HomeMy WebLinkAbout2023-077 Resolution of Intent to Incur Indebtedness CFD 2023-2
RESOLUTION NO. 2023-77
A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF
THE CITY OF LAKE ELSINORE, CALIFORNIA TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $15,000,000 WITHIN
PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2023-2 OF THE CITY
OF LAKE ELSINORE (COASTAL MISSION TRAILS)
Whereas, the City Council of the City of Lake Elsinore (the “City Council”) upon receipt
of a petition as provided in Section 53318 of the Government Code of the State of California
instituted proceedings to form Community Facilities District No. 2023-2 of the City of Lake
Elsinore (Coastal Mission Trails) (“Community Facilities District No. 2023-2” or the “District”)
pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant
to Resolution No. 2023-78 (the “Resolution of Intention to Establish”) adopted by the City
Council on the date hereof to finance (1) the purchase, construction, modification, expansion,
improvement and/or rehabilitation of public facilities identified in Attachment “A” hereto and
incorporated herein by this reference, including all furnishings, equipment and supplies related
thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing
the Facilities and forming and administering the District (the “Incidental Expenses”); and,
Whereas, the City Council estimates that the amount required to finance the Facilities
and Incidental Expenses is approximately $15,000,000; and,
Whereas, in order to finance the Facilities and Incidental Expenses, the City Council
intends to authorize the issuance of bonds in the maximum aggregate principal amount of
$15,000,000, the repayment of which is to be secured by special taxes levied in accordance
with Section 53328 of the Act on all property in the proposed Community Facilities District No.
2023-2, other than those properties exempted from taxation in the rate and method of
apportionment set forth in Attachment “C” to the Resolution of Intention to Establish.
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. It is necessary to incur bonded indebtedness within the boundaries of
proposed Community Facilities District No. 2023-2 in an amount not to exceed $15,000,000 to
finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.
Section 3. The indebtedness will be incurred for the purpose of financing the costs of
the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve
funds for the bonds, the financing of costs associated with the issuance of the bonds and all
other costs and expenses necessary to finance the Facilities which are permitted to be financed
pursuant to the Act.
Section 4. It is the intent of the City Council to authorize the sale of bonds in one or
more series, in the maximum aggregate principal amount of $15,000,000 and at a maximum
interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the
maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of
each series shall be determined pursuant to a resolution of this City Council acting in its
capacity as the legislative body of the District authorizing the issuance of the bonds of such
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series, but such term shall in no event exceed 35 years from the date of issuance of the bonds
of such series, or such longer term as is then permitted by law.
Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded
indebtedness shall be held at 7:00 p.m. or as soon thereafter as practicable, on October 24,
2023, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California.
Section 6. At the time and place set forth in this Resolution for the Hearing, any
interested persons, including all persons owning land or registered to vote within proposed
Community Facilities District No. 2023-2, may appear and be heard.
Section 7. 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 the proposed Community Facilities District No. 2023-2. Such
publication shall be completed at least seven days prior to the date of the Hearing. The City
Clerk is further directed to mail a copy of the Notice to each of the landowners within the
boundaries of proposed Community Facilities District No. 2023-2 at least 15 days prior to the
Hearing.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 12th day of September 2023.
Natasha Johnson
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. 2023-77 was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of September 12, 2023 and that the same was adopted by
the following vote:
AYES: Council Members Tisdale, Sheridan, and Magee; Mayor Pro Tem Manos; and Mayor
Johnson
NOES: None
ABSENT: None
ABSTAIN: None
Candice Alvarez, MMC
City Clerk
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ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2023-2
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/lakeside 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, (ii) water and sewer facilities including the acquisition of capacity in the sewer
system and/or water system of the Elsinore Valley Municipal Water District which are included in
Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee
programs (the “Water District Facilities”), and (iii) interim and permanent school facilities of Lake
Elsinore Unified School District, including classrooms, multi-purpose facilities, administration
and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and
improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and
utility lines, furniture, equipment and technology, including technology upgrades and mobile
devices and infrastructure therefore, with a useful life of at least five (5) years at such school
facilities (the “School Facilities” and together, with the City Facilities and the Water Facilities, 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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