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HomeMy WebLinkAbout2026-036 Approving First Amended Rate and Method for CFD No. 2025-1RESOLUTION NO. 2026-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS), APPROVING AN AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT AND CALLING AN ELECTION THEREIN Whereas, on June 24, 2025, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2025-034 stating its intention to form Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (“Community Facilities District No. 2025-1” 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, on June 24, 2025, the City Council also adopted Resolution No. 2025-035 stating its intention to incur bonded indebtedness within the District in the amount not to exceed $14,000,000 to finance the facilities identified in Resolution No. 2025-034 (the “Facilities”); and the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and Whereas, a notice calling a public hearing on August 12, 2025, was published as required by law relative to the intention of the City Council to establish Community Facilities District No. 2025-1 and to incur bonded indebtedness within Community Facilities District No. 2025-1; and Whereas, on August 12, 2025, the City Council conducted a noticed public hearing to determine whether it should proceed with the establishment of Community Facilities District No. 2025-1, issue bonds for the benefit of Community Facilities District No. 2025-1 to pay for the Facilities and Incidental Expenses, authorize the levy of special taxes to pay for certain services set forth in the Resolution of Formation (as defined below) and to authorize the rate and method of apportionment of the special taxes in the form attached as Attachment “C” to Resolution No. 2025-034 (the “Rate and Method”) to be levied within Community Facilities District No. 2025-1 for the purposes described in the Resolution of Formation; and Whereas, at the August 12, 2025, public hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2025-1, the levy of the special taxes in accordance with the Rate and Method and the issuance of bonds within Community Facilities District No. 2025-1 to pay for the cost of the proposed Facilities and Incidental Expenses, and the levy of special taxes to pay for the Facilities, were heard and a full and fair hearing was held; and Whereas, after the public hearing, on August 12, 2025, the City Council adopted Resolution Nos. 2025-60 (the “Resolution of Formation”) and 2025-61 which formed the District and called a special election on August 12, 2025, within the District on propositions relating to the levying of the special taxes, the incurring of bonded indebtedness and the establishment of an appropriations limit for the District, which were approved by more than two-thirds vote by the qualified electors on August 12, 2025; and Whereas, pursuant to Resolution No. 2025-62, adopted on August 12, 2025, the City Council, acting as the legislative body of Community Facilities District No. 2025-1, declared the Docusign Envelope ID: 0D719EE6-4708-824A-81A8-0D4E124354D8 CC Reso. No. 2026-36 Page 2 of 5 results of the special election and directed the recording of a notice of special tax lien within Community Facilities District No. 2025-1; and Whereas, the District received a petition signed by Tri Pointe Homes IE-SD, Inc., a California Corporation (the “Owner”), which owns all of the land within Community Facilities District No. 2025-1, which petition meets the requirements of Section 53332 of the Act, requesting that the District initiate proceedings to approve the new rate and method of apportionment for Community Facilities District No. 2025-1, attached to the Resolution of Intention (as defined below) as Attachment “A” (the “First Amended and Restated Rate and Method”); and Whereas, on March 10, 2026, the City Council, acting as the legislative body of Community Facilities District No. 2025-1, adopted Resolution No. 2026-26 (the “Resolution of Intention”), stating its intention to consider the approval of the First Amended and Restated Rate and Method; and, Whereas, a notice calling a public hearing on April 14, 2026, was published as required by law relative to the intention of the City Council to consider the approval of the First Amended and Restated Rate and Method; and, Whereas, on April 14, 2026, this Council conducted a noticed public hearing to determine whether it should proceed with the approval of the First Amended and Restated Rate and Method; and, Whereas, at the April 14, 2026, public hearing, all persons desiring to be heard on all matters pertaining to the approval of the First Amended and Restated Rate and Method were heard, and a full and fair hearing was held; and, Whereas, the City Council has determined that there have been fewer than twelve registered voters residing in the District for the period of 90 days prior to April 14, 2026, and that the qualified electors in the District are the landowners within the District; and, Whereas, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the approval of the First Amended and Restated Rate and Method as described herein. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Each of the above recitals is true and correct. Section 2. The City Council hereby adopts the First Amended and Restated Rate and Method as the rate and method for Community Facilities District No. 2025-1. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within Community Facilities District No. 2025-1, to levy the proposed special taxes at the rates for Community Facilities District No. 2025-1 set forth in the First Amended and Restated Rate and Method on all non-exempt property within Community Facilities District No. 2025-1 sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued by the District to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, Docusign Envelope ID: 0D719EE6-4708-824A-81A8-0D4E124354D8 CC Reso. No. 2026-36 Page 3 of 5 credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), administrative expenses and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The First Amended and Restated Rate and Method is described in detail in Attachment “A” to the Resolution of Intention which is incorporated herein by this reference, and the City Council hereby finds that the First Amended and Restated 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. The Special Tax (as defined in the First Amended and Restated Rate and Method) shall be levied on each assessor’s parcel in accordance with the First Amended and Restated Rate and Method provided, however, that the Special Tax shall not be levied after Fiscal Year 2069-70. Section 3. Upon recordation of a first amended and restated 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 taxes 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 4. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities, as described in the Resolution of Formation, financing the Incidental Expenses, and carrying out the powers and purposes of Community Facilities District No. 2025-1, 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 (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), administrative expenses and other expenses of the type authorized by Section 53345.3 of the Act. Section 5. Written protests against the approval of the First Amended and Restated Rate and Method 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 or more of the area of land within the boundaries of the District. The City Council hereby finds that the approval of the First Amended and Restated Rate and Method with respect to Community Facilities District No. 2025-1 has not been precluded by a majority protest pursuant to Section 53337 of the Act. Section 6. An election is hereby called for Community Facilities District No. 2025-1 on the proposition of approving the First Amended and Restated Rate and Method. The proposition to be placed on the ballot for the District is attached hereto as Attachment “A.” Following certification of a landowner vote in favor of the adoption of the First Amended and Restated Rate and Method, the District shall record a first amended and restated notice of special tax lien for the District. Section 7. The date of the foregoing election for the District shall be April 14, 2026, or such later date as is consented to by the City Clerk and the landowners within the District. The City Clerk shall conduct the election. Except as otherwise provided by the Act, the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable. Docusign Envelope ID: 0D719EE6-4708-824A-81A8-0D4E124354D8 CC Reso. No. 2026-36 Page 4 of 5 Section 8. It is hereby found that there are not more than twelve registered voters within the territory of the District, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within the District. Section 9. This Resolution shall take effect immediately upon its adoption. Section 5. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions. Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 14th day of April 2026. Robert E. Magee 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. 2026-36 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of April 14, 2026 and that the same was adopted by the following vote: AYES: Council Members Tisdale, Manos, and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee NOES: None ABSENT: None ABSTAIN: None Candice Alvarez, MMC City Clerk Docusign Envelope ID: 0D719EE6-4708-824A-81A8-0D4E124354D8 ATTACHMENT “A” SAMPLE BALLOT COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS) SPECIAL ELECTION April 14, 2026 This ballot represents ___ votes. To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear or deface this ballot, return it to the City Clerk of City of Lake Elsinore and obtain another. PROPOSITION A: Shall special taxes with a First Amended and Restated Rate and Method of Apportionment (the “First Amended and Restated Rate and Method”) as provided in Attachment “A to Resolution No. 2026- 26 adopted by the City Council of the City of Lake Elsinore on March 10, 2026 (the “Resolution of Intention”), acting as the legislative body of Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (the “District”), be levied to pay for the Facilities and Incidental Expenses (as such terms are defined in the Resolution of Intention) and other purposes described in Resolution No. 2025-60, including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses for the District? YES______ NO_______ Docusign Envelope ID: 0D719EE6-4708-824A-81A8-0D4E124354D8