HomeMy WebLinkAbout2023-092 Resolution Necessity to Incur Debt within CFD No. 2023-2 Coastal Mission Trails.doc4883-7124-6722v2/022042-0048
RESOLUTION NO. 2023-92
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, due to certain complexities with respect to approvals of the proposed project in
the District, on November 14, 2023, this City Council further continued the public hearing to
December 12, 2023; and
Whereas, on December 12, 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
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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
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.
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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.
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 December 12, 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 December 12, 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 December 12, 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. Accordingly, since there were fewer than 12 registered voters within the District
for each of the 90 days preceding December 12, 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 December 12, 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 12th day of December 2023.
Natasha Johnson
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2023-92 was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of December 12, 2023 and that the same was adopted by the following
vote:
AYES: Council Members Tisdale, Sheridan, and Magee; Mayor Pro Tem Manos; and Mayor
Johnson
NOES: None
ABSENT: None
ABSTAIN: None
Candice Alvarez, MMC
City Clerk
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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
December 12, 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_______
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