RESOLUTION NO. ___
RESOLUTION OF INTENTION TO FORM A COMMUNITY FACILITIES
DISTRICT AND LEVY A SPECIAL TAX IN THE CITY OF CATHEDRAL CITY COMMUNITY FACILITIES DISTRICT NO. 2022-1 (CATHEDRAL
CITY PARK & RECREATION SERVICES), TO FUND PUBLIC
SERVICES AND FINANCE THE DEVELOPMENT OF CERTAIN PUBLIC
FACILITIES
WHEREAS, the City Council (the “Council”) of the City of Cathedral City (the “City”) has previously adopted local goals and policies related to the formation of community facilities districts under the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”); and
WHEREAS, the Desert Recreation District (the “District”) currently provides park and recreation services in the region surrounding the City, but not currently within the City, and is considering submitting an application to the Riverside County Local Agency Formation Commission (“LAFCO”) to annex the territory within the City into the service area of the District; and
WHEREAS, under Section 53316.2 of the Act, a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or services to be provided by a public agency other than the agency that created the district, or any combination, pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to said section; and
WHEREAS, the Council has determined that placing a local revenue measure on the ballot and the successful approval of the measure would provide long-term funding for park and recreation facilities and services to the territory within the City, whether provided by the City or, assuming a successful LAFCO annexation process and entrance into an agreement contemplated by Section 53316.2 of the Act, the District; and
WHEREAS, the Council desires to proceed with the establishment of a community facilities district and described herein for the purposes stated above and herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. It is proposed to establish a community facilities district within the City under the terms of the Act to finance costs of public facilities and fund public services authorized by the Act.
2 Section 2.The name proposed for the community facilities district is “City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services)” (the “CFD”).
Section 3. The proposed boundaries of the CFD are shown on the Map of Proposed Boundary of a proposed community facilities district to be known as City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services), on file with the City Clerk, which the Council approves as the map describing the extent of the territory included in the proposed CFD. The Council directs the City Clerk to certify the adoption of this resolution on the face of the map, and to file a copy of the map in the Office of the City Clerk in accordance with Section 3111 of the California Streets and Highways Code and within 15 days of the date of adoption of this resolution but in no event later than 15 days prior to the public hearing provided for herein, transmit the map to the Riverside County Assessor-County Clerk-Recorder for recording in the Book of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of Riverside.
Section 4. Except to the extent that funds are otherwise available to the CFD to pay for the Services and/or Facilities (each as defined below), including the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and/or acquire the Facilities, a special tax (“Special Tax”) sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as the Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in the Rate, Method of Apportionment and Manner of Collection of Special Tax attached hereto as Exhibit A and hereby incorporated herein (the “Rate and Method”).
No portion of the Special Tax shall be levied in the CFD for Facilities after the fiscal year identified in the Rate and Method, except that a portion of the Special Tax for Facilities that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the portion of the Special Tax for Facilities levied against any parcel in the CFD for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD, in contravention of the Act, including Section 53321(d) of the Act.
The Council hereby finds that the provisions of Sections 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD. 3 Section 5.The type of public facilities proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as facilities on Exhibit B hereto (the “Facilities”) and the type of public services proposed to be funded by the CFD and pursuant to the Act shall consist of those items listed as services on Exhibit B hereto (the “Services”). The financing of the costs of Facilities may include, without limitation, the payment of principal of and interest on bonds or other indebtedness together with all direct, indirect periodic, and/or other related costs (including, without limitation, costs of administering the CFD, levying the Special Tax and administering the bonds, and establishing and replenishing reserve funds).
Section 6.Except as may otherwise be provided by law or by the Rate and Method, the following shall be omitted from the levy of the Special Tax: (i) all lands owned by any public entity, including the United States, the State of California and the City, or any departments or political subdivisions thereof, and (ii) any other parcels exempt from the levy of the Special Tax under applicable law. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, the City will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the Rate and Method. It is anticipated that the Special Tax will be billed as a separate line item on the regular property tax bill.
However, the City reserves the right, under Section 53340 of the Act, to utilize any method of collecting the Special Tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.
Section 7. The levy of the Special Tax shall be subject to the approval of the qualified electors within the CFD at a special election. The qualified electors shall be the registered voters within the proposed CFD.
Section 8. It is the intention of the Council, acting as the legislative body for the CFD, to cause bonds of the City in one or more series to be issued for the CFD pursuant to the Act to finance in whole or in part the construction and/or acquisition of the Facilities. The bonds issued in these proceedings shall be callable in accordance with the provisions of the Act, and shall be issued in such series and bear interest payable semi-annually or in such other manner as the Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, shall mature not to exceed 40 years from the date of the issuance thereof and shall be as more specifically set forth in any resolution authorizing the issuance of such bonds.
Section 9. It is the intention of the Council, acting as the legislative body for the CFD, to establish an initial annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the CFD of $39,000,000, and to submit said appropriations limit to the qualified electors of the CFD. The proposition establishing said annual appropriations limit shall become effective if 4 approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act.
Section 10. The City Manager of the City, as the officer having charge and control of the Facilities and Services in and for the CFD, or the designee of such official, is hereby directed to cause and direct a study of said proposed CFD and the Facilities and Services, and to cause to be prepared for filing at the public hearing the report required by Section 53321.5 of the Act (the “CFD Report”) presenting at least the following:
(a) A brief description of the Facilities and Services by type which will be required to adequately meet the needs of the CFD.
(b) An estimate of the fair and reasonable cost of the Facilities and Services, including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act.
The CFD Report shall be made a part of the record of the public hearing specified below.
Section 11.The Council hereby sets August 3, 2022, at 5:00 p.m. in the chambers of the City Council of the City of Cathedral City, 68700 Avenida Lalo Guerrero, Cathedral City, California 92234, or as soon as possible thereafter, as the time and place when and where the Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD, and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD, and the levy of the Special Tax. At the hearing, testimony concerning the CFD, the extent of the CFD, or the furnishing of the particular types of public facilities and public services will be heard and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the registered voters or land which would be subject to special taxation within the proposed CFD will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing. If such protests are directed only against certain elements of the proposed improvements or proposed Special Tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings.
Section 12. The City Clerk is hereby directed to cause notice of the public hearing, attached hereto as Exhibit C, to be given by one-time publication in a newspaper published in the area of the CFD. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in Section 53322 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved. 5 Section 13. This Resolution shall take effect from and after its adoption.
PASSED, APPROVED AND ADOPTED this 22nd day of June, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ernesto Gutierrez, Mayor
ATTEST:
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
EXHIBIT A
RATE, METHOD OF APPORTIONMENT AND MANNER OF COLLECTION OF
SPECIAL TAX
See attached.
EXHIBIT B
LIST OF AUTHORIZED FACILITIES AND SERVICES
The public facilities, public services and incidental costs authorized to be financed by the special taxes levied in the CFD consist of the following:
Authorized Facilities. Authorized facilities consist of the purchase, construction, expansion, improvement, relocation or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer undertaken by the City or another public agency that is recreation-related, including community centers, parks, parkways, open space, and including all direct or indirect costs and expenses related thereto. Authorized facilities also include payment of any bonds, notes, lease payments, indebtedness or other obligations for any authorized facility.
Authorized Services. Authorized services consist of (i) the operation, maintenance, repair and provision of any other services with respect to any authorized facility, including replacement and the funding of a reserve fund to pay for future repair and/or replacement of any authorized facility; such authorized services include, but are not limited to, all general or extraordinary activities deemed necessary or desirable by the City to provide for the use or enjoyment of any and all authorized facilities, whether provided by the City or any outside entity, including maintenance and operations contingencies and reserves with respect thereto; and (ii) any City services which protect public health, improve gang prevention efforts, and/or facilitate afterschool programs for at-risk youth.
Incidental Costs. In addition, costs eligible to be financed by the CFD shall include all costs and expenses incidental to the above and authorized by the Mello- Roos Community Facilities Act of 1982 that are determined by the City to be associated with the authorized facilities or the authorized services, the formation and ongoing administration of the CFD, the election, bonding, or levy and collection of special taxes, as well as all other costs incurred to carry out the authorized purposes of the CFD that are permitted by the Act.
EXHIBIT C
(FORM OF)
NOTICE OF PUBLIC HEARING ON PROPOSED
CITY OF CATHEDRAL CITY
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(CATHEDRAL CITY PARK & RECREATION SERVICES)
RIVERSIDE COUNTY, CALIFORNIA
The City of Cathedral City is considering the formation of a community facilities district (the “CFD”) under the authority of the Mello-Roos Community Facilities Act of 1982, as amended, to fund certain public services and the acquisition and construction of certain public facilities within the City of Cathedral City, and to incur bonded indebtedness of the CFD. This Notice contains a brief summary of the proposal, but you are referred to the Council’s Resolution of Intention to Form a Community Facilities District and Levy a Special Tax in the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) to Fund Public Services and Finance the Acquisition and Construction of Certain Public Facilities in and for Such Community Facilities District (No. 2022-___, adopted June 22, 2022) and its Resolution of Intention to Incur Bonded Indebtedness in Amount Not to Exceed $39,000,000 to Finance the Acquisition and Construction of Certain Public Facilities in and for the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) (No. 2022-___, adopted June 22, 2022) for details of the proposals.
The proposal is to subject the property within the CFD to a special tax which will be used to pay for the authorized services and facilities proposed by the CFD, including paying principal and interest on bonds used to acquire or construct facilities. The proceeds of the bonds will be used to pay for the facilities and other expenses, all as set forth in the resolutions referred to in the preceding paragraph. A map showing the land proposed to be included in the CFD is on file with the City Clerk. As set forth below, the Council will hold a public hearing on the establishment of the CFD, the services and the facilities to be financed by the CFD, the levy of the special tax within the CFD and the authority to issue up to $39,000000 in bonds to be repaid by a portion of the special tax.
Neither the City nor any person outside the CFD has any liability for the special tax or the bonds. The security for the bonds will be limited to the property subject to the special tax within the CFD. In order to confer the authority upon the City Council of the City to levy the special tax and to issue the bonds, a public hearing must be held on the proposals, then the Council will decide whether to form the CFD, and finally the qualified electors within the CFD must approve the proposals by a two-thirds vote. The qualified electors are, pursuant to law, the registered voters within the CFD.
This is the notice of the public hearing. The public hearing will be held during the Council meeting on August 3, 2022, at 5:00 p.m. in the chambers of the City Council of the City of Cathedral City, 68700 Avenida Lalo Guerrero, Cathedral City, California 92234, or as soon as possible thereafter. At the hearing, the testimony of all interested persons or potential special taxpayers for or against the formation of the CFD, the authorization to levy the special tax, and the authorization to issue the bonds will be heard. If written protests against the proposed CFD are delivered to the City Clerk at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed CFD, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within the CFD or by the owners of a majority of the land area within CFD which is or will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will require the proposed CFD to be eliminated from immediate consideration, and prevent its being included in a subsequent proceedings for at least one year. If the Council, after the public hearing, determines that a majority protest under Section 53324 of the California Government Code was not made at the hearing, the Council may conduct an election by special mailed ballot, or consolidated with a County-wide election, to levy a special tax within the CFD and incur bonded indebtedness for the CFD.
Dated: June __, 2022
City Clerk, City of Cathedral City