNIA
APPENDIX A
Rate and Method of Apportionment
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (ALBERHILL RANCH)
OF THE CITY OF LAKE ELSINORE
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to
each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) ("CFD No. 2022‐1”). The amount of Special Tax
to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City
of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2022‐1, by applying the
appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and
Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property,
unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the
extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or
if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final
map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square
footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello‐Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of
California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to
the administration of CFD No. 2022‐1: the costs of computing the Special Taxes and preparing the Special
Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the
Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the
costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the
Indenture; the costs to the City, CFD No. 2022‐1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2022‐1 or any designee thereof of complying with
disclosure requirements of the City, CFD No. 2022‐1 or obligated persons associated with applicable
federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure
statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No.
2022‐1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the
release of funds from an escrow account; and the City’s annual administration fees and third party
expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or
advanced by the City or CFD No. 2022‐1 for any other administrative purposes of CFD No. 2022‐1, including
attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of
delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map
that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied,
(ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for
the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or
before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 2
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned
Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for
purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes,
certificates of participation, long‐term leases, loans from government agencies, or loans from banks, other
financial institutions, private businesses, or individuals, or long‐term contracts, or any refunding thereof,
to which Special Tax of CFD No. 2022‐1 have been pledged.
"Building Permit" means the first legal document issued by a local agency giving official permission for
new construction. For purposes of this definition, “Building Permit” may or may not include any
subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are
issued or changed by the City after the first original issuance, as determined by the CFD Administrator as
necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such
determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property
will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual
Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following December
31.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the
Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
"CFD” or “CFD No. 2022‐1” means Community Facilities District No. 2022‐1 (Alberhill Ranch) 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. 2022‐1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 6624.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 3
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded
prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) has an
Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot
included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May
1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as
provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or
recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual
lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to
which Bonds are issued, as modified, amended and/or supplemented from time to time, and any
instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D.
"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in
accordance with Section D below, that can be levied by CFD No. 2022‐1 in any Fiscal Year on such
Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit
has been issued for the purpose of constructing a building or buildings comprised of attached Residential
Units available for rental by the general public, not for sale to an end user, and under common
management, as determined by the CFD Administrator.
"Non‐Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued
or will be issued for a non‐residential use. The CFD Administrator shall make the determination if an
Assessor’s Parcel is Non‐Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax
obligation for an Assessor’s Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an
Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual
Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property,
(ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same
for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional
Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 4
per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped
Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would
otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be
classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property
below the required minimum Acreage set forth in Sections F.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit
has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by
one or more persons, as determined by the CFD Administrator.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than
Multifamily Property.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2022‐1 pursuant to
the Act to fund the Special Tax Requirement.
"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or
the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year,
(ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account,
(iv) any amount required to replenish any reserve funds established in association with the Bonds, (v) an
amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) for the collection or
accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022‐1 or the
payment of debt services on Bonds anticipated to be issued, provided that the inclusion of such amount
does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as
set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other
periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022‐1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final
Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed
Property, Approved Property, Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2022‐2023 and for each subsequent Fiscal Year, the City Council shall levy Special
Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax
Requirement.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 5
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022‐2023, each Assessor’s Parcel within CFD No. 2022‐1 shall
be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable
Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or
Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non‐
Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single
Family Residential Property, or Multifamily Property. Each Assessor’s Parcel of Single Family Residential
Property shall be further categorized into Land Use Categories based on its Building Square Footage and
assigned to its appropriate Assigned Special Tax rate.
In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the
County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance
with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy
on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator
shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the
classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy
for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be
determined based on the Developed Property Special Tax rates and shall be taxed as Developed Property
in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Taxable
Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the
percentage of the Maximum Special Tax rate levied on all other Undeveloped Property multiplied by the
total of the amount determined in clause (1), less the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal
Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Non‐Residential or Multifamily Residential
Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or
Non‐Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an
Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 6
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit
1. Single Family Residential Property RU Less than 2,000 sq. ft $1,280.00
2. Single Family Residential Property RU 2,000 sq. ft to 2,150 sq. ft $1,363.00
3. Single Family Residential Property RU 2,151 sq. ft to 2,300 sq. ft $1,446.00
4. Single Family Residential Property RU 2,301 sq. ft to 2,450 sq. ft $1,529.00
5. Single Family Residential Property RU 2,451 sq. ft to 2,600 sq. ft $1,612.00
6. Single Family Residential Property RU 2,601 sq. ft to 2,750 sq. ft $1,695.00
7. Single Family Residential Property RU 2,751 sq. ft to 2,900 sq. ft $1,778.00
8. Single Family Residential Property RU 2,901 sq. ft to 3,050 sq. ft $1,861.00
9. Single Family Residential Property RU 3,051 sq. ft to 3,200 sq. ft $1,944.00
10. Single Family Residential Property RU Greater than 3,200 sq. ft $2,027.00
11. Multifamily Property Acre N/A $8,175.00
12. Non‐Residential Property Acre N/A $8,175.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall
be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use
Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special
Tax for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to
each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified or to be classified as Single
Family Property shall calculated according to the following formula.
B = (U x A) / L
The terms above have the following meanings:
B = Backup Special Tax per per Assessor’s Parcel within the Final Map
U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below
A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time
of calculation, as determined by the Administrator
L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as
determined by the Administrator.
In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all
Assessor’s Parcels within such changed or modified area shall be $8,175 per Acre.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 7
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of the CFD,
the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $8,175 per Acre. The
Backup Special Tax shall not apply to Multifamily Residential Property, or Non‐Residential Property.
On each July 1, commencing July 1, 2023, the Backup Special Tax rate shall be increased by two percent
(2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as
Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as
Multifamily Residential Property or Non‐Residential Property shall be $8,175 per Acre.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Approved Property shall
be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property
pursuant to the provisions of Section F
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional
Undeveloped Property that is not Exempt Property shall be equal to the product of $8,175 multiplied
by the Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Undeveloped and
Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect
in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2022‐2023 and for each subsequent Fiscal Year, the City Council shall levy Special
Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed
Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy
the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step
has been completed, the Special Tax shall be levied Proportionately on each Assessor’s
Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each
such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two
steps have been completed, the Annual Special Tax shall be levied Proportionately on
each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax
applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax
Requirement.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 8
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Special Tax levy on each Assessor's Parcel of
Developed Property for which the Maximum Special Tax is the Backup Special Tax shall
be increased Proportionately from the Assigned Special Tax up to 100% of the Backup
Special Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four
steps have been completed, the Special Tax shall be levied Proportionately on each
Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum
Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax
Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against
any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special
Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the
amount that would have been levied in that Fiscal Year had there never been any such delinquency or
default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which
are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of
California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are
used as places of worship and are exempt from ad valorem property taxes because they are owned by a
religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication,
encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or
utility easements making impractical their utilization for other than the purposes set forth in the
easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely
for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City
Council, provided that no such classification would reduce the sum of all Taxable Property to less than
75.96 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if
such classification would reduce the sum of all Taxable Property to less than 75.96 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 75.96 Acres will be classified as Provisional Undeveloped
Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $13,000,000 expressed in 2022 dollars, which shall increase by the
Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized bonding
program for CFD No. 2022‐1, or (ii) determined by the City Council concurrently with a covenant that it
will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of
Apportionment.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 9
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent
to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible
to be financed by CFD No. 2022‐1.
“Construction Inflation Index” means the annual percentage change in the Engineering News‐Record
Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall
be another index as determined by the City that is reasonably comparable to the Engineering News‐
Record Building Cost Index for the city of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded
through existing construction or escrow accounts funded by the Outstanding Bonds, and minus public
facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of
prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax
which will remain outstanding after the first interest and/or principal payment date following the current
Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of
Special Tax.
1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels
of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a
Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building
Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association
Property, or Provisional Undeveloped Property that are not Exempt Property pursuant to Section F. The
Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation
to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that
a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s
Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum
Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice
of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify
such owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by
the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15
days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the
Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to
the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined
below):
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 10
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the
Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which
a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as
though it was already designated as Developed Property, based upon the Building Permit which has
been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped
Property for which a Building Permit has not been issued, Public Property, Property Owner’s
Association Property, or Provisional Undeveloped Property to be prepaid compute the Maximum
Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special
Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable
Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property
not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the
Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the
Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to
paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future
Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first
bond interest and/or principal payment date following the current Fiscal Year until the earliest
redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax
prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which
have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment
of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 11
the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived
pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the
Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the
Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum
Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the
“Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected
reduction in the reserve requirement (as defined in the Indenture), if any, associated with the
redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by
subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption
of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the
prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption
Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and
Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and
Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture
and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities
Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall
be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such
event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund
established under the Indenture to be used with the next redemption from other Special Tax prepayments
of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to
paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the
Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum
Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance
with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special
Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall
cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of
Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed
prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain
outstanding after the prepayment plus the estimated annual Administrative Expenses.
Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms
and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders
shall only be allowed on a case‐by‐case basis as specifically approved by the City Council.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 12
2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property
or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment
amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1
F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the
Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for
the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the
Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner
wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within
5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of
the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the
amount of a partial prepayment. Within 15 business days of receipt of such non‐refundable deposit, the
CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the
Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the
redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment
Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid,
the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of
Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the
Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining
percentage (1.00 ‐ F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s
Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels
subject to the Special Tax. The Special Tax shall cease not later than the 2064‐2065 Fiscal Year, however,
Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that
all the required interest and principal payments on the CFD No. 2022‐1 Bonds have been paid; (ii) all
authorized facilities of CFD No. 2022‐1 have been acquired and all reimbursements to the developer have
been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2022‐
1 have been satisfied.
City of Lake Elsinore
Community Facilities District No. 2022‐1 (Alberhill Ranch) Page 13
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided, however, that CFD No. 2022‐1 may collect Special Taxes at a different time or
in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and
may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD
Administrator, provided that the appellant is current in his/her payments of Special Taxes. During
pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date
established when the levy was made. The appeal must specify the reasons why the appellant claims the
Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD
Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator
agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special
Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations
relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as
herein specified.
APPENDIX B
Boundary Map
APPENDIX C
Resolution of Intention
RESOLUTION NO. 2022-28
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2022-1
OF THE CITY OF LAKE ELSINORE (ALBERHILL RANCH), TO AUTHORIZE
THE LEVY OF A SPECIAL TAX TO PAY THE COSTS OF ACQUIRING OR
CONSTRUCTING CERTAIN FACILITIES AND TO PAY DEBT SERVICE ON
BONDED INDEBTEDNESS
Whereas, the City of Lake Elsinore (the “City”) received a petition signed by the owner of
more than ten percent of the land within the boundaries of the territory which is proposed for
inclusion in a proposed community facilities district, which petition meets the requirements of
Sections 53318 and 53319 of the Government Code of the State of California; and
Whereas, the City Council of the City (the “City Council”) desires to adopt this resolution
of intention as provided in Section 53321 of the Government Code of the State of California to
establish a community facilities district consisting of the territory described in Attachment “A”
hereto and incorporated herein by this reference, which the City Council hereby determines shall
be known as “Community Facilities District No. 2022-1 of the City of Lake Elsinore (Alberhill
Ranch)” (“Community Facilities District No. 2022-1” or the “District”) pursuant to the Mello-Roos
Community Facilities Act of 1982, as amended, commencing with Section 53311 of the
Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion,
improvement or rehabilitation of certain real or other tangible property described in Attachment
“B” hereto and incorporated herein by this reference, including all furnishings, equipment and
supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five
years or longer, and (2) the incidental expenses to be incurred in connection with financing the
Facilities and forming and administering the District (the “Incidental Expenses”); and
Whereas, the City Council further intends to approve an estimate of the costs of the
Facilities and the Incidental Expenses for Community Facilities District No. 2022-1; and
Whereas, it is the intention of the City Council to consider financing the Facilities and the
Incidental Expenses through the formation of Community Facilities District No. 2022-1 and the
issuance of bonded indebtedness in an amount not to exceed $15,000,000 with respect to the
Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and
the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness,
provided that the bond sale and such Special Tax levy are approved at an election to be held
within the boundaries of Community Facilities District No. 2022-1;
Whereas, the City desires to enter into a reimbursement agreement with Alberhill
Development, LLC, a California limited liability company (the “Developer”), the form of which is
on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of
certain amounts advanced by the Developer in connection with the formation of the District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district is proposed to be established under the terms
of the Act. It is further proposed that the boundaries of the community facilities district shall be
the legal boundaries as described in Attachment “A” hereto, which boundaries shall, upon
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recordation of the boundary map for the District, include the entirety of any parcel subject to
taxation by the District, and as depicted on the map of the proposed Community Facilities District
No. 2022-1 which is on file with the City Clerk. The City Clerk is hereby directed to sign the
original map of the District and record it with all proper endorsements thereon with the Assessor-
County Clerk-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 3. The name of the proposed community facilities district shall be “Community
Facilities District No. 2022-1 of the City of Lake Elsinore (Alberhill Ranch).”
Section 4. The Facilities proposed to be provided within Community Facilities District
No. 2022-1 are public facilities as defined in the Act, which the City is authorized by law to
construct, acquire, own and operate. The City Council hereby finds and determines that the
description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed
District to understand what the funds of the District may be used to finance. The Incidental
Expenses expected to be incurred include the cost of planning and designing the Facilities, the
costs of forming the District, issuing bonds and levying and collecting the Special Tax within the
proposed District. The Facilities may be acquired from one or more of the property owners within
the District as completed public improvements or may be constructed from bond or Special Tax
proceeds.
All or a portion of the Facilities may be purchased with District funds as completed public
facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section
53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act.
Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if
the District hereafter determines that such arrangement is of benefit to 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 the Special Tax,
secured by recordation of a continuing lien against all nonexempt real property in the District,
sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest
and other periodic costs on bonds or other indebtedness issued to finance the Facilities and
Incidental Expenses, including the establishment and replenishment of any reserve funds deemed
necessary by the District, and 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).
The rate and method of apportionment and manner of collection of the Special Tax are described
in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this
reference. Attachment “C” allows each landowner within the District to estimate the maximum
amount of the Special Tax that may be levied against each parcel. In the first year in which such
Special Tax is levied, the levy shall include an amount sufficient to repay to the District all
amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest
thereon.
If the Special Tax is levied against any parcel used for private residential purposes, (i) the
maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and
established not later than the date on which the parcel is first subject to the Special Tax because
of its use for private residential purposes and shall not be increased over time, except as set forth
in Attachment “C” hereto, (ii) such Special Tax not shall be levied after fiscal year 2064-65, as
described in Attachment “C” hereto, and (iii) under no circumstances will the Special Tax levied
in any fiscal year against any such parcel used for private residential uses be increased as a
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consequence of delinquency or default by the owner or owners of any other parcel or parcels
within the District by more than ten percent (10%) above the amount that would have been levied
in that fiscal year had there never been any such delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within
proposed Community Facilities District No. 2022-1 will place on the Facilities and on the benefit
that each parcel derives from the right to access the Facilities. The City Council hereby
determines that the proposed Facilities are necessary to meet the increased demand placed upon
the City and the existing infrastructure in the City as a result of the development of the land
proposed for inclusion in the District. The City Council hereby determines the rate and method of
apportionment of the special tax with respect to the Special Tax set forth in Attachment “C” to be
reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to
Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership
of real property. In the event that a portion of the property within Community Facilities District No.
2022-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax
specified on Attachment “C,” the City Council shall, on behalf of Community Facilities District No.
2022-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax for
a parcel as set forth in Attachment “C,” to the extent necessary upon the remaining property within
proposed Community Facilities District No. 2022-1 which is not exempt in order to yield the
Special Tax revenues required for the purposes described in this Section 5. The obligation to pay
the Special Tax may be prepaid only as set forth in Section G of Attachment “C” hereto.
Section 6. A public hearing (the “Hearing”) on the establishment of the proposed
Community Facilities District No. 2022-1, the proposed rate and method of apportionment of the
Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental
Expenses shall be held at 7:00 p.m., or as soon thereafter as practicable, on April 26, 2022, at
the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council
determine to form the District, a special election will be held to authorize the issuance of the bonds
and the levy of the special tax in accordance with the procedures contained in Government Code
Section 53326. 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 District at the close of the
Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof
owned within the proposed District. Ballots for the special election may be distributed by mail or
by personal service.
Section 7. At the time and place set forth above for the Hearing, the City Council will
receive testimony as to whether the proposed Community Facilities District No. 2022-1 shall be
established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed
Community Facilities District No. 2022-1 for the exclusive purpose of paying principal of
or interest on bonds, lease payments or other indebtedness incurred to finance
construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No.
2022-1 will provide the same services as were provided by the capital facilities mentioned
in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will
consider appropriate action to determine whether the total annual amount of ad valorem
property tax revenue due from parcels within Community Facilities District No. 2022-1, for
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purposes of paying principal and interest on the debt identified in subsection (a) above,
shall not be increased after the date on which Community Facilities District No. 2022-1 is
established, or after a later date determined by the City Council with the concurrence of
the legislative body which levied the property tax in question.
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 proposed Community
Facilities District No. 2022-1, may appear and be heard.
Section 9. Each City officer who is or will be responsible for providing the Facilities
within proposed Community Facilities District No. 2022-1, if it is established, is hereby directed to
study the proposed District and, at or before the time of the above-mentioned Hearing, file a report
with the City Council containing a brief description of the public facilities by type which will in his
or her opinion be required to meet adequately the needs of Community Facilities District No. 2022-
1 and an estimate of the cost of providing those public f acilities, including the cost of
environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any
Incidental Expenses to be incurred.
Section 10. The District may accept advances of funds or work-in-kind from any source,
including, but not limited to, private persons or private entities, for any authorized purpose,
including, but not limited to, paying any cost incurred in creating Community Facilities District No.
2022-1. The District may enter into an agreement with the person or entity advancing the funds
or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or
entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City
Council, with or without interest.
Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of proposed Community Facilities District No. 2022-1. The City Clerk is
further directed to mail a copy of the Notice to each of the landowners within the boundaries of
the District 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 12. The reasonably expected maximum principal amount of the bonded
indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Fifteen
Million Dollars ($15,000,000).
Section 13. The form of the Reimbursement Agreement is hereby approved. The
Mayor, the City Manager, or their written designees are hereby authorized and directed to execute
and deliver the Reimbursement Agreement in the form on file with the City Clerk with such
changes, insertions and omissions as may be approved by the officer or officers executing such
agreement, said execution being conclusive evidence of such approval.
Section 14. Except to the extent limited in any bond resolution or trust indenture related
to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth
in Section 53344.1 of the Act (relating to tenders in full or partial payment).
Section 15. This Resolution shall be effective upon its adoption.
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CC Reso. No. 2022-28
Page 5 of 5
Passed and Adopted at a regular meeting of the City Council of the City of Lake
Elsinore, California, this 22nd 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. 2022-28 was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of March 22, 2022 and that the same was adopted by the following vote:
AYES: Council Members Magee, Tisdale, and Manos; Mayor Pro Tem Johnson; and Mayor
Sheridan
NOES: None
ABSENT: None
ABSTAIN: None
Candice Alvarez, MMC
City Clerk
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ATTACHMENT A
BOUNDARY MAP
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ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2022-1 of the City of Lake Elsinore
The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of
(i) drainage, library, park, fire, roadway, traffic, administration and community center facilities,
marina and animal shelter facilities, and other public facilities of the City, including the foregoing
public facilities which are included in the City’s fee programs with respect to such facilities and
authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended
(the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing
Facilities, including the cost of engineering, planning, designing, materials testing, coordination,
construction staking, construction management and supervision for such Facilities, and to finance
the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate
and Method of Apportionment of Special Taxes for the District.
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-1
OF THE CITY OF LAKE ELSINORE
(ALBERHILL RANCH)
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be
applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the
City of Lake Elsinore Community Facilities District No. 2022-1 (Alberhill Ranch) ("CFD No. 2022-
1”). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be
determined by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative
body of CFD No. 2022-1, by applying the appropriate Special Tax for Developed Property,
Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not
Exempt Property as set forth below. All of the real property, unless exempted by law or by the
provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner
herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown
on the applicable final map, parcel map, condominium plan, or other recorded County parcel map
or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by
43,560.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the
State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of CFD No. 2022-1: the costs of computing the Special Taxes and
preparing the Special Tax collection schedules (whether by the City or designee thereof or both);
the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting
Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge
of the duties required of it under the Indenture; the costs to the City, CFD No. 2022 -1 or any
designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No.
2022-1 or any designee thereof of complying with disclosure requirements of the City, CFD No.
2022-1 or obligated persons associated with applicable federal and state securities laws and the
Act; the costs associated with preparing Special Tax disclosure statements and responding to
public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022 -1 or any
designee thereof related to an appeal of the Special Tax; the costs associated with the release of
funds from an escrow account; and the City’s annual administration fees and third party expenses.
Administration Expenses shall also include amounts estimated by the CFD Administrator or
advanced by the City or CFD No. 2022-1 for any other administrative purposes of CFD No. 2022-
1, including attorney’s fees and other costs related to commencing and pursuing to completion
any foreclosure of delinquent Special Taxes.
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"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in
a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the
Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County
shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that
have not been issued a building permit on or before May 1st preceding the Fiscal Year in which
the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with
an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the
County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of
bonds, notes, certificates of participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses, or individuals, or long -term
contracts, or any refunding thereof, to which Special Tax of CFD No. 2022-1 have been pledged.
"Building Permit" means the first legal document issued by a local agency giving official
permission for new construction. For purposes of this definition, “Building Permit” may or may not
include any subsequent building permit document(s) authorizing new construction on an
Assessor’s Parcel that are issued or changed by the City after the first original issuance, as
determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s
Parcel, provided that following such determination the Maximum Special Tax that may be levied
on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt
service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living
space, exclusive of garages or other structures not used as living space, as determined by
reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
“CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement, and providing for the levy and collection of the Special
Taxes.
"CFD” or “CFD No. 2022-1” means Community Facilities District No. 2022-1 (Alberhill Ranch)
established by the City under the Act.
“City” means the City of Lake Elsinore.
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"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative
Body of CFD No. 2022-1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code,
Section 6624.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that
was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being
levied, and (ii) has an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel
Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction
was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being
levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special
Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et
seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that
creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following
June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D.
"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax,
determined in accordance with Section D below, that can be levied by CFD No. 2022-1 in any
Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building
Permit has been issued for the purpose of constructing a building or buildings comprised of
attached Residential Units available for rental by the general public, not for sale to an end user,
and under common management, as determined by the CFD Administrator.
"Non-Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s)
was issued or will be issued for a non-residential use. The CFD Administrator shall make the
determination if an Assessor’s Parcel is Non-Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special
Tax obligation for an Assessor’s Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full
for an Assessor’s Parcel, as described in Section G.1.
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“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the
actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of
Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the
Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii)
Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special
Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of
Undeveloped Property, or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that
would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but
cannot be classified as Exempt Property because to do so would be reduce the Acreage of all
Taxable Property below the required minimum Acreage set forth in Sections F.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building
permit has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a
domicile by one or more persons, as determined by the CFD Administrator.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property
other than Multifamily Property.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2022-1
pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt
service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences
in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of
funds from an escrow account, (iv) any amount required to replenish any reserve funds
established in association with the Bonds, (v) an amount equal to any anticipated shortfall due to
Special Tax delinquencies, and (vi) for the collection or accumulation of funds for t he acquisition
or construction of facilities authorized by CFD No. 2022-1 or the payment of debt services on
Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an
increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in
Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other
periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022-1, which are not Exempt
Property.
“Taxable Unit” means either a Residential Unit or an Acre.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a
Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not
Developed Property, Approved Property, Provisional Undeveloped Property.
B. SPECIAL TAX
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Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall
levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund
the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022-2023, each Assessor’s Parcel within CFD No.
2022-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s
Parcel of Taxable Property shall be further classified as Developed Property, Approved Property,
Undeveloped Property or Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or
Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be
classified as a Single Family Residential Property, or Multifamily Property. Each Assessor’s
Parcel of Single Family Residential Property shall be further categorized into Land Use Categories
based on its Building Square Footage and assigned to its appropriate Assigned Special Tax rate.
In the event that an Assessor’s Parcel for which one or more Building Permits have been issued
and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s)
(in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount
of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as
follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax
levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as
Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such
Assessor’s Parcel for which Building Permits have been issued shall be determined based on the
Developed Property Special Tax rates and shall be taxed as Developed Property in accordance
with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property
in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A)
the percentage of the Maximum Special Tax rate levied on all other Undeveloped Property
multiplied by the total of the amount determined in clause (1), less the amount determined in
clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in
any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special
Tax.
The Maximum Special Tax for each Assessor’s Parcel of Non-Residential or Multifamily
Residential Property shall be the applicable Assigned Special Tax described in Table 1 of
Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily
Property or Non-Residential shall be subject to an Assigned Special Tax. The Assigned
Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined
pursuant to Table 1 below.
TABLE 1
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ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential Property RU Less than 2,000 sq. ft $1,280.00
2. Single Family Residential Property RU 2,000 sq. ft to 2,150 sq. ft $1,363.00
3. Single Family Residential Property RU 2,151 sq. ft to 2,300 sq. ft $1,446.00
4. Single Family Residential Property RU 2,301 sq. ft to 2,450 sq. ft $1,529.00
5. Single Family Residential Property RU 2,451 sq. ft to 2,600 sq. ft $1,612.00
6. Single Family Residential Property RU 2,601 sq. ft to 2,750 sq. ft $1,695.00
7. Single Family Residential Property RU 2,751 sq. ft to 2,900 sq. ft $1,778.00
8. Single Family Residential Property RU 2,901 sq. ft to 3,050 sq. ft $1,861.00
9. Single Family Residential Property RU 3,051 sq. ft to 3,200 sq. ft $1,944.00
10. Single Family Residential Property RU Greater than 3,200 sq. ft $2,027.00
11. Multifamily Property Acre N/A $8,175.00
12. Non-Residential Property Acre N/A $8,175.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed
Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal
Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one
Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum
of the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel.
The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified or to be
classified as Single Family Property shall calculated according to the following formula.
B = (U x A) / L
The terms above have the following meanings:
B = Backup Special Tax per Assessor’s Parcel within the Final Map
U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below
A = Acreage of Single Family Residential Property expected to exist in such Final Map at
the time of calculation, as determined by the Administrator
L = Number of Residential Units expected to exist in such Final Map at the time of
calculation, as determined by the Administrator.
In the event any portion of the Final Map is changed or modified, the Backup Special Tax for
all Assessor’s Parcels within such changed or modified area shall be $8,175 per Acre.
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In the event any superseding Final Map is recorded as a Final Map within the Boundaries of
the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be
$8,175 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property,
or Non-Residential Property.
On each July 1, commencing July 1, 2023, the Backup Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be
classified as Single Family Property shall be the Backup Special Tax computed pursuant to
Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be
classified as Multifamily Residential Property or Non-Residential Property shall be $8,175 per
Acre.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Approved
Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal
Year.
3. Undeveloped Property and Provisional Undeveloped Property that is not Exempt
Property pursuant to the provisions of Section F
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and
Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of
$8,175 multiplied by the Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Undeveloped
and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the
amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall
levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax rates in
Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on
each Assessor’s Parcel of Approved Property at up to 100% of the Maximum
Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the
Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the
first two steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100%
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of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed
to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, then the Special Tax levy on each
Assessor's Parcel of Developed Property for which the Maximum Special Tax is
the Backup Special Tax shall be increased Proportionately from the Assigned
Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special
Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the
first four steps have been completed, the Special Tax shall be levied
Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property
up to 100% of the Maximum Special Tax applicable to each such Assessor’s
Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal
Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the
payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than
ten percent (10%) above the amount that would have been levied in that Fiscal Year had there
never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels
which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the
State of California, Federal or other local governments, including school districts, (ii) Assessor’s
Parcels which are used as places of worship and are exempt from ad valorem property taxes
because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by,
irrevocably offered for dedication, encumbered by or restricted in use by a homeowners'
association, (iv) Assessor’s Parcels with public or utility easements making impractical their
utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are
privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s
Parcels restricted to other types of public uses determined by the City Council, provided that no
such classification would reduce the sum of all Taxable Property to less than 75.96 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt
Property if such classification would reduce the sum of all Taxable Property to less than 75.96
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 75.96 Acres will be
classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to
Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $13,000,000 expressed in 2022 dollars, which shall increase by
the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower
amount (i) determined by the City Council as sufficient to provide the public facilities under the
authorized bonding program for CFD No. 2022-1, or (ii) determined by the City Council
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concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax
levied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct
public facilities eligible to be financed by CFD No. 2022-1.
“Construction Inflation Index” means the annual percentage change in the Engineering News-
Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which
ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction
Inflation Index shall be another index as determined by the City that is reasonably comparable to
the Engineering News-Record Building Cost Index for the city of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available
to be funded through existing construction or escrow accounts funded by the Outstanding Bonds,
and minus public facility costs funded by interest earnings on the Construction Fund actually
earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of
Special Tax which will remain outstanding after the first interest and/or principal payment date
following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the
proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s
Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped
Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped
Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Public
Property or Property Owner’s Association Property, or Provisional Undeveloped Property that
are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable
to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such
Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be
made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the
time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special
Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice
of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator
shall notify such owner of the amount of the non-refundable deposit determined to cover the cost
to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the
Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD
Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.
Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to
be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are
defined below):
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Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for
the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped
Property for which a Building Permit has been issued, compute the Maximum Special Tax for
the Assessor’s Parcel as though it was already designated as Developed Property, based
upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s
Parcel of Approved Property or Undeveloped Property for which a Building Permit has not
been issued, Public Property, Property Owner’s Association Property, or Provisional
Undeveloped Property to be prepaid compute the Maximum Special Tax for the Assessor’s
Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount
of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s
Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s
Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax
obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the
Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on
the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined
pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s
Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal Year until the
earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from
Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year
which have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the
investment of the Bond Redemption Amount and the Redemption Premium from the date of
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prepayment until the redemption date for the Outstanding Bonds to be redeemed with the
Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount
derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, including the cost of
computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost
of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the
prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the
redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any, associated
with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount
derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after
the redemption of Outstanding Bonds as a result of the prepayment from the balance in the
reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the
Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the
Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption
Premium, and Defeasance Amount shall be deposited into the appropriate fund as established
under the Indenture and be used to redeem Outstanding Bonds or make debt service
payments. The Future Facilities Amount shall be deposited into the Construction Fund. The
Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.
In such event, the increment above $5,000 or an integral multiple thereof will be retained in the
appropriate fund established under the Indenture to be used with the next redemption from other
Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant
to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax
levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for
which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable
notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special
Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation
to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of
Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the
proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that
will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon
the terms and conditions established by the City Council pursuant to the Act. However, the use
of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the
City Council.
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2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved
Property or Undeveloped Property may be partially prepaid. For purposes of determining the
partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the
following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1
F = the percent by which the owner of the Assessor’s Parcel(s) is partially
prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax
obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent
to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum
Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be
acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator
shall notify such property owner of the amount of the non-refundable deposit determined to cover
the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15
business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such
owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial
Prepayment Amount must be made not less than 60 days prior to the redemption date for the
Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially
prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in
Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a
Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax
obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation
will continue to be levied on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all
Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the
2064-2065 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if
the CFD Administrator has determined (i) that all the required interest and principal payments on
the CFD No. 2022-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-1 have
been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special
Tax remain uncollected and (iv) all other obligations of CFD No. 2022-1 have been satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that CFD No. 2022-1 may collect Special Taxes at a
different time or in a different manner if necessary to meet its financial obligations, and may
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covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted
by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with
the CFD Administrator, provided that the appellant is current in his/her payments of Special
Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or
before the payment date established when the levy was made. The appeal must specify the
reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review
the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the
appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD
Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s
Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make
determinations relative to the annual levy and administration of the Special Taxes and any
taxpayer who appeals, as herein specified.
DocuSign Envelope ID: 74B987AE-3940-439F-B4B3-727ABB54C161
Stradling Yocca Carlson & Rauth
Draft of 4/19/22
4881-9461-8395v3/022042-0042
COMMUNITY FACILITIES DISTRICT NO. 2022-1 OF THE
CITY OF LAKE ELSINORE (ALBERHILL RANCH)
ACQUISITION, CONSTRUCTION AND FUNDING AGREEMENT
THIS AGREEMENT is made and entered into by and between CITY OF LAKE
ELSINORE (the “City”), acting for and on behalf of itself and CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (ALBERHILL RANCH) (the “Community
Facilities District” or “CFD”) and ALBERHILL DEVELOPMENT, LLC, a California limited liability
company (the “Developer”) (each individually a “Party” and collectively the “Parties”).
WHEREAS, the City has established the CFD, which encompasses the property
described in the attached Exhibit “A” (the “Developer Property”), pursuant to the provisions of
the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), and has undertaken
proceedings for the authorization of special taxes and issuance of bonded indebtedness for the
payment of the construction and/or acquisition of certain public improvements to be owned,
operated or maintained by the City and incidental expenses in accordance with the Act; and
WHEREAS, the costs of the acquisition and construction of improvements to be funded
by the CFD and to be owned, operated and maintained by the City (“Improvements”) and, with
respect to improvements included in the City’s fee programs (the “City Fee Facility
Improvements”), are each as more particularly set forth and described in the Description of Cost
Estimates attached hereto as Exhibit “B”; and
WHEREAS, the City is authorized by the Act to form the CFD and to issue bonds to fund
the Improvements; and
WHEREAS, the City Council has adopted the City’s policies and procedures concerning
the use of special district financing programs to finance City facilities (the “Policy”); and
WHEREAS, the purpose of this Agreement is to constitute a formal understanding
between Developer and the City (pursuant to the requirements of Government Code
Section 53313.51 and other provisions of the Act and the Policy) concerning financial and other
obligations and responsibilities related to the Improvements to be financed by the Community
Facilities District to the extent funds are available, and to set forth the conditions upon which (1)
the Community Facilities District will reimburse Developer or its designee for the cost of the City
Improvements constructed by or on behalf of the Developer and (2) the Community Facilities
District will fund the City Fee Facility Improvements and the City will grant credit against
applicable City fees; and (3) the Community Facilities District will also fund Miscellaneous
Improvements, if any, which will be described in Exhibit “E,” if applicable.
NOW, THEREFORE, it is mutually agreed between the respective Parties as follows:
SECTION 1. DEVELOPER ADVANCES
At Developer’s request, the City undertook the formation of the Community Facilities
District. The Developer has advanced to the City a sum of money related to the costs of such
formation proceedings, all of which shall be eligible for reimbursement from the CFD. The City
will provide to Developer on request a summary of how the advances have been spent and the
unexpended balance remaining. The amounts advanced by the Developer and, to the extent
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4881-9461-8395v3/022042-0042
determined reasonable and appropriate by the City, expenses incurred by the Developer for
engineering consultant costs in connection with the formation of the Community Facilities
District and the issuance of bonds, will be reimbursable to the Developer, without interest, from
the proceeds of bonds (the “Bonds”) issued by the Community Facilities District. In the event
that Bonds are not issued to provide a source of reimbursement to Developer, the City shall not
have any liability to Developer to reimburse it for any of the amounts previously advanced by
Developer and expended by the City.
Prior to the issuance of the Bonds, the City will request a final advance for any unpaid
expenses incurred during preparatory technical, financial and legal work; and following payment
of such expenses, the City shall promptly release the balance, if any, of the advance to the
Developer. Should the City’s expenses exceed the remaining balance, the City will bill the
Developer for the difference, which the Developer agrees to pay within 10 days following receipt
of such billing, subject to the conditions of paragraph one of this section.
SECTION 2. SALE OF BONDS
2.1 City Policies and Requirements for the Issuance of Bonds. The City Council has
adopted the Policy, setting forth the City’s policies and procedures concerning the use of special
district financing programs to finance the Improvements. Pursuant to the Policy, the total annual
amount of the special taxes to be collected with respect to a parcel within the CFD and all other
taxes and assessments which will be collected with respect to such parcel must not exceed two
percent (2%) of the expected assessed value of such parcel within the Community Facilities
District upon the completion of all expected structural improvements to such parcel and the sale
of such parcel to the initial homeowner. In the event the sum of the special taxes and
assessments exceed 2% of the expected assessed value of a parcel within the Community
Facilities District, the City may require that the Developer or its assignees prepay a portion of
the special tax obligation of such parcel prior to or in connection with the issuance of Bonds.
The Parties hereby agree that, unless waived by the City, at the time of issuance of the
Bonds, the following requirements shall be met: (1) the ratio of the value of all parcels of
property for which the Bonds are being issued to the amount of outstanding community facilities
district or assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may
not be less than four-to-one (4:1) and (2) at least 50% of the proposed residential units within
the Community Facilities District shall have been completed and conveyed to individual
homeowners. The fair market value of the property within the Community Facilities District for
purposes of determining the foregoing ratio will be determined based on the assessed value of
the property or the appraised value of the property based on the appraisal made by an
appraiser selected by the City with a valuation date within ninety (90) days of the issuance of
the Bonds. Subject to satisfaction of the Policy and the requirements of this Agreement, the
City shall use its best efforts to issue and sell the Bonds in one or more series in an amount
sufficient to fund the Improvements in accordance with the schedule for development of the
Developer Property.
2.2 Security for Payment of Special Taxes. Concurrently with the issuance and sale
of each series of the Bonds, the owner of any land within the Community Facilities District,
together with land owned by any affiliate (collectively, an “Account Party”), for which the
Maximum Special Tax (as defined in the Rate and Method of Apportionment of Special Tax for
the Community Facilities District (the “Rate and Method”), such Special Tax referred to herein
as the “Special Tax” or “Special Taxes”) in the fiscal year following the fiscal year in which the
Bonds are issued are equal to or exceed 20% of the total Maximum Special Tax for such fiscal
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year, shall deliver to the City either (i) a renewable, irrevocable instrument of credit from a
financial institution (rated “A” or better) or (ii) cash in-lieu thereof (a “Security”). The Security
shall be in an amount equal to 100% of the expected Special Tax levy on the property owned by
such Account Party in the two fiscal years following the fiscal year in which the Bonds are
issued, based on ownership status as of a date that is within 60 days prior to the date of
issuance of the Bonds (the “Stated Amount”). The Security shall be maintained by the Account
Party in each fiscal year until terminated in accordance with Section 2.2(c) below. While the
Security is still required, the Stated Amount of such Security shall be reduced as set forth in a
“Certificate of Reduction or Termination” (as defined in Section 2.2(c) below).
The Security shall name the City, or its designee, as a beneficiary and shall provide that
the City, or its designee, may draw an amount equal to any delinquencies in payment of
semiannual installments of the Special Taxes levied on property owned by the Account Party in
the Community Facilities District. The total amount to be drawn under the Security shall not
exceed an amount equal to the Special Taxes owed by the Account Party with respect to
property within the Community Facilities District that is delinquent at the time the draw is made.
The amount drawn on the Security shall be applied in the same manner and for the same
purposes as the delinquent Special Taxes would have been applied; provided, however the
payment of a draw under the Security will not be deemed to cure the delinquency in payment of
the Special Taxes.
If, subsequent to a draw on the Security and prior to the satisfaction of any
reimbursements due to the institution providing the Security (the “Security Provider”) pursuant to
this Agreement, the City receives payment of all or a portion of the delinquent Special Taxes or
the proceeds of a sale of delinquent real property pursuant to foreclosure proceedings
(“Delinquency Proceeds”) for a parcel for which the Security has been drawn, the Security
Provider shall be reimbursed for such draws to the extent of Delinquency Proceeds net of the
City’s costs of collection, provided that the Security is or has been concurrently reinstated to, or
a Substitute Security (as defined below) provided for, the then applicable Stated Amount. The
Security Provider is intended by the Parties to be a third party beneficiary of this Section 2.2.
(a) The Security shall be renewed, or a substitute Security reasonably satisfactory to
the City (a “Substitute Security”) provided, not less than thirty (30) calendar days prior to the
expiration of the Security or Substitute Security then in effect. If the Account Party provides a
Substitute Security to the City, then the City or its designee, shall return any existing Security on
the effective date of the Substitute Security to the Security Provider.
If the Security is not renewed within thirty (30) days prior to its expiration date and the
requirements for release or termination of the Security as set forth in Section 2.2(c) below have
not then been met, the full amount of the Security may be drawn by the City and deposited in an
account established under the Indenture (as hereinafter defined) or in such account established
with a financial institution selected by the City. Thereafter, amounts in such account shall be
held as security, and if Special Taxes owed by the Account Party with respect to property within
the Community Facilities District are not paid prior to delinquency, then such amounts in such
account may be applied by the City to pay the delinquent Special Taxes owed by the Account
Party with respect to such property on the same terms and conditions applicable hereunder to
draws on the Security.
At such time as the Security is renewed, or a Substitute Security is accepted by the City,
or the requirement for the Security has been terminated pursuant to this section, the City or its
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designee, shall release all amounts in the Security account to the Security Provider within ten
(10) calendar days from the date of renewal or acceptance.
(b) Following the sale or transfer by the Account Party of any property to a person
other than the Account Party, or upon the prepayment of the Special Tax obligation for a parcel
owned by the Account Party, the Account Party shall notify the Community Facilities District of
such event, in writing, and, if requested by the Account Party, the Stated Amount of the Security
shall be reduced and be recalculated in accordance with this Section 2.2; provided, however,
that City shall be required to recalculate such amount and reduce the Security a maximum of
two times each calendar year and any costs associated with the recalculation and reduction
shall be borne by the Account Party. The Security shall be terminated when (i) the Maximum
Special Tax levy on the land owned by the Account Party in the Community Facilities District is
responsible for less than 20% of the Maximum Special Tax levy in the current fiscal year and
the Account Party is not delinquent in the payment of any Special T axes, (ii) the Account Party
has paid all Special Taxes in the current fiscal year and the property owned by the Account
Party in the Community Facilities District is expected to be responsible for less than 20% of the
Maximum Special Tax levy in the next fiscal year, or (iii) the Account Party has paid all Special
Taxes in the current fiscal year and in the following fiscal year, the Community Facilities District
will not levy the Special Tax on property within the Community Facilities District owned by the
Account Party.
Reduction or termination of a Security shall occur automatically upon submission
to the Security Provider by the City of a “Certificate of Reduction or Termination.” The City shall
deliver to the Security Provider, such Certificate of Reduction or Termination promptly upon
receiving from the Account Party a certification which shall be made under penalty of perjury
and which shall indicate (i) the legal description of all land owned by the Account Party, and
either (ii) a recalculation of the new Stated Amount that the Account Party proposes be
applicable to the Security or (iii) if termination of the Security is requested, a statement that one
of the requirements set forth in (i) through (iii) of the preceding paragraph has been satisfied.
The Account Party shall notify the City of any events that will result in a reduction of the
Stated Amount of the Security and shall provide the City with verification of said events. The
Account Party may provide the City with a Substitute Security in the reduced amount, and the
City shall release and return to the Security Provider the Security then in effect. The Parties
expressly acknowledge that the Account Party’s failure to so notify the City or to reduce the
Security at the times prescribed herein shall in no way effect or invalidate sale or transfer of
property, or recordation of maps on property.
(c) If property is sold or transferred by an Account Party with the result that the land
owned by the transferee or any of its affiliates (“Transferee”) is responsible for twenty percent
(20%) or more of the Maximum Special Tax in the current fiscal year, a Security on the same
terms specified herein will be furnished by Transferee with respect to all land owned by such
Transferee in the Community Facilities District. Any applicable purchase and sale agreement
and/or escrow instructions shall notify the Transferee of this Security requirement and obligate
the Transferee to provide such Security, if applicable. The Security of the Account Party will not
be reduced to reflect the sale or transfer of land until a Security is furnished by the Transferee
and accepted by the City. The issuing financial institution and the form and terms of said
Security will be subject to reasonable prior approval by the City. All terms provided in this
Section 2.2 are applicable to the Transferee by replacing the term “Account Party” at each place
where it occurs in each section with the term “Transferee.” Each provider of a Security for a
Transferee shall be an express third party beneficiary of the provisions of this Section 2.2.
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Any costs related to the holding or maintaining the Security, including any fees of a fiscal
agent, trustee or other depository shall be borne by the Account Party.
2.3 Major Landowner Initial and Continuing Disclosure. An owner of land which is
responsible for twenty percent (20%) or more of the Special Tax in the fiscal year in which the
Bonds are issued or in the fiscal year following the fiscal year in which the Bonds are issued (a
“Major Landowner”) will be required to provide all information regarding the development of its
property, including the financing plan for such development, which is necessary to ensure that
the official statement for such Bonds complies with the requirements of Rule 15c2-12 of the
Securities and Exchange Commission (the “Rule”) and all other applicable federal and state
securities laws. Additionally, Developer acknowledges that, if it is a Major Landowner at the
time of issuance of the Bonds, it will be necessary that Developer enter into a continuing
disclosure agreement to provide such continuing disclosure pertaining to the development of the
land owned by Developer within the CFD as necessary to assist the underwriter in complying
with the continuing disclosure requirements of the Rule and/or to assist in the marketing of the
Bonds.
2.4 Bond Issuance Parameters. The terms and conditions upon which each series of
the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the
Bonds shall be determined solely by the City in its reasonable discretion in conformance with
the requirements of Government Code Section 53313.5, the Act, the Policy, and this
Agreement. The Bonds shall be issued with a term not to exceed 35 years and annual debt
service on the Bonds shall be permitted to escalate by two percent (2%) per year consistent
with the annual escalation of the Special Tax. The proceeds of the Bonds shall be used in the
following priority to (1) fund a reserve fund for the payment of principal and interest with respect
to the Bonds in an amount equal to the least of (i) ten percent (10%) of the total bond issue,
(ii) maximum annual debt service on Bonds, or (iii) 125% of average annual debt service;
(2) fund up to eighteen (18) months of capitalized interest; (3) reimburse the Developer or its
designee pursuant to Section 1 and hereof for the costs described therein which have not
already been reimbursed to the Developer from collected Special Tax; (4) pay for costs of
issuance of the Bonds including, without limitation, underwriter’s discount, bond counsel and
disclosure counsel fees, appraisal and special tax consultant fees, printing, and fiscal agent
fees; and (5) pay for the actual costs of the Improvements. The Community Facilities District
shall maintain records relating to the disbursements of proceeds of the sale of the Bonds. The
Indenture or Resolution (hereinafter “Indenture”) for the Bonds shall establish an acquisition and
construction fund or improvement fund (herein, the “Improvement Fund”) into which shall be
deposited initially the proceeds of the Bonds net of the amount of proceeds required to fund
items (1) through (5) in the second preceding sentence. The Indenture shall also establish
separate accounts of the Improvement Fund designated the “City Improvements Account,” “City
Fee Facility Improvements Account,” and any Miscellaneous Improvement Account(s) for the
Miscellaneous Improvements described in Exhibit “E” if applicable, into which shall be
deposited such portions of the Improvement Fund as directed by the City and in writing at or
subsequent to the closing of the sale of the Bonds consistent with the following priorities:
(a) An amount sufficient to fund the reasonable, current estimated costs of
the City Improvements for which the Developer has or expects to submit a Disbursement
Request shall be deposited to the City Improvements Account;
(b) An amount sufficient to fund the reasonable, current estimated cost of the
City Fee Facility Improvements anticipated to be funded out of the Bonds being issued shall be
deposited in the City Fee Facility Improvements Account (any Special Taxes levied in the CFD
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and collected by the CFD remaining after the payment of administrative expenses of the CFD
and the reimbursement of the Developer for costs pursuant to Section 1 hereof shall be
deposited into the City Fee Facility Improvements Account at the time of Bond issuance, unless
otherwise directed in writing by the Developer); and
(c) If applicable, an amount to be agreed upon between Developer and the
CFD prior to the issuance of Bonds sufficient to fund the reasonable, current estimated cost of
any Miscellaneous Improvements, if any, described in Exhibit “E” hereto, anticipated to be
funded out of the Bonds being issued shall be deposited in the applicable Miscellaneous
Improvement Account(s).
Interest earned on moneys deposited in each of the City Fee Facility Improvements
Account, the City Improvements Account and the Miscellaneous Improvement Account(s) shall
remain in such accounts until such time as all of the Improvements have been funded.
Additionally, the Developer may direct the CFD to transfer excess moneys in any of the City Fee
Facility Improvements Account, the City Improvements Account or the Miscellaneous
Improvement Account(s) to another Account. The Indenture shall provide that amounts
remaining in the Improvement Fund after funding all proposed Improvements or sooner, as
agreed by the City and the Developer, shall be deposited in the special tax fund or bond service
fund and be applied to pay debt service on the Bonds and/or to call Bonds in advance of
maturity.
SECTION 3. ALLOCATION OF SPECIAL TAXES
Prior to the issuance of Bonds, the City Council of the City, acting as the legislative body
of the Community Facilities District, may levy Special Taxes at the assigned special tax rate on
all parcels classified as Developed Property pursuant to the Rate and Method. Such Special
Taxes collected by the City shall first be applied to fund annual administrative expenses of the
Community Facilities District and then to fund Improvements in the same manner as the
proceeds of Bonds as set forth herein. Upon sale and delivery of the Bonds, the City shall
annually levy the Special Tax as provided for in documents pursuant to which the Bonds were
issued. Following the issuance of the Bonds, the City shall have no obligation to levy Special
Taxes to reimburse the Developer for the costs of any Improvements not paid for from Bond
proceeds. The entire amount of any Special Tax levied by the Community Facilities District to
repay the Bonds and recover costs and expenses allowable pursuant to Government Code
Section 53313.5, shall be allocated to the Community Facilities District.
SECTION 4. NOTICE OF SPECIAL TAX
Developer, or Developer’s successors or assigns, shall provide written notice to all
potential initial purchasers of lots advising of the special tax obligation applicable to the
Developer Property in the form required by Section 53341.5 of the Government Code. A
sample copy as prepared by Developer is attached as Exhibit “C.”
SECTION 5. DESIGN PLANS AND SPECIFICATIONS
The requirements of this Section shall not apply to any City Improvement that was
complete (as determined by the City Council) prior to the adoption by the City Council of the
resolution forming the CFD, but they shall apply to all other City Improvements for which the
Developer submits a Disbursement Request. All plans, specifications and bid documents for
the City Improvements (“Plans”) constructed or to be constructed by the Developer shall be
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prepared by the Developer at the Developer’s initial expense, subject to approval by the
applicable public agency. Costs for preparation of the Plans will be eligible for reimbursement,
conditioned upon the final approval of the applicable public agency and the availability of funds.
Reimbursement of costs for plan revisions will be considered on a case by case basis. All
facilities shall be bid in accordance with “public works” requirements of Section 6.4 to be eligible
for reimbursement. The Developer shall not award bids for construction, or commence or cause
commencement of construction, of a City Improvement until the Plans and bidding documents
have been approved by the City. The bid opening for City Improvements shall be coordinated
with and take place at the City’s facilities, with City personnel in attendance.
SECTION 6. CONSTRUCTION OF IMPROVEMENTS
The requirements of this Section shall not apply to any City Improvement that was
complete (as determined by the City Council) prior to the adoption by the City Council of the
resolution forming the CFD, but they shall apply to all other City Improvements for which the
Developer submits a Disbursement Request.
6.1 Construction or Acquisition Election. Upon the approval of Plans for a City
Improvement, the Developer and the City shall determine whether the Developer will provide for
construction of such City Improvement in accordance with Sections 6.2, 6.4 and 7 of this
Agreement (the “Acquisition Election”) or whether the City will provide for construction of such
City Improvement in accordance with Section 6.3 of this Agreement (the “Construction
Election”). Sections 6.2, 6.4 and 7 specify the requirements for construction of the City
Improvements pursuant to the Acquisition Election that the City believes are necessary to
ensure that such City Improvements are constructed as if they had been constructed under the
direction and supervision, or under the authority of the City.
6.2 Acquisition Election. If the Acquisition Election is selected with respect to City
Improvements in accordance with the provisions of Section 7 hereof, a qualified engineering
firm (the “Field Engineer”) shall be employed by the Developer to provide all field engineering
surveys determined to be necessary by the City’s inspection personnel. Field Engineer shall
promptly furnish to City a complete set of grade sheets listing all locations, offsets, etc., in
accordance with good engineering practices, and attendant data and reports resulting from Field
Engineer’s engineering surveys and/or proposed facility design changes. City shall have the
right, but not the obligation, to review, evaluate and analyze whether such results comply with
applicable specifications.
A full-time soil-testing firm, approved by City, shall be employed by the Developer to
conduct soil compaction testing and certification. The Developer shall promptly furnish results
of all such compaction testing to the City for its review, evaluation and decision as to
compliance with applicable specifications. In the event the compaction is not in compliance with
applicable specifications, the Developer shall be fully liable and responsible for the costs of
achieving compliance. A final report certifying all required compaction in accordance with the
specifications shall be a condition of final acceptance of facilities.
The costs of all surveying, testing and reports associated with the City Improvements
furnished and constructed by the Developer’s contractor(s) shall be eligible to be paid from
funds in the City Improvements Account.
The City shall not be responsible for conducting any environmental, archaeological,
biological, or cultural studies or any mitigation requirements that may be requested by
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appropriate Federal, State, and/or local agencies. Any such work shall be paid for and
conducted by the Developer and reimbursed out of the City Improvements Account.
Notwithstanding the selection of the Acquisition Election with respect to a City
Improvement, should the Developer notify the City that the Developer is unable to complete
such City Improvement, the City shall have the right but not the obligation to require the
Developer to make an irrevocable offer of dedication to the City of the land owned by the
Developer for the City Improvement identified in the notice and to assume responsibility for the
work to be performed thereunder. In the event the City elects to assume the responsibility for
any work on a previously awarded contract as described in the preceding sentence, the
following will occur: (i) the Developer will make an irrevocable offer of dedication to the City of
the land owned by the Developer for such City Improvement identified in the notice; (ii) to the
extent permitted by law and the applicable contract, the Developer will assign all of the contracts
for the work performed to date on the City Improvement identified in the notice to the City, if
requested to do so by the City Manager; the City will use its best efforts to complete the City
Improvement within a reasonable time frame; and upon completion of the City Improvement, to
the extent there are Special Taxes or proceeds of the Bonds available following payment to the
City for the costs of completing such City Improvement, the Developer will be reimbursed for the
lesser of the cost or value of the previously unreimbursed satisfactory work performed or paid
for by the Developer. The cost of such work will be determined by taking the unreimbursed
amounts expended by the Developer under the contract(s) taken over by the City and deducting
any incremental cost incurred by the City to complete the work under the contracts in question.
Incremental cost shall be costs in excess of the sum of the original contract cost plus change
orders approved by the City.
6.3 Construction Election. The Developer and the City shall agree on which
Improvements shall be constructed by the Developer and which shall be constructed by the
City. If the Construction Election is selected, upon the award of a construction contract for a
City Improvement to be constructed by the City, funds in the City Improvements Account in an
amount equal to the costs of the City Improvement, shall be reserved for payments under such
contract and shall not be available for the funding of other City Improvements until all payments
required by such contract have been made. At the time of either or both (i) the execution of a
contract for the construction of a City Improvement as to which the Construction Election has
been made, and (ii) completion of construction of the City Improvement, the Developer shall be
entitled to reimbursement from funds in the City Improvements Account of any actual costs of
the City Improvements incurred by the Developer at that time.
If Bonds have not been issued or insufficient funds are reserved in the Improvement
Fund, the City agrees to accept advances of funds from the Developer (if the Developer agrees
to make such advances in its sole discretion) upon the City’s award of a construction contract
for a City Improvement to be constructed by the City in an amount equal to the difference
between the amount of reserved funds and the contract amount. The amount of such advances
shall be reimbursed to the Developer to the extent of funds in the City Improvements Account.
PUBLIC WORKS REQUIREMENTS
6.4 City Requirements. In order that the City Improvements as to which the
Acquisition Election is made and for which a Disbursement Request is submitted may be
properly and readily acquired by the City, the Developer shall comply with all of the following
requirements with respect to any such City Improvements to be acquired with funds in the City
Improvements Account, and the Developer shall provide such proof to the City as the City may
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reasonably require and at such intervals and in such form as the City may reasonably require,
that the following requirements have been satisfied as to all such City Improvements:
(a) The Developer shall prepare a bid package for review, comment and
approval by the City Manager of the City or his designee (the “City Representative”).
(b) The Developer shall, after obtaining at least three sealed bids for the
construction of the City Improvements in conformance with the procedures and requirements of
the City, submit to the City written evidence of such competitive bidding procedure, including
evidence of the means by which bids were solicited, a listing of all responsive bids and their
amounts, and the name or names of the contractor or contractors to whom the Developer
proposes to award the contracts for such construction, which shall be the lowest responsible
bidder.
(c) The City Representative shall attend the bid opening. If unable to attend
the bid opening, the City Representative shall approve or disapprove of a contractor or
contractors, in writing, within five (5) business days after receipt from the Developer of the name
or names of such contractor or contractors recommended by the Developer. If the City
Representative disapproves of any such contractor; the Developer shall select the next lowest
responsible bidder from the competitive bids received who is acceptable to the City
Representative.
(d) The specifications and bid and contract documents shall require all such
contractors to pay prevailing wages and to otherwise comply with applicable provisions of the
Labor Code, the Government Code and the Public Contract Code relating to public works
projects and as required by the procedures and standards of the City with respect to the
construction of its public works projects.
(e) The Developer shall submit faithful performance and payment bonds with
respect to the City Improvements for which the Acquisition Election is made and t he following
documents shall be submitted to the City along with the performance and payment bonds:
(i) The original, or a certified copy, of the unrevoked appointment,
power of attorney, bylaws, or other instrument entitling or authorizing the person who executed
the bond to do so;
(ii) A certified copy of the certificate of authority of the insurer issued
by the State of California’s Insurance Commissioner; and
(iii) Copies of the insurer’s most recent annual and quarterly
statements filed with the Department of Insurance.
(f) The Developer and its contractor and subcontractors shall be required to
provide proof of insurance coverage throughout the term of the construction of the City
Improvements, which they will construct in conformance with the City’s standard procedures
and requirements. The City’s insurance requirements are set out in Section 20 herein.
(g) The Developer and all such contractors shall comply with such other
requirements relating to the construction of the City Improvements which the City may impose
by written notification delivered to the Developer and each such contractor at the time either
prior to the receipt of bids by the Developer for the construction of such City Improvements or,
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to the extent required as a result of changes in applicable laws, during the progress of
construction thereof; provided that such other requirements shall only be imposed to the extent
the City reasonably determines they are required in order to comply with applicable law. In
accordance with Section 7, the Developer shall be deemed the awarding body and shall be
solely responsible for compliance and enforcement of the provisions of the Labor Code,
Government Code, and Public Contract Code.
(h) A “Change Order” is an order from the Developer to a contractor
authorizing a change in the work to be performed. The Developer shall receive comments from
the City Representative prior to the Developer’s approval of any Change Order. T he City
Representative shall comment on or deny the Change Order request within five (5) business
days of receipt of all necessary information. The City’s comments to a Change Order shall not
be unreasonably delayed, conditioned or withheld. The Developer shall not be entitled to be
compensated for costs associated with a “Change Order” that has not been approved by the
City Representative.
Developer shall provide proof to the City, at such intervals and in such form as the City
may reasonably require, that the foregoing requirements have been satisfied as to all of the City
Improvements as to which the Acquisition Election has been made which are funded through
Bond proceeds.
SECTION 7. INSPECTION; COMPLETION OF CONSTRUCTION
The requirements of this Section shall not apply to any City Improvement that was
complete (as determined by the City Council) prior to the adoption by the City Council of the
resolution forming the CFD, but they shall apply to all other City Improvements for which a
Disbursement Request is submitted.
The City shall have primary responsibility for inspecting the City Improvements to assure
that the work is being accomplished in accordance with the Plans. Such inspection does not
include inspection for compliance with safety requirements by the Developer’s contractor(s).
The City’s personnel shall be granted access to each construction site at all reasonable times
for the purpose of accomplishing such inspection. Upon satisfaction of the City’s inspectors, the
Developer shall notify the City in writing that a City Improvement has been completed in
accordance with the Plans. Any actual costs reasonably incurred by the City for inspection not
previously paid by the Developer shall be reimbursed from funds in the City Improvements
Account.
Within three (3) business days of receipt of written notification from City inspectors that a
City Improvement has been completed in accordance with the Plans, the City Representative
shall notify the Developer in writing that such City Improvement has been satisfactorily
completed. Upon receiving such notification, the Developer shall file a Notice of Completion
with the County of Riverside Recorders Office, pursuant to the provisions of Section 3093 of the
Civil Code. The Developer shall furnish to the City a duplicate copy of each such Notice of
Completion showing thereon the date of filing with the County of Riverside (the “County”). City
will in turn file a notice with the County for acceptance.
SECTION 8. LIENS
With respect to any City Improvement that was complete (as determined by the City
Council) prior to the adoption by the City Council of the resolution forming the CFD, prior to any
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payment by the CFD to the Developer for such City Improvement, the Developer shall provide to
the City such evidence or proof as the City shall require that all persons, firms and corporations
supplying work, labor, materials, supplies and equipment for the construction of the City
Improvements have been paid, and that no claims of liens have been recorded by or on behalf
of any such person, firm or corporation. With respect to City Improvements, upon the earlier of
(i) receipt of all applicable lien releases, or (ii) expiration of the time for the recording of claim of
liens as prescribed by Sections 3115 and 3116 of the Civil Code, the Developer shall provide to
the City such evidence or proof as the City shall require that all persons, firms and corporations
supplying work, labor, materials, supplies and equipment for the construction of the City
Improvements have been paid, and that no claims of liens have been recorded by or on behalf
of any such person, firm or corporation.
SECTION 9. ACQUISITION; ACQUISITION PRICE; SOURCE OF FUNDS
The acquisition price of a City Improvement that was complete (as determined by the
City Council) prior to the adoption by the City Council of the resolution forming the CFD shall be
its fair market value, as determined by the City’s City Manager or his or her designee, as of the
date of acquisition. The City shall consider input and data provided by the Developer prior to
determining the final fair market value.
The costs eligible to be included in the acquisition price of a City Improvement that is not
described in the preceding paragraph (the “Actual Costs”) shall include:
(i) The actual hard costs for the construction of such City Improvement as
established by the City-approved construction contracts and approved
Change Orders, including costs of payment, performance and
maintenance bonds and insurance costs, pursuant to this Agreement;
(ii) The design and engineering costs of such City Improvement including,
without limitation, the costs incurred in preparing the Plans. Costs for plan
revisions will be considered on a case by case basis;
(iii) The costs of environmental evaluations and public agency permits and
approvals attributable to the City Improvement;
(iv) Costs incurred by the Developer for construction management and
supervision of such City Improvement, in an amount equal to five percent
(5%) of the actual hard construction costs described in clause (i) above;
(v) Professional costs associated with the City Improvement such as
engineering, inspection, construction staking, materials, testing and
similar professional services; and
(vi) Costs approved by the City in accordance with the Act of acquiring any
real property or interests therein required for the City Improvement
including, without limitation, any water tank sites, temporary construction
easements, temporary by-pass road and maintenance easements.
Provided the Developer has complied with the requirements of this Agreement, the City
agrees to pay the acquisition price of a completed City Improvement to the Developer or its
designee within thirty (30) days after the Developer’s satisfaction of the preconditions to such
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payment stated herein, but only to the extent there are sufficient funds available in the City
Improvements Account. Except in the case of a City Improvement described in the first
paragraph of this Section, the acquisition price to be paid from Bond proceeds for the
acquisition of a City Improvement by the City shall be the least of (1) the value of the City
Improvement; or (2) the total of the Actual Costs of the City Improvement.
As a condition to the payment of the acquisition price, the ownership of the completed
City Improvement shall be transferred to the City by grant deed, bill of sale or such other
documentation as such public agency may require free and clear of all taxes, liens,
encumbrances, and assessments, but subject to any exceptions determined by the City to not
interfere with the actual or intended use of the land or interest therein (including the lien of a
community facilities district so long as the subject property is exempt from taxation or is
otherwise not taxable by such community facilities district). Upon the transfer of ownership of
City Improvements or any portion thereof to the City, the City shall be responsible for the
maintenance of such City Improvements or the portion transferred. Notwithstanding the
foregoing, the acquisition price of a City Improvement may be paid prior to transfer of ownership
and acceptance of the City Improvement if it is substantially completed at the time of payment.
The City Improvement shall be considered “substantially complete” when it has been reasonably
determined by the City to be usable, subject to final completion of such items as the final lift or
any other items not essential to the primary use or operation of the City Improvement. If the
acquisition price of a City Improvement is paid prior to transfer of ownership and acceptance
based on it being “substantially complete”, Developer may, upon transfer of ownership of such
City Improvement to the City, submit a second reimbursement request for any unpaid portion of
the Actual Costs associated with completing such improvement. If the acquisition price of a
City Improvement is paid prior to transfer of ownership and acceptance based on it being
“substantially complete”, Developer may, upon transfer of ownership of such City Improvement
to the City, submit a second reimbursement request for the additional Actual Costs associated
with completing such improvement.
For purposes of determining the acquisition price to be paid by the Community Facilities
District for the acquisition of the City Improvements by the City (other than City Improvements
described in the first paragraph of this Section), the value of such City Improvements shall
include the construction costs specified in the City-approved contracts and City-approved
Change Orders conforming to Section 6, as hereinbefore specified. City approval is a condition
prior to initiation of contract work. However, if the City reasonably determines that the additional
Actual Costs are excessive and that the value of the City Improvements is less than the total
amount of such Actual Costs and such construction costs, the price to be paid for the acquisition
of the City Improvements shall be the value thereof as determined by the Engineer, subject,
however, to the Developer’s right to appeal to the City’s City Council.
Upon completion of the construction of a City Improvement that the Developer intends to
fund from the City Improvement Account, the Developer shall deliver or cause to be delivered to
the City a Disbursement Request Form in substantially the form of Exhibit “D,” attached
hereto, copies of the contract(s) with the contractor(s) who have constructed the City
Improvement and other relevant documentation with regard to the payments made to such
contractor(s) and each of them for the construction of the City Improvement, documentation
evidencing payment of prevailing wages, and shall also provide to the City invoices and
purchase orders with respect to all equipment, materials and labor purchased for the
construction of the City Improvements. The City shall require the Engineer to complete its
determination of the acquisition price of the City Improvements as promptly as is reasonably
possible.
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Notwithstanding the preceding provisions of this Section, the source of funds for the
acquisition of the City Improvements or any portion thereof shall be funds in the City
Improvements Account. If for any reason beyond the City’s control the Bonds are not sold, the
City shall not be required to acquire the City Improvements from the Developer, except to the
extent of funds from the collection of Special Taxes. In such event, the Developer shall
complete the design and construction and offer to the City ownership of such portions of the City
Improvements as are required to be constructed by the Developer as a condition to recordation
of subdivision maps for the Developer Property (but only at such times as required by such
condition), but need not construct any portion of the City Improvements which it is not so
required to construct. Reimbursement for these facilities would be made from the collection of
Special Taxes.
In addition to the foregoing, the City shall have the right to withhold payment for
acquisition of a City Improvement, if:
(a) the Developer or any of its affiliates is delinquent in the payment of any
Special Taxes levied by the Community Facilities District on properties then owned by the
Developer or any of its affiliates within the CFD, or
(b) the Developer is not then in substantial compliance with a condition or
obligation imposed upon the Developer Property by the City, including but not limited to,
payment of all applicable fees, dedication of all applicable rights-of-way or other property and
construction requirements.
The City shall immediately provide written notice to the Developer of the decision to
withhold any such payment and shall specify the reason for such decision. If the payment is
withheld as a result of the delinquency in the payment of Special Taxes, the notice shall identify
the delinquent parcels and the amount of such delinquency. If the payment is withheld as a
result of substantial non-compliance with a condition or obligation, the notice shall specify such
condition or obligation and what action will be necessary by the Developer to substantially
comply with such condition or obligation. Upon receipt of evidence reasonably satisfactory to
the City that the Developer has paid the delinquent Special Taxes or complied with the subject
condition or obligation, the City shall forthwith make all payments which have been withheld
pursuant to the provisions of this Section.
SECTION 10. EASEMENTS AND/OR FEE TITLE OWNERSHIP DEEDS
Without limiting the Developer’s rights to reimbursement for such grants pursuant to
Section 9 above, the Developer shall, at the time the City acquires the City Improvements as
provided in Section 9 hereof, grant or cause to be granted to the City, by appropriate
instruments prescribed by the City, all easements across private property and/or fee title
ownership deeds which may be reasonably necessary for the proper operation and
maintenance of such City Improvements, or any part thereof, but only to the extent located
within the Developer Property.
SECTION 11. PERMITS
The Developer shall be responsible for obtaining all necessary construction permits from
the City and/or the County (as appropriate) covering construction and installation of the City
Improvement as to which the Acquisition Election has been made. If applicable, the City will
request the County to issue an “operate and maintain permit” to the City, which will become
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effective upon the completion of the City Improvements and acceptance of ownership therewith
by the City.
SECTION 12. MAINTENANCE
Prior to the transfer of ownership of a City Improvement by the Developer to the City, as
provided in Section 9 hereof, the Developer shall be responsible for the maintenance thereof
and shall require its contractor(s) to repair all facilities damaged by any party other than the City,
prior to acceptance by the City and/or make corrections determined to be necessary by the
City’s inspection personnel. The City shall not be permitted to place any City Improvement in
service prior to acceptance of the same, unless the Developer otherwise consents in writing.
SECTION 13. INSPECTION OF RECORDS
The City shall have the right to review all books and records of the Develo per pertaining
to the costs and expenses incurred by the Developer for the design and construction of the City
Improvements during normal business hours by making arrangements with the Developer. The
Developer shall have the right to review all books and records of the City pertaining to costs and
expenses incurred by the City for services of the Engineer by making arrangements with the
City.
SECTION 14. OWNERSHIP OF IMPROVEMENTS
Notwithstanding the fact that some or all of the City Improvements may be constructed in
dedicated street rights-of-way or on property which has been or will be dedicated to the City,
each City Improvement shall be and remain the property of the Developer until acquired by the
City as provided in this Agreement.
SECTION 15. MATERIALS AND WORKMANSHIP WARRANTY
The requirements of this Section shall not apply to any City Improvement that was
complete (as determined by the City Council) prior to the adoption by the City Council of the
resolution forming the CFD, but they shall apply to all other City Improvements.
Upon the completion of the acquisition of a City Improvement by the City, the
performance bond related to such individual City Improvement provided by the Developer
pursuant to Section 6.4(e) hereof, shall be reduced by 90%, and the remaining 10% shall serve
as a maintenance bond to guarantee that such City Improvement will be free from defects due
to faulty workmanship or materials for a period of one year.
SECTION 16. CITY FEE FACILITY IMPROVEMENTS
The Developer may be required pursuant to the conditions of development or the City’s
development impact fee ordinance to pay certain City fees (the “City Fees”) relating to the City
Fee Facility Improvements prior to the availability of proceeds of the Bonds to pay for such City
Fee Facility Improvements. In the event such City Fees are paid prior to the availability of Bond
proceeds, the amounts paid to the City shall be deemed to be deposits (each a “Deposit”) that
are subject to refund by the City to the Developer in accordance with this Agreement. The City
shall place each Deposit in a capital facilities account(s). If the Developer has made any
Deposits to the City, then following deposit of Bond proceeds in the City Fee Facility
Improvements Account, the City shall return to the Developer, from the capital account in which
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the Deposits were deposited an equal amount of the Deposits not previously returned, without
interest or other earnings thereon. The City shall be so obligated to return such Deposits only to
the extent that an equivalent amount of the Deposits to be returned is deposited in the City Fee
Facility Improvements Account from Bond proceeds or Special Tax collections prior to the
issuance of Bonds.
Bond proceeds used to finance City Improvements which relate to the City Fees shall be
allocated first for return of all Deposits prior to being allocated to the payment of City Fees not
previously deposited by the Developer. Any Deposits that have not been returned to the
Developer at the time it is determined that there will be no further Bond procee ds available (i.e.
the final series of Bonds to finance the Improvements have been issued) shall be retained by
the City and may be used for the purposes for which the City Fee was required, and the
unrefunded Deposits shall constitute full and final payment for such City Fees, without any
increase of any kind.
SECTION 17. MISCELLANEOUS IMPROVEMENTS.
Improvements unrelated to the City Improvements and the City Fee Facility
Improvements, if applicable, will be supplemented by the terms contained in an addendum
which will appear as Exhibit “E” hereto. The amounts deposited in the applicable
Miscellaneous Improvement Account(s), if any, will be disbursed for the acquisition or
construction of Miscellaneous Improvements in accordance with the provisions in the applicable
Joint Community Facilities Agreement, if any. Any amounts in the applicable Miscellaneous
Improvement Account(s) shall be disbursed at the written direction of the City upon Developer’s
submittal of a request for disbursement acceptable to the City. Upon receipt of the
disbursement request, the City shall submit a written requisition for payment of the requested
amount to the trustee for the Bonds, who shall directly pay the amount requested to the
applicable entity.
SECTION 18. INDEPENDENT CONTRACTOR
In performing this Agreement, Developer is an independent contractor and not the agent
of the City. The City shall not have any responsibility for payment to any contractor or supplier
of Developer. It is not intended by the Parties that this Agreement create a partners hip or joint
venture among them and this Agreement shall not otherwise be construed.
SECTION 19. INDEMNIFICATION
Developer shall assume the defense of, indemnify and save harmless, the City, its
officers, employees and agents, and the Community Facilities District, its officers, employees
and agents, from and against all actions, damages, claims, losses or expenses of every type
and description to which they may be subject or put, by reason of, or resulting from such
person’s or entity’s performance of its obligations under this Agreement, the issuance of the
Bonds and the construction of the City Improvements and the Miscellaneous Improvements
(provided, however, that such indemnification shall not apply to any City Improvement that the
City constructs itself pursuant to Section 6.3 of this Agreement), the failure of the Developer to
provide notice of the Special Tax to be levied by the Community Facilities District pursuant to
Section 53341.5 of the Act (but only if the Developer is required by law to provide such notice),
or arising out of any alleged misstatements of fact or alleged omission of a material fact made
by the Developer, its officers, directors, employees or agents to the City, the Community
Facilities District, the underwriter of the Bonds and its counsel, the appraiser, the special tax
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consultant, the market absorption consultant or bond counsel regarding the Developer, its
proposed developments, its property ownership, and any contractual arrangement it may enter
into in a disclosure document describing the Community Facilities District and the risks relating
to the Bonds. No provision of this Agreement shall in any way limit the extent of Developer’s
responsibility for payment of damages resulting from the operations of Developer and its
contractors; provided, however that Developer shall not be required to assume the defense or
indemnify and save harmless any person or entity as to actions, damages, claims, losses or
expenses resulting from the breach of this Agreement, the negligence or willful misconduct of
such person or entity or their officers, agents, consultants or employees.
SECTION 20. INSURANCE REQUIREMENTS
Neither the Developer nor its contractor shall commence work on a City Improvement
under this Agreement prior to obtaining insurance with a company or companies acceptable to
the City, nor shall the Developer’s contractor allow any subcontractor to commence work on its
subcontract until all insurance required of the subcontractor has been obtained.
The Developer shall, during the life of this Agreement, notify the City in writing of any
incident giving rise to any potential bodily injury or property damage claim and any resultant
settlements, whether in conjunction with this or any other project which may affect the limits of
the required coverage, as soon as is reasonable and practical.
SECTION 21. CONFLICT WITH OTHER AGREEMENTS
Except as specifically provided herein, nothing contained herein shall be construed as
releasing Developer from any condition of development or requirement imposed by any other
agreement with City. In the event of a conflicting provision, such other agreement shall prevail
unless such conflicting provision is specifically waived or modified in writing by City.
SECTION 22. TERMINATION
The provisions of this Agreement related to the financing of the Improvements shall
terminate and be of no further force or effect upon the earlier of (i) ten (10) years following the
issuance of building permits for all dwelling units expected to be built within the Community
Facilities District, (ii) the funding of all Improvements pursuant to this Agreement, or (iii)
December 31, 2032. Notwithstanding the foregoing, this Agreement shall not terminate
pursuant to (iii) of the previous sentence if, on December 31, 2032, all of the building permits
within the Community Facilities District have been pulled, construction within the Community
Facilities District, as contemplated by the parties hereto, is ongoing, and the Developer has not
yet received a full return of all Deposits or full reimbursement for the Miscellaneous
Improvements from Special Taxes.
SECTION 23. NOTICES
Any notice, payment or instrument required or permitted by this Agreement to be given
or delivered to either Party shall be deemed to have been received when personally delivered or
seventy-two (72) hours following deposit of the same in any United States Post Office in
California, registered or certified, postage prepaid. Any notice to the Community Facilities
District or the City shall be addressed to City of Lake Elsinore, 130 South Main Street, Lake
Elsinore, CA 92530, Attention: City Manager. Any notice to Developer shall be addressed to
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Alberhill Development, LLC, 12671 High Bluff Drive, Suite 150, San Diego, CA 92130,
Attention: Greg Lansing, President/CEO.
Each Party may change its address for delivery of notice by delivering written notice of
such change of address to the other Party hereto.
SECTION 24. NO GIFT OR WAIVER.
24.1 No Gift or Waiver for City Improvements. The Developer and the City
acknowledge that:
(a) The Developer or its predecessor may have constructed or may be
constructing City Improvements before funds that will be used to acquire them are available with
the expectation that the Developer will be reimbursed for such City Improvements to the extent
and in the manner set forth in this Agreement.
(b) The City may inspect City Improvements and process Disbursement
Request Forms even if funds from the proceeds of Bonds available at the time of such
inspection and processing do not exist or are not then sufficient to satisfy the Disbursement
Request in full.
(c) The Developer may convey City Improvements to the City and the City
may accept such City Improvements even if funds from the proceeds of Bonds available at the
time of such conveyance and acceptance do not exist or are not then sufficient to satisfy the
Disbursement Request in full.
(d) If the City accepts City Improvements before a Disbursement Request is
paid in full, the unpaid balance of the Disbursement Request will be paid from time to time, in
any number of installments and irrespective of the length of time payment is deferred, as funds
from the proceeds of Bonds become available.
(e) The Developer’s conveyance or dedication of City Improvements to the
City before the availability of funds from the proceeds of Bonds to acquire the City
Improvements is not, and shall not be deemed, a gift or a waiver of the Developer’s right to
payment of the purchase price of such City Improvements pursuant to this Agreement.
24.2 No Gift or Waiver for City Fees. The Developer and the City acknowledge that:
(a) Prior to the availability of funds from the proceeds of Bonds, the
Developer or its predecessor may have been or may be required to deposit funds to assure
payment of applicable fees of the City.
(b) The Developer or its predecessor has deposited or will be depositing
such funds with the expectation that the Developer will be reimbursed for these deposits to the
extent and in the manner set forth in this Agreement.
(c) The reimbursement of such deposits pursuant to Section 16 of this
Agreement may occur from time to time, in any number of installments and irrespective of the
length of time payment is deferred, as funds become available.
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(d) The Developer’s deposit of such funds to the City before the availability of
funds to reimburse the Developer is not, and shall not be deemed, a gift or a waiver of the
Developer’s right to reimbursement of such deposits pursuant to this Agreement.
SECTION 25. GENERAL PROVISIONS
(a) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the City and the Developer and their respective heirs, executors, legal
representatives, successors, and authorized assigns.
(b) Amendment. This Agreement may be amended at any time but only in
writing signed by each Party hereto.
(c) Entire Agreement. This Agreement, and the agreements referenced
herein, contains the entire understanding and agreement between the Parties with respect to
the matters provided for herein and supersedes all prior agreements and negotiations between
the Parties with respect to the subject matter of this Agreement. There are no oral or written
representations, understanding, undertakings or agreements which are not contained or
expressly referred to herein, and any such representations, understandings or agreements are
superseded by this Agreement. This Agreement shall be binding upon, and enforceable by and
against the Community Facilities District upon the establishment of the Community Facilities
District.
(d) Exhibits. All exhibits attached hereto are incorporated into this
Agreement by reference.
(e) Severability. If any part of this Agreement is held to be illegal or
unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be
given effect to the fullest extent reasonably possible.
(f) Waiver. Failure by a Party to insist upon the strict performance of any of
the provisions of this Agreement by the other parties hereto, or the failure by a Party to exercise
its rights upon the default of another Party, shall not constitute a waiver of such party’s r ight to
insist and demand strict compliance by such other Parties with the terms of this Agreement
thereafter.
(g) No Third Party Beneficiaries. Except as provided explicitly in this
Agreement, no person or entity shall be deemed to be a third party beneficiary hereof, and
nothing in this Agreement (either express or implied) is intended to confer upon any person or
entity, other than the City, the Community Facilities District, and Developer (and their respective
successors and assigns), any rights, remedies, obligations or liabilities under or by reason of
this Agreement.
(h) Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which shall constitute but one instrument.
(i) Assignment. Developer may assign all or any of its rights pursuant to this
Agreement to a purchaser of all or any portion of the Developer Property. Such a purchaser
and assignee shall, as a condition to taking an assignment of such rights, enter into an
assignment and assumption agreement with the City and Developer, in a form reasonably
acceptable to Developer and the City, whereby such rights assigned are specified and such
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purchaser agrees, except as may be otherwise specifically provided therein, to assume the
obligations of Developer pursuant to this Agreement and to be bound thereby. A company that
acquires all of the assets of the Developer, including ownership of the Developer itself, shall be
deemed a successor and shall not require an assignment or assumption agreement to be bound
by, and enjoy the benefits of, this Agreement.
(j) Governing Law. This Agreement and any dispute arising hereunder shall
be governed by and interpreted in accordance with the laws of the State of California.
(k) Construction of Agreement. This Agreement has been reviewed by legal
counsel for both the City and Developer and shall be deemed for all purposes to have been
jointly drafted by the City and Developer. No presumption or rule that ambiguities shall be
construed against the drafting Party shall apply to the interpretation or enforcement of this
Agreement.
(l) Attorneys’ Fees. In the event of any action or proceeding, including an
arbitration or a reference pursuant to Section 638, et seq., of the Code of Civil Procedure
brought by any Party against any other under this Agreement, the prevailing Party shall be
entitled to recover its actual attorneys’ fees and all fees, costs and expenses incurred for
prosecution, defense, consultation, or advice in such action or proceeding. In addition to the
foregoing, the prevailing Party shall be entitled to its actual attorneys’ fees and all fees, costs
and expenses incurred in any post-judgment proceedings to collect or enforce the judgment.
This provision is separate and several and shall survive the merger of this Agreement into any
judgment on this Agreement.
(m) Venue and Forum. Any action at law or in equity arising under this
Agreement brought by any Party hereto for the purpose of enforcing, construing or determining
the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the
County of Riverside, State of California, and the Parties waive all provisions of law providing for
the filing, removal or change of venue to any other Court.
(n) Entire Agreement. Except as provided in an addendum, which if
applicable, will appear as Exhibit “E” hereto, this Agreement sets forth and contains the entire
understanding and agreement of the Parties. There are no oral or written representations,
understandings, undertaking or agreements, which are not contained or expressly referred to
herein, and any such representations, understandings or agreements are superseded by this
Agreement. No evidence of any such representations, understandings or agreements shall be
admissible in any proceeding of any kind or nature relating to the terms or conditions of this
Agreement, its interpretation or breach.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and
year written below.
Dated: April 26, 2022 CITY OF LAKE ELSINORE, a political subdivision
of the State of California
By:
City Manager
ATTEST:
By:
Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY OF THE CITY OF LAKE ELSINORE
By:
Barbara Leibold, City Attorney
[SIGNATURES CONTINUED ON NEXT PAGE.]
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[SIGNATURE PAGE CONTINUED]
ALBERHILL DEVELOPMENT, LLC, a California
limited liability company
By: Lansing Industries, Inc.,
a California corporation, its Manager
By:
Gregory P. Lansing, President
#200893 v2 9217.2
4881-9461-8395v3/022042-0042
LIST OF EXHIBITS
EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY
EXHIBIT B - DESCRIPTION OF COST ESTIMATES
EXHIBIT C - NOTICE OF SPECIAL TAX (as prepared by Developer)
EXHIBIT D - DISBURSEMENT REQUEST FORM
EXHIBIT E - ADDENDUM
#200893 v2 9217.2 A-1
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EXHIBIT A
DESCRIPTION OF DEVELOPER PROPERTY
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as
follows:
389-090-012 (portion of)
389-121-001
389-121-002
389-121-003
389-090-015 (portion of)
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EXHIBIT B
DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS
The Improvements consist of the City Fee Facility Improvements and the City
Improvements, as described below. Any other types of Improvements will be described in an
addendum to this Agreement appearing as Exhibit “E.”
I. CITY FEE FACILITY IMPROVEMENTS.
City facilities included in the City’s development fee programs used to finance expansion
projects, exclusive of in-tract facilities constructed by a property owner, but including and not
limited to the following:
Estimated Cost of the City Improvements
Description Estimated Cost
Traffic Impact Fee $ 470,936
Library Capital Improvement 51,600
Development Agreement Fee 774,000
Supplemental Development Agreement Fee 72,240
Median Landscaping In-Lieu Fee 87,360
Drainage Fee 868,038
Total Fees $ 2,234,174
II. CITY IMPROVEMENTS.
Those facilities constructed by or on behalf of the Developer and needed by City in order
to provide services to the Developer Property and also includes any of the following:
Estimated Cost of the City Improvements
Description Estimated Cost
Alberhill Ranch/Nichols Road $ 7,318,476
Total Improvements $ 7,318,476
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EXHIBIT C
NOTICE OF SPECIAL TAX
NOTICE OF SPECIAL TAX
PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-1
(ALBERHILL RANCH)
OF THE CITY OF LAKE ELSINORE
COUNTY OF RIVERSIDE, CALIFORNIA
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
TRACT NO. 28214-9, LOT NO. ____
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO
PURCHASE THIS PROPERTY. THIS PROPOSED NOTICE OF SPECIAL TAX IS BEING PROVIDED TO
YOU FOR INFORMATIONAL PURPOSES ONLY. THE PROJECTED MAXIMUM ANNUAL SPECIAL TAX
WHICH WILL BE AUTHORIZED TO BE LEVIED UPON THE PROPERTY MAY BE MORE OR LESS THAN
THE AMOUNT SET FORTH HEREIN.
(1) This property is subject to a special tax, which is in addition to the regular property taxes and any other
charges, fees, special taxes, and benefit assessments on the parcel. It is imposed on this property because it is a new
development, and may not be imposed generally upon property outside of this new development. If you fail to pay
this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public
facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND
THE BENEFITS FROM THE FACILITIES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING
WHETHER TO BUY THIS PROPERTY.
(2) The property you are purchasing (the “Property”) is proposed to be within the boundaries of
Community Facilities District No. 2022-1 (Alberhill Ranch) of the City of Lake Elsinore (the “CFD”) and will be
subject to annual Special Tax levied pursuant to the proposed Rate and Method of Apportionment of Special Tax for
the CFD (the “RMA”) which will be recorded against the Property. As currently proposed , the annual Maximum
Special Tax which may be levied on the Property to pay for public facilities in each Fiscal Year will depend on
whether the Property is classified as “Developed Property”, “Approved Property”, or “Undeveloped Property”
during the Fiscal Year for which the special tax is levied. Developed Property is defined in the RMA as “all
Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal
Year in which the Special Tax is being levied, and (ii) has an Assessor’s Parcel Number from the County shown on
an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new
construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.”
Approved Property is defined in the RMA as “all Assessor’s Parcels of Taxable Property that: (i) are included in a
Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being
levied, and (ii) has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for
the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May
1st preceding the Fiscal Year in which the Special Tax is being levied.” For each Fiscal Year prior to the Property
being classified as Developed Property or Approved Property, the Property shall be classified as Undeveloped
Property. Each of the capitalized terms not defined herein sh all have the meanings set forth in the RMA.
Undeveloped Property
As currently proposed, if the Property is classified as Undeveloped Property in Fiscal Year 2022-2023, the
annual Maximum Special Tax authorized to be levied against the Property by the CFD to pay for public facilities
during such Fiscal Year shall be $8,175 per Acre. On each July 1, commencing July 1, 2023, the Assigned Annual
Special Tax Rate for Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the
prior Fiscal Year.
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Approved Property
As currently proposed, if the Property is classified as Approved Property in Fiscal Year 2022-2023, the
annual Maximum Special Tax authorized to be levied against the Property by the CFD to pay for public facilities
during such Fiscal Year shall be $8,175 per Acre. On each July 1, commencing July 1, 2023, the Assigned Annual
Special Tax Rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the
prior Fiscal Year.
Developed Property
As currently proposed, if the Property is classified as Developed Property in Fiscal Year 2022-2023, annual
Maximum Special Tax authorized to be levied against the Property by the CFD to pay for public facilities during
such Fiscal Year shall be the greater of (i) the applicable Fiscal Year 2022-2023 Assigned Special Tax for
Developed Property as set forth in the Table 1, which is reproduced on the following page, or (ii) the Fiscal Year
2022-2023 annual Backup Special Tax which shall be calculated independently by the CFD Administrator pursuant
to the methodology set forth in Section D.1.c. of the RMA.
TABLE 1
PROPOSED ASSIGNED ANNUAL SPECIAL TAX FOR DEVELOPED PROPERTY
(FISCAL YEAR 2022-2023)
Land Use Category Building Square Footage Assigned Special Tax
Per Taxable Unit
1. Single Family Residential Property Less than 2,000 sq. ft. $1,280.00
2. Single Family Residential Property 2,000 sq. ft. to 2,150 sq. ft. $1,363.00
3. Single Family Residential Property 2,151 sq. ft. to 2,300 sq. ft. $1,446.00
4. Single Family Residential Property 2,301 sq. ft. to 2,450 sq. ft. $1,529.00
5. Single Family Residential Property 2,451 sq. ft. to 2,600 sq. ft. $1,612.00
6. Single Family Residential Property 2,601 sq. ft. to 2,750 sq. ft. $1,695.00
7. Single Family Residential Property 2,751 sq. ft. to 2,900 sq. ft. $1,778.00
8. Single Family Residential Property 2,901 sq. ft. to 3,050 sq. ft. $1,861.00
9. Single Family Residential Property 3,051 sq. ft. to 3,200 sq. ft. $1,944.00
10. Single Family Residential Property Greater than 3,200 sq. ft. $2,027.00
Pursuant to the RMA, the Backup Special Tax shall only be levied against the Property if necessary to
satisfy the “Special Tax Requirement”, as defined in the RMA, for the applicable Fiscal Year. In the event that it is
necessary to levy the Backup Special Tax against the Property, the CFD Administrator will independently calculate
the Backup Special Tax for the purpose of levying the Backup Special Tax against the Property. For each Fiscal
Year that any Bonds are outstanding, the Special Tax shall be levied on all Assessor’s Parcels subject to the Special
Tax. The Special Tax shall cease not later than the 2064-2065 Fiscal Year, however, Special Tax will cease to be
levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and
principal payments on the CFD Bonds have been paid; (ii) all authorized facilities of the CFD have been acquired
and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and
(iv) all other obligations of the CFD have been satisfied.
(3) As currently proposed, the authorized facilities which are being paid for by the special taxes and the
money received from the sale of Bonds which are being repaid by the special taxes, include, bu t are not limited to
the construction, purchase, modification, expansion, rehabilitation and/or improvement of drainage, library, park,
fire, roadway, traffic, administration and community center facilities, marina and animal shelter facilities, and other
public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs
with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of
1982, as amended (the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing
Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction
staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be
incurred, including: (a) the cost of engineering, planning and designing the Facilities; (b) all costs, including costs of
the property owner petitioning to form the CFD, associated with the creation of the CFD, the issuance of the bonds,
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the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the CFD, and (c) any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities. These facilities may not yet have been all constructed or
acquired and it is possible that some may never be constructed or acquired.
IF AND ONCE APPROVED BY THE CITY OF LAKE ELSINORE, YOU MAY OBTAIN A COPY OF
THE RESOLUTION OF FORMATION WHICH AUTHORIZED CREATION OF THE CFD, AND WHICH
SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE PROCEEDS
OF THE TAX WILL BE USED, FROM THE CITY OF LAKE ELSINORE BY CALLING (951) 674-3124.
THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF
PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY OF
THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITH
RESPECT TO THE ABOVE REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY
TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER
RECEIVING THIS NOTICE IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE
MAIL BY GIVING WRITTEN NOTICE OF TERMINATION TO THE OWNER, SUBDIVIDER, OR AGENT
SELLING THE PROPERTY.
Dated: _______________ By: __________________________
Name: ________________________
Dated: _______________ By: __________________________
Name: ________________________
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EXHIBIT D
CITY OF LAKE ELSINORE
CFD NO. 2022-1 (ALBERHILL RANCH)
DISBURSEMENT REQUEST FORM
1. Community Facilities District No. 2022-1 of the City of Lake Elsinore (Alberhill
Ranch) (the “CFD”) is hereby requested to pay from the ________________________ Account,
or any applicable account or sub-account thereof, established by the CFD in connection with its
20__ Special Tax Bonds (the “Bonds”) to City of Lake Elsinore (the “City”) as payee, the sum
set forth below:
$_____________________ (the Requested Amount”)
2. The Requested Amount represents the payment of City Fees for ___ lot(s) within
the boundaries of the CFD (the “Property”).
(Tract No. __________, Lot Nos. ________________).
Or, City Improvements as supported by attached documentation.
3. The Requested Amount is due and payable, has not formed the basis of any
prior request or disbursement.
4. The City, as payee, is hereby directing payment of the Requested Amount be
payable to Alberhill Development, LLC, a California limited liability company (the “Developer”),
pursuant to the wiring instructions attached hereto.
5. The Requested Amount is authorized and payable pursuant to the terms of the
certain Acquisition, Construction and Funding Agreement (the “Agreement”) between the City of
Lake Elsinore, acting for and on behalf of itself and the CFD and Developer.
6. Capitalized undefined terms used herein shall have the meaning ascribed to
them in the Agreement.
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Dated: DEVELOPER:
ALBERHILL DEVELOPMENT, LLC, a California
limited liability company
By:
Name:
Title: Authorized Representative
Dated: CITY OF LAKE ELSINORE
By:
Its:
[ATTACH WIRING INSTRUCTIONS]
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EXHIBIT E
ADDENDUM
DESCRIPTION OF THE MISCELLANEOUS IMPROVEMENT
NOT APPLICABLE