HomeMy WebLinkAboutItem No. 28 - Establishment of Community Facilities District No. 2023-2 Coastal Mission Trails
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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:November 14, 2023
Subject:Establishment of Community Facilities District No. 2023-2 of the City of Lake
Elsinore (Coastal Mission Trails)
Recommendation
1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2023-2 OF THE
CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS), 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. 2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS)
DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT
NOT TO EXCEED $15,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2023-2
OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS) 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. 2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL
MISSION TRAILS) 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. 2023-2 OF THE CITY
OF LAKE ELSINORE (COASTAL MISSION TRAILS) AUTHORIZING THE LEVY OF
SPECIAL TAXES.
28)Establishment of Community Facilities District No. 2023-2 of the City of Lake
Elsinore (Coastal Mission Trails)
1.Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2023-2 OF
THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS), 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. 2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL MISSION
TRAILS) DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN
AN AMOUNT NOT TO EXCEED $15,000,000 WITHIN COMMUNITY FACILITIES
DISTRICT NO. 2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL MISSION
TRAILS) 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. 2023-2 OF THE CITY OF LAKE ELSINORE
(COASTAL MISSION TRAILS) 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. 2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS)
AUTHORIZING THE LEVY OF SPECIAL TAXES.
Establishment of CFD No. 2023-2 (Coastal Mission Trails)
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Background/Discussion
The property to be included within proposed Community Facilities District No. 2023-2 of the City
of Lake Elsinore (Coastal Mission Trails) (“CFD No. 2023-2” or the “District”) is located on the
northwest corner of Mission Trail Road and Lemon Street (the “Property”) (see the attached
project map). Collectively, the Property is approximately 18 gross acres with plans to be entitled
for 191 single family residential lots. The Property is currently owned by Vista Emerald, LLC (the
“Property Owner”).
The Property Owner 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 million.
The Property Owner has requested that: (1) the area shown in Attachment A of Resolution No.
2023-78 adopted by the City Council on September 12, 2023 (the “Resolution of Intention”) be
the boundaries of the District, and (2) special taxes be levied within the District in accordance with
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 October 24, 2023. On October
24, 2023, the City Council continued the public hearing to November 14, 2023. The purpose of
the public hearing is for the City Council to formally consider the approval of the formation of the
District 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 in accordance
with the Mello-Roos Act.
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 District 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 District, the levy of the special taxes in
the District in accordance with the RMA and determines the necessity for the District 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 District.
In addition, the Resolution of Formation, approves the execution and delivery of the Funding
Agreement with Vista Emerald, LLC, a California limited liability company (the “Funding
Agreement”) and two Joint Community Facilities Agreements with the Elsinore Valley Municipal
Water District and the Lake Elsinore Unified School District, in the forms presented to this Council.
The Funding Agreement sets forth the terms, among others, pursuant to which the District will
finance improvements to be owned by the City. The Joint Community Facilities Agreements sets
forth the terms, among others, pursuant to which the District will finance improvements to be
owned by the Elsinore Valley Municipal Water District and the Lake Elsinore Unified School
District.
Establishment of CFD No. 2023-2 (Coastal Mission Trails)
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On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying
that there are no registered voters residing within the boundaries of the District. Accordingly,
under the Mello-Roos Act, only property owners owning land in the District are eligible to vote at
the election for the District with each owner having one vote for each acre (or portion thereof) that
they own within the District. The Property Owner has executed consents and waivers of certain
election procedures with respect to the election, including certain timing requirements with respect
to the election, in accordance with 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 on 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 in accordance with 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 in order to pay for the costs of facilities, debt service on bonds and administration of the
District. Any bonds issued by the District are NOT obligations of the City and will be secured solely
by the special taxes levied in the District. Vista Emerald, LLC has made a deposit to pay for the
costs of forming the District. The Funding Agreement provides the terms under which Vista
Emerald, LLC may be reimbursed for these costs if and when bonds are issued for CFD.
Attachments
Attachment 1 - Resolution of Formation
Attachment 2 - Resolution Necessity to Incur Debt
Attachment 3 - Resolution Certifying the Election Results
Attachment 4 - Ordinance Authorizing the Levy of Special Tax
Attachment 5 - Certificate of the Registrar of Voters
Attachment 6 - Public Hearing Report
Attachment 7 - Funding Agreement
Attachment 8 - Joint Community Facilities Agreement (Elsinore Valley Municipal Water District)
Attachment 9 - Joint Community Facilities Agreement (Lake Elsinore Unified School District)
Attachment 10 - Project Map
RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO.
2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS),
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. 2023-78 stating its intention 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, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government
Code of the State of California (the “Act”); and
Whereas, a copy of Resolution No. 2023-78 setting forth a description of the proposed
boundaries of Community Facilities District No. 2023-2, 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. 2023-2 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. 2023-78; and
Whereas, on October 24, 2023, the public hearing called for such date on the proposed
formation of Community Facilities District No. 2023-2, the levy of the Special Tax therein and
the issuance of bonded indebtedness by the District was continued to November 14, 2023; and
Whereas, on November 14, 2023, this City Council conducted a noticed public hearing
as required by law relative to the proposed formation of Community Facilities District No. 2023-
2, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District;
and
Whereas, at the November 14, 2023, 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 November 14, 2023, public hearing all persons desiring to be heard on
all matters pertaining to the formation of Community Facilities District No. 2023-2, 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 Exhibit A hereto, which are described in more
detail in the Engineer’s Report; and
CC Reso. No. 2023-
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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
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. 2023-2 for each
of the 90 days prior to November 14, 2023 and that the qualified electors in Community
Facilities District No. 2023-2 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. 2023-2 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. 2023-78 (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. 2023-2;
and
Whereas, in order to facilitate the funding of the Facilities, the legislative body of the
District desires to enter into a Funding Agreement (the “Funding Agreement”) with Vista
Emerald, LLC, a California limited liability company (the “Developer”) and the form of the
Funding Agreement is on file with the City Clerk; and
Whereas, in connection with the proposed formation of the District, the City proposes to
enter into a Joint Community Facilities Agreement (the “Water District JCFA”) with the Elsinore
Valley Municipal Water District (the “Water District”) and the Developer, relating to certain
facilities proposed to be financed by the District and owned and operated by the Water District
and the form of the Water District JCFA is on file with the City Clerk;
Whereas, in connection with the proposed formation of the District, the City proposes to
enter into a Joint Community Facilities Agreement (the “School District JCFA” and together with
the Water District JCFA, the “JCFAs”) with the Lake Elsinore Unified School District (the “School
District”) and the Developer, relating to certain facilities proposed to be financed by the District
and owned and operated by the School District and the form of the School District JCFA is on
file with the City Clerk;
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. 2023-2 of the City of Lake Elsinore (Coastal Mission Trails)” 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.
CC Reso. No. 2023-
Page 3 of 6
Section 3.The boundaries of Community Facilities District No. 2023-2 are
established as shown on the map designated “Boundary Map of Community Facilities District
No. 2023-2 (Coastal Mission Trails) 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. 91 Page No. 91 on September 14, 2023 as Instrument
No. 2023-0271583.
Section 4.The types of Facilities and Incidental Expenses authorized to be provided
for Community Facilities District No. 2023-2 are those set forth in Exhibit 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, including those to be financed pursuant to the JCFAs to be entered into
with the Water District and the School District, benefit residents of the City and the future
residents of the District.
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. 2023-78 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. 2023-2 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 2070-71. 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.
CC Reso. No. 2023-
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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 2070-71, 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. 2023-2 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. 2023-
2, increase the levy to the extent necessary and permitted by law and these proceedings upon
the remaining property within Community Facilities District No. 2023-2 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
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. 2023-2, 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. 2023-2 and will be benefited by the Facilities proposed to be provided
within Community Facilities District No. 2023-2.
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. 2023-2 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. 2023-2 as are proposed to be provided by the
Facilities to be financed by Community Facilities District No. 2023-2.
CC Reso. No. 2023-
Page 5 of 6
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. 2023-2
on the propositions of levying the Special Tax on the property within Community Facilities
District No. 2023-2 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 Exhibit B.
Section 12.The date of the election for Community Facilities District No. 2023-2 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 November 14, 2023, 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 November 14, 2023, 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 November 14, 2023. 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 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.
2023-2. 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 August 28,
2023. Accordingly, since there were fewer than 12 registered voters within the District for each
of the 90 days preceding November 14, 2023, 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. 2023-2, as provided in Section 53326 of the Act. Each landowner within the District
has executed and delivered a waiver of certain election law requirements and consenting to the
holding of the election on November 14, 2023, 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. 2023-2. 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.
CC Reso. No. 2023-
Page 6 of 6
Section 15.The forms of the JCFAs on file with the City Clerk are approved as to
form, and each of the City Manager, Assistant City Manager, and their written designees, is
authorized to execute the JCFAs in substantially the forms 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 16.This Resolution shall be effective upon its adoption.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 14th day of November 2023.
Natasha Johnson
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. 2023- was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of November 14, 2023 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk
A-1
4853-8011-7890v2/022042-0048
EXHIBIT 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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4853-8011-7890v2/022042-0048
EXHIBIT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2023-2
OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS)
SPECIAL TAX AND SPECIAL BOND ELECTION
November 14, 2023
PROPOSITION A: Shall Community Facilities District
No. 2023-2 of the City of Lake Elsinore (Coastal Mission
Trails) (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. 2023-78 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.
2023-78 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. 2023-
78, 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 2024-25, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for the District be an amount
equal to $7,500,000?
YES______
NO_______
4883-7124-6722v2/022042-0048
RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2023-2 OF THE CITY OF LAKE ELSINORE
(COASTAL MISSION TRAILS) DETERMINING THE NECESSITY TO INCUR
BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $15,000,000
WITHIN COMMUNITY FACILITIES DISTRICT NO. 2023-2 OF THE CITY OF
LAKE ELSINORE (COASTAL MISSION TRAILS) AND CALLING AN
ELECTION THEREIN
Whereas, on September 12, 2023, the City Council of the City of Lake Elsinore (the
“City Council”) adopted Resolution No. 2023-78 stating its intention 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, as amended (the “Act”); and
Whereas, on September 12, 2023, the City Council also adopted Resolution No. 2023-
77 stating its intention to incur bonded indebtedness in the amount of up to $15,000,000 within
proposed Community Facilities District No. 2023-2 to finance (1) the purchase, construction,
modification, expansion, improvement or rehabilitation of public facilities identified in Exhibit B to
Resolution No. 2023-78, and (2) the incidental expenses to be incurred in financing such public
facilities and services and forming and administering the District, as identified in Exhibit B to
Resolution No. 2023-78; and
Whereas, notice was published as required by law relative to the intention of the City
Council to form proposed Community Facilities District No. 2023-2 and to incur bonded
indebtedness in the amount of up to $15,000,000 within the boundaries of proposed Community
Facilities District No. 2023-2; and
Whereas, on October 24, 2023, the public hearing called for such date to form proposed
Community Facilities District No. 2023-2 and to incur bonded indebtedness in the amount of up
to $15,000,000 within the boundaries of proposed Community Facilities District No. 2023-2 was
continued to November 14, 2023; and
Whereas, on November 14, 2023, this City Council conducted a noticed public hearing
to determine whether it should proceed with the formation of Community Facilities District No.
2023-2, issue bonds to pay for the facilities and incidental expenses described in Resolution
No. 2023-78 and authorize the rate and method of apportionment of a special tax to be levied
within Community Facilities District No. 2023-2 for the purposes described in Resolution No.
2023-78; and
Whereas, at said hearing all persons desiring to be heard on all matters pertaining to the
formation of Community Facilities District No. 2023-2, 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. 2023-
___ establishing Community Facilities District No. 2023-2 (the “Resolution of Formation”) and
authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the
“Incidental Expenses”) described in Exhibit A thereto; and
CC Reso. No. 2023-
Page 2 of 5
2
4883-7124-6722v2/022042-0048
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
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. 2023-2.
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. 2023-2, 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. 2023-2,
other than property exempted from the special tax pursuant to the provisions of the rate and
method of apportionment attached to Resolution No. 2023-78 as Exhibit 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, with 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 Section 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. 2023-2 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
Exhibit 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 Exhibit 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 Exhibit A.
CC Reso. No. 2023-
Page 3 of 5
3
4883-7124-6722v2/022042-0048
Section 8.The date of the special election for Community Facilities District No.
2023-2 on the propositions of incurring the bonded indebtedness, authorizing the levy of the
special tax and setting an appropriations limit shall be November 14, 2023, 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 November
14, 2023, 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 public hearing on November 14, 2023. 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. 2023-2. 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 August 28, 2023. Accordingly, since
there were fewer than 12 registered voters within the District for each of the 90 days preceding
November 14, 2023, 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. 2023-2, as provided
in Section 53326 of the Act. Each landowner within the District has executed and delivered a
waiver of certain election law requirements and consenting to the holding of the election on
November 14, 2023, which waiver is on file with the City Clerk.
Section 9.This Resolution shall be effective upon its adoption.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 14th day of November 2023.
Natasha Johnson
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
CC Reso. No. 2023-
Page 4 of 5
4
4883-7124-6722v2/022042-0048
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- was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of November 14, 2023 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk
4883-7124-6722v2/022042-0048
EXHIBIT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2023-2
OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS)
SPECIAL TAX AND SPECIAL BOND ELECTION
November 14, 2023
PROPOSITION A: Shall Community Facilities District
No. 2023-2 of the City of Lake Elsinore (Coastal Mission
Trails) (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. 2023-78 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.
2023-78 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. 2023-
78, 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 2024-25, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for the District be an amount
equal to $7,500,000?
YES______
NO_______
RESOLUTION NO. 2023-
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. 2023-2 OF THE CITY OF LAKE
ELSINORE (COASTAL MISSION TRAILS) CERTIFYING ELECTION RESULTS
Whereas, the City Council of the City of Lake Elsinore called and duly held an election
on November 14, 2023 within the boundaries of 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 Resolution Nos. 2023-__ and 2023-__ for the purpose of presenting to the
qualified electors within the District Propositions A, B and C, attached hereto as Exhibit 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 Exhibit 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 November 14, 2023 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 District 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 prepare in
the form required by Streets and Highways Code Section 3114.5.
Section 4.This Resolution shall be effective upon its adoption.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 14th day of November 2023.
Natasha Johnson
Mayor
CC Reso. No. 2023-
Page 2 of 4
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. 2023- was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of November 14, 2023 and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk
4879-2959-9106v2/022042-0048
EXHIBIT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2023-2
OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS)
SPECIAL TAX AND SPECIAL BOND ELECTION
November 14, 2023
PROPOSITION A: Shall Community Facilities District
No. 2023-2 of the City of Lake Elsinore (Coastal Mission
Trails) (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. 2023-78 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.
2023-78 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. 2023-
78, 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 2024-25, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for the District be an amount
equal to $7,500,000?
YES______
NO_______
4879-2959-9106v2/022042-0048
EXHIBIT 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. 2023-2 (Coastal Mission Trails) 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 November 14, 2023. I caused to be delivered ballots to each qualified elector.
nineteen (19) 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: 19 YES: 19 YES: 19
NO: 0 NO: 0 NO: 0
TOTAL: 19 TOTAL: 19 TOTAL: 19
Dated this 14th day of November 2023.
Candice Alvarez, MMC, City Clerk
City of Lake Elsinore
ORDINANCE NO. 2023-
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. 2023-2 OF THE CITY OF LAKE
ELSINORE (COASTAL MISSION TRAILS) AUTHORIZING THE LEVY OF
SPECIAL TAXES
Whereas, on September 12, 2023, the City Council (the “City Council”) of the City of
Lake Elsinore (the “City”) adopted Resolution No. 2023-78 declaring its intention to form
Community Facilities District No. 2023-2 of the City of Lake Elsinore (Coastal Mission Trails)
(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. 2023-77 declaring its intention to incur bonded
indebtedness for the District; and
Whereas, on October 24, 2023, after providing all notice required by the Act, the City
Council conducted a noticed public hearing required by the Act relative to the proposed
formation of the District, the proposed levy of a special tax therein to finance certain public
facilities described in Resolution No. 2023-78 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. 2023-77, and continued the Public Hearing to
November 14, 2023; and
Whereas, at the October 24, 2023 and November 14, 2023 public hearings, 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. 2023-78 and to secure
the payment of up to $15,000,000 of bonded indebtedness of the District as described in
Resolution No. 2023-78 (the “Bonds”) were heard and a full and fair hearing was held; and
Whereas, on November 14, 2023, the City Council adopted Resolution Nos. 2023-___
and 2023-___ which formed the District and called a special election within the District on
November 14, 2023on 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 November 14, 2023, 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. 2023-__, the issuance of the Bonds as described in Resolution No. 2023-__ 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. 2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL MISSION TRAILS)
ORDAINS AS FOLLOWS:
CC Ord No. 2023-
Page 2 of 3
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. 2023-78, 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.
2023-___ 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. 2023-___.
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.
CC Ord No. 2023-
Page 3 of 3
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, Approved, and Adopted at a regular meeting of the City Council of the City of
Lake Elsinore, California, on this 12th day of December 2023.
Natasha Johnson
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 Ordinance No. 2023- was introduced by the City Council of the City of Lake Elsinore,
California, at its Regular meeting of November 14, 2023 and adopted at its Regular meeting of
December 12, 2023 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk
CITY OF LAKE ELSINORE
Public Hearing Report
CFD NO. 2023-2 (COASTAL MISSION TRAILS)
OCTOBER 24, 2023
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. 2023-2 (Coastal Mission Trails)
Public Hearing Report
Background
On September 12, 2023, 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. 2023-2 (Coastal Mission Trails) of the City of Lake Elsinore (the “CFD
No. 2023-2”), Resolution No. 2023-078 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. 2023-2 is currently comprised of three parcels and approximately 18 gross acres. A Tract Map 38378 includes 191
proposed single family residential lots. The properties are generally located on the northwest corner of Mission Trail Road
and Lemon Street.
For a map showing the boundaries of CFD No. 2023-2 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. 2023-2;
2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2023-2;
3. A brief description of the Boundaries of CFD No. 2023-2; 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. 2023-2 (Coastal Mission Trails)
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. 2023-2 and financed with the proceeds of special taxes and bonds
issued by CFD No. 2023-2 consist of 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.
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. 2023-2, 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. 2023-2, including legal fees, fees
of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2023-2 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. 2023-2.
3 Cost Estimate Page | 3
City of Lake Elsinore
CFD No. 2023-2 (Coastal Mission Trails)
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. 2023-
2 Bonds is estimated to be $8,539,684 based upon current dollars (Fiscal Year 2023-24).
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. 2023-2 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. 2023-2 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 Total Bond Allocation(1)
Park Fee $305,600 $305,600
Traffic Fee $261,479 $261,479
Library $28,650 $28,650
City Hall $154,519 $154,519
Community Center $104,095 $104,095
Lakeside Facilities $148,789 $148,789
Animal Shelter $66,468 $66,468
Fire Facility $143,441 $143,441
Drainage Fee $61,884 $61,884
City Additional Facilities $254,985 $254,985
Total City Fees and Facilities $1,529,910 $1,529,910
Elsinore Valley Municipal Water District Total Bond Allocation(1)
3/4" Water Meter Fee $3,143,096 $3,143,096
Regional Sewer Fee $1,779,356 $1,779,356
Landscape Meter Fee $109,324 $109,324
Total Elsinore Valley Municipal Water District $5,031,776 $5,031,776
Lake Elsinore Unified School District Total Bond Allocation(1)
Level I School Fee $1,570,972 $1,570,972
School Fee Premium $471,291 $407,026
Total Lake Elsinore Unified School District $2,042,263 $1,977,998
Total Eligible Fees/Improvements $8,603,949 $8,539,684
Incidental Financing Costs $1,995,316
Total Funded by Bond Proceeds $10,535,000
Total Fees/Improvements to be Funded by Developer $64,265
(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. 2023-2 (Coastal Mission Trails)
Public Hearing Report
The CFD No. 2023-2 includes approximately 18 gross acres on three undeveloped assessor’s parcels in Tract 38378 located
in the City. The property within CFD No. 2023-2 is expected to be developed with 191 single family residential units. The
District is located on the northwest corner of Mission Trail Road and Lemon Street. As of Fiscal Year 2023-24 the proposed
CFD No. 2023-2 includes the following Assessor's Parcel Numbers:
Assessor
Parcel Number
370-050-019
370-050-020
370-050-032
A map showing the boundaries of CFD No. 2023-2 is included in Appendix B.
5 Rate and Method of Apportionment Page | 5
City of Lake Elsinore
CFD No. 2023-2 (Coastal Mission Trails)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2023-2 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. 2023-2, and provided further that CFD No. 2023-2 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. 2023-2, unless exempted by law or by the Rate and Method proposed for CFD
No. 2023-2, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for
CFD No. 2023-2 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. 2023-2 for uncollected Special Taxes associated with the levy of such Special
Taxes, but the Special Tax shall not be levied after 2070-2071 Fiscal Year.
For particulars as to the Rate and Method for CFD No. 2023-2, see the attached and incorporated in Appendix A.
6 Certifications Page | 6
City of Lake Elsinore
CFD No. 2023-2 (Coastal Mission Trails)
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.
2023-2 and benefits the lands within said CFD No. 2023-2. 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: October 24, 2023 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. 2023‐2 (Coastal Mission Trails) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2023‐2 (COASTAL MISSION TRAILS)
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. 2023‐2 (Coastal Mission Trails) ("CFD No. 2023‐2”). 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. 2023‐2, 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:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that
shares an Assessor’s Parcel as a Single Family Residential Property with a stand‐alone Residential Unit.
"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. 2023‐2: 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. 2023‐2 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2023‐2 or any designee thereof of complying with
disclosure requirements of the City, CFD No. 2023‐2 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.
2023‐2 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. 2023‐2 for any other administrative purposes of CFD No. 2023‐2, 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,
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 2
(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. 2023‐2 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” or “CFD No. 2023‐2” means Community Facilities District No. 2023‐2 (Coastal Mission Trails)
established by the City under the Act.
“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.
“City” means the City of Lake Elsinore.
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 3
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD
No. 2023‐2.
“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. 2023‐2 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.
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 4
“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. An Accessory Dwelling Unit that shares
an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit
for purposes of this RMA.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than
Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No.
2023‐2 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. 2023‐2 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. 2023‐2, 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.
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 5
B. SPECIAL TAX
Commencing Fiscal Year 2023‐2024 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 2023‐2024, each Assessor’s Parcel within CFD No. 2023‐2 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. 2023‐2 (Coastal Mission Trails) Page 6
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023‐2024
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit
1. Single Family Residential Property RU Less than 1,475 sq. ft $3,189.00
2. Single Family Residential Property RU 1,475 sq. ft to 1,625 sq. ft $3,338.00
3. Single Family Residential Property RU 1,626 sq. ft to 1,775 sq. ft $3,432.00
4. Single Family Residential Property RU 1,776 sq. ft to 1,925 sq. ft $3,619.00
5. Single Family Residential Property RU Greater than 1,925 sq. ft $3,927.00
6. Multifamily Property Acre N/A $70,068.00
7. Non‐Residential Property Acre N/A $70,068.00
On each July 1, commencing July 1, 2024, 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 as Single Family Residential
Property shall be $3,892 per Residential Unit.
Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium
plan contained within the boundaries of CFD No. 2023‐2 is subsequently changed or modified, then
the Backup Special Tax for Single Family Residential Property or Approved Property in such Final Map
or condominium plan area that is changed or modified shall be recalculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final
Map or condominium plan area prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the total number of Residential Units
constructed and/or anticipated to be constructed within such changed or modified Final Map or
condominium plan area, as reasonably determined by the CFD Administrator.
The result of paragraph 2 is the Backup Special Tax per Residential Unit which shall be applicable to
Assessor’s Parcels of Single Family Residential Property or Approved Property in such changed or
modified Final Map or condominium plan area contained within the boundaries of CFD No. 2023‐2.
Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property
for which a certificate of occupancy has been granted may not be revised.
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 7
On each July 1, commencing July 1, 2024, 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 $70,068 per Acre.
On each July 1, commencing July 1, 2024, 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
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 $70,068 multiplied
by the Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2024, 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 2023‐2024 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.
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.
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 8
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
10.61 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 10.61 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 10.61 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 $10,500,000 expressed in 2023 dollars, which shall increase by the
Construction Inflation Index on July 1, 2024, 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. 2023‐2, 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.
“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. 2023‐2.
“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
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 9
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):
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
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 10
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
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”).
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 11
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.
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:
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 12
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 2070‐71 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. 2023‐2 Bonds have been paid; (ii) all
authorized facilities of CFD No. 2023‐2 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. 2023‐
2 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. 2023‐2 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
City of Lake Elsinore
Community Facilities District No. 2023‐2 (Coastal Mission Trails) Page 13
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
Stradling Yocca Carlson & Rauth
Draft of 10/3/23
4885-8653-0946v3/022042-0048
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2023-2
(COASTAL MISSION TRAILS)
FUNDING AGREEMENT
THIS AGREEMENT dated October 24, 2023, is made and entered into by and between
CITY OF LAKE ELSINORE (the “City”), acting for and on behalf of itself and COMMUNITY
FACILITIES DISTRICT NO. 2023-2 OF THE CITY OF LAKE ELSINORE (COASTAL MISSION
TRAILS) (the “Community Facilities District” or “CFD”), and VISTA EMERALD, LLC, a California
limited liability company (the “Developer”), each individually a “Party” and collectively the
“Parties.”
WHEREAS, the City has formed the CFD pursuant to the provisions of the Mello-Roos
Community Facilities Act of 1982, as amended (the “Act”), authorized special taxes and
issuance of bonded indebtedness to finance certain public improvements to be owned, operated
or maintained by the City, the Elsinore Valley Municipal Water District and the Lake Elsinore
Unified School District, and Incidental Expenses in accordance with the Act; and
WHEREAS, in order to proceed in a timely way with development of the property within
the Community Facilities District which is attached as Exhibit “A” (the “Developer Property”),
Developer desires to fund through the Community Facilities District (i) improvements included in
the City’s fee programs (the “City Improvements”), as more particularly set forth and described
in the Description of Cost Estimates attached hereto as Exhibit “B” and (ii) if applicable, any
improvements unrelated to the City Improvements described and governed by the terms
contained in Exhibit “D” hereto (the “Miscellaneous Improvements”) (collectively the
“Improvements”); 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 its “Statement of Goal and Policies for the Use
of the Mello-Roos Community Facilities Act of 1982,” which sets forth 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 fund the Improvements and (2) the Community Facilities
District will also fund any Miscellaneous Improvements, if applicable, described in Exhibit “D.”
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NOW, THEREFORE, it is mutually agreed between the respective parties as follows:
SECTION 1. DEVELOPER DEPOSIT
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 Developer and, to the extent
determined reasonable and appropriate by the City, expenses incurred by Developer for
engineering consultant costs in connection with the formation of the Community Facilities
District and the issuance of bonds, will be reimbursable to 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
Developer. Should the City’s expenses exceed the remaining balance, the City will bill
Developer for the difference, which 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 Policy and Requirements for the Issuance of Bonds. The Policy, sets 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.
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.
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2.2 Security for Payment of Special Taxes.
(a) Concurrently with the issuance and sale of each series of the Bonds, the owner
of any land within the Community Facilities District which the City has determined, in its sole
discretion, to use in the sizing of such series of Bonds (the “Sizing Property”), together with any
Sizing Property owned by any affiliate (collectively, an “Account Party”), for which the Maximum
Special Taxes for the then-current or following fiscal year (as defined in the Rate and Method of
Apportionment of Special Tax for the Community Facilities District (the “Rate and Method”) and
such Special Tax referred to herein as the “Special Tax” or “Special Taxes”), are equal to or
exceed 20% of the aggregate Maximum Special Taxes authorized to be levied on the Sizing
Property in such fiscal year, shall deliver to the City either (i) a renewable irrevocable instrument
of credit from a financial institution (rated “A” or better) and approved by the City, or (ii) cash in-
lieu thereof (a “Security”). The Security shall be in an amount equal to 200% of the expected
Special Tax levy on the property owned by such Account Party in the fiscal year following the
fiscal year in which the Bonds are issued (the “Stated Amount”). For purposes of the Stated
Amount, ownership of the Sizing Property shall be determined as of a date prior to the sale of
the applicable series of Bonds as reasonably agreed upon by the City and the Account Party.
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.
(b) 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
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4885-8653-0946v3/022042-0048
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
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.
(c) 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 any costs associated with the recalculation and reduction shall be borne by the Account
Party. Subject to Section 2.2(d) below, the Stated Amount may be reduced to an amount
determined by the method of calculation set forth in Section 2.2(a) above. The Security shall be
terminated when the Account Party has paid all Special Taxes in the current fiscal year and the
Sizing Property owned by the Account Party is expected to be responsible for less than 20% of
the Maximum Special Taxes in the next fiscal year.
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 have 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.
(d) 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
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4885-8653-0946v3/022042-0048
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.
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 Community Facilities District 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 31 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) 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; (4) pay for the
costs of forming the Community Facilities District and any change proceedings for the
Community Facilities District; 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 (4) in the second preceding sentence. The
Indenture shall also establish separate accounts of the Improvement Fund designated the “City
Improvements Account”, and any Miscellaneous Improvement Accounts with respect to funds
for the facilities described in Exhibit “D” if applicable, into which shall be deposited such
portions of the Improvement Fund as directed by the City pursuant to consultation with the
Developer and in writing at or subsequent to the closing of the sale of the Bonds consistent with
the following priorities:
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(a) An amount sufficient to fund the reasonable, current estimated cost of the
City Improvements anticipated to be funded out of the Bonds being issued shall be deposited in
the City Improvements Account;
(b) If applicable, an amount sufficient to fund the reasonable, current
estimated cost of any Miscellaneous Improvements anticipated to be funded out of the Bonds
being issued shall be deposited in the applicable Miscellaneous Account(s), if any, described in
Exhibit “D” hereto.
The Indenture shall provide that amounts remaining in the Improvement Fund after
funding all proposed Improvements or sooner, as specified by the City, 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, shall 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 in Section 5 and Section 6 below. Prior to the issuance of
Bonds, such Special Taxes collected by the City each fiscal year in excess of that required to
fund annual administrative expenses of the Community Facilities District shall be deposited in a
special fund of the City, which shall also be referred to as the City Improvements Account.
Upon the issuance of the Bonds, such City Improvements Account shall be closed and all funds
then remaining in it shall be transferred to the City Improvements Account of the Improvement
Fund that is established with the issuance of the Bonds. 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 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.
SECTION 5. CITY 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
Improvements prior to the availability of proceeds of the Special Taxes or Bonds to pay for such
Improvements. In the event such City Fees are paid prior to the availability of Special Taxes or
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 Special Taxes or Bond proceeds in the City
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Improvements Account, the City shall return to the Developer, from the capital account in which
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
Improvements Account from Bond proceeds.
Bond proceeds used to finance 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 proceeds available (i.e.
when 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.
Any City Fees paid (as Deposits) by the Developer shall be made with the understanding
that such Deposits will be returned to the Developer if, and when, Special Taxes and Bond
proceeds have been deposited to the City Improvements Account. The City shall expend any
amounts disbursed to it from the City Improvements Account on capital facilities. The payment
of Deposits prior to the availability of the Special Taxes and Bond proceeds in the City
Improvements Account shall not be construed as a dedication or gift of the City Fees, or a
waiver of the return of the Deposits, it being the intention that the City Fees be paid by Special
Taxes and Bond proceeds to the extent of such Bond proceeds.
SECTION 6. MISCELLANEOUS IMPROVEMENTS.
Improvements unrelated to the City Improvements, if applicable, will be supplemented by
the terms contained in an addendum which will appear as Exhibit “D” 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(s), 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 an addendum which will appear as the applicable
entity’s Certificate and the Disbursement Request Form provided for in the Joint Community
Facilities Agreement(s). Upon receipt of the Disbursement Request Form, the City shall submit
a written requisition for payment of the requested amount to trustee for the Bonds pay the
amount requested to the applicable entity.
SECTION 7. 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 partnership or joint
venture among them and this Agreement shall not otherwise be construed.
SECTION 8. INDEMNIFICATION
Developer shall assume the defense of, indemnify and hold 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 the
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Developer’s performance of its obligations under this Agreement, the issuance of the Bonds, the
construction of the Improvements, 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 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 hold harmless the City,
its officers, employees or agents, or the Community Facilities District, its officers, employees or
agents, as to actions, damages, claims, losses or expenses resulting from negligence or willful
misconduct of such person or entity.
SECTION 9. 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 10. 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, 2033. Notwithstanding the foregoing, this Agreement shall not terminate
pursuant to (iii) of the previous sentence if, on December 31, 2033, 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. If the Community Facilities District is unable to sell the first
series of Bonds after diligent, commercially reasonable efforts to do so, this Agreement shall
terminate and be of no further force and effect.
Notwithstanding the foregoing, so long as the CFD has no outstanding debt or other
financial obligations, the Developer may elect to terminate this Agreement upon written notice to
the City and may request a notice of cessation of special tax be recorded against the Developer
Property. Upon a finding by the City Council that the Special Tax is not required to be levied to
satisfy the Special Tax Requirement (as defined in the Rate and Method) and all requirements
to terminate the Special Tax under Section H of the Rate and Method have been satisfied or are
no longer required, the City may: (i) record a notice of cessation of special tax in accordance
with Section 53330.5 of the Act and (ii) the City Council will place on its next reasonably
available agenda an ordinance to dissolve the CFD in accordance with Section 53338.5 of the
Act. The Developer shall be responsible for reasonable City costs incurred relating to the
dissolution of the CFD and recordation of required notices.
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SECTION 11. 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
Vista Emerald LLC, 1020 Second Street, Encinitas, CA 92024, Attention: Brett Crowder.
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 12. GENERAL PROVISIONS
(a) Amendment. This Agreement may be amended at any time but only in
writing signed by each party hereto.
(b) Exhibits. All exhibits attached hereto are incorporated into this
Agreement by reference.
(c) 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.
(d) 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 right to
insist and demand strict compliance by such other parties with the terms of this Agreement
thereafter.
(e) 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.
(f) 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.
(g) 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
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.
(h) 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.
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(i) 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.
(j) 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.
(k) 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.
(l) Entire Agreement. Except as provided in an addendum, which if
applicable, will appear as Exhibit “D” 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 first set forth above.
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 Z. Leibold, City Attorney
[SIGNATURES CONTINUED ON NEXT PAGE.]
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[SIGNATURE PAGE CONTINUED]
VISTA EMERALD, LLC,
a California limited liability company
By:
Erin Crowder, Managing Member
4885-8653-0946v3/022042-0048
LIST OF EXHIBITS
EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY
EXHIBIT B - DESCRIPTION OF COST ESTIMATES
EXHIBIT C - DISBURSEMENT REQUEST FORM
EXHIBIT D - ADDENDUM
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EXHIBIT A
DESCRIPTION OF DEVELOPER PROPERTY
LEGAL DESCRIPTION
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as
follows:
Riverside County Assessor Parcel Nos.:
370-050-019
370-050-020
370-050-032
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EXHIBIT B
DESCRIPTION OF COST ESTIMATES
The Improvements consist of 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 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
Park Facilities $ 305,600
Traffic Facilities 261,479
Library Facilities 28,650
City Hall & Public Works Facilities 154,519
Community Center Facilities 104,095
Lakeside/Marina Facilities 148,789
Animal Shelter Facilities 66,468
Fire Facilities 143,441
Storm Drainage Facilities 61,884
Other City Facilities 254,985
Total Fees $ 1,529,910
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EXHIBIT C
CFD NO. 2023-2 (COASTAL MISSION TRAILS)
OF THE CITY OF LAKE ELSINORE
DISBURSEMENT REQUEST FORM
1. Community Facilities District No. 2023-2 of the City of Lake Elsinore (Coastal
Mission Trails) (the “CFD”) is hereby requested to pay from the City Improvements 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. ________________).
3. The Requested Amount is due and payable, has not formed the basis of any
prior request or disbursement.
4. The Requested Amount shall be payable to _______________ (the “Developer”),
pursuant to the wiring instructions attached hereto.
5. The Requested Amount is authorized and payable pursuant to the terms of the
certain Funding Agreement (the “Agreement”) between the City, acting for and on behalf of itself
and the CFD and Developer.
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6. Capitalized undefined terms used herein shall have the meaning ascribed to
them in the Agreement.
Dated: DEVELOPER:
VISTA EMERALD, LLC, a California limited liability
company
By:
Name:
Title:
Dated: CITY OF LAKE ELSINORE
By:
Its:
[ATTACH WIRING INSTRUCTIONS]
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EXHIBIT D
ADDENDUM
DESCRIPTION AND COST ESTIMATES OF THE MISCELLANEOUS IMPROVEMENTS
I. ELSINORE VALLEY MUNICIPAL WATER DISTRICT IMPROVEMENTS.
The construction, purchase, modification, expansion, rehabilitation and/or improvement of 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
Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Water
Facilities.
Estimated Cost of the Water District Improvements
Description Estimated Cost
Water Meter Fees (3/4” Meter)$3,143,096
Regional Sewer Fee 1,779,356
Landscape Meter Fee 109,324
Total Fees $ 5,031,776
II. LAKE ELSINORE UNIFIED SCHOOL DISTRICT IMPROVEMENTS.
School facilities of the Lake Elsinore Unified School District (the “School District”) which
are included in the School District’s school fee programs, including all costs of site acquisition,
planning, design, engineering, legal services, materials testing, coordination, surveying,
construction staking, construction inspection and any and all appurtenant facilities and
appurtenant work relating to the foregoing.
Estimated Cost of the School District Improvements
Description Estimated Cost
School Facility Fees $ 2,042,263
Total Fees $ 2,042,263
JOINT COMMUNITY FACILITIES AGREEMENT
by and among
CITY OF LAKE ELSINORE,
ELSINORE VALLEY MUNICIPAL WATER DISTRICT
and
VISTA EMERALD, LLC.
RELATING TO
COMMUNITY FACILITIES DISTRICT NO. 2023-2
OF THE CITY OF LAKE ELSINORE
Dated __________, 2023
TABLE OF CONTENTS
EXHIBIT "A" PROPERTY DESCRIPTION ...........................................................................A-1
EXHIBIT "B" WATER AND SEWER FACILITIES DESCRIPTION..................................B-1
EXHIBIT "C" EVMWD ACQUISITION FACILITIES DESCRIPTION .............................C-1
EXHIBIT "D" PAYMENT REQUEST FORM - WATER/SEWER FACILITIES ............... D-1
EXHIBIT “E” PUBLIC WORKS PROVISIONS……………………………………………..….E-1
3
JOINT COMMUNITY FACILITIES AGREEMENT BY AND AMONG
CITY OF LAKE ELSINORE,
ELSINORE VALLEY MUNICIPAL WATER DISTRICT
AND
VISTA EMERALD, LLC
(Community Facilities District No. 2023-2 of the City of Lake Elsinore)
THIS JOINT COMMUNITY FACILITIES AGREEMENT ("Agreement") is made and entered
into as of the ____ day of _____________, 2023, by and among the ELSINORE VALLEY
MUNICIPAL WATER DISTRICT, County of Riverside, State of California, a municipal
water district ("EVMWD"), organized and operating pursuant to the Municipal Water District
Law of 1911 of the California Water Code, the CITY OF LAKE ELSINORE, a general law city
organized and operating under the laws of the State of California (“City”), and VISTA
EMERALD, LLC, a California limited liability company (“Developer”). The parties hereto may
be referred to in some instances as a party ("Party") or parties ("Parties").
R E C I T A L S
A. Developer owns certain real property located within the boundaries of both the City
and EVMWD and designated as Tract Map No. 38378 (“Property”). The boundaries of the
Property are identified in Exhibit “A” attached hereto. The Developer is obtaining entitlements
to develop the Property with approximately 191 detached dwelling units (collectively, the
“Project”).
B. Development of the Project will require the payment, pursuant to the rules and
regulations of EVMWD, as amended from time to time ("EVMWD Rules and Regulations"),
of certain water and sewer service capacity and connection charges ("EVMWD Costs"), proceeds
of which will be used by EVMWD to construct water and sewer facilities of EVMWD as further
described herein ("EVMWD Facilities"). Developer may also construct water and sewer
facilities of EVMWD, which are eligible to be acquired with CFD Proceeds as further described
herein ("EVMWD Acquisition Facilities"), the costs of which, together with EVMWD Costs,
may be paid from time to time from funds of hereinafter described CFD No. 2023-2 to the extent
such funds are made available to finance EVMWD Facilities and EVMWD Acquisition Facilities.
C. Pursuant to actions of the City, the City has formed CFD No. 2023-2 pursuant to
the provisions of the Act (as defined herein). The Parties herein have acknowledged and agreed
that the City shall be solely responsible for the formation and administration of the CFD No. 2023-2
and the costs thereof.
D. In accordance with Sections 53313.5 and 53316.2 of the Act, CFD No. 2023-2 may
finance facilities to be owned or operated by EVMWD. It is the intention of the Parties that this
Agreement shall constitute a “joint community facilities agreement” (“JCFA”) within the meaning
of Section 53316.2 of the Act by and among the City, EVMWD and the Developer, pursuant to
4
which CFD No. 2023-2 will be authorized to provide financing for the EVMWD Facilities and the
EVMWD Acquisition Facilities. Pursuant to Section 53316.2(b) of the Act, a JCFA may be
approved by two or more public agencies prior to the adoption of a resolution authorizing the
issuance of bonds. As provided by Section 53316.6 of the Act, the EVMWD shall be responsible
for constructing or otherwise acquiring, maintaining and operating the EVMWD Facilities and the
EVMWD Acquisition Facilities.
E. The provision of the EVMWD Facilities and the EVMWD Acquisition Facilities is
necessitated by the Project, and the Parties find and determine that the residents of the City,
EVMWD and CFD No. 2023-2 will be benefited by the financing of the EVMWD Facilities and
the EVMWD Acquisition Facilities as set forth herein, and that this Agreement is beneficial to the
interests of such residents.
ARTICLE I
GENERAL PROVISIONS
Section 1.1 Recitals. The above recitals are true and correct and are hereby incorporated
by this reference.
Section 1.2 Definitions.
Unless the context clearly otherwise requires, the terms defined in this Section shall,
for all purposes of this Agreement, have the meanings herein specified.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended,
commencing with Government Code Section 53311, et seq.
"Agreement" means this Joint Communities Facilities Agreement.
"Bond Resolution" means that Resolution, Resolution Supplement, Fiscal Agent
Agreement, and/or other equivalent document(s), providing for the issuance of the Bonds.
"Bonds" shall mean those bonds, or other securities, issued by, or on behalf of, as
authorized by the qualified electors within CFD No. 2023-2.
"CFD No. 2023-2" means Community Facilities District No. 2023-2 of the City of
Lake Elsinore.
"CFD Proceeds" shall mean those net funds generated by the sale of the Bonds, or
other securities issued on behalf of or for the benefit of CFD 2023-2, and Special Taxes made
available to finance EVMWD Facilities and EVMWD Acquisition Facilities.
"City Council" means the City Council of the City of Lake Elsinore.
5
"EVMWD Acquisition Facilities" means those sewer and water facilities constructed
by the Developer or anticipated to be constructed by the Developer, and eligible to be acquired
with CFD Proceeds, as described in Exhibit "C" hereto.
"EVMWD Facilities" means those public water and sewer facilities necessary to be
funded by the EVMWD Costs as generally described in Exhibit "B" and which have not been
previously funded with CFD Proceeds.
"EVMWD Facilities Fund" means the fund(s) or account(s) into which a portion of
the CFD Proceeds may be deposited in accordance with the Bond Resolution for payment of
EVMWD Costs applicable to the Property and for acquisition of the EVMWD Acquisition
Facilities.
"Rate and Method" means the Rate and Method of Apportionment of the Special Tax
expected to be authorized for levy and collection pursuant to proceedings undertaken for the
formation of CFD No. 2023-2 pursuant to the Act.
"State" means the State of California.
"Special Taxes" means the special taxes expected to be authorized to be levied and
collected pursuant to the final Rate and Method as approved by CFD No. 2023-2.
Unless the context otherwise indicates, words expressed in the singular shall include the
plural and vice versa and the use of the neuter, masculine or feminine gender is for convenience
only and shall be deemed to include the neuter, masculine or feminine gender, as appropriate.
Headings of sections herein are solely for convenience of reference, do not constitute a part hereof
and shall not affect the meaning, construction or effect hereof.
All references herein to “Sections” and other subdivisions are to the corresponding Sections
or subdivisions of this Agreement; the words “herein,” “hereof,” “hereby,” “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular Section or
subdivision hereof.
ARTICLE II
FORMATION OF CFD AND ISSUANCE OF BONDS
Section 2.1 Formation of CFD No. 2023-2. The City has initiated proceedings
pursuant to the Act for the formation of CFD No. 2023-2, the authorization of the Special
Taxes within CFD No. 2023-2, and the authorization to issue one or more series of Bonds
on behalf of CFD No. 2023-2. Nothing contained herein shall be deemed to limit the
discretion of the City in that regard and the City shall have no liability to EVMWD if CFD
6
No. 2023-2 is not formed or if the Special Taxes and Bonds are not authorized by the
qualified electors therein.
Section 2.2 Issuance and Sale of Bonds. In the event CFD No. 2023-2 is formed
and the Special Taxes and Bonds are authorized, the City Council, acting as the Legislative
Body of CFD No. 2023-2, may, in its sole discretion, in accordance with its adopted policies
("CFD Policies") adopt the Bond Resolution and issue the Bonds.
Section 2.3 CFD Proceeds. Upon completion of the issuance of the Bonds, and
receipt of the CFD Proceeds, the City shall determine the amount of the CFD Proceeds
allocable to finance the EVMWD Costs to be used by EVMWD to construct the EVMWD
Facilities to accommodate development of the Property and the EVMWD Acquisition
Facilities in accordance with the CFD Policies. CFD No. 2023-2 may pay the EVMWD
Costs applicable to the Property directly to EVMWD, may reimburse EVMWD for the
EVMWD Costs paid by EVMWD, may pay the acquisition price of EVMWD Acquisition
Facilities and/or may reimburse the Developer for the EVMWD Costs if paid directly to
EVMWD by such Developer or any owner of the Property, as shall be coordinated with
EVMWD and the Developer from time to time. EVMWD and/or the Developer shall use the
Payment Request Form set forth as Exhibit "D", which is attached hereto and incorporated
herein by this reference, to request payment of funds in the EVMWD Facilities Fund.
Section 2.4 Responsibility for EVMWD Costs and Facilities.
(a)The Parties hereto acknowledge and agree that the final responsibility for the
payment of the EVMWD Costs and the design, construction and dedication of the EVMWD
Acquisition Facilities constructed by the Developer and the cost(s) of facilities required by
EVMWD to be provided by the Developer to provide water and sewer service to the Project
lies with the Developer as set forth in the exhibits hereto. The responsibility for, and control
of, the design, construction and completion of facilities required to provide water and sewer
service to the Project constructed and completed by EVMWD lies with EVMWD.
(b)If the amount derived from CFD Proceeds, including investment earnings
thereon, if any, are not sufficient to fund the total cost of the EVMWD Costs or EVMWD
Acquisition Facilities for the Project, the Parties hereto agree that all responsibility and liability
for the amount of such shortfall(s) shall be and remain with the Developer and shall not lie with
the City, CFD No. 2023-2, or EVMWD.
(c)In addition to the EVMWD Costs referenced above, the Parties acknowledge that
EVMWD may require the Developer, pursuant to the EVMWD Rules and Regulations, to design,
construct and dedicate certain facilities to EVMWD, including, without limitation, the EVMWD
Acquisition Facilities, as a condition to providing water and sewer service to the Project. The
Parties hereto agree and acknowledge that all responsibility and obligation for the design,
construction and dedication of such facilities to EVMWD, in accordance with all applicable
7
statutes and the EVMWD Rules and Regulations, shall be and remain the responsibility of the
Developer.
(d)EVMWD and the Developer acknowledge that the Developer intends to construct
the EVMWD Acquisition Facilities. In order to ensure that the EVMWD Acquisition Facilities
are eligible for community facilities district financing:
1. The EVMWD Acquisition Facilities must be constructed as if under the
supervision or direction of EVMWD. EVMWD shall supervise and direct the work pursuant to
the Public Works Provisions set forth in Exhibit “E” (the “Public Works Provisions”).
2. The acquisition purchase price for the EVMWD Acquisition Facilities will
be equal the actual cost of construction of the EVMWD Acquisition Facilities, notwithstanding
any estimates in this Agreement.
3. The Developer will be constructing the EVMWD Acquisition Facilities
prior to the availability of CFD Proceeds that may be used to pay for such EVMWD Acquisition
Facilities. Prior to the availability of CFD Proceeds, EVMWD will inspect the EVMWD
Acquisition Facilities, approve the construction of the EVMWD Acquisition Facilities, and sign
off on payment requests for costs incurred by the Developer upon satisfactory completion of the
EVMWD Acquisition Facilities. The Developer may convey the EVMWD Acquisition Facilities
to EVMWD, and EVMWD may accept the EVMWD Acquisition Facilities in accordance with this
Agreement, when there are insufficient CFD Proceeds to pay the purchase price of such EVMWD
Acquisition Facilities. EVMWD will defer the payment of any approved payment requests for the
construction costs of the EVMWD Acquisition Facilities until there are sufficient CFD Proceeds
available to pay the purchase price of the EVMWD Acquisition Facilities, at which time EVMWD
will make the payments but only out of the CFD Proceeds made available to EVMWD for such
purpose. If the CFD Proceeds are not sufficient or made available to finance all or any part of the
purchase price of the EVMWD Acquisition Facilities, for whatever reason, EVMWD will not be
responsible for paying the purchase price of the EVMWD Acquisition Facilities to the Developer.
At all times, the Developer will be constructing such EVMWD Acquisition Facilities with the
expectation that the purchase price for the EVMWD Acquisition Facilities will be paid from the
CFD Proceeds, if and to the extent the CFD proceeds are sufficient and available to pay the
purchase price. The Developer’s conveyance of the EVMWD Acquisition Facilities to EVMWD
pursuant to this Agreement prior to receipt of all or any part of the purchase price shall not be
construed as a dedication or gift, or a waiver of the payment of all or any part of the purchase price
for the EVMWD Acquisition Facilities.
4. Notwithstanding any language in this Agreement to the contrary, the
Developer will pay the costs of the EVMWD Acquisition Facilities using its own funds, but with
the expectation that the EVMWD Acquisition Facilities will be acquired by EVMWD using CFD
Proceeds, if and to the extent the CFD proceeds are sufficient and available to pay the purchase
price.
8
(e)EVMWD agrees to utilize or apply funds provided to it, as set forth herein, for
the EVMWD Costs and/or EVMWD Acquisition Facilities.
(f)EVMWD expressly acknowledges that the Bonds are subject to Federal tax
requirements applicable to the tax-exempt securities. EVMWD expressly confirms and warrants
to the City that the EVMWD Facilities financed hereunder have not been previously financed
with the proceeds of other tax-exempt securities or bonds. EVMWD agrees to promptly provide
written notice to the City of any such financing of EVMWD Facilities financed hereunder until
the issuance of the Bonds.
Section 2.5 Responsibility for Debt Service or Special Taxes. EVMWD's
obligations under this Agreement shall be limited to its obligations with respect to the design,
construction, ownership, operation and maintenance of the EVMWD Facilities to be funded by
the EVMWD Costs and EVMWD shall have no obligation, responsibility, or authority with respect
to the issuance and sale of the Bonds, or the payment of the principal and interest thereon, or for the
levy of the Special Taxes to provide for the payment of principal and interest thereon, and CFD
No. 2023-2 shall have the sole authority and responsibility for all such matters.
The Parties hereto specifically agree that the liabilities of CFD No. 2023-2, including
liabilities, if any, of CFD No. 2023-2 and pursuant to the documents providing for the issuance
of Bonds, including the Bond Resolution, shall not be or become liabilities of EVMWD.
Section 2.6 Administration of CFD No. 2023-2. The City shall have the power and
duty to provide for the administration of CFD No. 2023-2 and once it is formed, including employing
and compensating all consultants and providing for the various other administration duties set forth
in this Agreement. It is understood and agreed by the Parties hereto that EVMWD will not be
considered a participant in the proceedings relative to formation of CFD No. 2023-2 or the issuance
of the Bonds, other than as a Party to this Agreement.
ARTICLE III
TERM AND TERMINATION
Section 3.1 Effective Date. This Agreement shall become effective and of full force
and effect as of the date ("Effective Date") that both of the following occur: (1) this Agreement is
approved and executed by the last of EVMWD, the Developer and the City, to be confirmed upon
execution of this Agreement by the authorized representatives of the Parties; and (2) CFD No. 2023-
2 has been formed, as evidenced by the recordation of a Notice of Special Tax Lien against the
Property.
Section 3.2 Termination. If the City is unable to complete the sale of the Bonds prior
to January 1, 2040, this Agreement shall thereafter automatically terminate and be of no further
force or effect.
9
ARTICLE IV
ADDITIONAL GENERAL PROVISIONS
Section 4.1 Recordkeeping: Inspection of Records. Each Party hereto agrees to
keep and maintain full and accurate records of all amounts, and investment earnings, if any, paid to
EVMWD for the EVMWD Facilities as to the respective portions of the Property and amounts
expended from the EVMWD Facilities Account. Each Party further agrees to make such records
available to the other Party hereto during normal business hours upon reasonable prior notice. All
such records shall be kept and maintained by the appropriate Party as provided by applicable law
and their respective policies.
Section 4.2 Partial Invalidity. 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.
Section 4.3 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the successors and assigns of the Parties hereto. This Agreement may not be
assigned without the prior written consent of the other Parties hereto, and any such non-consented
assignment shall be void. Such assignee shall, as a condition to taking an assignment of such rights,
enter into an assignment and assumption agreement with the City, EVMWD and the Developer, in
a form reasonably acceptable to the City EVMWD, and the Developer, whereby such rights assigned
are specified and such assignee agrees, except as may be otherwise specifically provided therein, to
assume the obligations of the Developer pursuant to this Agreement and to be bound thereby. This
Agreement is for the sole benefit of the City, EVMWD, and the Developer and their successors and
assigns, and no other person or entity shall be deemed to be a beneficiary hereof or have an interest
herein.
Section 4.4 Indemnification. The City shall assume the defense of, indemnify and
save harmless, EVMWD, its officers, employees and agents, and each and every one of them,
from and against all actions, damages, claims, losses or expenses of every type and description to
which they may be subjected or put, by reason of, or resulting from, any act or omission of the
City with respect to this Agreement and the issuance of the Bonds. No provision of this
Agreement shall in any way limit the extent of the City’s responsibility for payment of damages
resulting from the operations of the City and its contractors; provided, however, that the City shall
not be required to indemnify any person or entity as to damages resulting from negligence or
willful misconduct of such person or entity or their agents or employees. EVMWD shall assume
the defense of, indemnify and save harmless, the City, its officers, employees and agents, and
each and every one of them, from and against all actions, damages, claims, losses or expenses of
every type and description to which they may be subjected or put, by reason of, or resulting from,
any act or omission of EVMWD with respect to this Agreement, and the design, engineering and
construction of the EVMWD Facilities. No provision of this Agreement shall in any way limit
the extent of EVMWD’s responsibility for payment of damages resulting from the operations of
EVMWD and its contractors; provided, however, that EVMWD shall not be required to
indemnify any person or entity as to damages resulting from negligence or willful misconduct of
such person or entity or their agents or employees. The Developer shall assume the defense of,
10
indemnify and save harmless, EVMWD and the City, each of their officers, employees and
agents, and each and every one of them, from and against all actions, damages, claims, losses or
expenses of every type and description to which they may be subjected or put, by reason of, or
resulting from, any act or omission of the Developer with respect to this Agreement, and the
design, engineering and construction of the EVMWD Facilities. No provision of this Agreement
shall in any way limit the extent of the Developer’s responsibility for payment of damages
resulting from the operations and/or development of the Property and its contractors; provided,
however, that the Developer shall not be required to indemnify any person or entity as to damages
resulting from negligence or willful misconduct of such person or entity or their agents or
employees.
Section 4.5 Notice. Any notice, payment or instrument required or permitted by this
Agreement to be given or delivered to any Party or other person shall be deemed to have been
received when personally delivered or upon deposit of the same in the United States Post Office
registered or certified, postage prepaid, addressed as follows:
City: City of Lake Elsinore
23873 Clinton Keith Road
Lake Elsinore, CA 92595
Attention: Assistant City Manager / PW Director
EVMWD: Elsinore Valley Municipal Water District
31315 Chaney Street
Lake Elsinore, CA 92530
Attention: General Manager
Developer: Vista Emerald, LLC
1020 2nd Street, Suite C
Encinitas, CA 92024
Attention: Project Manager
Each Party can change its address for delivery of notice by delivering written notice of
such change or address to the other parties within ten (10) calendar days prior to such change.
Section 4.6 Captions. The captions to Sections used herein are for convenience
purposes only and are not part of this Agreement.
Section 4.7 Governing Law and Venue. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California applicable to contracts made
and performed in such State. In the event of any legal action to enforce or interpret this
Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in the
County of Riverside, California, and the parties hereto agree to and do hereby submit to the
jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore,
the parties specifically agree to waive any and all rights to request that an action be transferred
for trial to another county.
11
Section 4.8 Entire Agreement. This Agreement contains the entire 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.
Section 4.9 Amendments. This Agreement may be amended or modified only in
writing executed by the authorized representative(s) of each of the Parties hereto.
Section 4.10 Waiver. The failure of any Party hereto to insist on compliance within
any of the terms, covenants or conditions of this Agreement by any other Party hereto, shall not
be deemed a waiver of such terms, covenants or conditions of this Agreement by such other
Party, nor shall any waiver constitute a relinquishment of any other right or power for all or any
other times.
Section 4.11 Cooperation and Execution of Documents. The Parties hereto agree
to complete and execute any further or additional documents which may be necessary to complete
or further the terms of this Agreement.
Section 4.12 Attorneys' Fees. In the event of the bringing of any action or suit by
any Party against another Party arising out of this Agreement, the Party in whose favor final
judgment shall be entered shall be entitled to recover from the other Parties all costs and
expenses of suit, including reasonable attorneys' fees.
Section 4.13 No Third Party Beneficiaries. No person or entity other than the CFD
No. 2023-2 when and if formed 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 EVMWD, the City, CFD No. 2023-2, and the Developer (and their
respective successors and assigns), any rights, remedies, obligations or liabilities under or by
reason of this Agreement.
12
Section 4.14 Exhibits. The following exhibits attached hereto are incorporated into
this Agreement by reference.
Exhibit Description
“A”Property Description
“B”Water and Sewer Facilities Descriptions
“C”EVMWD Acquisition Facilities Description
“D”Payment Request Form – Water/Sewer
Facilities
“E”Public Works Provisions
Section 4.15 Signatories. The signatories hereto represent that they have been
appropriately authorized to enter into this Agreement on behalf of the party for whom they
sign.
Section 4.16 Execution in Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original.
[Remainder of this page is blank]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year written alongside their signature below.
EVMWD: ELSINORE VALLEY MUNICIPAL WATER DISTRICT
By:____________________________________
Title:__________________________________
Date Signed:
Approved by Governing Board: ____________, 2023
DEVELOPER: VISTA EMERALD, LLC,
a California limited liability company
By:
Name:
Title:
Date Signed:
[Joint Community Facilities Agreement Signature Page]
14
City: CITY OF LAKE ELSINORE
By:
Name:
Date Signed:
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
By:
City Attorney
[Joint Community Facilities Agreement Signature Page]
B-1
EXHIBIT "A"
PROPERTY DESCRIPTION
Real property in the County of Riverside, State of California, included within the following assessor
parcels (“APN”):
370-050-019
370-050-020
370-050-032
B-2
EXHIBIT "B"
WATER AND SEWER FACILITIES DESCRIPTION
1. Water source, storage, transmission facilities financed through EVMWD water
connection and capacity fees and charges, including, but not limited to, water transmission lines,
water reservoirs and related and appurtenant facilities. Further description(s) and cost(s) of these
facilities are on file with EVMWD and are incorporated herein by this reference.
2. Sewer treatment, transmission and reclamation facilities financed through EVMWD
sewer fees. Further description(s) and cost(s) of these facilities are on file with EVMWD and are
incorporated herein by this reference.
C-1
EXHIBIT "C"
EVMWD ACQUISITION FACILITIES DESCRIPTION
Description of Acquisition Facilities:
1. Onsite Water and Sewer Improvements *
*The facilities listed above are preliminary in nature. The final description, scope, cost and location
will be determined upon the preparation of final plans.
D-1
EXHIBIT “D”
PAYMENT REQUEST FORM - WATER/SEWER FACILITIES
Community Facilities District No. 2023-2 of the City of Lake Elsinore is hereby requested to
pay from the EVMWD Facilities Fund to the person, corporation, or other entity designated below as
Payee, the sum set forth below such designation, in payment of the water/sewer Project Costs described
below. The amount shown below is due and payable under a purchase order, contract or other
authorization with respect to the water/sewer Project Costs described below and has not formed the
basis of any prior request for payment.
Payee:
Address:
Amount:$
Project Costs Description:
(Include identification of lots or APN's where request is made for fees)
REQUESTING PARTY (check box)
[_]ELSINORE VALLEY MUNICIPAL
WATER DISTRICT
[_]
(Name of requesting party - please print)
Signature: ___________________________
Name: ______________________________
Title: _______________________________
Date: _______________________________
E-1
EXHIBIT “E”
PUBLIC WORKS PROVISIONS
In order to ensure that the EVMWD Acquisition Facilities will be constructed as if it had been
constructed under the direction and supervision, or under the authority of, EVMWD, so that they may
be acquired pursuant to California Government Code Section 53313.5 or so that the value or cost,
whichever is less, of portions thereof constituting work in-kind may be reimbursed pursuant to
California Government Code Section 53314.9, for the EVMWD Acquisition Facilities, the Developer
shall comply with all of the following requirements or shall cause such requirements to be complied
with:
(a) The Developer shall solicit and receive at least three independent bids; provided, however, the
Developer may proceed with fewer than three bids if three bids were not reasonably available at the
time of the bid.
(b) Bids shall be submitted to the Developer either via hard copy or email.
(c) The contract for the construction of the EVMWD Acquisition Facilities shall be awarded to the
responsible bidder submitting the lowest responsive bid for the construction of the EVMWD
Acquisition Facilities or, if the Developer elects to perform the work pursuant to Section 53329.5 of
the Act, the Developer shall perform the work at the prices specified in the bid of the lowest responsible
bidder. If EVMWD reasonably disapproves any such contractor, the Developer will select the next
lowest responsible bidder from the competitive bids received who is acceptable to the Developer and
EVMWD.
(d) The Developer shall require, and the specifications and bid and contract documents shall require,
all contractors engaged to perform work on the EVMWD Acquisition Facilities to pay prevailing
wages and to otherwise comply with applicable provisions of the California Labor Code.
(e) The Developer and all such contractors shall comply with such other requirements relating to the
construction of the EVMWD Acquisition Facilities as EVMWD may impose by written notification
delivered to the Developer and each such contractor, to the extent required as a result of changes in
applicable State or federal laws or the ordinances and policies of EVMWD.
(f) The Developer shall provide proof to EVMWD, at such intervals and in such form as EVMWD may
require, that the foregoing requirements have been satisfied as to all of the EVMWD Acquisition
Facilities.
JOINT COMMUNITY FACILITIES AND
SCHOOL FACILITIES FUNDING AGREEMENT
by and among
THE CITY OF LAKE ELSINORE,
LAKE ELSINORE UNIFIED SCHOOL DISTRICT
AND
VISTA EMERALD, LLC
RELATING TO
COMMUNITY FACILITIES DISTRICT NO. 2023-2
OF THE CITY OF LAKE ELSINORE
Dated , 2023
JOINT COMMUNITY FACILITIES AND
SCHOOL FACILITIES FUNDING AGREEMENT
BY AND AMONG
THE CITY OF LAKE ELSINORE,
LAKE ELSINORE UNIFIED SCHOOL DISTRICT
AND
VISTA EMERALD, LLC
(Relating to Community Facilities District
No. 2023-2 of the City of Lake Elsinore)
THIS JOINT COMMUNITY FACILITIES AND SCHOOL FACILITIES FUNDING
AGREEMENT (“Agreement”) is made and entered into by and among THE CITY OF LAKE
ELSINORE, a general law city organized and operating under the laws of the State of California
(“City”), the LAKE ELSINORE UNIFIED SCHOOL DISTRICT, a California public school
district organized and existing pursuant to California law (“School District”), and VISTA
EMERALD, LLC, a California limited liability company (“Owner” or “Property Owner”).
R E C I T A L S:
A. Owner owns certain real property located within the boundaries of both the City and
the School District and designated as Riverside County Tract Map No. 38378 (“Property”). The
boundaries of the Property are depicted in Exhibit “A” attached hereto. The Property Owner has
obtained entitlements to develop the Property with approximately 191 attached dwelling units
(collectively, the “Project”).
B. The development of the Project will require that the School District provide additional
School Facilities (defined below) to accommodate the students who will be generated by the
development of the Project. The Property Owner and the School District have agreed that, in lieu of
the Property Owner paying School Fees (as defined herein) at the time a Certificate of Compliance is
issued to the School District, the School District shall receive Mitigation Amounts (as defined herein)
at the time a Certificate of Compliance is issued, in accordance with the terms of this Agreement. The
Parties anticipate that some or all of the Mitigation Amounts shall be payable from Bond Proceeds (as
defined herein) of the hereinafter described Community Facilities District (“CFD”). The City Facilities
(as defined herein) and School Facilities are in certain instances herein collectively referred to herein
as the “Facilities.”
C. Pursuant to actions of the City, the City has formed the CFD pursuant to the provisions
of the Act (as defined herein). The Parties herein have acknowledged and agreed that the City shall
be solely responsible for the formation and administration of the CFD including the costs thereof.
D. In accordance with Sections 53313.5 and 53316.2 of the Act, the CFD may finance
facilities to be owned or operated by the School District. It is the intention of the Parties that this
Agreement shall constitute a “joint community facilities agreement” (“JCFA”) within the meaning of
2
Section 53316.2 of the Act by and among the City, School District and the Property Owner pursuant
to which the CFD will be authorized to provide financing for the School Facilities. Pursuant to Section
53316.2(b) of the Act, a JCFA may be approved by two or more public agencies prior to the adoption
of a resolution authorizing the issuance of bonds. As provided by Section 53316.6 of the Act, the City
shall be responsible for constructing or otherwise acquiring, maintaining and operating the City
Facilities, and the School District shall be responsible for constructing or otherwise acquiring,
maintaining and operating the School Facilities.
E. The provision of the City Facilities and the School Facilities is necessitated by the
Project, and the Parties find and determine that the residents of the City, School District and CFD will
be benefited by the financing of the City Facilities and School Facilities as set forth herein, and that
this Agreement is beneficial to the interests of such residents.
ARTICLE I
GENERAL PROVISIONS
Section 1.1 Recitals.
The above recitals are true and correct and are hereby incorporated as effective and operative
provisions of this Agreement.
Section 1.2 Definitions.
Unless the context clearly otherwise requires, the terms defined in this Section shall, for all
purposes of this Agreement, have the meanings herein specified.
(a) “Act” means the Mello-Roos Community Facilities Act of 1982, as amended,
commencing with California Government Code Section 53311, et seq.
(b) “Agreement” means this Joint Communities Facilities and School Facilities Funding
Agreement.
(c) “Amount per Square Foot” means an amount equal to (a) 130% of the School District’s
applicable Level I Fees or Level II Fees then in effect (or comparable provisions of Statutory Fees, if
Level II Fees or Level I Fees are no longer in effect due to a change in State law) or
(b) 100% of the School District’s Level III Fees then in effect if the School District is authorized to
charge Level III Fees (or comparable provisions of Statutory Fees, if Level III Fees are no longer in
effect due to a change in State law). The Amount per Square Foot is $6.23 as the date hereof.
(d) “Assessable Square Feet” means, for each residential dwelling unit within the Project,
the total square feet of assessable internal living space for such unit, exclusive of any carports,
walkways, garages, overhangs, patios, enclosed patios, detached accessory structures (i.e.,
uninhabitable storage structures), other structures not used as living space or any other square footage
excluded under California Government Code Section 65995.
(e) “Bond Proceeds” shall mean those net funds generated by the sale of Bonds.
3
(f) “Bond Resolution” means that Resolution, Resolution Supplement, Fiscal Agent
Agreement, Indenture of Trust and/or other equivalent document(s) providing for the issuance of
Bonds.
(g) “Bonds” shall mean those bonds, or other securities, issued by, or on behalf of, the
CFD, as authorized by the qualified electors within the CFD.
(h) “Certificate of Compliance” means a certificate issued by School District pursuant to
California Education Code Section 17620(b) for purposes of certifying that Property Owner has paid
or satisfied the applicable Deposit or Mitigation Amount needed to obtain a one or more building
permits for development to occur within the Property.
(i) “CFD” means Community Facilities District No. No. 2023-2 of the City.
(j) “City Facilities” means the facilities which may be financed by the CFD to be
constructed, acquired, owned and/or operated by the City as described in the formation proceedings of
the CFD.
(k) “Credit Account” means a fund, account or sub-account, regardless of how designated,
held by, or on behalf of, the School District and applied and accounted for as set out in Section 2.5
hereof.
(l) “Deposit” means, in each case, the funds advanced to School District by Property
Owner, in accordance with Section 2.2 herein, as a condition to issuance by the School District of a
Certificate of Compliance.
(m) “Disbursement Request” means a request for payment relating to School Facilities in
the form attached hereto as Exhibit “B.”
(n) “Lake Elsinore School Facilities Account” means the fund(s), account(s) or sub-
account(s) of the CFD (regardless of its designation within the Bond Resolution) into which a portion
of the Bond Proceeds may be deposited in accordance with the Bond Resolution in order to finance the
School Facilities in satisfaction of the Mitigation Amount(s).
(o) “Mitigation Amount” means the contractual obligation of Property Owner, as set forth
herein, to provide funding through the CFD, or as otherwise set forth herein, to mitigate the school
facilities impact(s) of each residential dwelling unit within the Project in an amount equal to the
Amount per Square Foot multiplied by the Assessable Square Feet of such residential dwelling unit.
(p) “Party” shall mean any one of the parties to this Agreement, and “Parties” shall mean,
collectively, all of the parties to this Agreement.
4
(q) “Property Owner” means Vista Emerald, LLC, a California limited liability company,
and its successors and assigns, excluding individual homeowners.
(r) “Rate and Method” means the Rate and Method of Apportionment of the Special Tax
authorizing the levy and collection of special taxes pursuant to proceedings undertaken for the
formation of the CFD pursuant to the Act.
(s) “School Facilities” means interim and permanent school facilities of the 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.
(t) “School Fees” means fees and charges that may be levied pursuant to Education Code
Section 17620 et seq. and Government Code Sections 65995 et seq.
(u) “Special Taxes” means the special taxes authorized to be levied by the School District
and collected by the CFD pursuant to the Rate and Method.
(v) “State” means the State of California.
Unless the context otherwise indicates, words expressed in the singular shall include the plural
and vice versa and the use of the neuter, masculine or feminine gender is for convenience only and
shall be deemed to include the neuter, masculine or feminine gender, as appropriate. Headings of
sections herein are solely for convenience of reference, do not constitute a part hereof and shall not
affect the meaning, construction or effect hereof.
All references herein to “Sections” and other subdivisions are to the corresponding Sections or
subdivisions of this Agreement; the words “herein,” “hereof,” “hereby,” “hereunder” and other words
of similar import refer to this Agreement as a whole and not to any particular Section or subdivision
hereof.
ARTICLE II
FORMATION OF THE CFD AND ISSUANCE OF BONDS
Section 2.1 Formation of the CFD.
The City has undertaken proceedings pursuant to the Act for the formation of the CFD, the
authorization of the Special Taxes and the authorization of Bonds on behalf of the CFD, with the
qualified electors having approved such Special Taxes and the authorization of bonded indebtedness
as provided for under the Act and related State law. The Parties expressly acknowledge and agree that
the School District shall have no responsibility or liability for any costs or expenses of forming or
administering the CFD. The Parties expressly agree that for purposes of this Agreement the School
District may presume that the proceedings for the formation of the CFD, actions for approval of the
levy and collection of the Special Taxes and authorization for the CFD to incur bonded indebtedness
5
were validly undertaken and completed.
Section 2.2 Mitigation Amount Payments/Deposits.
Prior to School District’s receipt of Bond Proceeds, as described in this Section, Property
Owner may obtain Certificates of Compliance for lots/parcels within the Project only by providing
Deposits to the School District that in each case are equal to the Mitigation Amount(s) attributable to
those lots/parcels which are developed for residential purposes. The School District may commingle
any or all Deposits with other capital facilities funds of the School District for purposes of investment
and safekeeping, and the School District may use such Deposits for any or all purposes as authorized
by law, but, for purposes of this Agreement, the School District shall at all times maintain records
sufficient to track the amount and disposition of each Deposit.
(a) Deposits provided to the School District prior to receipt by the School District of Bond
Proceeds, which Bond Proceeds supplant such Deposits, will be refunded by the School District to
Property Owner, or other Party, as applicable, that paid such Deposit(s) upon deposit of such
supplanting Bond Proceeds into the Lake Elsinore School Facilities Account.
(b) Bond Proceeds deposited into the Lake Elsinore School Facilities Account shall
supplant Deposits on a first-in first-supplanted basis. After the issuance of the last series of Bonds
(other than Bonds issued for refunding purposes only), and to the extent that the Bond Proceeds
deposited into the Lake Elsinore School Facilities Account are not sufficient to supplant the Mitigation
Amounts attributable to lots for which the Property Owner has provided a Deposit, the portion of the
Deposits not supplanted by Bond Proceeds shall be retained and used by School District as permitted
by law and this Agreement.
(c) If the Bond Proceeds are not sufficient to make all future Mitigation Amounts for the
Property, then once the Property Owner begins making payments of Mitigation Amounts, such
amounts shall constitute Deposits that are capable of reimbursement in the manner described above
upon the receipt of additional Bond Proceeds.
(d) After the issuance of the last series of Bonds (other than Bonds issued for refunding
purposes only), if after the application of all Bond Proceeds deposited into the Lake Elsinore School
Facilities Account, including interest earnings thereon, and taking into account any Deposits retained
by the School District (as provided for above), there remains a balance due, Property Owner shall be
required to pay all Mitigation Amount(s) for units/parcels before Certificates of Compliance shall be
issued by the School District.
(e) The City and the CFD shall not be responsible, or liable, for funding of School
Facilities, payment of Deposits or payment of Mitigation Amounts from any source of funds other than
Bond Proceeds allocated and deposited for such purpose.
Section 2.3 Issuance and Sale of Bonds.
(a) The City Council, acting as the legislative body of the CFD, may, in its sole discretion,
in accordance with its adopted policies, adopt one or more Bond Resolutions and issue Bonds. Prior
to the City Council adopting a Bond Resolution, Property Owner shall notify, or cause to be notified,
the School District, in writing, of: (i) the estimated issuance date for the corresponding series of Bonds
6
and (ii) the estimated amount of Bond Proceeds to be deposited in the Lake Elsinore School Facilities
Account from such series of Bonds.
(b) School District shall have no obligation, responsibility, or authority with respect to the
issuance and sale of the Bonds, the Bond Proceeds available to finance School Facilities, the payment
of the principal and interest on the Bonds, or for the levy of the Special Taxes to provide for the
payment of principal and interest thereon. The City and the CFD shall have the sole authority and
responsibility for all such matters.
The Parties hereto specifically agree that, except as provided in Section 2.4, the liabilities of the CFD,
including liabilities, if any, of the CFD pursuant to the documents providing for the issuance of Bonds,
including, but not limited to, the Bond Resolution, shall not be or become liabilities of School District.
Section 2.4 Use of Bond Proceeds to Finance School Facilities.
(a) In the event that Bonds are issued, the City, or the CFD (as may be applicable), shall
determine the amount of Bond Proceeds to be deposited into the Lake Elsinore School Facilities
Account or any applicable accounts or subaccounts thereof. As Bond Proceeds are transferred to
School District, Property Owner shall receive a credit in the amount transferred against the payment
of Mitigation Amounts. Nothing herein shall supersede the obligation of the Property Owner and/or
its successors in interest with respect to the Property to pay School Fees to School District, when due,
on account of commercial, industrial, age-restricted or other development not within the scope of this
Agreement. The purpose of this Agreement is to provide a mechanism by which the CFD may levy
and collect Special Taxes and issue Bonds to provide a source of funds to finance School Facilities for
residential development occurring within the Project through the payment of the Mitigation Amounts
in lieu of the payment of School Fees. In the event that Bond Proceeds, including investment earnings
thereon, are not available or sufficient to satisfy the obligation to pay the Mitigation Amounts, then the
Property Owner shall remain obligated to pay the Mitigation Amounts to the School District as
provided for under the terms of this Agreement.
(b) In connection with the issuance of any Bonds, a portion of the proceeds of which are
to be made available pursuant to this Agreement to finance the acquisition, construction and installation
of School Facilities, School District agrees to execute and deliver such certifications concerning the
School District and/or the School District’s use of Bond Proceeds deposited into the Lake Elsinore
School Facilities Account as may be reasonably required in order for City bond counsel to conclude,
at the time of Bond issuance, that interest on such Bonds will be excludable from gross income under
Section 103 of the Internal Revenue Code of 1986 and any amendments thereto. If expressly requested
by the City, the CFD or City bond counsel, the School District shall confirm that the Bond Proceeds
shall be, or have been, expended on School Facilities which have a direct or indirect benefit to the
property within the CFD.
Section 2.5 Mitigation Credit Account.
(a) After being notified by the fiscal agent for the Bonds, or equivalent City or CFD
consultant, officer or agent that Bond Proceeds have been deposited into the Lake Elsinore School
Facilities Account, School District will establish a Credit Account in the amount of Assessable Square
Feet for which the obligation to pay Mitigation Amounts has been satisfied. Such determination shall
be made by dividing the amount(s) deposited in the Lake Elsinore School Facilities Account by the
Amount per Square Foot then in effect pursuant to Section 2.2 herein.
7
(b) Once established and upon receipt of funds into the Credit Account, School District
shall deduct from the Credit Account the square footage of units for which Deposits had been made
pursuant to Section 2.2 and return the corresponding Deposits to the Property Owner. If such deduction
would result in a negative balance within the Credit Account, School District shall retain a portion of
the Deposits such that when added to the Bond Proceeds deposited in the Lake Elsinore School
Facilities Account would result in a balance of zero (0) square feet within the Credit Account. Such
retained Deposits may then be used by School District as permitted by law and this Agreement.
(c) Property Owner may obtain Certificates of Compliance for lots/parcels within the
Project by requesting that School District deduct from the Credit Account the assessable space of the
unit for which the Certificate of Compliance is being sought. In the event that there is an insufficient
balance in the Credit Account to cover a request for a Certificate of Compliance, Property Owner may
obtain the Certificate of Compliance only by paying cash to the School District equal to the shortfall
in the Mitigation Amount payable in connection with that Certificate of Compliance.
Section 2.6 Disbursements of Funds for School Facilities.
(a) From time to time following the deposit of Bond Proceeds into the Lake Elsinore
School Facilities Account, the School District may notify the City in writing and request a
disbursement from the Lake Elsinore School Facilities Account into the Credit Account to fund School
Facilities by executing and submitting a Disbursement Request to the City, the CFD or to the Bonds
fiscal agent, as the Bond Resolution shall provide. Upon receipt of such Disbursement Request,
completed and executed in accordance with the terms of this Agreement, the CFD or the Bonds fiscal
agent shall wire transfer, or otherwise pay, to School District such requested funds to the extent that
Bond Proceeds are available in the Lake Elsinore School Facilities Account for such purpose.
(b) School District agrees that prior to submitting a Disbursement Request requesting
payment from the CFD, it shall review and approve all costs included in its request and will have
already paid or incurred such costs of School Facilities from its own funds subsequent to the date of
this Agreement, or will disburse such amounts to pay the costs of School Facilities following receipt
of such funds from the CFD. In the event that School District does not disburse any Bond Proceeds
received by it to third parties within five banking days of receipt, it will trace and report to the CFD all
earnings, if any, earned by School District, from the date of receipt of such Bond Proceeds by School
District to the date of expenditure by School District for costs of the School Facilities as defined herein.
Section 2.7 Responsibility for Mitigation Amounts.
(a) The Parties hereto acknowledge and agree that, absent Mitigation Amounts being
funded using Bond Proceeds, the Property Owner shall be responsible for the payment of the Mitigation
Amounts.
(b) If the amounts derived from Bond Proceeds for School Facilities deposited in the Lake
Elsinore School Facilities Account, including investment earnings thereon, if any, are not sufficient to
fund all Mitigation Amounts attributable to the Property, the Parties hereto agree that all responsibility
and liability for the amount of such shortfall shall be and remain with the Property Owner, and shall
not lie with the CFD, School District or the City.
(c) School District agrees to utilize or apply Bond Proceeds provided to it by the CFD, in
8
accordance with the Act, the Local Agency Special Tax and Bond Accountability Act (described in
Section 4.1 hereof), the requirements of federal tax law compliance with which is necessary in order
for interest on the Bonds to be excluded from the gross income of the recipients for federal income tax
purposes and other applicable law, and as set forth herein.
Section 2.8 Indemnification.
(a) Indemnification by the City. The City shall assume the defense of, indemnify and save
harmless, the School District, the Property Owner, their respective officers, employees and agents, and
each and every one of them, from and against all actions, damages, claims, losses, and/or expenses of
any and every type and description (each a “Liability” and collectively, “Liabilities”) to which they
may be subjected or put, by reason of, or resulting from, any negligent act or omission or willful
misconduct of the City or the CFD with respect to this Agreement; provided, however, that the City
shall not be obligated in accordance with the foregoing to the extent any Liability is attributable to the
negligence or willful misconduct of any other Party or its officers, agents or employees, in which event
the Parties shall be responsible and liable on a comparative basis.
(b) Indemnification by Property Owner. The Property Owner shall assume the defense of,
indemnify and save harmless, the School District, the City and the CFD, their respective officers,
employees and agents, and each and every one of them, from and against all Liabilities to which they
may be subjected or put, by reason of, or resulting from, any negligent act or omission or willful
misconduct of the Property Owner with respect to this Agreement provided, however, that the Property
Owner shall not be obligated in accordance with the foregoing to the extent any Liability is attributable
to the negligence or willful misconduct of any other Party or its officers, agents or employees, in which
event the Parties shall be responsible and liable on a comparative basis.
(c) Indemnification by School District. The School District shall assume the defense of,
indemnify and save harmless, the City, the CFD and the Property Owner, their respective officers,
employees and agents, and each and every one of them, from and against all Liabilities to which they
may be subjected or put, by reason of, or resulting from, any negligent act or omission or willful
misconduct of the School District with respect to this Agreement; provided, however, that the School
District shall not be obligated in accordance with the foregoing to the extent any Liability is attributable
to the negligence or willful misconduct of any other Party or its officers, agents or employees, in which
event the Parties shall be responsible and liable on a comparative basis.
(d) Comparative Liability. Notwithstanding anything to the contrary, in the event a court
of competent jurisdiction, or an arbitrator if the Parties have agreed to arbitration, determines that more
than one of the Parties are, to some extent, responsible for the existence of any Liability, those Parties
shall request that the court or arbitrator determine their comparative liability with respect to that
Liability. Thereafter, those Parties shall be responsible for any damages payable on account of such
Liability consistent with such comparative liability determination, and a Party shall be entitled to
reimbursement, for damages that it has paid in excess of its share of damages based on such
comparative liability determination, from the other responsible Party or Parties.
(e) Statutory Liability. Notwithstanding anything to the contrary, in the event a final
judgment issued by a court of competent jurisdiction, or an arbitrator if the Parties have agreed to
arbitration, determines that this Agreement is an agreement within the scope of Government Code
Section 895 and, in connection therewith, imposes liability on either the City or the School District
9
solely by virtue of Government Code Section 895.2, then the City or School District, as applicable,
shall be entitled to contribution as provided by Government Code Section 895.6. In the event
Government Code Sections 895, 895.2 and/or 895.6 are amended or repealed, the requirements of this
Subsection shall apply with respect to any similar, successor or superseding law that imposes liability
on either the City or the School District consistent with provisions of Government Code Sections 895.2
and 895.6 in effect as of the Effective Date.
Section 2.9 Mitigation of School Facilities Obligations with Respect to the Project.
The Property Owner and the School District agree that, with respect to development of the
Property, the payment of the Mitigation Amounts to School District, whether with Bond Proceeds,
Deposits or otherwise, as set forth herein, shall constitute the full extent of the obligation of the
Property Owner to mitigate the impacts on the School Facilities of the School District arising from
development of the Property.
Subject to compliance with the terms hereof, the School District shall not oppose development
of the Project or any request by the Property Owner for a land use or other governmental approval,
whether legislative, administrative, discretionary or ministerial, sought for the development of the
Project. No development, change of development, governmental approval or change in any
governmental approval with respect to the Project shall constitute the basis for any amendment or
termination of this Agreement.
Section 2.10 Waiver of State and Local Funding Credits and Right to Protest.
In consideration of School District’s agreement with respect to the Project to accept the
Mitigation Amounts as full mitigation of the impact on the School Facilities of the School District
resulting from development of the Project, the Property Owner hereby waives, on behalf of itself and
all of its successors in interest with respect to the Property (including future Property Owners), any
and all past, present, and future rights any of them may have to credit against, or fair share reduction
in, Mitigation Amounts based upon State matching funding provided to School District or the proceeds
from a School District-wide special tax or general obligation bond authorization, or School Facilities
Improvement District (“SFID”) bond authorization for school facilities. Nothing in the foregoing or
elsewhere in this Agreement shall be deemed or construed to constitute an acknowledgement or
agreement by the School District that the Property Owner or its successors have or would be entitled
to any such credit or reduction. In addition, the Property Owner knowingly waives its right of protest
as may be afforded by Government Code Section 66020 or any other provision of law; provided that
nothing in this Agreement shall be deemed or construed to preclude the Property Owner from asserting
that the School District has breached any obligation it may have pursuant to this Agreement.
Section 2.11 Owner Advance.
The Property Owner has previously deposited with School District the amount of Fifteen
Thousand Dollars ($15,000) to be used to advance fund the School District’s costs associated with
negotiating, entering into and administering this Agreement. Such advance may be reimbursed to the
Property Owner, subject to the approval of the City and/or the CFD, solely from Bond Proceeds, but
under no circumstances shall School District be obligated to refund, reimburse, or otherwise repay the
advance, or any portion thereof, to the Property Owner from any source of funds of the School District.
Notwithstanding the foregoing, should the City, for any reason, not approve this Agreement, any then
unexpended and uncommitted balance of the funds advanced pursuant to this Section shall be refunded
to Property Owner within fourteen (14) business days after School District is notified in writing by the
City that this Agreement has not been and will not be, approved by the City.
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Section 2.12 Administration of the CFD.
The City shall have the power, duty and responsibility to provide for the administration of the
CFD, subject to the terms hereof and the Bond Resolution, including employing and compensating all
consultants and providing for the various other administration duties set forth in this Agreement. It is
understood and agreed by Parties that School District was not or will not be considered a participant in
the proceedings relative to formation of the CFD or the issuance of the Bonds, other than as a Party to
this Agreement. For avoidance of doubt, all proceeds of the Special Taxes levied by the CFD shall, as
and when collected, be allocated and distributed for use by the City and/or the CFD, not any other
Party or any third party.
Section 2.13 Construction, Ownership and Maintenance of School District Facilities. The
City shall have no responsibility for the acquisition, construction and installation of the School
Facilities. The School Facilities shall be and remain the sole and separate property of the School
District and shall be operated, maintained and utilized by the School District. The City shall not have
any ownership interest in, or responsibility for the operation, maintenance or utilization of, the School
Facilities.
Section 2.14 Construction, Ownership and Maintenance of City Facilities. The School
District shall have no responsibility for the acquisition, construction and installation of the City
Facilities. The City Facilities shall be and remain the sole and separate property of the City and shall
be operated, maintained and utilized by the City. The School District shall not have any ownership
interest in the City Facilities, and the School District shall have no responsibility for the operation,
maintenance or utilization of the City Facilities.
ARTICLE III
TERM AND TERMINATION
Section 3.1 Effective Date.
This Agreement shall become effective and of full force and effect as of the date (“Effective
Date”) that both of the following occur: (1) this Agreement is approved and executed by the last of the
School District, the Property Owner and the City, to be confirmed upon execution of this Agreement
by the authorized representatives of the Parties; and (2) the CFD has been formed, as evidenced by the
recordation of a Notice of Special Tax Lien against the Property.
Section 3.2 Termination.
If the CFD is terminated for any reason or is unable to complete the sale of the Bonds prior to
January 1, 2035, any obligation of the Parties, if any, to finance all or any portion of the Mitigation
Amounts with Bond Proceeds pursuant to this Agreement shall automatically terminate and be of no
further force or effect. In such event, this Agreement shall remain in effect as between the School
District and the Property Owner, the School District shall retain any and all Deposits in full satisfaction
of the mitigation obligation attributable to the lots within the Project for which Certificates of
Compliance were issued based upon the posting of such Deposits and, thereafter, in order to obtain an
additional Certificate of Compliance for construction within the Project, Property Owner shall be
required to pay to the School District the School Fees, or other amount(s) as required by state law,
applicable to such construction.
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ARTICLE IV
ADDITIONAL GENERAL PROVISIONS
Section 4.1 Recordkeeping; Inspection of Records.
(a) School District hereby agrees to keep and maintain full and accurate records of all Bond
Proceeds, if any, paid to School District for application against Mitigation Amounts due under the
terms of this Agreement and investment earnings thereon, and the City or the CFD, or the Bonds fiscal
agent on their behalf, hereby agrees to keep and maintain full and accurate records of all Bond Proceeds
and investment earnings, if any, disbursed to School District from the Lake Elsinore School Facilities
Account. Each Party further agrees to make such records available to any other Party hereto, including
the Property Owner, during normal business hours upon reasonable prior notice. All such records shall
be kept and maintained by the appropriate Party as provided by applicable law and their respective
policies. The School District and the Property Owner agree that they will cooperate with the CFD and
the City in providing documentation, reports or other data reasonably required and requested by the
City or the CFD in meeting the reporting requirements of the CFD under Sections 50075.1, 50075.3,
and 50075.5 and Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of
Title 5 of, the Government Code (collectively, the “Local Agency Special Tax and Bond
Accountability Act”).
(b) School District’s reporting obligations pursuant to this Section shall be limited to
providing reports or other data detailing the following: (A) the amount of Bond Proceeds received by
School District to fund School Facilities, (B) the amount of such Bond Proceeds deposited in separate
funds or accounts of School District reflecting Mitigation Amounts and the number of dwelling units
for which such Mitigation Amounts apply, and (C) School Facilities that have been acquired, installed
and/or constructed, in whole or in part, using Bond Proceeds. If no Bond Proceeds have been received
by School District or used to finance School Facilities since the previous report, no report shall be
required and the City may rely upon the previous reports.
Section 4.2 Partial Invalidity.
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.
Section 4.3 Successors and Assigns.
Property Owner may assign its rights pursuant to this Agreement to a purchaser/developer of
the Property, or any portion thereof, and such purchaser and assignee shall expressly assume the
obligations of Property Owner pursuant to this Agreement and to be bound thereby. No such
assignment by the Property Owner shall be valid or binding on any other Party unless and until written
notice of the assignment and assumption has been provided to all Parties. Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of
the Parties.
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Section 4.4 Notice.
Any notice, payment, or instrument required or permitted by this Agreement to be given or
delivered to any Party shall be deemed to have been received only upon actual receipt by that Party.
Such notices, payments, or instruments may be delivered by: (i) personal delivery, delivery charges
prepaid and signature on delivery receipt requested; (ii) registered or certified U.S. Mail, postage
prepaid and return receipt requested; or (iii) FedEx, UPS, or other reliable private delivery service,
delivery charges prepaid and signature on electronic or other delivery receipt requested. A copy of
each notice and other instrument sent to the City shall be sent to the City’s legal counsel, and a copy
of each notice and other instrument sent to the School District shall be sent to the School District’s
legal counsel. No Party may unreasonably refuse to accept delivery of any communications sent in
accordance with this Section in an attempt to avoid the giving or service of the communication, and
any such refusal by a Party shall be deemed and construed as a material breach of such Party’s
obligations pursuant to this Agreement. For avoidance of doubt, this Section shall not be deemed or
construed to apply to service of process in accordance with any applicable law or rule of court. Subject
to the foregoing, written communications shall, as applicable, be addressed as follows:
City: City of Lake Elsinore
23873 Clinton Keith Road
Lake Elsinore, CA 92595
Attention: Assistant City Manager/PW
Director
City Legal Counsel: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath Esq.
Lawrence Chan
Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
School District: Lake Elsinore Unified School District
Attention: Chief Business Official
545 Chaney Street
Lake Elsinore, CA 92530
School District Legal Counsel: Atkinson, Andelson, Loya, Ruud & Romo
Attention: Robert E. Anslow
20 Pacifica, Suite 1100
Irvine, CA 92618
Property Owner: Vista Emerald, LLC
1020 2nd Street, Suite C
Encinitas, CA 92024
Attention: Project Manager
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Each Party can change its address for delivery of notice by delivering written notice of such
change of address to the other Parties. A Party that incurs a change of address shall endeavor to provide
such notice within ten (10) calendar days prior to the change taking effect.
Section 4.5 Captions.
The captions to Sections used herein are for convenience purposes only and, therefore, shall
not be deemed or construed to qualify, circumscribe, or otherwise limit the respective meanings of the
provisions set forth in this Agreement.
Section 4.6 Governing Law.
Notwithstanding any conflict-of-law, choice-of-law, or other provision of any federal or state
law, this Agreement shall be governed by, and construed in accordance with, the laws of the State
applicable to contracts made and performed in said State. Each and every claim, demand, action,
arbitration (if the affected Parties agree to arbitrate), and other proceeding arising from this Agreement
shall be initiated and conducted solely in the County of Riverside, California; provided that a court of
competent jurisdiction in its discretion may determine that it is necessary, in order to ensure
fundamental fairness, that venue be located outside the boundaries of the City.
Section 4.7 Entire Agreement.
This Agreement contains the entire agreement of the Parties with respect to the matters
provided for herein and supersedes all prior and contemporaneous agreements, negotiations, and
discussions (whether written or oral) among any of the Parties relating to the subject matter of this
Agreement.
Section 4.8 Amendments.
This Agreement may be amended or modified only in writing duly approved by each of the
Parties and executed by the authorized representative(s) of each of the Parties hereto.
Section 4.9 Waiver.
The failure of any Party hereto to insist on compliance within any of the terms, covenants or
conditions of this Agreement by any other Party hereto shall not be deemed to constitute a waiver of
such terms, covenants or conditions of this Agreement by the failing Party. In order to be valid and
binding, a waiver must be set forth in writing and must be signed by the authorized representative of
the waiving Party. Except as expressly set forth in a written waiver, no waiver shall constitute a
relinquishment of any other right or power for all or any other times.
Section 4.10 Cooperation and Execution of Documents.
Each Party agrees to complete and execute any further or additional documents that reasonably
are necessary to complete the terms of, or secure the express benefits to another Party of, this
Agreement.
Section 4.11 Exhibits.
The following exhibits attached hereto are incorporated into this Agreement by reference.
37950438.1
Exhibit Description
“A” Depiction/Description of Property Boundaries
“B” Disbursement Request Form
Section 4.12 Interpretation.
This Agreement shall be deemed to have been prepared by the Parties jointly, and no ambiguity
shall be resolved against a Party solely because it or its attorney(s) were primarily responsible for
drafting this Agreement or any particular provision herein.
Section 4.13 No Termination Due to Changes in Law.
The provisions of this Agreement shall not be affected by: (i) any change to applicable law
that occurs on or after the Effective Date; (ii) any legislation enacted, whether through the legislative
or initiative process, on or after the Effective Date; or (iii) any judicial decisions issued on or after the
Effective Date that otherwise would affect the matters addressed in this Agreement, except for
decisions specifically pertaining to this Agreement.
Section 4.14 Signatories.
Each person who has signed this Agreement on behalf of a Party thereby represents and
warrants that he, she, or they has been appropriately authorized that Party to sign, and thereby bind
such Party to, this Agreement.
Section 4.15 Execution in Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original
and the same instrument. Signature pages may be detached from counterpart originals and combined
to form one or more copies of this Agreement having original signatures of all Parties.
[Remainder of this page intentionally left blank]
14
005194.00426
S-1
IN WITNESS WHEREOF, the Parties hereto have executed this Joint Community Facilities
and School Facilities Funding Agreement as of the day and year written above.
LAKE ELSINORE UNIFIED SCHOOL DISTRICT
By:
Title:
Date Signed:
Approved by Governing Board: ,
2023
City: CITY OF LAKE ELSINORE
By:
Name:
Date Signed:
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
By:
City Attorney
Developer: VISTA EMERALD, LLC
a California limited liability company
By:
Name:
Date Signed:
A-1
EXHIBIT “A”
PROPERTY DESCRIPTION/DEPICTION
Property Description
Owner Description
Vista Emerald, LLC,
a California limited liability company
Riverside County APN 370-050-019
Vista Emerald, LLC,
a California limited liability company
Riverside County APN 370-050-020
Vista Emerald, LLC,
a California limited liability company
Riverside County APN 370-050-032
A-2
B-1
EXHIBIT “B”
DISBURSEMENT REQUEST FORM
1. Community Facilities District No. 2023-2 of the City of Lake Elsinore (“CFD No.
2023-2”) is hereby requested to pay from the Lake Elsinore School Facilities Account, or any
applicable account or subaccount thereof, established by or on behalf of the City of Lake Elsinore or
CFD No. 2023-2 in connection with its Special Tax Bonds (the “Bonds”) or pursuant to the terms of
the JCFA (defined below) to Lake Elsinore Unified School District (“School District”), as payee, the
sum set forth below:
$ (the “Requested Amount”)
2. The Requested Amount is due and payable, no portion of the Requested Amount has
been included in any prior disbursement to the School District from the Lake Elsinore School Facilities
Account, and the Requested Amount is payable in satisfaction of the Property Owner’s obligation
pursuant to the JCFA to pay Mitigation Amounts to the School District.
3. The Requested Amount is authorized and payable pursuant to the terms of that certain
Joint Community Facilities and School Facilities Funding Agreement, dated as of ,
2023, by and among the School District, Vista Emerald, LLC, a California limited liability company,
and the City (the “JCFA”). By requisitioning and/or receiving Bond Proceeds pursuant to this request,
the School District is not passing upon, determining, or assuming the tax-exempt status of the Bonds
for federal or California income tax purposes.
4. Capitalized undefined terms used herein, and not otherwise defined, shall have the
meaning(s) ascribed to them in the JCFA.
Date: LAKE ELSINORE UNIFIED SCHOOL DISTRICT
By:
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CFD NO. 2023-2 (COASTAL MISSION TRAILS)PROJECT MAP