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HomeMy WebLinkAbout08-11-09 CC Item 10CITY OF LADE L LSINORT DREAM EXTREME. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: AUGUST 11, 2009 SUBJECT: RESOLUTION OF INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2009-1 (PARK AND STREET LIGHTING MAINTENANCE) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX Background The remainder of the Canyon Hills development will include the construction of a new community park and over 300 new street lights. Once these improvements have been completed, they will be turned over to the City for maintenance. Currently, the City has no dedicated funding source to pay for the maintenance of these new facilities. As part of the negotiations for construction of the Canyon Hills Community Park, the owner of the Canyon Hills development, Pardee Homes, has agreed to the formation of a new Community Facilities District (CFD) to provide funding for the on-going maintenance of the new park and street lighting facilities within and adjacent to Planning Areas 1, 2, 16, 18, 25, 27, 28, 29, 30, 31, 32, 36 and 37 of the Canyon Hills Specific Plan. A map of the Canyon Hills Specific Plan areas is attached. Discussion Only properties currently owned by Pardee Homes will be included within the boundary of the new CFD. Upon build-out, the new CFD will contain 1,261 single family dwelling units and 1,085 multi-family residential units. A special tax will be levied in the amount of $280.00 per single family dwelling unit and $140.00 per multi-family residential unit starting in fiscal year 2010-11. The amount of the special tax will increase two percent annually. The CFD will generate approximately $500,000 annually once all the homes are built. The map of the proposed boundary is attached. CC August 11, 2009 Item No. 10 Page 1 of 12 Resolution of Intention to Form CFD 2009-1 August 11, 2009 Page 2 Fiscal Impact The CFD will provide a new funding source for the maintenance of park and street lighting improvements. The cost of the formation of the CFD has been paid by Pardee Homes. Process The establishment of the CFD requires a specific process as outlined in the attached resolution. The City Council is required to hold a public hearing on the formation of CFD and the participating property owners will have the opportunity to cast votes to approve the special tax levy. The public hearing can be scheduled for September 22, 2009. Recommendations 1. Adopt a resolution of intention to form Community Facilities District No. 2009-1 (Park and Street Lighting Maintenance) and to levy of a special tax within said district and scheduling the public hearing for September 22, 2009. Prepared by: James R. Rile Acting Director f Administrative Services Approved by: Robert A. BradA, ~Q! City Manager CC August 11, 2009 Item No. 10 Page 2 of 12 W W N W $ Of 0 90 O UO O CJWOOLLJ Ip F- IH N WJ N Z 2_Y O W S R::Y=Zw z N moo ruj W 'm .aH.. 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N N N R N N o a LL P a W o ~ . ~ ~ ~ LL B LL F d E W F LL E LL E < < < m m m w o a Z K U a m r c[ n n ° ¢ r m r ¢ m m U m N ¢ m o ¢ m u o [ a¢ . N m m V s N m P m m r m a a r 4 S o a ~ _ Anil rn I nU Vow` mEZOLL-wf"w VW H 41 E O S a d R C-L O U W co r~ v J Q) U LL CC August 11, 2009 Item No. 10 Page 5 of 12 Page 1 of 7 RESOLUTION NO. 2009- RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2009-1 (PARK AND STREET LIGHTING MAINTENANCE) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN SAID DISTRICT WHEREAS, Government Code Section 53311 et. seq., also known as the Mello-Roos Community Facilities Act of 1982 (hereinafter "the Act"); provides that local agencies such as the City of Lake Elsinore (hereinafter the "City") are authorized to finance certain public capital facilities and services in developing areas by means of formation of a Community Facilities District; and WHEREAS, the City has received a Consent and Waiver from Pardee Homes requesting the establishment of the City of Lake Elsinore Community Facilities District No. 2009-1 (Park and Street Lighting Maintenance) (hereinafter the "District"); which constitutes a landowner petition of not less than 10 percent of the area of land proposed to be included within the District; and WHERAS, the Act provides that such District may be established to finance the cost of construction and maintenance of public parks and street lighting; and WHEREAS, in accordance with the Act, the District will finance the construction and maintenance of parks and street lighting that are in addition to those provided in the territory within the District prior to the formation of the District and do not supplant services already available within the territory proposed to be included in the District through the formation of the District subject to the levy of a special tax to pay for such services, being approved at an election to be held within the boundaries of the District; and NOW, THEREFORE, the City Council of the City of Lake Elsinore, California, does hereby resolve as follows: SECTION 1. The City Council hereby determines to institute proceedings for the establishment of the District under the terms of the Act. The exterior boundaries of the District are hereby specified and described to be as shown on that certain map now on file in the office of the City Clerk entitled "Proposed Boundaries, City of Lake Elsinore, Community Facilities District No. 2009-1 (Park and Street Lighting Maintenance)" which map indicates by a boundary line the extent of the territory included in the District and shall govern for all details as to the extent of the District. SECTION 2. The map showing the District, which area is to be subject to a special tax to be levied, is hereby approved and adopted. On the original and one copy of the map of such District on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this resolution. The City CC August 11, 2009 Item No. 10 Page 6 of 12 CC Resolution No. 2009- Page 2 of 7 Clerk shall file the original of such map in her office and, within fifteen (15) days after the adoption of this resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of Riverside, State of California. SECTION 3. The name of the proposed community facilities district shall be "City of Lake Elsinore Community Facilities District No. 2009-1 (Park and Street Lighting Maintenance)." SECTION 4. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax") sufficient to finance a portion of the cost of providing park and street lighting construction and maintenance that are in addition to those provided in the territory within the District and do not supplant services already available within the territory proposed to be included in the District, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the proposed District. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in Exhibit "A" attached hereto and by this reference incorporated herein. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property. The maximum Special Tax applicable to a parcel to be used for private residential purposes, as set forth in Exhibit A, is specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to tax because of its use for private residential purposes, and such amount shall not be increased over time by an amount in excess of 2 percent (2%) per year. Under no circumstances will the Special Tax to be levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the proposed District by more than 10 percent (10%). As specified by the Act, for purposes of this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. SECTION 5. A public hearing (the "Hearing") on the establishment of the District and the proposed rate and method of apportionment of the Special Tax shall be held on September 22, 2009, at 7:00 o'clock p.m., or as soon thereafter as practicable, at the chambers of the City Council of the City of Lake Elsinore, 183 North Main Street, Lake Elsinore, California, 92530. SECTION 6. At the time and place set forth above for the hearing, any interested person, including all persons owning lands or registered to vote within the proposed District, may appear and be heard. CC August 11, 2009 Item No. 10 Page 7 of 12 CC Resolution No. 2009- Page 3 of 7 SECTION 7. Each City officer who is or will be responsible for the District, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council, which is to be made a part of the record of the Hearing, containing a brief description of the District and his or her estimate of the cost of providing additional park and street lighting construction and maintenance. The City Manager is directed to estimate the fair and reasonable cost of all incidental expenses, including all costs associated with the District, 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. SECTION 8. The City may accept advances of funds from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in establishing the proposed District. SECTION 9. The City Clerk is hereby directed to publish a notice ("Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed District. Such Notice shall contain the text of this resolution, state the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed District as provided in Section 53339.5 of the Act and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least 7 days prior to the date of the Hearing. SECTION 10. The voting procedure with respect to the establishment of the District and the imposition of the special tax shall be by mailed ballot election. SECTION 11. This resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 11th day of August, 2009. ROBERT E. MAGEE MAYOR APPROVED AS TO FORM: BARBARA ZEID LEIBOLD CITYATTORNEY, CITY OF LAKE ELSINORE ATTEST: DEBORA THOMSEN, CITY CLERK CC August 11, 2009 Item No. 10 Page 8 of 12 CC Resolution No. 2009- Page 4 of 7 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, DEBORA THOMSEN, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2009- was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 11th day of August, 2009, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: DEBORA THOMSEN CITY CLERK CC August 11, 2009 Item No. 10 Page 9 of 12 Page 5 of 7 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CC August 11, 2009 Item No. 10 Page 10 of 12 CC Resolution No. 2009- Page 6 of 7 EXHIBIT A City of Lake Elsinore Community Facilities District No. 2009-1 (Park and Street Lighting Maintenance) Rate and Method of Apportionment of Special Tax Introduction Special Taxes shall be annually levied on each Developed Single Family Unit and Developed Multifamily Unit (as hereinafter defined) in City of Lake Elsinore Community Facilities District No. 2009-1 (Park and Street Lighting Maintenance) (the "CFD No. 2009-1"), in accordance with the rate and method of apportionment of special taxes hereinafter set forth. All of the property within CFD No. 2009-1 that is not a Developed Single Family Unit or Developed Multifamily Unit shall be exempt from the Special Taxes of CFD No. 2009-1. Definitions "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any reasonably necessary or appropriate expenses incurred in the administration of CFD No. 2009-1, including but not limited to the administrative and legal costs of levying and collecting the Special Tax (including costs incurred in connection with any appeals relating thereto and litigation expenses incurred in connection with the collection of the Special Tax); and an allocable share of the salaries of the City staff providing services on behalf of CFD No. 2009-1 directly related to the foregoing and a proportionate amount of City general administrative overhead related thereto. "Assessor's Parcel" means a parcel of land in CFD No. 2009-1 designated and assigned a discrete identifying number on a map of the County Assessor of the County of Riverside. "CFD No. 2009-1" means Community Facilities District No. 2009-1 established by the City under the Act. "City" means the City of Lake Elsinore, California. "Council" means the City Council of the City of Lake Elsinore, acting as the legislative bond of CFD No. 2009-1. "Developed Multifamily Unit" means a residential dwelling unit within a building in which each of the individual dwelling units has or shall have at least one common wall with another dwelling unit and a building permit has been issued by the City for such dwelling unit on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. CC August 11, 2009 Item No. 10 Page 11 of 12 CC Resolution No. 2009- Page 7 of 7 "Developed Single Family Unit" means a residential dwelling unit other than a Developed Multifamily Unit on an Assessor's Parcel for which a building permit has been issued by the City on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period beginning on July 1 and ending on the following June 30. "Maximum Special Tax" means the maximum Special Tax that can be levied by CFD No. 2009-1 in any Fiscal Year on any Assessor's Parcel. "Park" means the public parks constructed within the Canyon Hills Specific Plan area. "Special Tax" means any of the special taxes authorized to be levied within CFD No. 2009-1 pursuant to the Act to fund the Special Tax Requirement. "Street Lighting" means the public street lights constructed in and adjacent to Planning Areas 1, 2, 16, 18, 25, 27, 28, 29, 30, 31, 32, 36 and 37 of the Canyon Hills Specific Plan area. "Unit" means each separate residential dwelling unit, which comprises an independent facility capable of conveyance or use separate from adjacent dwelling units. Rate and Method of Apportionment of Special Tax Commencing Fiscal Year 2010-2011 and for each subsequent Fiscal Year, the City Council shall levy the Maximum Special Tax on all Assessor's Parcels defined as a Developed Single Family Unit or Developed Multifamily Unit. The Maximum Special Tax for Fiscal Year 2010-2011 shall be $280.00 per Developed Single Family Unit and $140.00 per Developed Multifamily Unit. On each July 1, commencing July 1, 2011, the Maximum Special Tax shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. Duration of the Special Tax The Special Tax shall be levied in perpetuity to fund the cost of maintaining the Park, Street Lighting and Administrative Expenses, unless no longer required as determined at the sole discretion of the City Council. Collection of the Special Tax The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2009-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its funding requirements. CC August 11, 2009 Item No. 10 Page 12 of 12