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HomeMy WebLinkAboutCC Reso No 2007-205RESOLUTION NO. 2007-205 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, TO ESTABLISH CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-6 (HOLIDAY INN EXPRESS) WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has received a petition (the "Petition") requesting the institution of proceedings for formation of a community facilities district (the "CFD") pursuant to the Mello-Roos CommuFlity Facilities Act of 198~, as amended (the "AcY'); and WHEREAS, the Council has determined that the Petition complies with the requirements of Government Code Section 53318(c) and now intends to initiate such proceedings; and WHEREAS, it is the intention of the Council to finance the acquisition and construction of the Facilities (as defined below) or any combination thereof through the formation of the CFD, 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. NOW, THEREFORE, the City Council of the City of Lake Elsinore, California, does hereby resolve as followsc Section 1. The Council hereby determines to institute proceedings for the formation of a community facilities district under the terms of the Act. The exterior boundaries of the CFD are hereby specified and described to be as shown on that certain map now on file in the office of the Clerk entitled "Proposed Boundary of Community Facilities District No. 2007-6 of the City of Lake Elsinore (Holiday Inn Express)," which map indicates by a boundary line the extent of the territory included in the proposed community facilities district and shall govern for all details as to the extent of the CFD. On the original and one copy of the map of such CFD on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this Resolution. The City Clerk shall file the original of such map in her office and, within fifteen (15) days after the adoption of this Resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of Riverside, State of California. Section 2. The name of the proposed CFD shall be "City of Lake E~sinore Community Facilities District No. 2007-6 (Holiday Inn Express)." Section 3. The facilities proposed to be financed by 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 demands placed upon the City as a result of development or rehabilitation occurring within the proposed CFD, including, without 1 limitations, grading, street improvements, domestic water, sanitary sewer and parks and recreation facilities, and related costs including design, inspections, professional fees, annexation fees, connection fees and acquisition costs (the "Facilities"). Such Facilities need not be physicaily located within the CFD. Section 4. Except where funds are otherwise available, it is the intention of the Council to levy annuaily in accordance with procedures contained in the Act a special tax (the "Special Tax") sufficient ta pay for the costs of financing the acquisition and/or construction of the Facilities, including the principal of and interest on the bonds 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 f~om the date of completion of facilities (but not to exceed two years), election costs and all costs of issuance of the bonds, including, but nof 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 CFD. In the first year in which such a Special Tax is levied, the levy shail 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 Exhibit A attached hereto. The Special Tax is apportioned to each parcel pursuant to Section 53325.3 of the Act. In the event that a portion of the property within the CFD shall become for any reason exempt, wholiy or partiaily, 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 CFD which is not delinquent or exempt 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 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. The Council hereby finds that the proposed Facilities are necessary to meet increased demands put upon the City as a result of the new development or rehabilitation within the proposed CFD. Section 6. A public hearing (the "Hearing") on the establishment of the CFD and the proposed rate and method of apportionment of the Special Tax shall be held on January 22, 2008, at 7:00 p.m., or as soon thereafter as practicable, at the Lake Elsinore Culturai Center located at 183 North Main Street, Lake Elsinore, California 92530. 2 Section 7. At the time and place set forth above for the hearing, any interested person, including ail persons owning lands or registered to vote within the proposed CFD, may appear and be heard. Section 8. Each City officer who is or will be responsible for the Facilities to be financed by the CFD, if it is established, is hereby directed to study the proposed CFD and, at or before the time of the above-mentioned Hearing, file a report with the Council, and which is to be made a part of the record of the Hearing, containing a brief description of the Facilities by type which will in his or her opinion be required to adequately meet the needs of the CFD and his or her estimate of the cost of providing the Facilities. The City Manager is directed to estimate the fair and reasonable cost of all incidental expenses, including the cost of planning and designing the Facilities to be financed pursuant to the Act, including the cost of environmental evaluations of such facilities, all costs associated with the creation of the CFD, 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 CFD, and any other expenses incidental to the construction, completion and inspection of the authorized work to be paid through the proposed financing. Section 9. 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 creating the CFD. The City may enter into an agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of 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 Special Tax shall be approved by the qualified electors of the CFD. Section 10. The 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 proposed CFD. 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 11. The City Clerk may send a copy of the Notice by first-class mail, postage prepaid, to each registered voter and to each landowner within proposed CFD as shown on the last equalized assessment roll. Said mailing shali be completed not less than fifteen (15) daqs prior to the date of the Hearing. Section 12. Pursuant to Section 53344.1 of the Act, the Council hereby reserves to itself, in its sole discretion, the right and authority by subsequent resolution to allow any owner of property within the CFD, subject to the provisions of Section 53344.1 of the Act and those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the CFD treasurer in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the 3 bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. Section 13. The voting procedure with respect to the establishment of the CFD and the imposition of the speciai tax shall be by hand delivered or mailed ballot election. Section 14. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED-~t a re i~ meeting of the City Council of the City of Lake Elsinore, California, this~th~Jay De mber 2007. RC~ERT E. MAGEE MAYOR AT ST: _ N.~w I IAN M. MUNSON CITY CLERK APPROVED AS TO CITY ATTORN'~Y CITY OF LAKE ELSINORE 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. ~nn~-~n~ was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 11th day of December 2007, and that the same was adopted by the following vote: AYES: Mayor Magee, Mayor Pro Tem Hickman, Councilmember Buckley, Councilmember Kelley, Councilmember Schiffner NOES: None ABSENT: None ABSTAIN: None VIVIAN M. MUNSON CITY CLERK 5 EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2007-6 OF THE CITY OF LAKE ELSINORE (HOLIDAY INN EXPRESS) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes of the City of Lake Elsinore Community Faeilities District No. 2007-6 (Holiday Inn Express) ("CFD No. 2007-6"). The Special Tax shall be levied on and collected each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within CFD No. 2007-6 unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION A DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre ar Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcei Map, or if the land area is not shown on an Assessor's Parcei Map, the fand area shown on the applicable Final Map, parcel map, condominium pian, or other recorded County parcel map or similar 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, Part 1 of Division 2 of Titie 5 of the Government Code of the State of California. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a Finai Map that was recorded priorto the January 15t preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a buiiding permit on or before May 15` preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number valid at the time the Speciai Tax is enrolled for the Fiscai Year for which the Special Tax is being levied. "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. Ci[y of Lake Elsinore ~ -~ Community Facilities District No. 2007-6 (Holiday Inn Express) "Backup Special Tax" means the Speciai Tax ofthat name described in Section E below. "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 Taxes for Facilities within CFD No. 2007-6 have been pledged. "Calendar Year" means the period commencing January 1 of any year and ending the foliowing December 31. "CFD Administrator" means an official ofthe City, or designee thereof, responsible for (i) determining the Special Tax Requirement for Facilities, (ii) determining the Special Tax Requirement for Services, as defined in Section L, as applicable, and (iii) providing for the levy and collection of the Special Taxes. "CFD No. 2007-6" means Community Facilities District No. 2007-6 (Holiday Inn Express) 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. 2007-6, or its designee. "County" means the County of. Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property, not classified as Approved Property, Undeveloped Property, Provisional Undeveloped Propertythat are not Exempt Property pursuant to the provisions of Section I. below :(i) that are included in a Final Map that was recorded priorto the January 1 S` preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a building permit for new construction has been issued on or before May 1s1 preceding the Fiscai Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes pursuant to Section I, below. "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 pian pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "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. City of Lake Elsinore Communi[y Facilities District No. 2007-6 (Holiday Inn Express) "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2007-6 in any Fiscal Yearon anyAssessors Parcel. "Proportionately" means that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special Tax under step four of Section F, "Proportionately" in step four means that the quotient of (a) actual Special Tax less the Assigned Special Tax divided by (b) the Backup Special Tax less the Assigned Special Tax, is equal for all applicable Assessors Parcels. "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 I, but cannot be classified as Exempt Property because to do so would reduce the Acreage of ail Taxable Property below the required minimum Acreage set forth in Section I. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2007-6 pursuant to the Act. "Special Tax RequiremenY' means $5,000 for FY 2008-09, and on each July 1, commencing July 1, 2009, shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. "Taxable Property" means all Assessor's Parcels within the boundaries of CFD No. 2007- 6, which have are not Exempt Property. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Proper#y" means ail Assessor's Parcels of Taxable Propertywhich are not Developed Property, Approved Property or Provisional Undeveloped Property. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2008-09, each Assessor's Parcel within CFD No. 2007-6 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. SECTION C MAXIMUM SPECIAL TAX FOR FACILITIES 1. Developed Propertv The Maximum Special Tax for each Assesso~'s Parcel of Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. City of Lake Elsinore Community Facilities Distric[ No. 2007-6 (Holiday Inn Express) 2. Approved Propertv, Undeveloped Propertv and Provisional Undeveloped Propertv The Maximum Speciai Tax for each Assessors Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the applicable Assigned Special Tax. SECTION D ASSIGNED SPECIAL TAX FOR FACILITIES Developed Propertv Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcei of Developed Propertyfor Fiscal Year2008-09 shall be $3,401.36 perAcre. 2. Approved Propertv, Undeveloped Propertv and Provisional Undeveloped Propertv Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shail be subject to an Assigned Special Tax. The Assigned Special Tax rate for an Assessor's Parcel classified as Approved Property, Undeveloped Propertyand Provisional Undeveloped Propertyfor Fiscal Year 2008-09 shall be $3,401.46 per Acre. 3. Increase in the Assiqned Special Tax On each July 1, commencing July 1, 2009, the Assigned Special Tax rate for Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP SPECIAL TAX The Backup Special Tax shall be calculated annually based on the annuai Specfal Tax Requirement. The Special Tax Requirement shall be apportioned to each Assessor's Parcel based on Acreage. c:ity oT Lake Elsinore Community Facilities Dis[rict No. 2007-6 (Holiday Inn Express) SECTION F METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2008-09 and for each subsequent Fiscal Year, the City Council shall lery Special Taxes on all Taxable Property in accordance with the foilowing steps: Step One: The Special Tax shall be levied on each Assessor's Parcel of Developed Property at up to 100% of the Maximum Special Tax rates for Developed Property. If the amount of Special Taxes generated is greater than the Special Tax Requirement, the Special Taxes for each Assessor's Parcel shail be reduced Proportionately until the totai Special Taxes equal the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been compieted, 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 Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax appiicable 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 on each Assessor's Parcel of Developed Propertywhose 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 Speciai Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% ofthe Maximum Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Speciai Tax Requirement. SECTION G PREPAYMENT OF SPECIAL TAX Prepayment of the special tax shali not be permitted. City of Lake Elsinore Community Facilities Dis[rict No. 2007-6 (Holiday Inn Express) SECTION H TERMINATION OF SPECIAL TAX The Special Tax shali cease not later than the 2047-2048 Fiscal Year, however, the Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on Bonds for which the Special Tax has been pledged have been paid; (ii) all authorized facilities for CFD No. 2007-6 have been acquired, (iii) no delinquent Special Taxes remain uncollected and (iv) ail other obiigations of CFD No. 2007-6 have been satisfied. SECTION I EXEMPTIONS The City shall classify as Exempt Property, in order of priority, (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use bythe State of California, Federal or other local governments, including school districts, (ii) Assessor's Parceis which are used as places of wprship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assesso~'s Parcels which are owned by, irrevocably offered fordedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for otherthan 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 1.47 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 Propertyto less than 1.47 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 1.47 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. SECTION J MANNER OF COLLECTION OF SPECIAL TAX 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. 2007-6 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 actuaily foreclose on delinquent Assessor's Parceis as permitted by the Act. Gity of Lake Elsinore Community Facilities Disuict No. 2007-6 (Holiday Inn Express) SECTION K APPEALS Any property owner claiming that the amount or application ofthe Special Tax is not correct may file a written notice of appeal with the CFD Administrator not laterthan twelve months after having paid the first installment of the Special Tax that is disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written antl oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the CFD Administrator's decision requires that the Special Taxfor an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except forthe lastyear of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). The City Council may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annuai administration and levy of the Special Taxes and any landowner or residenYs appeals. Any decision of the City Council shall be final and binding as to all persons. City of Lake Elsinore Communiry Facilities District No. 2007-6 (Holiday Inn Express)