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
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CC August 11, 2009 Item No. 10
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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
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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
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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
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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
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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.
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