HomeMy WebLinkAboutCC Reso No 1998-15RESOLUTION NO:. 9II-15
RESOLUTIQN OF FORMATIOItt .~F THE CITY C6E~?~T~'IL OF TSE CITY OF
LAKE ELSINORE DETERMINING THE VAI,Y~1g'TY OF PRIOR PROCEEDINGS,
ESTABLISHING CO1~II~ICTNITY FACILIS'I~'S DISTRICT NO. 98-1,
AUTHORIZING THE ~,:~'3TY OF A SPECIAL TAX WITHIN
CONII+ILTNIT,% FA~3I,.T`i"IES DSSTRICT NO. 98-1, AND
ESTABLYSHING AN APFROPRIATION3 LIMIT
WHEREAS, the Ca.ty Council (the "Council") of the City of Lake
Elsinore, California (the "City"), has heretofore adopted
Resolution No. 98-7 stating its intention to form Community
Facilities District No. 98-1 of the City of Lake Elsinore (the
"District") pursuant to the Mello-ROOS Community Facilities Act of
1982, ae amended, (the "Act"); and
WHEREAS, a copy of Resolution No. 98-7, incorporating a
description and map of the proposed boundaries of the District and
setting forth the rate and method of apportionment and manner of
collection of the special tax to be levied within the District,
which will be used to pay principal and interest on bonds proposed
to be authorized within the District, the proceeds of which will be
applied to pay, prepay, restructure or defease the City of Lake
Elsinore, Community Facilities District No. 91-2 (Summerhill Public
Improvements) 1991 Special Tax Bonds and unpaid interest thereon
(the "1991 Bonds"), is on file with the City Clerk and incorporated
herein by reference; and
WHEREAS, Resolution No. 98-7 set June 9, 1998 as the date of
the public hearing on the formation of the District and this
Council, having continued the said public hearing to June 23, 1998,
held the said public hearing as required by law; and
WHEREAS, at said hearing all persons not exempt from the
special tax desiring to be heard on all mattera pertaining to the
formation of the District were heard and a full and fair hearing
was held; and
WHEREAS, at said hearing evidence was presented to the Council
on said matters before it, and this Council at the concluaion of
said hearing is fully advised in the premises;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Pursuant to Section 53325.1(b) of the
Government Code, the Council finds and determines that the pro-
ceedings prior hereto were valid and in conformity with the
reguirements of the Act including, without limitation, the
following:
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A. Filing of a petition of a landowner requesting
institution of proceedings to establish the District;
B. Adoption of a Resolution of Intention to establish the
District;
C. Adoption of a Resolution of Intention to Incur
Bonded Indebtedness in an amount not to exceed $20,000,000;
D. Publication and mailing of notice of public hearing on
the establishment of the District and of the proposed debt issue;
E. Conducting of a public hearing on the establishment of
the District, the proposed public facilities and the incurring of
the proposed debt, at which time all interested persons or
taxpayers not exempt from the special tax were permitted to protest
orally or in writing against the establishment of the District
were permitted to file written protests to the regularity or
sufficiency of the proceedings, and any person interested,
including persons owning property within the District, were
permitted to appear and present any matters material to the
questions set forth in the Resolution of Sntention to Incur Bonded
Indebtedness.
Section 2. A community facilities district to be desig-
nated ~~City of Lake Elsinore Community Facilities District No. 98-
1" ("the District") is hereby established pursuant to the Act.
Section 3. The description and map of the boundaries of
the District on file in the City Clerk's office and as described in
said Resolution No. 98-7 and incorporated herein by reference,
shall be the boundaries of the District. The map of the proposed
boundaries of the District has been recorded in the Office of the
County Recorder of Riverside County, California in Book 43, page
43 of the Book of Maps of Assessments and Community Facilities
Districts (Instrument Number 215930).
Section 4. The type of public facilities ("Facilities")
provided within the District through the 1991 Bonds issued with
respect to City of Lake Elsinore Community Facilities District No.
91-2 include certain real and other tangible property with an
estimated useful life of five years or longer, including public
infrastructure facilities, and other governmental facilities which
the City ia authorized by law to construct, own or operate, within
or without the District, which is necessary to meet increased
demands placed upon the City as a result of development or
rehabilitation occurring within the District. The Facilities are
more fully described in Exhibit "B" attached hereto and by this
reference incorporated herein.
Section 5. Except where funds are otherwise available,
there shall be levied annually in accordance with procedures
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contained in the Act, a special tax sufficient to pay the principal
of and interest on the bonds proposed to be issued to pay, prepay,
restructure or defease the 1991 Bonds and other costs of the
refinancing or restructuring, including but not limited to all
costs of the tax levy and bond issue. The rate and method of
apportionment of the special tax and manner of collection ie
described in detail in Exhibit "A" attached hereto and incorporated
herein by this reference. The special tax is based upon the cost
of paying, prepaying, restructuring or defeasing the 1991 Bonds,
the demand that each parcel will place on the Facilities and the
benefit received by each parcel from the Facilities.
Section 6. Upon recordation of a 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 tax shall
attach to all nonexempt real property in the City, and this lien
shall continue in force and effect until the special tax obligation
is prepaid or otherwise permanently satisfied and the lien
cancelled in accordance with law or until collection of the tax by
the City ceases.
Section 7. 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 in Exhibit
"A" the Council shall, on behalf of the District, increase the levy
to the extent necessary upon the remaining property within the
District which is not delinquent or exempt in order to yield the
required payments, subject to the maximum tax.
Section 8. The Council finds that the Facilities are
necessary to meet the increased demand put upon the City as a
result of the development within the District.
Section 9. The Council finds that there is not an ad
valorem property tax currently being levied on property within the
proposed District for the exclusive purpose of paying principal of
or interest on bonds or other indebtedness incurred to finance
construction of capital facilities which provide the same services
to the territory of the District as provided by the Facilities.
Section 10. An appropriation limit for the District is
hereby established as an amount equal to all the proceeds of the
special tax collected annually and as defined by Article XIIIB of
the California Constitution, as adjusted for changea in the cost of
living and changes in population.
Section 11. Written protests against the establishment of
the District, or against the furnishing of specified services or
facilities or the levying of a specified special tax within the
District, have not been filed by fifty percent (50~) or more of the
registered voters or property owners of one-half (1/2) or more of
the area of land within the proposed District.
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Section 12. The proposed special tax to be levied in the
District to pay fbr all the proposed facilities has not been
precluded by protests by owners of one-half or more of the land in
the territory included in the District pursuant to Government Code
Section 53324.
Section 13. The Office of the City Manager, 130 South Main
Street, Lake Elsinore, California 92530, (909) 674-3124, or its
designee, is designated to be responsible for preparing annually a
current roll of special tax levy obligations by assessor's parcel
number and for estimating future special tax levies pursuant to
Section 53340.1 of the Government Code.
Section 14. The City Clerk is directed to certify and
attest to this Resolution and to take any and all necessary acts to
call, hold, canvass and certify an election or elections on the
incurring bonded indebtedness, the levy of the special tax, and the
establishment of the appropriation limit.
Section 15. The Council adopts the Statements of Goals and
Policies for the use of The Mello-Roos Community Facilities Act of
1982, attached hereto as Exhibit "C," which may be amended from
time to time with the approval of the City Manager, with the advice
of the City's Financing Consultant.
PASSED, APPROVED, AND ADOPT
vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ED this 23rd day of June, 1998, upon the followin9
ALONGI, BRINLEY, KELLEY, METZE, PAPE
NONE
NONE
NONE
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PASSED, APPROVED AND ADOPTED this 23rd day of June , 1998.
ATTEST:
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City ~lerk
aPPROVED ~S TO FORM & LEGALITY:
~ ~ ~
ARA LEIBOLD, CITY ATTORNEY
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EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAX
DK09720/962858/266780.03_
EXI~IT A
CITY OF LAKE EISINORE
COMM[TNITY FACII.ITIES DISTRICT NO. 98-1
(SUA9IVIERHII,L PUBLIC IlKPROVEMENTS)
RATE AND METHOD OF APPORTIONMENT OF
SPECIAL TAXES
A special tax shall be levied on each Parcel of land within the City of Lake Elsinore
Community Facilities District No. 98-1(Summerhill Public Improvements) (the "District"),
and collected according to the apecial tax liability determined by the Responsible Party of
the City of Lake Elsinore (the "City") through the application of the following procedures.
All of the property within the District, unless otherwise exempted by law or the expresa
provisions of the rate and method of apportionment expressed below, ehall be taxed to the
extent and in the manner provided below.
It is intended that all apecial taxes applicable to Parcels within Category I, Category II or
Category III be collected in the same manner and at the same time as ordinary ad valorem
property taaces, and that special taxes so levied will be subject to the same penalties and
procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes,
subject to any covenant of the City with respect thereto in any Fiscal Agent Agreement for
any bonds of the City for the District.
CATEGORIES OF SPECIAL TAX
CATEGORYI:
Category I includes all Taxable Property in the District not subject to a special tax under
Category II or Category III. The Category I special tax will be levied annually.
Lot number 238 of Tr2ct 20705 and lot number 239 of Tract 20705 will not be subject to
special tax if developed for other than residential use.
The m~imum special tax that may be levied on Parcels within Category I during the Fiscal
Yeaz ending June 30, 1998 is $22,976 per acre (said amount to be levied pro rata for any
portion of an acre) of a Parcel. Said maximum epecial tax shall increase each Fiecal Year
thereafter by 2%, compounded annually, decreased by the amount of apecial tax levied for
such Fiscal Year on each Parcel or Dwelling Unit in Community Facilities District No. 91-2.
CATEGORY II:
Any Parcel for which a final map has been recorded will be classified in Category II until
sueh time as a building permit has been issued.
The maximum special tas applicable to Parcels in Category II is shown below for the Fiscal
Year ending June 30, 1998. The maximum special tax rate for the Parcels classified in
Category II shall increase each Fiscal Year thereafter by 2%, rounded up to the nearest
dollar, compounded annually, decreased by the amount of special taY levied for such Fiscal
Year on each Parcel or Dwelling Unit in Community Facilities District No. 91-2.
DH08891/862&58/#2fi5773.3 A'1
If the boundaries of a tract shown in any final map are not the same as the expected
boundariea shown for such tract on the map attached hereto, the maximum apecial taic
applicable to Parcela in such tract will be the highest maximum special tax applicable to any
one of its component prior tracts based on the attached map and ae ehown in the table
below.
CATEGORY II _
Maximum
Tract No. Special Tax
20704 $2,789
20705 $2,836
(Except Lot No.
238 and Lot No. 239)
CATEGORY III:
Category III includes all Parcels or Dwelling Units for which a building permit has been
issued.
The maximum special tax for Parcels and Dwelling Units described in Category IlI for the
Fiscal Year ending June 30, 1998 is the total of $578.00 per Parcel or Dwelling Unit plus
$0.69 per Square Foot for each Square Foot shown on the building permit, decreased by the
amount of apecial tax levied for such Fiscal Year on each Parcel on Dwelling Unit in
Community Facilities District No. 91-2.
Each Fiscal Year thereafter, the per Parcel or Dwelling Unit and the per Square Foot rate
listed above will increase by 2%, rounded up to the nearest dollar, compounded annually.
A Parcel or Dwelling Unit will be subject to the Category III special tax for not more than
40 years.
ASSIGNMENT TO CATEGORIES; LEVY
ANNUAL TAX CATEGORIES
On or about July 1 of each year, but in any event in sufficient time to include the levy of
the special taxes on the County's secured tax roll, the Responsible Party shall determine,
for each Parcel of land or Dwelling Unit within the District, whether such Parcel or
Dwelling Unit is described by Category I, Category II or Category III. The Parcels and
Dwelling Units subject to levy shall be determined based upon the recorda of the Riverside
County Assessor as of the March 1 preceding such July 1, and the Tax Category ahall be
determined based upon the status of the Parcel or Dwelling Unit as of May 1 preceding such
July 1.
The Responsible Party shall then determine the estimated aggregate Tax Liability for the
Fiscal Year commencing such July 1, and the amount of annual special taxes to be levied
on each Parcel and Dwelling Unit in the Diatrict during such Fiscal Year. The annual
special taxes shall be determined for each Parcel or Dwelling Unit in the District as follows:
1. Levy on each Pazcel or Dwelling Unit deseribed in Category III an amount
equal to 94% of the Category III maximum apecial ta4.
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2. If the aggregate amount to be levied based on 1 above is greater than the
aggregate Tax Liability for such Fiscal Year, reduce the special tax for each Parcel and
Dwelling Unit described in Category III proportionately, so that the aggregate special tax
levy for such Fiscal Year for all Parcels and Dwelling Units within the District is equal to
the aggregate Tax Liability for such Fiscal Year.
3. If the aggregate amount to be levied based on 1 above is less than the
aggregate Tax Liability for such Fiscal Year, levy on each Parcel and Dwelling Unit
described in Category III as provided in 1 above, and levy on each Parcel described in
Category II an amount equal to 75% of the Category II maximum special tax.
4. If the aggregate amount to be levied based upon 3 above is greater than the
aggregate Tax Liability for such Fiscal Year, reduce the apecial tax levy for each Parcel
described in Category II proportionately, until the aggregate apecial tax levy for euch Fiscal
Year for all Pazcels witlun the District is equal to the aggregate Tax Liability for such Fiscal
Year.
5. If the aggregate amount to be levied based upon 3 above is less than the
aggregate Tax Liability for such Fiscal Year, levy as described in 3 above, and levy on each
Parcel described in Category I an amount equal to 50% of the Category I maximum special
tax.
6. If the aggregate amount to be levied based upon 3 above ia greater than the
aggregate Tax Liability for such Fiscal Year, reduce the apecial tax levy for each Parcel
described in Category I proportionately, until the aggregate special tax levy for euch Fiscal
Year for all Parcels within the District is equal to the aggregate Tax Liability for such Fiscal
Year.
7. If the aggregate amount to be levied based upon 5 above is less than the
aggregate Tax Liability for such Fiscal Year, levy on each Parcel and Dwelling Unit
described in Category II! an amount equal to 100% of the Category III maximum special tax,
levy on each Parcel described in Category II an amount equal to 75% of the Category II
maximum special tax, and levy on each Parcel described in Category I an amount equal to
50~/0 of the Category I maximum special tax.
8. If the aggregate amount to be levied based upon 7 above is greater than the
aggregate Tax Liability for such Fiacal Year, reduce the special tax levy for each Parcel and
Dwelling Unit described in Category III proportionately, until the aggregate apecial tax
liability for auch Fiscal Year for all Parcele and Dwelling Unite within the District is equal
to the aggregate Tax Liability for such Fiscal Year.
9. If the aggregate amount to be levied based upon 7 above is less than the
aggregate Tax Liability for such Fiscal Year, levy on each Parcel and Dwelling Unit
described in Category III or Parcel described in Category II an amount equal to 100% of the
Category III or Category II, respectively, maximum apecial tax, and levy on each Parcel
described in Category I an amount equal to 50% of the Category I maximum special tax.
10. If the aggregate amount to be levied based upon 9 above ia greater than the
aggregate Tax Liability for such Fiacal Year, reduce the special tax levy for each Parcel
described in Category II proportionately, until the aggregate epecial tax liability for such
Fiscal Year for all parcele within the Dietrict ia equal to the aggregate Tax Liability for such
Fiscal Year.
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11. If the aggregate amount to be levied based upon 9 above ie less than the
aggregate Tax Liability for auch Fiscal Year, levy on each Parcel described in Category I, II
or Dwelling Unit described in Category III an amount equal to the maximum special tax
described in Category I, II or III, respectively.
12. If the aggregate amount to be levied based upon 11 above is greater than the
aggregate Tax Liability for such Fiscal Year, reduce the apecial tax levy for each Parcel
described in Category I proportionately, until the aggregate special tax liability for such
Fiscal Year for all Parcels within the District is equal to the aggregate Tax Liability for such
Fiscal Year.
PREPAYMENTS
Prepayments may be made only for property subject to tax under Category III. Any
property owner in the District that desires to prepay the annual special taxes on a
particular Parcel or Dwelling Unit, shall notify the Responsible Party in writing of such
intention and the eatimated amount of prepayment no more than siYty (60) days and no less
than forty-five (45) days prior to date of such prepayment, which date (the Prepayment
Date) shall be a date which is sixty (60) days prior to an interest payment date for the
Bonds. The entire annual special taxes for any Parcel or Dwelling Unit in the District may
be prepaid on a Prepayment Date as follows:
(a) The Parcel or Dwelling Unit with respect to which prepayment is to be made
must not be delinquent in any prepayment of special taxes previously levied
within the Diatrict. Prepayment shall not relieve any property owner from
paying those special taxes which have already become due and payable, and
a Notice of Cessation of Special Tax Lien shall not be recorded against any
Parcel or Dwelling Unit pursuant to California Government Code Section
53344, until all special taxea with respect to that Parcel or Dwelling Unit
have been paid.
(b) The aggregate maximum annual special taYes for the Parcel or Dwelling Unit
with reapect to which prepayment is to be made, as of the Prepayment Date,
shall be calculated based upon the maximum annual apecial taxes deacribed
by Category III that could be levied on that Parcel or Dwelling Unit in all
future years.
(c) The net present value of the future annual special taxes calculated above will
be determined based on an intereat rate of eight percent (8%), which may be
decreased or increased by the Responsible Party to reflect the net interest
costs on the Bonds.
(d) Any applicable prepayment premium on the Bonds shall be applied to the
aggregate amount determined under (c) above.
(e) The amount to be prepaid for any Parcel or Dwelling Unit of property shall
be the sum of the amounts calculated for that Pazcel or Dwelling Unit under
paragraphs (c) and (d) above, plus the reasonable costs and expenses of
performing the calculationa, preparing and recording the Notice of Cessation
of Special Tax Lien and any other acts or procedures required to be
performed in connection with the prepayment, as determined by the
Reaponsible Party.
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DEFINITIONS
Adminiatrative Fees or Expenses means any or all of the following: the fees and expenses
_ of the Fiscal Agent (including any fees or expenses of its counael), the expenses of the City
in carrying out its duties with respect to the District (including, but not limited to, the levy
and collection of the special taxes) including the fees and expenses of ita counsel, financing
consultants and other consultants, any fees of the County of Riveraide related to the
District or the collection of special taxea, an allocable ahare of the ealaries of the City staff
directly related thereto and a proportionate amount of City general administrative overhead
related thereto, any amounts paid, advanced, or incurred by the City from its general funds
with respect to the Diatrict or the Bonds, and all other coats and expenses of the City or the
Fiecal Agent incurred in connection with the diacharge of their respective duties under the
Fiscal Agency Agreement and, in the case of the City, in any way related to administration
of the District.
Bonds means any bonds of the City issued for the District under Mello-Roos Community
Facilities Act of 1982, as amended.
City means the City of Lake Elsinore.
Debt Service, for each Fiscal Year, is the total annual principal and interest payment on the
Bonds during the calendar year which commences in such Fiscal Year, lesa any capitalized
interest and any other amounts remaining in the debt service fund held under the Fiscal
Agent Agreement as of the end of the previous Fiscal Year.
District means the City of Lake Elsinore Community Facilities District No. 98-1
(Summerhill Public Improvemente).
Fiscal Agent means the Fiscal Agent under the Fiscal Agent Agreement.
Fiscal Agent Agreement means the agreement by that name approved by the Resolution of
Issuance, and as it may be amended and/or supplemented from time to time.
Fiscal Year means the period starting on July 1 and ending the following June 30.
Parcel means any Riversade County Assessor's Parcel or portion thereof that ie within the
boundaries of the Diatrict based on the equalized tax rolls of the County of Riverside.
Resolution of Issuance is any Resolution adopted by the City authorizing the issuance of
Bonds.
Responsible Party is any peraon or persons who the City may appoint from time to time to
compute the levy of the special taxes within the District.
Square Foot or Square Feet ie the square footage of a single family dwelling unit measured
at the exterior walls, but excluding (i) garages, carports, roof overhanga, passageways and
patios which are both unenclosed and uncovered, and (ii) tool sheda, greenhouses and
similar detached structures.
Tax Categories are those categories set forth in the body hereof.
Tax Liability for any Fiscal Year is an amount sufficient to pay Debt Service for auch Fiscal
Year, Administrative Fees or Expenses for such Fiscal Year, an amount determined by the
Reaponsible Party to offset past delinquencies and projected tax delinquencies to occur in
DH09881/B62&58hY265TTS.8 A-~J
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such Fiscal Year, and ali payxnents required to be made in the applicahle Fiscal Year under
the Fiscal Agent Agreement for the bonds and any supplements thereto.
Taxable Property is all real property within the boundaries of the District which is not
exempt from the apecial tas pursuant to law, except that the following property ahall not
be taxed; any acres of land owned, conveyed or irrevocably offered for dedication to a public
agency, or land which is a public right of way or which is an unmanned utility easement
making impractical its utilization for other than the purpose set forth in the easement.
DH08891/962858/p285775.3 A-s
EXHIBIT B
DESCRIPTION OF THE FACILITIES
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CITY OF LAKE ELSINORE
COMMONITY FACILITIES DISTRICT NO. 98-1
(Summerhill Public Improvements)
PUBLIC FACII~TIF.S PROVIDED IN COMMUNITY FACIIITIES
DISTRICT 9&1 TI~i.OUGH BONDS ISSUED WITH RESPECT
TO COMMUNPPY FACILPPIES DISTRICT NO. 91-2
FACILITIES:
1. Grading. The grading for the public streets, public access roada and public
utilities within and for the District.
2. Street Improvementa. The street improvements consist of the curbs, gutters,
sidewalks, paving, street lights, storm drain and utilities in the public streets and public
easements within and in the vicinity of the District.
3. Domeatic Water. The domestic water system consists of a reservoir, pumping
station, distribution mains and appurtenances in the public streets and public easements
within and in the vicinity of the District.
4. Sanitary Sewer. The sanitary sewer system consists of the gravity sewers,
manholes, and appurtenances in the public streets and public utility easements within and
in the vicinity of the District.
5. Parks and Recreation Facilities. The parks and recreation facilities within
and for the district conaist of the grading, landscaping, irrigation, walkways, apparatus,
facilities and appurtenances.
OTHER:
1. Costs of engineering, design, planning and coordination related to the above-
listed facilities.
2. Bond related expenses, including bond counsel and all other incidental
expenses.
3. Administrative fees ofthe City, the Lake Elsinore Public FinancingAuthority
and any Bond fiscal agent related to the District and the Bonds.
DH08891/962858/#265775.$ B"1
EXHIBIT C
STATEMENT OF GOALS AND POLICIES FOR THE USE OF THE MELLO-ROOS
COMMUNITY FACILITIES ACT OF 1982
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EXHIBIT C
STATEMENT OF GOALS AND POLICIES FOR THE USE OF THE MELLO-ROOS
COMMUNITY FACILITIES ACT OF 1982
OK09720/962858/266780.03_
CITY OF LAKE ELSINOIZE
STATEMENT OF GOALS AND POLICIES FOR THE USE OF
THE MELLO-ROOS CONIMiJrTITY FACILITIES ACT OF 1982
DK09720/962858/504972.01_
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TABLE OF CONTENTS
SECTION
I.
II.
III.
N_
V.
VI.
VII.
VIII.
PAGE
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
DEFINITIONS ....................................... 1
ELIGIBLE PUBLIC FACILITIES AND PRIORITIES . . . . . . . . . . 2
CREDIT QUALITY REQUIRED OF BOND ISSUES . . . . . . . . . . . 2
DISCLOSURE R.EQUIItEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . 3
EQUITY OF TAX AIdACATION FORMiTLAS . . . . . . . . . . . . . . . 3
APPRAISAIS ........................................ 5
EXCEPTIONS TO THESE POLICIES . . . . . . . . . . . . . . . . . . . . . 7
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I. INTRODUCTION
The City of Lake Elsinore (the "City") has developed the following Goals
and Policies on debt financing as guidelines to assist concerned parties in following the
City's approach to Community Facilities District debt ~nancing. It is the City's goal
to support projects which address a public need and provide a public benefit. Proposed
projects requesting Community Facility District debt financing will be evaluated to
determine if such financing is financially viable and in the best interest of the City and
current and future City and project residents. These Goals and Policies are designed
to comply with Section 53312.7 of the Government Code.
The City will consider applications requesting the formation of community
facilities districts and the issuance of bonds to finance eligible public facilities pursuant
to the Mello-Roos Community Facilities Act of 1982, as amended. The City reserves
the right to request any additional reports, information or studies reasonably necessary
in evaluating these applications.
All City and any consultant costs incurred in evaluating applications
requesting the establishment of Districts will be paid by the applicant(s) by advance
deposit increments or as otherwise agreed in writing by the City. The City shall not
incur any non-reimbursable expense for processing such applications. Expenses not
chargeable to the district shall be borne by the applicant.
II. DEFIDTITIONS
"Bonds" means bonds authorized and issued under the Mello-Roos
Community Facilities Act of 1982.
"City" means the City of Lake Elsinore.
"District" means a Community Facilities District formed under the Mello-
Roos Community Facilities Act of 1982, as amended.
"Public Facilities" means improvements authorized to be constructed or
acquired under the Mello-Roos Act including, but not limited to, fees for capital
facilities imposed by public agencies as a condition to approval of the development
encompassed by the district or as a condition to service the district.
"Ualue" or "F¢irM¢rket Ualue" means the amount of cash or its equivalent
which property would bring if exposed for sale in the open market under conditions in
which neither buyer nor seller could take advantage of a difficulty of the other and both
have knowledge of all of the uses and purposes to which the property is adapted and
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for which it is capable of being used and of the enforceable restrictions upon uses and
purposes.
III. ELIGIBLE PUBLIC FACILITIES AND
The improvements eligible to be financed must be owned by a public
agency or public utility, and must have a useful life of at least five (5) years. In any
event, no bonds shall be issued with a maturity date greater than the useful life of the
facilities or improvements being financed. The development proposed within the
district must be consistent with the City's general plan, if any, and must have received
any required zoning or specific plan approvals.
The list of public facilities eligible to be financed by a district include, but
are not limited to, the following:
• Streets, highways and bridges ' • Flood control facilities '
• Street lighting 1 • Libraries 2
• Traffic signais and safety ' • Public utilities '
lighting
• Police and fire protection Z
• Parks 2 facilities
• Governmental facilities 2 • Recreation facilities, including 2
golf courses
• Sanitary sewer facilities '
• Biological mitigation measures '
• Storm drain facilities ' involving land acquisition,
dedicating and revegation
• Potable and reclaimed water
facilities '
Facilities marked ' may be given priority over facilities marked 2.
However, the City has final determination as to any facility's eligibility for financing,
as well as the prioritization of facilities to be included within a financing district. The
City may also require applicants to commit significant equity to projects for which
public ~nancing assistance is requested.
N. CREDIT QUALITY REQUIRED OF BOND LSSUES
In evaluating a proposed Bond issuance, the City will require that the
City's Independent Financing Consultant has reviewed and approved the proposed
issuance of the Bonds.
DK09720/962858/509972.01_ 2
V. DISCLOSURE REQUIliF,MFNTS
(1) Disclosure Requirement for Developers. The applicant will be
required to demonstrate, to the satisfaction of the City, that there
will be full disclosure of the Mello-R,oos special taxes and any other
special tax, assessment, overlapping special taxes or assessment of
other districts, or other liens on individual parcels to existing and
future property owners, and to prospective purchasers of property
including interim purchasers and sales to merchant builders
(Section 53341.5 of the Government Code). In addition to all
requirements of law, the City shall require the applicant to provide
disclosure of such information as the City deems appropriate to the
purchasers of property within the District, with respect to the
existence of the District, maximum and/or backup special taxes to
be levied within the District, facilities to be constructed, the
foreclosure process and the terms and conditions of Bond issues on
behalf of the District. Such disclosure shall include home buyer
notifications requiring signature prior to home purchases, as well
as methods to notify subsequent home purchasers. The City may
require that Developers offer residential buyers the option of
having all special taxes prepayed upon close of escrow, with a
corresponding increase in the purchase price of the residence.
(2) Comnliance with Federal Securities Laws. The City shall use all
reasonable means to ensure compliance with applicable federal
_ securities laws in connection with the issuance of debt and the
provision of annual information regarding any District established
by the City with respect to which Bonds have been issued,
including requiring any developer in a District who is material to
the Bond issue to transmit appropriate information to the City or
its designee for disclosure to Bond investors.
VI. EQUITY OF TAX ALLOCATION FORMULAS
The rate and method of apportionment of the speeial tax must be both
reasonable and equitable in apportioning the costs of the public facilities to be ~nanced
to each of the parcels within the boundaries of the proposed District. The City prefers
that this apportionment of costs be based on the benefit that each parcel is to receive
from the public faeilities.
The rate and method of apportionment of the special tax is to provide for
the administrative expenses of the proposed District, including, but not limited to, those
expenses necessary for the enrollment and collection of the special tax and Bond
administration.
All property not otherwise exempted by the Mello-Roos Act from taxation
shall be subject to the special tax. The rate and method of apportionment may provide
DK097205fi2858/504972.01_ U
for exemptions to be extended to parcels that are to be dedicated at a future date to
public entities, held by a home owner's association, or designated open space.
The annual special tax levy on each residential parcel developed to its final
Iand use shall be approximately equal each year, except that a variation for
administrative expenses will be allowed. The City will allow an annual escalation factor
on parcels within a District. The objective of the City is to limit such annual
escalations in special taxes to one percent (1%) per year.
The maximum annual special tax, together with ad valorem property
ta4es, special assessments or taxes for an overlapping ~nancing district, or any other
charges, t~es, or fees payable from and secured by the property, including potential
charges, taxes, or fees relating to authorized but unissued debt of public entities other
than the City, in relation to the expected assessed value of each parcel upon completion
of the private improvements to the parcel is of great importance to the City in
evaluating the proposed financing.
The objective of the City is to limit the "overlapping" debt burden on any
parcel to two percent (2%) of the expected assessed value of the parcel upon completion
of the improvements. In evaluating whether this objective can be met, the City will
consider the aggregate public service needs for the proposed project. It will consider
what public improvements the applicant is proposing to be financed in relation to these
aggregate needs and decide what is an appropriate amount to extend in public financing
to the identified public improvements.
This evaluation will be based on information obtained from other affected
taxing entities that have jurisdiction to impose a levy on the proposed project.
The total maximum annual special taxes that can be collected from taxable
property in a District, taking into account any potential changes in land use or
development density or rate, and less all projected administrative expenses, must be
equal to at least one hundred ten percent (110%) of the gross annual debt service on
any Bonds issued by or on behalf of the District in each year that said Bonds will
remain outstanding.
The rate and method of apportionment of the special taY shall include a
provision or a backup tax to protect against any changes in development that would
result in insufficient special tax revenues to meet the debt service requirements of the
district. Such backup tax shall be structured in such a manner that it shall not violate
any provisions of the Mello Roos Act regarding cross-collateralization limitations for
residential properties.
A formula to provide for the prepayment of the special tax may be
provided; however, neither the City nor the Community Facilities District shall be
obligated to pay for the cost of determining the prepayment amount which is to be paid
by the applicant.
DK09720N62858/504972.01_ 4
„
VII. APPRAISALS
A. Definition of Appraisal. An appraisal is a written statement
independently and impartially prepared by a qualified appraiser setting forth an opinion
of defined value of an adequately described property as of a specific date, supported by
the presentation and analysis of relevant market inforxnation.
B. Standards of Appraisal. The format and level of documentation for
an appraisal depend on the complexity of the appraisal problem. A detailed appraisal
shall be prepared for complex appraisal problems. A detailed appraisal shall reflect
nationally recognized appraisal standazds, including, to the extent appropriate, the
Uniform Appraisal Standards for Federal Land Acquisition. An appraisal must contain
sufficient documentation, including valuation data and the appraiser's analysis of the
data, to support his or her opinion of value. At a minimum, the appraisal shall contain
the following items:
(1) The purpose and/or the function of the appraisal, a definition of the
estate being appraised, and a statement of the assumptions and
limiting conditions affecting the appraisal.
(2) An adequate description of the physical characteristics of the
property being appraised, location, zoning, present use, an analysis
of the highest and best use.
(3) Ali relevant and reliable approaches to value consistent with
commonly accepted professional appraisal practices. If a discounted
cash flow analysis is used, it should be supported with at least one
other valuation method such as a market approach using sales that
are at the same stage of land development. If more than one
approach is utilized, there shall be an analysis and reconciliation
of approaches to value that are sufficient to support the appraiser's
opinion of value.
(4) A description of comparable sales, including a description of all
relevant physical, legal, and economic factors such as parties to the
transaction, source, and method of financing, and verification by a
party involved in the transaction.
(5) A statement of the value of the real property.
(6) The effective date of valuation, date of appraisal, signature, and
certification of the appraiser.
C. Conflict of Interest. No appraiser or review appraiser shall have
any interest direct or indirect in the real property being appraised for the Agency that
would in any way conflict with the preparation or review of the appraisal.
oKOS~zoisszasaisoas~z.oi_ 5
r
Compensation for making an appraisal shall not be based on the amount of the
valuation.
D. Communitv Facilities District Appraisal Premises. The valuation
of proposed community facilities districts should be based on three premises:
(1) Raw Land Value (Premise No. 1). The total land within the project
is valued "as is"
(a) With any existing infrastructure.
(b) Without proposed infrastructure being financed.
(c) With existing parcel configuration.
(d) Considering planned densities allowed by the speci~c plan of
the project.
This is a typical type of land valuation.
(2) Project Build Out Value (Premise No. 2). The total land within the
project is valued under projected conditions:
(a) With proposed infrastructure being financed completely.
(b) At the planned densities allowed by the specific plan.
(c) Land development is at the stage of being marketed to
merchant builders or tentative tract maps ready to be filed.
This is a projected value based on project plans predicated on
market conditions continuing as projected.
(3) Bulk Land Value (Premise No. 3). The total land within the
project is valued under projected conditions:
(a) With proposed infrastructure being financed completely.
(b) With existing parcel configuration.
(c) Considering planned densities allowed by the specific plan of
the project.
This premise should consider a discounted or "quick sale" valuation
considering time, costs, and the possibility of a per unit value based
on the total size of the project.
DK09720/882858/504972.01_ 6
,
VIII. EXCEPTIONS TO THESE POLICIES
The City may find in limited and exceptional instances that a waiver to
any of the above stated policies is reasonable given identified special City benefits to
be derived from such waiver. Such waivers are granted only by action of the City
Council based upon specifie public purpose and/or health and safety findings.
nxoe~zoreezeeaicoas~s.oi_ 7
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by
the City Council of the City of Lake Elsinore at a Regular Meeting of said
Council on the 23rd day of June, 1998, and that it was so adopted by the following
vote:
AYES: COUNCILMEMBERS:
ALONGI, BRINLEY, KELLEY,
METZE,PAPE
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILIVIEMBERS:
~~~/~1
VICKI KASAD, CITY CLERK
CITY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAI{E ELSINORE)
NONE
NONE
NONE
I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
Resolution No. 98-15 of said Council, and that the same has not been amended or repealed.
DATE: June 29,1998
~
~'IC~AD, CI Y CLERK
CITY OF LAI{E ELSINORE
(SEAL)