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HomeMy WebLinkAboutCC Reso No 2007-136RESOLUTION NO. 2007-136 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, TO ANNEX CERTAIN PROPERTY INTO IMPROVEMENT AREA NO. 1 OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SiTMMERL~ WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has previously established the City of Lake Elsinore Community Facilities District No. 2006-1 (Sutnmerly) (the "CFD") and designated areas within the CFD as Improvement Area No. 1, Improvement Area No. 2 and Improvement Area No. 3, all pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"); and WHEREAS, the Council has received a petition (the "Petition") requesting the institution of proceedings far (i) removal of certain property (the "Annex Area") from Improvement Area No. 2 and the annexation of the Annex Area into Improvement Area No. 1; and WHEREAS, it is the intention of the Council to finance parks, open space and storm drain maintenance services that are in addition to those provided in the territory within the CFD prior to the formation of the CFD and do not supplant services already available within the territory proposed to be included in the CFD through the formation of the CFD subject to the levy of a special tax to pay for such services, being approved at an election to be held within the boundaries of the CFD; and WHEREAS, it is also the intention of the Council to finance the acquisition and construction of the Facilities (as defined below) ar any combination thereof through the formation of the CFD, subject to the authorization of bonds and the levy of a special tax to pay lease payments, installment purchase payments or other payments, or principal and interest on bonds, being approved at an election to be held within the boundaries of the CFD; and WHEREAS, pursuant to Section 53350 of the Act, the Council may designate a portion ar portions of the CFD as one or more improvement areas for purposes of financing of, or contributing to the financing of, specified public facilities. CITY COiTNCIL RESOLUTION NO. 2007-136 PAGE 2 OF 5 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The Council hereby determines to institute proceedings for the removal of the Annex Area from Improvement Area No. 2 and annexation of the Annex Area into Improvement Area No. 1 under the terms of the Act. The map of the boundaries of the CFD has been recarded in the Office of the County Recorder of Riverside County, California (Book 65 of Maps of Assessment and Community Facilities District at page 73 and as Instrument No. 2006-0071321). The exterior boundaries of the Annex Area are hereby specified and described to be as shown on that certain map now on file in the office of the City Clerk entitled "Proposed Boundaxy of Annexation No. 1," which map indicates by a boundary line the extent of the territory included in the Annex Area and shall govern for all details as to the extent of the Annex Area. SECTION 2. Except where funds are otherwise available, it is the intention of the Council to levy annually in accardance with procedures contained in the Act a special tax (the "Services Special Tax") sufficient to finance a portion of the cost of providing parks, open space and storm drain maintenance services (the "Services") that are in addition to those provided in the territory within the Annex Area prior to the annexation of the Annex Area into Improvement Area No. 1 and do not supplant services already available within the territory proposed to be included in the Annex Area, the costs of administering the levy and collection of the Services Special Tax and all other costs of the levy of the Services Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Services Special Tax will be secured by recordation of a continuing lien against all real property in the Annex Area. The schedule of the rate and method of apportionment and manner of collection of the Services Special Tax is described in detail in E~ibit A attached hereto and by this reference incorporated herein. The Services Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 533253 of the Act. SECTION 3. The facilities proposed to be financed by each improvement area of the CFD are public infrastructure facilities and other governmental facilities with an estimated useful life of five years or longer, which the CFD is authorized by law to construct, own or operate and that are necessary to meet increased CITY COUNCIL RESOLUTION NO. 2007-136 PAGE 3 OF 5 demands placed upon the City as a result of development or rehabilitation occurring within the proposed CFD, including but not limited to streets, streetscape, park and recreation facilities, storm drain, other City facilities and fees, water and sewer facilities and fees of the Elsinore Valley Municipal Water District, and related costs including designs, inspections, professional fees, annexation fees, connection fees and acquisition costs (the "Facilities"). Such Facilities need not be physically located within the CFD. SECTION 4. Except where funds are otherwise available, it is the intention of the Council to levy annually in accordance with procedures contained in the Act a special taac (the "Special Tax") sufficient to pay for the costs of financing the acquisition and/or construction of the Facilities, including the principal of and interest on the bonds proposed to be issued to finance the Facilities and other periodic costs, the establishment and replenishment of reserve funds, the remarketing, credit enhancement and liquidity fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, interest on bonds due and payable prior to the expiration of one year from the date of completion of facilities (but not to exceed two years), election costs and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel, financing consultants and printing costs, and all other administrative costs of the tax levy and bond issue. The Special Tax will be secured by recordation of a continuing lien against all real property in the Annex Area. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in E~ibit A attached hereto and by this reference incorporated herein. The Special Tax is based upon the cost of financing the Facilities in the CFD, the demand that each parcel will place on the Facilities and the benefit (direct and/or indirect) received by each parcel from the Facilities. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. In the event that a portion of the property within an improvement area of the CFD shall become for any reason exempt, wholly or partially, from the levy of the Special Tax, the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the same improvement area of the CFD which is not delinquent or exempt CITY COLTNCIL RESOLUTION NO. 2007-136 PAGE 4 OF 5 in order to yield the required payments, subject to the maximum tax. Under no circumstances, however, shall the Special Tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the same improvement area of the CFD by more than 10 percent. Furthermore, the maximum special tax authorized to be levied against any parcel used for private residential purposes shall not be increased over time in excess of 2 percent per year. SECTION 5. A public hearing (the "Hearing") on the removal of the Annex Area from Improvement Area No. 2 and annexation of Annex Area into Improvement Area No. 1 and the proposed rate and method of apportionment of the Services Special Tax and the Special Tax shall be held on August 28, 2007, at 7:00 p.m., or as soon thereafter as practicable, at the chambers of the Council, 130 S. Main Street, Lake Elsinore, California 92530. SECTION 6. At the time and place set forth above far the hearing, any interested person, including all persons owning lands or registered to vote within the Annex Area, may appear and be heard. SECTION 7. The City may accept advances of funds from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in annexing Annex Area into Improvement Area No. 1. The City may enter into an agreement to repay all of such funds as are not expended or committed far any authorized purpose at the time of the election on the levy of the Services Special Tax and the Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Services Special Tax and the Special Tax shall be approved by the qualified electars of the Annex Area. SECTION 8. The Interim City Clerk is hereby directed to publish a notice ("Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Annex Area. Such Notice shall contain information set forth in Section 53322 of the Act. Such publication shall be completed at least 7 days prior to the date of the Hearing. SECTION 9. The Interim City Clerk may send a copy of the Notice by first-class mail, postage prepaid, to each registered voter and to each landowner within the Annex Area as shown on the last equalized assessment roll. Said mailing shall be completed not less than fifteen (15) days prior to the date of the Hearing. CITY COUNCIL RESOLUTION NO. 2007-136 PAGE 5 OF 5 SECTION 10. The voting procedure with respect to the annexation of the Annex Area into Improvement Area No. 1 and the imposition of the special taac shall be by hand delivered or mailed ballot election. SECTION 11. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED this 24th day of July, 2007. AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ~ A T~obert E. M~ City of Lake ATTEST: ~.~~~~ ~ Michelle Soto, Interim City Clerk City of Lake Elsinore City Attorney City of Lake EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX (IMPROVEMENT AREA NO.1)