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HomeMy WebLinkAboutCC Reso No 1998-07RESOLUTION NO. 98-7 RESOLUTION OF INTENTION OF THE CITY COVNCIL OF THE CITY OF LAKE ELSINORE TO E3TABLISH COMMUNITY FACILITIES DISTRICT :YO. 95-1 2lND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN CODIIdUN2TY FACILITIES DISTRICT NO. 98-1 WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has received a petition (including consent and waiver) (the "Petition") requesting the institution of proceedings for formation of a community facilities district (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act"); and WHEREAS, the Council has determined that the Petition complies with the requirements of Government Code Section 53318(a) and now intends to form Community Facilities District No. 98-1; and WxEREAS, it is the intention of the Council to refinance and restructure or assist in the repayment or restructuring of the City of Lake Elsinore, Community Facilities District No. 91-2 (Summerhill Public Improvements) 1991 Special Tax Bonds and accrued and unpaid interest Y,hereon (the "1991 Bonds") through the formation of Community Facilities District No. 98-1 subject to the authorization of bonds and the levy of a special tax to pay principal and interest on bonds, being approved at an election to be held within the boundaries of Community Facilities District No. 98-1. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Council hereby determines to institute proceedings for the formation of a community facilities district under the terms of the Act. The exterior boundaries of the community facilities 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. 98-1," which map indicates by a boundary line the extent of the territory included in the proposed community facilities district and shall govern for all details as to the extent of Community Facilities District No. 98-1. On the original and one copy of the map of such Community Facilities District No. 98-1 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 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. DK09720/962858/#265027.2 Section 2. The name of the proposed City of Lake Elsinore Community Facilities District shall be "City of Lake Elsinore Community Facilities District No. 98-1." Section 3. It is the intention of the City Council that the District be authorized to issue bonds the proceeds of which may be applied to pay amounts necessary to pay, prepay, restructure or defease or assist in restructuring or defeasing the outstanding 1991 Bonds, which are secured in part by a special tax levied within the area of the proposed District. The 1991 Bonds were previously issued to acquire or construct the necessary infrastructure within the Community Facilities District No. 91-2 for the construction of single family residences and commercial facilities (the "Facilities"). 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 pay the principal of and interest on the bonds proposed to be issued to pay, prepay, restructure or defease or assist in restructuring or defeasing the 1991 Bonds and other periodic costs, the establishment and replenishment of reserve funds, the remarketing, credit enhancement and liquidity fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, election costs and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel, financing consultant and printing costs, and all other administrative costs of the tax levy and bond issue. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the proposed District. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon and advances by the City with respect to the 1991 Bonds and administrative costs relating thereto. 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. In the event that a portion of the property within the District shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Exhibit "A," the City Council shall, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which is DK09720/962858/#265027.2 ~ 2 not delinquent or exempt in order to yield the required payments, subject to the maximum tax. 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 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. 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 Community Facilities District No. 98-1 and the proposed rate and method of apportionment of the Special Tax shall be held on June 9, 1998, 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. 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, and 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 such refinancing and restructuring or assistance to Community Facilities District No. 91-2. The City Manager, is directed to estimate the fair and reasonable cost of all incidental expenses, including all costs associated with the creation 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. 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 creating the District. The City may enter into an agreement to repay all of such funds as are not expended or committed for any authorized DK09720/962858/#265027.2 . 3 purpose at the time of the election on the levy of the Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Special Tax shall be approved by the qualified electors of the 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 53324 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. DK09720/962858/#265027.2 ~ 4 UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: ALONGI, KELLEY, METZE, PAPE NOES: COUNCILMEMAERS: NONE ABSENT: COUNCILMEMBERS: BRINLEY ABSTAIN: COUNCILMEMBERS: NONE APPROVED AS TO LEGAL FORM: DK09720/962858/#265027.2 - 5 PASSED, APPROVED AND ADOPTED this 28th day of Anril , 1998. EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX DK09720/962858/#265027.2 7 5TATE OF CALIFORN7A ) COUNTY OF RIVERSIDE ) SS: C1TY OF LAKE ELSINORE ) I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, CALIFORNTA, DO HEREBY CERTIN'Y that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsiaore at a Regular Meeting of said Council on the 28th day of April, 1998, and that it was so adopted by the following vote: AYE5: COUNCILMEMBERS: ALONGI, KELLEY, METZE, PAPE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BRINLEY ABSTAIN: COUNCILMEMBERS: NONE ~ CHI SAD, CLERK C1TY OF LAKE ELSINORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICHI KASAD, CITY CLERK OF THE C1TY OF LAKE ELSINORE, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 98-7 of said Council, and that the same has not been amended or repealed. DATE: May 27, 1998 ~~5~. ~L~.O~fJ~ VICKI KASAD, CITY CLERK CTTY OF LAKE ELSINORE (SEAL)