Agenda packet — Cathedral City City Council, August 3, 2022

CITY COUNCIL
AGENDA

Special Meeting
Wednesday, August 3, 2022
5:00 PM

City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234

THIS MEETING WILL BE CONDUCTED IN PERSON AND VIA VIDEOCONFERENCE. IF YOU WOULD LIKE TO ATTEND VIA ZOOM PLEASE USE THE FOLLOWING LINK TO REGISTER IN ADVANCE:

AFTER REGISTERING, YOU W ILL RECEIVE A CONFIRMATION EMAIL CONTAINING INFORMATION ABOUT JOINING THE MEETING.

MAYOR
Ernesto Gutierrez

CITY COUNCIL MEMBERS

Mayor Pro Tem
Rita Lamb

Councilmember
Mark Carnevale

Councilmember
Nancy Ross

Councilmember
Raymond Gregory
• CALL TO ORDER
• PLEDGE OF ALLEGIANCE
• INVOCATION (MOMENT OF REFLECTION)
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.

1. PUBLIC HEARINGS
Cathedral City P a g e 2
A. Resolution of Formation of CFD 2022-1; Resolution Determining Necessity of Bonds for CFD 2022-1; Resolution Calling Special Election for CFD 2022-1; and Resolution Consolidating CFD Election with the Statewide General Election
Recommendation: To approve four resolutions completing the required legal steps to form a Community Facilities District to provide parks and recreation services and facilities and authorize a special election to allow voters to decide the question:

1. Resolution of Formation of CFD 2022-1

2. Resolution Determining Necessity of Bonds for CFD
2022-1

3. Resolution Calling Special Election for CFD 2022-1

4. Resolution Consolidating CFD Election with
Statewide General Election

2. AGENDA ITEMS
A. Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert Recreation District Related to Cathedral City Community Facilities District No. 22-1 (Cathedral City Park & Recreation Services) Recommendation: Adopt a Resolution Authorizing Execution and Delivery of Joint Community Facilities Agreement between the City of Cathedral City and the Desert Recreation District, Related to City of Cathedral City Community Facilities District No. 22-1 (Cathedral City Park & Recreation Services)
B. Resolution in Support of Parks & Recreation Ballot Measure Recommendation: Consider adopting a resolution in support of the Parks and Recreation Ballot Measure which, if approved by Cathedral City voters, would allow the City to invest up to $39 million in capital improvements to City parks and recreation facilities up front, and provide an annual revenue stream of
approximately $4.5 million for parks and recreation services within the City.

ADJOURN
NOTES TO THE PUBLIC:

The City of Cathedral City complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s Office at (760) 770-0322 at least 48 hours prior to the meeting.

If you desire to address the City Counc il during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.

Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Cle rk’s office at City Hall Cathedral City P a g e 3
located at 68 -700 Avenida Lalo Guerrero during normal business hours. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.

Cathedral City Page 1 of 3 Printed on 7/28/2022

Staff Report

City Council

Item No. 1.A

Meeting Date: August 3, 2022
From: Charles McClendon, City Manager
Title: Resolution of Formation of CFD 2022 -1; Resolution Determining Necessity of Bonds for CFD 2022 -1; Resolution Calling Special Election f or CFD 2022 -1; and Resolution Consolidating CFD Election with the Statewide General
Election

City Council

RECOMMENDATION:

To approve four resolutions completing the required legal steps to form a Community Facilities District to provide parks and recrea tion services and facilities and authorize a special election to allow voters to decide the question:

1. Resolution of Formation of CFD 2022-1

2. Resolution Determining Necessity of Bonds for CFD 2022-1

3. Resolution Calling Special Election for CFD 2022-1

4. Resolution Consolidating CFD Election with Statewide General Election

BACKGROUND:

The City has been working with the Desert Recreation District (DRD) on efforts to bring park and recreation services to the City since 2018. The COVID -19 pandemic put initial efforts on hold in early 2020 ; however, in recent months work on that project has resumed. Polling was completed in early 2022 and results presented to this City Council in May. According to the poll results, there appeared to be a chance for a succ essful election.

On June 22, 2022, this Council adopted two resolutions to begin the process of the CFD Formation:
• Resolution of Intention to Form a Community Facilities District and Levy a Special Tax in the City of Cathedral City Community Facilities D istrict No. 2022-1 (Cathedral City Park & Recreation Services), to Fund Public Services and Finance the Development of Certain Public Facilities
• Resolution of Intention to Incur Bonded Indebtedness in an Amount Not to Exceed $39,000,000 in and for the City of Cathedral City Community Facilities District No. 2022 -1 (Cathedral City Park & Recreation Services) to Finance the Development of Certain Public Facilities

1.A
Packet Pg. 4

Cathedral City Page 2 of 3 Printed on 7/28/2022

Those resolutions set August 3, 2022, as the date of the Public Hearing with respect to the formation of and necessity to incur bonded indebtedness in and for the proposed Community Facilities District.

DISCUSSION:

The process to form a CFD includes the following steps:

1. City Council Meeting (June 22, 2022) -Council adopted a Resolution Intention to Form CFD and a Resolution of Intention to Incur Bonded Indebtedness.

2. Record Boundary Map (confirmation of recordation was received on 7 -7-22), Publish Notice of Public Hearing (published on 07 -14-2022 in both English and Spanish)

3. City Council Meeting (August 3, 2022)

• Hold Public Hearing.
• Adopt a Resolution to Form the City of Cathedral City Community Facilities District No 2022 -01 (Cathedral City Park & Recreation Services) and Levy a Special Tax within the CFD to Fund Public Services and Finance the Development of Certain Public Facilities.
• Adopt Resolution of Necessity to Incur Bonded Indebtedness in the maximum aggregate principal amount of $39,000,000 for the CFD for the purpose of financing the costs of all or a portion of the facilities defined in the Resolution of Formation (the “Facilities”), including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities.
• Adopt a Resolution Calling a Special Election for the City of Cathedral City Community Facilities District No. 2022 -1 (Cathedral City Park & Recreation Services).
• Adopt a Resolution requesting the Board of Supervisory of the County of Riverside to Consolidate a Special Municipal Election for the City of Cathedral City Community Facilities D istrict No. 2022 -1 (Cathedral City Park & Recreation Services) being held on Tuesday, November 8, 2022, with the Statewide General Election to be Held on the Same Date Pursuant to the California Elections Code Section 10403.

4. Election - November 8, 2022.

5. City Council Meeting (December 14, 2022) - Certify Election Results, Adopt Ordinance to Levy Special Tax.

Staff recommends that the City Council adopt the resolutions to form the CFD, determine necessity to incur bonded indebtedness, call for an elect ion for the CFD and consolidate the CFD election with the statewide general election.

1.A
Packet Pg. 5

Cathedral City Page 3 of 3 Printed on 7/28/2022

FISCAL IMPACT:

Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property is shown in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023/24 Property Type Maximum Special Tax Per Single Family Residential Property $0.15 Building Square Foot Accessory Dwelling Unit 123.00 Unit
Residential Condominium Property 196.00 Unit
Multi-family Residential Property 172.00 Unit
Non-residential Property 734.00 Parcel

EXEMPTIONS
No Special Tax shall be levied on Agricultural Property, Timeshare Property, Public Property and Undeveloped Property.

Depending upon interest rates at the time of bond issuance, it is anticipated the special taxes collected would support a bond issue in the amount of $38 -$39 million dollars.

Annual revenue generated to support services and debt service is approximately $4.6 million dollars.

ATTACHMENTS:
1 Reso Formation - Cathedral City CFD
1a - CFD Report w map
1b DRD Cathedral City CFD 2022-2 RMA - ROI
2 Reso Bonds - Cathedral City CFD
3 Reso Call Election - Cathedral City CFD
4 Reso Consolidation - Cathedral City CFD

1.A
Packet Pg. 6
RESOLUTION NO. _______

RESOLUTION TO FORM THE CITY OF CATHEDRAL CITY COMMUNITY FACILITIES DISTRICT NO. 2022-1 (CATHEDRAL CITY PARK &

RECREATION SERVICES ) AND LEVY A SPECIAL TAX WITHIN THE

CFD 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 Fa cilities 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 plans to submit 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 Ci ty, whether provided by the City or by agreement or LAFCO proceeding involving the District, as contemplated by Section 53316.2 of the Act; and

WHEREAS, on June 22, 2022, the Council adopted its Resolution No. 2022-32, “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” (the “Resolution of Intention ”), stating its intention to form the “City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services)” (the “CFD”), pursuant to the Act; and

WHEREAS, the Resolution of Intention, describing a map of the proposed boundaries of the CFD, and stating the facilities and services to be provided, and the rate and method of apportionment of the special tax to be levied within the CFD to pay for the facilities and services, including for the principal and interest on bonds proposed to be issued with respect to the CFD, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and

1.A.a
Packet Pg. 7
Attachment: 1 Reso Formation - Cathedral City CFD (3321 : Resolution of Formation of CFD 2022-1;) 2 WHEREAS, on this date, the Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD and related matters; and

WHEREAS, at the hearing , all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the facilities and services to be provided therein, the levy of said special tax for the CFD and related matters were heard and a full and fair hearing was held; and

WHEREAS, at the hearing, evidence was presented to the Council on said matters before it, including a report caused to be prepared by the City Manager of the City (the “Report”) as to the facilities and services to be provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk, and the Council at the conclusion of said hearing is fully advised in the premises; and

WHEREAS, written protests with respect to the proposed formation of the CFD, the furnishing of specified types of facilities and services and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by 50% or more of the registered voters residing within the territory of the CFD or property owners of one- half or more of the area of land within the CFD and not exempt from the proposed special tax; and

WHEREAS, the special tax proposed to be levied in the CFD to pay for the proposed facilities and services to be provided therein, as set forth in Exhibit B hereto, has not been eliminated by protest by 50% or more of the registered voters residing within the territory of the CFD or the owners of one -half or more of the area of land within the CFD and not exempt from the special tax.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals Correct. The foregoing recitals are true and correct.

Section 2. No Majority Protest. The proposed special tax to be levied within the CFD has not been precluded by majority protest pursuant to section 53324 of the Act.

Section 3. Prior Proceedings Valid. All proceedings taken by the Council in connection with the establishment of the CFD, and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act.

Section 4. Name of CFD ; Estab lishment. The community facilities district designated “City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services)” is hereby established pursuant to the Act.

1.A.a
Packet Pg. 8
Attachment: 1 Reso Formation - Cathedral City CFD (3321 : Resolution of Formation of CFD 2022-1;) 3 Section 5. Boundaries of CFD. The boundaries of the CFD, as set forth in the map of the CFD heretofore recorded in the Office of the Riverside County Assessor- County Clerk-Recorder on July 7, 2022, in Book 89 at Page 22 of Maps of Assessment and Community Facilities Districts , are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD. The boundaries of the CFD are coterminous with the boundaries of the City.

Section 6. Description of Facilities and Services. 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 7. Special Tax.

a. Except to the extent that funds are otherwise available to the CFD to pay for the Services and/or Facilities, including the principal and interest as it becomes due on bonds issued by 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.

b. 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 and Method of Apportionment attached hereto as Exhibit A and hereby incorporated herein (the “Rate and Method”). The Council hereby finds and determines that such clarification will not increase the maximum special tax or probable special tax to be paid by the owner of any lot or parcel.

It is anticipated that the Special Tax will be billed as a separate line item on the regular property tax bill. However, the Council 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 City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.

c. The Special Tax shall be levied in the amount and for the duration set forth in the Rate and Method . Under no circumstances shall the Special T ax

1.A.a
Packet Pg. 9
Attachment: 1 Reso Formation - Cathedral City CFD (3321 : Resolution of Formation of CFD 2022-1;) 4 levied against any parcel in the CFD to be 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 CFD by more than 10%.

d. 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 or held via possessory interest by any public entity, including tribal governments, the United States, the State of California a nd 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, whol ly 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.

Section 8. Responsible Official. The Administrative Services Director of the City, 68700 Avenida Lalo Guerrero, Cathedral City, CA 92234, Tel: 760-770-0354, is the officer of the City who will be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and who will be responsible for estimating future special tax levies pursuant to the Act.

Section 9. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the CFD and this li en shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied to the extent allowed under the Rate and Method and the lien canceled in accordance with law or until collection of the tax by the City ceases.

Section 10. Appropriations Limit. In accordance with the Act, the initial annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is hereby preliminarily established at $39,000,000, and said appropriations limit shall be submitted to the qualified elec tors of the CFD as hereafter provided. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act.

Section 11. Election. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors within the CFD at an election. The time, place and conditions of the election shall be as specified by a separate resolution of the Council.

Section 12. Effective Date. This resolution shall take effect upon its adoption.

1.A.a
Packet Pg. 10
Attachment: 1 Reso Formation - Cathedral City CFD (3321 : Resolution of Formation of CFD 2022-1;) 5 PASSED, APPROVED AND ADOPTED this ________ day of ______________, 2022, by the following vote:

AYES:

NOES:

ABSET:

ABSTAIN:

MAYOR

ATTEST:

CITY CLERK

1.A.a
Packet Pg. 11
Attachment: 1 Reso Formation - Cathedral City CFD (3321 : Resolution of Formation of CFD 2022-1;) Exhibit A

Page 1 ends

EXHIBIT A

RATE, METHOD OF APPORTIONMENT AND MANNER OF COLLECTION OF

SPECIAL TAX

See attached.

1.A.a
Packet Pg. 12
Attachment: 1 Reso Formation - Cathedral City CFD (3321 : Resolution of Formation of CFD 2022-1;) Exhibit B

Page 1 ends

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 auth orized 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 fac ilitate 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.

1.A.a
Packet Pg. 13
Attachment: 1 Reso Formation - Cathedral City CFD (3321 : Resolution of Formation of CFD 2022-1;)

nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516

Community Facilities District Report For:

Community Facilities District No. 2022-1
(Cathedral City Park & Recreation Services)
July 27, 2022

1.A.b
Packet Pg. 14
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;)

TABLE OF CONTENTS

1. Introduction ................................................................................................................... 1

2. Description of Facilities and Services ............................................................................... 2

3.1 Authorized Facilities .................................................................................................. 2

3.2 Authorized Services ................................................................................................... 2

3.3 Incidental Costs ......................................................................................................... 2

3. Cost Estimate.................................................................................................................. 3

3.1 Authorized Facilities .................................................................................................. 3

3.2 Authorized Services ................................................................................................... 3

3.2 Incidental Costs ......................................................................................................... 3

4. Proposed Boundaries of the Community Facilities District ............................................... 4

5. Rate and Method of Apportionment ............................................................................... 5

1.A.b
Packet Pg. 15
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;)

City of Cathedral City
Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) 1

1. INTRODUCTION
The City Council (the “Council”) of the City of Cathedral City (the “City”), State of California pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), on June 22, 2022, adopted Resolution No. 2022-32 entitled “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” (the “Resolution of Intention”) stating its intention to form the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) (the “CFD”). In the Resolution of Intention, the Council ordered the City Manager or his/her designee (the “Manager”) to prepare a written Community Facilities District Report (the “Report”) for the CFD The Resolution of Intention described certain public facilities (the “Facilities”) to be financed and certain public services (the “Services”) to be funded by the CFD and directed that the Report be prepared.

For particulars, reference is made to the Resolution of Intention for the CFD, as previously approved and adopted by the City.

NOW, THEREFORE, I, the Manager, hereby submit the following data:

1. DESCRIPTION OF FACILITIES AND SERVICES: A general description of the authorized Facilities and Services.

2. COST ESTIMATE: A cost estimate for such Facilities and Services, and a listing of the incidental expenses related thereto.

3. PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT: The proposed boundaries of the CFD are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the Facilities. The proposed boundaries of the CFD are described on the map of the CFD.

4. RATE AND METHOD OF APPORTIONMENT: The Rate and Method of Apportionment for the CFD.

Dated as of ________________

By:

Manager

1.A.b
Packet Pg. 16
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;)

City of Cathedral City
Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) 2

2. DESCRIPTION OF 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:

3.1 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.

3.2 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.

3.3 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.

1.A.b
Packet Pg. 17
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;)

City of Cathedral City
Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) 3

3. COST ESTIMATE

3.1 Authorized Facilities

Facility Cost Estimate
Community Center $33,000,000
Park Facilities 6,000,000
TOTAL $39,000,000

3.2 Authorized Services

Service Cost Estimate
Operations, Programming and Maintenance $1,965,000
TOTAL $1,965,000

3.2 Incidental Costs

Incidental Cost Estimate
CFD Incidental Costs $65,000
TOTAL $65,000

1.A.b
Packet Pg. 18
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;)

City of Cathedral City
Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) 4

4. PROPOSED BOUNDARIES OF THE COMMUNITY

FACILITIES DISTRICT
The Boundary Map of the CFD is shown on the following page.

1.A.b
Packet Pg. 19
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;)

1.A.b
Packet Pg. 20
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;)

City of Cathedral City
Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) 5

5. RATE AND METHOD OF APPORTIONMENT
The Rate and Method of Apportionment of the CFD is shown on the following pages.

1.A.b
Packet Pg. 21
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 1

RATE AND METHOD OF APPORTIONMENT FOR

CITY OF CATHEDRAL CITY
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(CATHEDRAL CITY PARK & RECREATION SERVICES)
A Special Tax, as hereinafter defined , shall be levied on all Assessor’s Parcels in the City of Cathedral City (the “City”) Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services ) and collected each Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the City or its designee, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Accessory Dwelling Unit " means a secondary residential unit of limited size , as defined in California Government Code Section 658 52.2 as that may be amended from time to time, that is accessory to a single-unit dwelling. The ADU of Developed Property may be on the same Assessor’s Parcel as the single- unit dwelling or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is considered a separate Unit from the primary Unit on such Assessor’s Parcel for purposes of the Special Tax. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will be taxed as an ADU only. "Acre” or “Acreage" means that acreage shown on the Assesso r’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event that the Assessor’s Parcel Map or A ssessor’s Data shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon the applicable Final Subdivision Map or parcel map, or by using available spatial data and GIS. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1: the costs of any paying agents/fiscal agents/trustees related to Bond payments (including the fees and expenses of its counsel), banking and management; the costs of computing the Special Tax Requirement , the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act) and the federal securities laws; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax es or interpretation of the Rate and Method of Apportionment; amounts needed to pay rebate to the federal government related to Bonds; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in the City. Administrative Expenses shall also include an allocable share of the salaries of City staff and an allocable portion of City overhead costs relating to the foregoing, or costs of the City in any way related

1.A.b
Packet Pg. 22
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 2 to the establishment or administration of the City. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1 for any other administrative purposes of CFD No. 2022-1.
"Agricultural Property" means all Assessor’s Parcels devoted primarily to agricultural, timber, or livestock uses and being used for the commercial production of agricultural, timber, or livestock products. Typical County Use Codes include those starting with “A” including: A01, A01R, A02, A02R, A03, A04, A04R, A05, A05R, A06, A06R, A07, A07R, A08, A08R, A09, A10, A10R, A11, A11R, A11R, A12, Z12R, A13, A13R, A14, A14R, A15, A15R, A16, A17, A18, A19, A20, A21R, A22, A23, A25M, A25MF, A25ML, A25MO, A25MR, A28, A29, A30, AP115, AP999, APA01, APA01R, APA02, APA02R, APA03, APA04, APA04R, APA06, APA06R, APA07, APA07R, APA08, APA08R, APA10, APA10R, APA11, APA11R, APA12, APA12R, APA13, APA13R, APA14R, APA15, APA15R, APA16, APA17, APA19, APA20, APA21R, APA22, APA25M, APA25MF, APA30, APC27, APRX, APS01, APS04, CTA05R, CTA16.
"Assessor’s Data " means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parc el, including, but not limited to, Assessor’s Parcel Number, Use Code, Acreage, and Units.
"Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" or "APN" means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. "Authorized Facilities" means the public facilities authorized to be financ ed, in whole or in part, by CFD No. 2022-1, including by the proceeds of any CFD No. 2022-1 Bonds. The Special Tax to fund Authorized Facilities may only be levied prior to the Transition Year. "Authorized Services" means the services authorized to be funded, in whole or in part, by CFD No. 2022-

1. "Bonds" means bonds or other debt (as defined in the Act), whether in one or more series, issued or assumed by or on behalf of CFD No. 2022-1 under the Act . Bonds also includes any bonds issued to refinance a previous bond issue.
"Building Square Footage" means the structural square footage of an Assessor ’s Parcel as shown in the County Assessor’s data or as otherwise known by the CFD Administrator. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. "CFD No. 2022-1" means City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services).
"City" means the City of Cathedral City.
"City Council" means the City Council of the City, acting as the legislative body of CFD No. 2022-1.

1.A.b
Packet Pg. 23
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 3 "County" means the County of Riverside.
"Debt Service" means for each Debt Year, the total amount of principal and interest due for any Bonds of CFD No. 2022-12022-1.
"Debt Year" means each 12-month period designated as such, or by a similar term, in the Indenture for each series of Bonds.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property, for which the County has assigned a Use Code indicating residential or non-residential use which are not vacant.
"District" means Desert Recreation District.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "GIS" or "Geographic Information System" means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. "Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds for CFD No. 2022-12022-1 are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Maximum Special Tax" means the Maximum Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. "Multi-family Residential Property" means all Assessor’s Parcels of Developed Property that consist of Units available for lease or rent in a multi-unit building or on a Parcel, including duplex, triplex, fourplex, apartments, mobile home parks and RV parks . Typical County Use Codes include : 30, 33, 34, 41, 42, 43, 44, 45, 46, 100, 103, 104, CT25, MF, MS, MV, MX, MY, MAR04, CTR04. "Non-residential Property" means all Assessor’s Parcels of Developed Property used for non -residential purposes such as commercial or industrial use. Possessory interest and golf course property are not included in Non-residential Property. Typical County Use Codes include: 80, 115, 120, 122, 130, 131, 132, 140, 150, 151, 152, 153, 160, 161, 170, 172, 180, 182, 183, 191, 200, 201, 202, 210, 220, 221, 223, 230, 232, 250, 251, 305, 310, 320, 321, 322, 323, 350, 351, 352, 353, 361, 600, 602, 603, 611, 612, 614, 615, 620, 621, C01H, C02, C06C, C07C, C07M, C08C, C12F, C19, CarWash, CT115, CT120, CT132, CT140, CT150, CT160, CT170, CT180, CT191, CT200, CT210, CT320, CT321, CT353, CT360, CT361, CT80, OFF132. "Outstanding Bonds" means all Bonds that are outstanding under and in accordance with the provisions of the Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-12022-1 that is owned by a property owner association, including any master or sub - association, as of January 1 of the prior Fiscal Year.
"Proportionately" means for Developed Property that the ratio of the Special Tax levy to the Maximum Special Tax is equal for all Ass essors’ Parcels of Developed Property within CFD No. 2022-12022-1. For Taxable Contingent Property, “Proportionately” means that the ratio of the actual Special Tax levy to the

1.A.b
Packet Pg. 24
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 4 Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Contingent Property within CFD No. 2022-12022-1.
"Public Property" means property within the boundaries of CFD No. 2022-1 owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right -of-way has been granted to the federal government, the State, the County, the City, the City , or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. “Residential Condominium Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with one Unit with a single Assessor’s Parcel Number that is a condominium pursuant the definition in Civil Code Section 4125 or a townhouse. Typical County Use Codes include: 21, 27 , CT21, MA21.
"Single Family Residential Property " means all Assessor’s Parcels of Developed Property with a residential structure intended for a single dwelling unit. Typical County Use Codes include: 20, 28, 60, 61, 62, 63, 64, 65, 67, MA20, CT20.
"Special Tax(es)" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 2022-1 to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2022-1:

Before the Transition Year, to (1) pay Debt Service on all Outstanding Bonds which is due in such Fiscal Year; (2) pay for Authorized Services; (3) pay Administrative Expenses ; (4) provide any amount required to establish or replenish a reserve fund in connection with any Bonds; (5) provide any amount required to establish or replenish any operating reserve held by the City for Authorized Services and/or Administrative Expenses ; (6) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses ( 4) or ( 5). The amounts referred to in clauses (1) through (6) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) interest earnings on or surplus balances in funds and accounts for Bonds to the extent that such earnings or balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding Bonds or other indebtedness as determined by the CFD Administrator.

Beginning in the Transition Year, to (1) pay for Authorized Services; (2) pay Administrative Expenses; (3) provide any amount required to establish or replenish any operating reserve held by the City for Authorized Services and/or Administrative Ex penses; (4) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Tax es levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act; less (5) a credit for funds available, if any, to reduce the Special Tax levy. "State" means the State of California.

1.A.b
Packet Pg. 25
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 5 "Tax Exempt Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1 which are exempt from the Special Tax pursuant to the Act or Section E below. "Taxable Contingent Property" means any Assessor’s Parcel that was previously classified and l evied as Taxable Property, but has changed ownership or use such that it would subsequently be classified as Property Owner Association Property or Public Property, or other property , as Tax Exempt Property pursuant to the provisions of Section E.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1 which are not exempt from the Special Tax pursuant to the Act or Section E below. "Timeshare Property " means all Assessor’s Parcels of Developed Property w hich include Units of timeshare estates in a timeshare project pursuant to California Revenue and Taxation Code Section 2188.9. Typical County Use Codes include: TE, TED, TU, TUD. "Transition Event " means the earlier of (i) Fiscal Year 2057/58 or (ii) the Fiscal Year when the CFD Administrator determines that both of the following events have occurred (i) all Bonds secured by the levy and collection of the Special Tax in CFD No. 2022-1 have been fully repaid and the City determines that no additional Bonds are to be issued , (ii) all Administrative Expenses from prior Fiscal Years have been paid or reimbursed to the City.
"Transition Year" means the first year in which the CFD Administrator determines that the Tran sition Event occurred in the prior Fiscal Year.
"Trustee" means the trustee or fiscal agent under the Indenture.

"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, or Taxable Contingent Property.
"Unit" means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) reviewing City building permit data . An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax.
"Use Code" means that code assigned by the County for the purpose of identifying the primary activity for which an Assessor’s Parcel is being used.
"Welfare Exempt Property" means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2022- 01 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2022-1. If any Assessor’s Parcel Numbers are no longer valid from the previous Fiscal Year, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent an Assessor’s Parcel(s) of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new Assessor’s Parcel(s) pursuant to Section C.

1.A.b
Packet Pg. 26
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 6 Each Fiscal Year, all Assessor’s Parcels within CFD No. 2022-1 shall be classified as follows:

1. Each Assessor’s Parcel shall be determined to be Taxable Property or Tax Exempt Property.

2. Each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Taxable Contingent Property, or Undeveloped Property. Taxable Property shall be subject to Special Taxes in accordance with the r ate and method of apportionment determined pursuant to Sections C and D below.

3. Each Assessor’s Parcel of Developed Property and Taxable Contingent Property shall be further classified as Single Family Residential Property, Accessory Dwelling Unit, Resident ial Condominium Property, Multi-family Residential Property or Non-residential Property. For Single Family Residential Property the Building Square Footage shall be determined. For Accessory Dwelling Units, Residential Condominium Property and Multi-family Property, the number of Units shall be determined.

C. MAXIMUM SPECIAL TAX RATES
Notwithstanding the below, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel for which an occupancy permit for private residential use has been issued be increased by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default by the owner(s) of any other Assessor’s Parcel within CFD No. 2022-1.

PRIOR TO THE TRANSITION EVENT

1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property is shown in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023/24

Property Type Maximum Special Tax Per
Single Family Residential Property $0.15 Building Square Foot Accessory Dwelling Unit 123.00 Unit
Residential Condominium Property 196.00 Unit
Multi-family Residential Property 172.00 Unit
Non-residential Property 734.00 Parcel

2. Taxable Contingent Property
Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Taxable Contingent Property shall be assigned as shown in Table 1 according to the previous Taxable Property type and use.

1.A.b
Packet Pg. 27
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 7

AFTER THE TRANSITION EVENT
The Maximum Special Tax for each Assessor’s Parcel that may be levied in any Fiscal Year after the Transition Event is determined as, an amount equal to 100% of the Maximum Special Tax in the Fiscal Year prior to the Transition Year, adjusted for any parcel that prepaid in part their Special Tax by adding an amount equal to the Special Tax that would have been due in the Fiscal Year prior to the Transition Year if such Parcel had not prepaid.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES
Commencing with Fiscal Year 2023/24 and for each following Fiscal Yea r, the CFD Administrator shall determine the Special Tax Requirement, and shall levy the Special Tax until the amount of the Special Tax equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Taxable Contingent Property at a rate up to 100% of the Maximum Special Tax for Taxable Contingent Property.

E. EXEMPTIONS
No Special Ta x shall be levied on Agricultural Property, Timeshare Property, Public Property and Undeveloped Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Undeveloped Property its tax -exempt status will be revoked. In the case of Public Property and pursuant to Section 53317.3 of the Act, if property not otherwise exempt from the Special Tax levied pursuant to this chapter is acquired by a public entity through a negotiated transaction, or by gift or devise, the special tax shall, notwithstanding Section 53340, continue to be levied o n the property acquired and shall be enforceable against the public entity that acquired the property. However, the public agency that acquires the property may prepay in part and satisfy the obligation to pay the tax pursuant to Section I below.

Taxable Contingent Property shall be subject to the levy of the Special Tax, assigned to a Property Type in accordance with the use of the property, and shall be taxed Proportionately as part of the second step in Section D above, at up to 100% of the applicable Maximum Special Tax.

Prior to the Transition Event, any property that is granted a welfare exemption pursuant to Section 53340(c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code prior to the first series of CFD No. 2022-1 Bonds shall be exempt from the Special Tax in each Fiscal Year it is Welfare Exempt Property. Any property that is granted a welfare exemption pursuant to Section 53340(c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code after the first series of CFD No. 2022-1 Bonds have been issued shall not be considered Welfare Exempt Property for the Special Taxes - Facilities and shall not be exempt from Special Tax - Facilities.

After the Transition Event, any property that is granted a welfare exemption pursuant to Section 53340(c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code shall be exempt from the Special Tax in each Fiscal Year it is Welfare Exempt Property.

1.A.b
Packet Pg. 28
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 8 F. APPEALS
Any property owner may file a written appeal of the Special Tax es with the CFD Administrator claiming that the amount or application of the Special Taxes is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax es are in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax es to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATIONS
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Parcels, or any de finition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.

H. MANNER OF COLLECTION
The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may, at the sole discretion of the City, directly bill the Specia l Tax, may collect the Special Tax at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

J. TERM
The Special Tax shall be levied and collected , as needed to fund the Special Tax Requirement, in perpetuity. However, no portion of the Special Tax shall be levied for Authorized Facilities after Fiscal Year 2057/58, which shall be the last Fiscal Year in which the Transition Event may occur: provided, however, that a Special Tax that was lawfully levied for Authorized Facilities in or before Fiscal year 2057/58 and that remains delinquent may be collected in subsequent years.

1.A.b
Packet Pg. 29
Attachment: 1a - CFD Report w map [Revision 2] (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 1

RATE AND METHOD OF APPORTIONMENT FOR

1.A.c
Packet Pg. 30
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 2 to the establishment or administration of the City. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1 for any other administrative purposes of CFD No. 2022-1.
"Agricultural Property" means all Assessor’s Parcels devoted primarily to agricultural, timber, or livestock uses and being used for the commercial production of agricultural, timber, or livestock products. Typical County Use Codes include those starting with “A” including: A01, A01R, A02, A02R, A03, A04, A04R, A05, A05R, A06, A06R, A07, A07R, A08, A08R, A09, A10, A10R, A11, A11R, A11R, A12, Z12R, A13, A13R, A14, A14R, A15, A15R, A16, A17, A18, A19, A20, A21R, A22, A23, A25M, A25MF, A25ML, A25MO, A25MR, A28, A29, A30, AP115, AP999, APA01, APA01R, APA02, APA02R, APA03, APA04, APA04R, APA06, APA06R, APA07, APA07R, APA08, APA08R, APA10, APA10R, APA11, APA11R, APA12, APA12R, APA13, APA13R, APA14R, APA15, APA15R, APA16, APA17, APA19, APA20, APA21R, APA22, APA25M, APA25MF, APA30, APC27, APRX, APS01, APS04, CTA05R, CTA16.
"Assessor’s Data " means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parc el, including, but not limited to, Assessor’s Parcel Number, Use Code, Acreage, and Units.
"Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" or "APN" means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. "Authorized Facilities" means the public facilities authorized to be financ ed, in whole or in part, by CFD No. 2022-1, including by the proceeds of any CFD No. 2022-1 Bonds. The Special Tax to fund Authorized Facilities may only be levied prior to the Transition Year. "Authorized Services" means the services authorized to be funded, in whole or in part, by CFD No. 2022-

1.A.c
Packet Pg. 31
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 3 "County" means the County of Riverside.
"Debt Service" means for each Debt Year, the total amount of principal and interest due for any Bonds of CFD No. 2022-12022-1.
"Debt Year" means each 12-month period designated as such, or by a similar term, in the Indenture for each series of Bonds.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property, for which the County has assigned a Use Code indicating residential or non-residential use which are not vacant.
"District" means Desert Recreation District.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "GIS" or "Geographic Information System" means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. "Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds for CFD No. 2022-12022-1 are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Maximum Special Tax" means the Maximum Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. "Multi-family Residential Property" means all Assessor’s Parcels of Developed Property that consist of Units available for lease or rent in a multi-unit building or on a Parcel, including duplex, triplex, fourplex, apartments, mobile home parks and RV parks . Typical County Use Codes include : 30, 33, 34, 41, 42, 43, 44, 45, 46, 100, 103, 104, CT25, MF, MS, MV, MX, MY, MAR04, CTR04. "Non-residential Property" means all Assessor’s Parcels of Developed Property used for non -residential purposes such as commercial or industrial use. Possessory interest and golf course property are not included in Non-residential Property. Typical County Use Codes include: 80, 115, 120, 122, 130, 131, 132, 140, 150, 151, 152, 153, 160, 161, 170, 172, 180, 182, 183, 191, 200, 201, 202, 210, 220, 221, 223, 230, 232, 250, 251, 305, 310, 320, 321, 322, 323, 350, 351, 352, 353, 361, 600, 602, 603, 611, 612, 614, 615, 620, 621, C01H, C02, C06C, C07C, C07M, C08C, C12F, C19, CarWash, CT115, CT120, CT132, CT140, CT150, CT160, CT170, CT180, CT191, CT200, CT210, CT320, CT321, CT353, CT360, CT361, CT80, OFF132. "Outstanding Bonds" means all Bonds that are outstanding under and in accordance with the provisions of the Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-12022-1 that is owned by a property owner association, including any master or sub - association, as of January 1 of the prior Fiscal Year.
"Proportionately" means for Developed Property that the ratio of the Special Tax levy to the Maximum Special Tax is equal for all Ass essors’ Parcels of Developed Property within CFD No. 2022-12022-1. For Taxable Contingent Property, “Proportionately” means that the ratio of the actual Special Tax levy to the

1.A.c
Packet Pg. 32
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 4 Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Contingent Property within CFD No. 2022-12022-1.
"Public Property" means property within the boundaries of CFD No. 2022-1 owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right -of-way has been granted to the federal government, the State, the County, the City, the City , or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. “Residential Condominium Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with one Unit with a single Assessor’s Parcel Number that is a condominium pursuant the definition in Civil Code Section 4125 or a townhouse. Typical County Use Codes include: 21, 27 , CT21, MA21.
"Single Family Residential Property " means all Assessor’s Parcels of Developed Property with a residential structure intended for a single dwelling unit. Typical County Use Codes include: 20, 28, 60, 61, 62, 63, 64, 65, 67, MA20, CT20.
"Special Tax(es)" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 2022-1 to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2022-1:

1.A.c
Packet Pg. 33
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 5 "Tax Exempt Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1 which are exempt from the Special Tax pursuant to the Act or Section E below. "Taxable Contingent Property" means any Assessor’s Parcel that was previously classified and l evied as Taxable Property, but has changed ownership or use such that it would subsequently be classified as Property Owner Association Property or Public Property, or other property , as Tax Exempt Property pursuant to the provisions of Section E.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1 which are not exempt from the Special Tax pursuant to the Act or Section E below. "Timeshare Property " means all Assessor’s Parcels of Developed Property w hich include Units of timeshare estates in a timeshare project pursuant to California Revenue and Taxation Code Section 2188.9. Typical County Use Codes include: TE, TED, TU, TUD. "Transition Event " means the earlier of (i) Fiscal Year 2057/58 or (ii) the Fiscal Year when the CFD Administrator determines that both of the following events have occurred (i) all Bonds secured by the levy and collection of the Special Tax in CFD No. 2022-1 have been fully repaid and the City determines that no additional Bonds are to be issued , (ii) all Administrative Expenses from prior Fiscal Years have been paid or reimbursed to the City.
"Transition Year" means the first year in which the CFD Administrator determines that the Tran sition Event occurred in the prior Fiscal Year.
"Trustee" means the trustee or fiscal agent under the Indenture.

1.A.c
Packet Pg. 34
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 6 Each Fiscal Year, all Assessor’s Parcels within CFD No. 2022-1 shall be classified as follows:

1. Each Assessor’s Parcel shall be determined to be Taxable Property or Tax Exempt Property.

PRIOR TO THE TRANSITION EVENT

1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property is shown in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023/24

1.A.c
Packet Pg. 35
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 7

1.A.c
Packet Pg. 36
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) City of Cathedral City June 14, 2022
CFD No. 2022-1 (Cathedral City Park & Recreation Services) Page 8 F. APPEALS
Any property owner may file a written appeal of the Special Tax es with the CFD Administrator claiming that the amount or application of the Special Taxes is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

1.A.c
Packet Pg. 37
Attachment: 1b DRD Cathedral City CFD 2022-2 RMA - ROI (3321 : Resolution of Formation of CFD 2022-1;) RESOLUTION NO. ______

RESOLUTION DETERMIN ING THE NECESSITY TO INCUR BONDED
INDEBTEDNESS IN AMOUNT NOT TO EXCEED $39,000,000 FOR THE CITY OF CATHEDRAL CITY COMMUNITY FACILITIES DISTRICT NO. 2022-1 (CATHEDRAL CITY PARK & RECREATION SERVICES)

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 amende d, 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, on June 22, 2022, the Council adopted its Resolution No. 2022-32, “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” (the “Resolution of Intention”), stating its intention to form the “City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services)” (the “CFD”), pursuant to the Act; and

WHEREAS, on June 22, 2022, the Council also adopted its Resolution No. 2022- 33, “Resolution of Intention to Incur Bonded Indebtedness in Amount Not To Exceed $39,000,000 in and for the City of Cathedral City Community Facilities District No. 2022- 1 (Cathedral City Park & Recreation Services) to Finance the Development of Certain Public Facilities” (the “Resolution of Intention to Incur Indebtedness”) stating its intention to incur bonded indebtedness for the CFD for the purpose of financing the costs of certain facilities specified in the Resolution of Intention; and

WHEREAS, on the date hereof , t he Council held a noticed public hearing as required by the Act about the determination to proceed with the formation of the CFD, the provision of certain public facilities and services by the CFD and the rate and method of apportionment of the special tax to be lev ied within the CFD to pay the principal and interest on the proposed bonded indebtedness in the CFD and the administrative costs of the City relative to the CFD; and

WHEREAS, subsequent to the public hearing, the Council adopted a resolution entitled, “Resolution to Form the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services ) and Levy a Special Tax within the CFD to Fund Public Services and Finance the Development of Certain Public Facilities” (the “Resolution of Formation”); and

WHEREAS, on the date hereof, the Council also held a noticed public hearing as required by the Act relative to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness; and

WHEREAS, at the hearing, all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the incurrence of bonded indebtedness for the CFD and related matters were heard and a full and fair hearing was held; and

WHEREAS, written protests with respect to the questions set forth in the Resolution of Intention to Incur Indebtedness have not been filed with the City Clerk by 50% or more of the registered voters residing within the territory of the CFD or property

1.A.d
Packet Pg. 38
Attachment: 2 Reso Bonds - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;) 2 owners of one-half or more of the area of land within the CFD and not exempt from the proposed special tax.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The foregoing recitals are true and correct.

Section 2. Necessity. The Council deems it necessary to incur bonded indebtedness in the maximum aggregate principal amount of $39,000,000 for the CFD for the purpose of financing the costs of all or a portion of the facilities defined in the Resolution of Formation (the “Facilities”), including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities.

Section 3. Bonds or Other Debt for CFD. Bonds or other debt in the maximum amount of $39,000,000 for the CFD are hereby authorized, subject to voter approval. The bonds or other debt may be issued or incurred in one or more series and mature and bear interest at such rate or rates, payable semiannually or in such other manner, all as the Council, as the legislative body of the CFD, shall determine, at the time or times of sale of such bonds or other debt; provided, however, that the interest rate or rates shall not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds or other debt , and any particular series of bonds or other debt shall have a maximum term of not to exceed forty (40) years.

Section 4. Election. The proposition of incurring the bonded indebtedness herein authorized shall be submitted to the qualified electors of the CFD and shall be consolidated with elections on the proposition of levying special taxes within the CFD and the establishment of a n appropriations limit for the CFD pursuant to Section 53353.5 of the Act. The time, place and further particulars and conditions of such election shall be as specified by separate resolution of the Council.

Section 5. Effective Date. This Resolution shall take effect upon its adoption.

PASSED, APPROVED AND ADOPTED this ________ day of ______________, 2022, by the following vote:

AYES:

NOES:

ABSET:

ABSTAIN:

MAYOR

ATTEST:

CITY CLERK

1.A.d
Packet Pg. 39
Attachment: 2 Reso Bonds - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;) RESOLUTION NO. ____

RESOLUTION CALLING A SPECIAL ELECTION FOR THE CITY OF
CATHEDRAL CITY COMMUNITY FACILITIES DISTRICT NO. 2022-1 (CATHEDRAL CITY PARK & RECREATION SERVICES)

WHEREAS, on the date hereof, pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), the City Council (the “Council”) of the City of Cathedral City (the “City”) has adopted a resolution entitled “Resolution to Form the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) and Levy a Special Tax within the CFD to Fund Public Services and Finance the Development of Certain Public Facilities ” (the “Resolution of Formation ”), ordering the formation of the City of Cathedral City Community Facilities District No. 2022- 1 (Cathedral City Park & Recreation Services ) (the “CFD”) , authorizing the levy of a special tax on property within the CFD and preliminarily establishing an appropriations limit for the CFD, subject to voter approval; and

WHEREAS, on the date hereof, the Council has also adopted a resolution entitled, “Resolution Determining the Necessity to Incur Bonded Indebtedness in Amount Not to Exceed $39,000,000 for the City of Cathedral City Community Facilities District No. 2022- 1 (Cathedral City Park & Recreation Services)” (the “Resolution Determining Necessity”), determining the necessity to incur bonded indebtedness for the CFD in the maximum aggregate principal amount of $39,000,000, upon the security of the special tax to be levied within the CFD pursuant to the Act; and

WHEREAS, pursuant to the provisions of the Resolution of Formation and the Resolution Determining Necessity, the propositions of the levy of the special tax within the CFD, the establishment of the appropriations limit for the CFD and the incurring of the bonded indebtedness for the CFD shall be submitted to the qualified electors of the CFD as required by the provisions of the Act; and

WHEREAS, the local revenue measure would require mandatory annual audits and reports to the Council to ensure funds are spent properly as described herein.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Consolidation of Issues. Pursuant to Sections 53326, 53351 and 53325.7 of the Act, the issues of the levy of the special tax, the incurring of bonded indebtedness and the establishment of the appropriations limit shall be consolidated and submitted to the qualified electors (as defined below) of the CFD at an election called therefor as provided below.

Section 2. Ballot Measure. Under the Act, the propositions described above in section 1 shall be submitted to the voters of the CFD at an election called therefor as hereinafter provided. The ballot measure to be voted upon by the voters shall be

1.A.e
Packet Pg. 40
Attachment: 3 Reso Call Election - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;) 2 substantially in the following format, subject to approval by the Election Official (defined below):

To provide safe/clean Cathedral City parks and recreation facilities including repairing bathrooms, maintaining safe drinking water, increasing water conservation, improving disabled accessibility; keep afterschool/ senior programs affordable; enhance youth drug/ gang prevention; shall Cathedral City’s measure be adopted levying 15¢ per building square foot annually on single -family residential units, other rates for other land uses ($4,500,000 annually) until ended by voters, authorizing bonds/ appropriation limit of $39,000,000, requiring public spending disclosure, all funds staying local?

YES: 

NO: 

Section 3. Qualified Electors . The Council hereby finds that more than 12 persons have been registered to vote within the territory of the CFD for each of the 90 days preceding the close of the public hearings heretofore conducted and concluded by the Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, the Council finds that, for these proceedings, the qualified electors for the CFD are the registered voters within the CFD, which consists of all the registered voters within the City, and that the vote shall be by such registered voters, each having one vote. The vote requirement for the measure to pass is a vote of least 2/3 of the voters voting on the question at the election.

Section 4. Election Date and Election Official. The Council hereby calls a special election to consider the issues described in Section 1 above, which shall be held on Tuesday, November 8, 2022 (the “Election Day”) . The official of the County of Riverside responsible for the conduct of elections (the “Election Official”) is hereby designated as the official to conduct the election. The Board of Supervisors of the County of Riverside and the Election Official are hereby requested to provide such services as may be necessary to properly and lawfully hold and conduct the special election pursuant to this resolution and applicable provisions of the California Elections Code, including coordination with all appropriate election officials in the County, and the c onsolidation of said special election with other elections being held on the Election Day. The election shall be conducted as a polled election, during which the polls shall be open as specified by the Election Official.

Section 5. Documents to Election Official. Pursuant to Section 53326 of the Act, and within three business days of the adoption of the Resolution of Formation, but in no event later than the date specified by the Election Official for receipt, the City Clerk shall cause to be provided to the Election Official the Resolution of Formation, Resolution Determining Necessity and this Resolution Calling Special Election, together with a certified copy of the map of the boundaries of the CFD, as filed with the Riverside County Assessor-County Clerk-Recorder. The City Clerk is hereby authorized and directed to enter into an agreement with the Election Official for the services of such official and to provide for the reimbursement by the CFD of the costs of the Electio n Official in conducting the election. The Mayor, the City Manager, the City Clerk, and all other officers of the City, and their designees, are hereby authorized and directed to execute and deliver any documents and to perform all acts necessary to place the measure on the ballot

1.A.e
Packet Pg. 41
Attachment: 3 Reso Call Election - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;) 3 including making any revisions, correction or alternations to the language of the ballot measure to comply with requirements of law and the Election Official, and to ensure that the applicable requirements of the California Elections Code and the Act are met, including without limitation the preparation and provision to the voters of all documents and instructions required by and specified in the California Elections Code and the Act.

Section 6. Local Bond Measure. The Council hereby finds that the proposed issuance of bonds and other debt for the CFD constitutes a “local bond measure” within the meaning of Sections 53410, et seq. of the California Government Code. As a result, the bond measure shall include the propositions set forth above and the following: (a) the specific purpose of the bonds and other debt shall be as set forth in the propositions; (b) any proceeds received from the sale of any bonds and other debt shall be applied only to the purposes set forth in the propositions; (c) the proceeds of any bonds and other debt shall be deposited into special accounts to be created therefor as part of the issuance of the bonds and other debt; and (d) the City shall cause a report to be prepared annually under Section 53411 of the Government Code.

Section 7. Accountability Provisions. Under Section 50075.1 of the California Government Code, the following accountability provisions shall apply to the special tax:
(a) the provision and/or acquisition of the Facilities and the Services, the payment of debt service on the bonds and other debt issued or incurred for the CFD and the incidental costs thereof, all as defined in the Resolution of Formation, shall constitute the specific purpose of the special tax; (b) the proceeds of the special tax shall be applied only to the specific purpose identified in (a) above; (c) there shall b e created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual audit and report of the CFD pursuant to Section 50075.3 of the California Government Code.

Section 8. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish or cause to be procured and furnished, any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to prop erly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding special municipal elections within the City.

Section 9. Notice of Election. Notice of the time and place of holding the election is hereby given, and the elections official is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

Section 10. Impartial Analysis. Pursuant to California Elections Code section 9280, the Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the Election Official not later than Monday, August 22, 2022, at 5:00 p.m., who shall cause the analysis to be published in the voter information guide along with the measure as provided by law.

1.A.e
Packet Pg. 42
Attachment: 3 Reso Call Election - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;) 4 Section 11. Primary Arguments. The deadline to submit primary arguments for or against the measure is declared to be Monday, August 22, 2022, at 5:00 p.m. Each argument shall be filed with the Election Official, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of a t least one of its principal officers who is the author of the argument. An argument may not exceed 300 words in length.

The Council authorizes and designates all or any members of the Council to file a written argument in favor of the measure and any re buttal to an argument against the measure. Other individual voters eligible to vote on the measure and/or associations of citizens may also sign the argument in favor of the measure and any rebuttal.

Section 12. Rebuttal Arguments. Pursuant to Section 9285 of the Election Code, when the Election Official has selected the primary arguments for and against the measure which will be printed and distributed to the voters, the Election Official shall send copies of the primary argument in favor of the measure to the authors of the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the Election Official not later than Thursday, September 1 , 2022, at 5:00 p.m.

Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut.

Section 13. Effective Date. This Resolution shall take effect upon its adoption.

PASSED, APPROVED AND ADOPTED this ________ day of ______________, 2022, by the following vote:

AYES:

NOES:

ABSET:

ABSTAIN:

MAYOR

ATTEST:

CITY CLERK

1.A.e
Packet Pg. 43
Attachment: 3 Reso Call Election - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;) RESOLUTION NO. ______

RESOLUTION REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF RIVERSIDE TO CONSOLIDATE A SPECIAL MUNICIPAL

ELECTION FOR THE CITY OF CATHEDRAL CITY COMMUNITY
FACILITIES DISTRICT NO. 2022 -1 (CATHEDRAL CITY PARK &
RECREATION SERVICES) BEING HELD ON TUESDAY, NOVEMBER 8, 2022 WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON

THE SAME DATE PURSUANT TO CALIFORNIA ELECTIONS COD E
SECTION 10403

WHEREAS, on the date hereof , the City Council (the “Council”) of the City of Cathedral City (the “City”) adopted its “Resolution Calling Special Election for City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services)” (the “Resolution Calling Election”), pursuant to which the Council has called and given notice of a special municipal election for the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) (the “CFD”) to be held on Tuesday, November 8, 2022 in the City of Cathedral City, County of Riverside, for the purpose of submitting to the qualified electors within the City a measure regarding the levy of a special tax, the establishment of the appropriations limit, and the incurring of the bonded indebtedness for the CFD; and

WHEREAS, it is desirable that the special municipal election for the CFD be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the elections be the same, and that the County of Riverside election officials canvass the returns of the special municipal election for the CFD, and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Request for Consolidation. Pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Riverside is hereby requested to consent and agree to the consolidation of the special municipal election for the CFD with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of submitting to the voters within the City the CFD measure.

Section 2. Measure Language. The ballot measure to be voted upon by the voters shall be substantially in the following format, subject to approval by the official of the County of Riverside responsible for the conduct of elections (the “Election Official”):

To provide safe/clean Cath edral City parks and recreation facilities including repairing bathrooms, maintaining safe drinking water, increasing water conservation, improving disabled accessibility; keep afterschool/ senior programs affordable; enhance youth drug/ gang prevention; shall Cathedral City’s measure be adopted levying 15¢ per building square foot annually on single -family residential units, other rates for other land uses ($4,500,000 annually) until ended by voters, authorizing bonds/ appropriation limit of $39,000,000, r equiring public spending disclosure, all funds staying local?

YES: 

NO: 

1.A.f
Packet Pg. 44
Attachment: 4 Reso Consolidation - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;) 2 Section 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the special municipal election for the CFD. The election shall be held in all respects as if there were only one electi on, and only one form of ballot shall be used. Pursuant to Elections Code Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election.

Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the Election Official to take any and all steps necessary for the holding of the consolidated election.

Section 5. Costs. The City recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

Section 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of Riverside at least 88 days prior to November 8, 2022.

PASSED, APPROVED AND ADOPTED this ________ day of ____________ __, 2022, by the following vote:

AYES:

NOES:

ABSET:

ABSTAIN:

MAYOR

ATTEST:

CITY CLERK

1.A.f
Packet Pg. 45
Attachment: 4 Reso Consolidation - Cathedral City CFD [Revision 1] (3321 : Resolution of Formation of CFD 2022-1;)

Cathedral City Page 1 of 2 Printed on 7/28/2022

Staff Report

City Council

Item No. 2.A

Meeting Date: August 3, 2022
From: Tami Scott, Administrative Services Director
Title: Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert Recreation District Related to
Cathedral City Community Facilities District No. 22 -1
(Cathedral City Park & Recreation Services)

City Council

RECOMMENDATION:

Adopt a Resolution Authorizing Execution and Delivery of Joint Community Facilities Agreement between the City of Cathedral City and the Desert Recreation District, Related to City of Cathedral City Community Facilities District No. 22 -1 (Cathedral City Park & Recreation Services)

BACKGROUND:

The Desert Recreation District (DRD) currently provides park and recreation services in the region adjacent to the City of Cathedral City (City), but not currently within the City, and is 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 Recreation District (DRD).

From April 6 through April 20, 2022, Fairbank, Maslin, Maullin, Metz & Associates (FM3) conducted a survey on behalf of the DRD among a random sample of 449 Cathedral City voters likely to vote in the November 2022 election . The survey examined three related topics, voters’: (1) opinions about the City of Cathedral City, (2) views about the Desert Recreation District, and (3) attitudes towards a potential park and recreation parcel tax measure. The full results of this poll were presented to the Board of Directors and City Council for their review, discussion and direction. The Board and Council considered options available to provide parks maintenance and recreation services in Cathedral City and offer the best opportunity f or a favorable outcome in an election.

Both the DRD Board and City Council provided staff direction to proceed with the November 2022 Community Facilities District (CFD) Measure and DRD annexation.

DISCUSSION:

In June of 2022, it was determined that the DRD needed to submit its application and receive Certification of Filing from LAFCO prior to the D RD adopting a resolution calling

2.A
Packet Pg. 46

Cathedral City Page 2 of 2 Printed on 7/28/2022
for the formation of the CFD. It was determined that the application and certification of filing could not be completed in ti me for the final filing date for the November 2022 election. As a result, the City is conducting the proceedings under the Mello -Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.) (the “Act”) to form its City of Cathedral City Community Facilities.

District No. 2022 -1 (Cathedral City Park & Recreation Services) (the “CFD”) to finance certain public services (the “Services”) and public facilities (the “Facilities”), which Services and Facilities are detailed in the CFD proceedings. If the CFD proceedings are successful, the City intends to use the special tax revenues generated by the CFD to pay for the Services and to issue special tax bonds (the “Bonds”) to generate up -front monies to pay for some or all of the Facili ties. 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 t hat 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.

The City placing the CFD revenue measure on the ballot and the successful approval o f 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 by DRD, pursuant to the contemplated LAFCO proceedings and annexation of the City to the DRD. Therefore, Staff recommends authorizing the City Manager to execute and deliver Joint Community Facilities Agreement between the City of Cathedral City and the Desert Recreation District related to City of Cathedral City Community Facilities District No. 22-1 (Parks and Recreation Services).

ATTACHMENTS:

Reso Approving JCFA - City Council
DRD - JCFA with Cathedral City

2.A
Packet Pg. 47

RESOLUTION NO. ______

RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF JOINT

COMMUNITY FACILITIES AGREEMENT RELATED TO THE CITY OF
CATHEDRAL CITY COMMUNITY FACILITIES DISTRICT NO. 2022 -1 (CATHEDRAL CITY PARK & RECREATION SERVICES)

WHEREAS, the City Council (the “Council”) of the City of Cathedral City (the “City”) is conducting proceedings under the Mello -Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.) (the “Act”) to form its City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) (the “CFD”) to finance certain public services (the “Services”) and public facilities (the “Facilities”), which Services and Facilities are detailed in the CFD proceedings;

WHEREAS, if the CFD proceedings are successful, the City shall use the special tax revenues generated by the CFD to pay for the Services and to issue special tax bonds (the “Bonds”) to generate up-front monies to pay for some or all of the Facilities;

WHEREAS, the CFD proceedings include a two-third vote of the registered voters within the boundary of the CFD, which boundary is coterminous with the boundary of the City;

WHEREAS, the City 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 by the District, pursuant to the contemplated LAFCO proceedings or otherwise;

WHEREAS, under Section 53316.2 of the Act, a community facilities district may finance facilities to be owned or operated by a public agency oth er 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, and a form of a Joint Community Facilities Agreement (the “Agreement”) is on file with the Council;

WHEREAS, the Council wishes to approve the form of the Agreement and make certain findings related thereto, as required by Section 53316.2 of the Act; and

2.A.a
Packet Pg. 48
Attachment: Reso Approving JCFA - City Council (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Council hereby finds, determines and declares that entrance into the Agreement would be beneficial to the residents of the City, as contemplated by Section 53316.2 of the Act.

Section 2. The Council hereby approves the execution and delivery of the Agreement on behalf of the City, in substantially the form presented to the Council, with such changes as the City Manager or his or her designee (each, an “Authorized Officer”) may deem appropriate or necessary, the execution and delivery of the Agreement being conclusive evidence of the approval of such changes. Each Authorized Officer is hereby authorized and directed to execute and deliver the Agreement on behalf of the City.

Section 3. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this ________ day of ______________, 2022, by the following vote:

AYES:

NOES:

ABSET:

ABSTAIN:

MAYOR

ATTEST:

CITY CLERK

2.A.a
Packet Pg. 49
Attachment: Reso Approving JCFA - City Council (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert

JOINT COMMUNITY FACILITIES AGREEMENT

by and between

CITY OF CATHEDRAL CITY

and

DESERT RECREATION DISTRICT

Relating to

CITY OF CATHEDRAL CITY
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(CATHEDRAL CITY PARK & RECREATION SERVICES)

This Joint Community Facilities Agreement (this “Agreement”), dated as of ________, 2022, by and between the City of Cathedral City, a municipal corporation and general law city, duly organized and existing under the laws of the State of California (the “City”), and the Desert Recreation District, a park and recreation district duly organized and existing under the laws of the State of California (the “DRD,” and together with City, the “Parties”).

WITNESSETH:

WHEREAS, City is conducting proceedings under the Mello -Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.) (the “Act”) to form its City of Cathedral City Community Facilities District No. 2022 -1 (Cathedral City Park & Recreation Services) (the “CFD”) to finance certain public services (the “Services”) and public facilities (the “Facilities”), which Services and Facilities are detailed in Exhibit A hereto;

WHEREAS, if the CFD proceedings are successful, the City shall use the special ta x revenues generated by the CFD to pay for the Services and to issue special tax bonds (the “Bonds”) to generate up-front monies to pay for some or all of the Facilities;

WHEREAS, the CFD proceedings include a two-thirds vote of the registered voters within the boundary of the CFD, which boundary is coterminous with the boundary of the City;

WHEREAS, DRD currently provides park and recreation services in the region surrounding the City, but not currently within the City, and plans to submit 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;

WHEREAS, the City 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 by DRD, pursuant to the contemplated LAFCO proceedings or otherwise;

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

2.A.b
Packet Pg. 50
Attachment: DRD - JCFA with Cathedral City (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert 2 district, or servic es 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;

WHEREAS, the City Council of the City and the Board of Directors of the DRD have both approved the form of this Agreement and determined the Agreement would be beneficial to their respective residents, as required by Section 53316.2 of the Act, and this Agreement is made under the authority of Section 53316.2 of the Act; and

WHEREAS, in consideration for the mutual undertakings of the Parties stated herein, the Parties agree as follows:

AGREEMENT:

1. Administration of CFD and Issuance and Administration of Bonds. Unless and until otherwise decreed pursuant to LAFCO proceedings involving DRD, the City shall administer the CFD, including employing and paying all consultants, annually levying the special tax, paying and administering the Bonds, and complying with all State and federal requirements appertaining to the CFD and the Bonds, including the requirements of the United States Internal Revenue Code of 1986, as amended (the “Code”).

The Parties understand and agree that the Bonds are anticipated to be issued as tax - exempt obligations under the Code and will work together with each other and with bond counsel to ensure that the proceeds of the Bonds are not used in a manner which would cause the Bonds to not qualify for or lose their tax-exempt status.

2. Agreement to Annually Create Budget and Allocate Funds. No later than May 1 of each year, the City and DRD shall mutually agree upon a budget for the expenditures of the CFD for the upcoming fiscal year. The budget shall take into account the projected costs and expenses incurred by the City and DRD for the fiscal year with respect to the CFD and the Bonds and allocate CFD special tax revenues and Bond proceeds accordingly. When received, the City shall hold CFD special tax revenues and Bond proceeds (in its own accounts and/or in the accounts of a fiscal agent or trustee for the Bonds) and disburse, or cause to be disbursed, such amounts pursuant to the agreed-upon annual budget.

3. Disbursements from City to DRD. CFD special taxes and Bond proceeds allocable to DRD pursuant to the annual budget shall be disbursed by, or on behalf of, the City pursuant to written requisitions of the DRD, in substantially the form attached hereto as Exhibit B and executed by the General Manager of the DRD or his or her designee (each, an “Authorized Officer”). The City and its designees, including any fiscal agent or trustee of the Bonds , may conclusively rely on such requisitions for purposes of making such disbursements. All disbursements to the DRD shall be made by wire transfer of immediately available funds or by check payable to the DRD’s bank account number at a bank located within the United States on file with City, unless another method of payment is requested in writing by an Authorized Officer.

4. Purchase of DRD Facilities. To the extent DRD is acquiring Facilities using Bond proceeds or CFD special taxes, DRD shall work with the contractors selected to construct such Facilities and to put in place all necessary agreements, certificates or other documents determined by the DRD to be required for the DRD to acquire such Facilities. Neither the City nor any of its agents shall be responsible for inspection or review of any such docume nts relating to such Facilities.

2.A.b
Packet Pg. 51
Attachment: DRD - JCFA with Cathedral City (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert 3 5. Amendments. This Agreement may be amended by a writing signed by the Parties.

6. Effectiveness and Term of this Agreement. The effectiveness of this Agreement is contingent on the approval by the requisite 2/3 vote of the voters of the City voting in favor of the CFD and shall never become effective if said vote is not obtained. Once effective, this Agreement shall remain in full force and effect for so long as the CFD remains effective.

7. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

8. Severability. Should any term or provision of this Agreement be determined to be illegal or in conflict with any law of the State of California, the validity of the remaining portions or provisions shall not be affected thereby, and each term or provision of this Agreement shall be valid and be enforced as written to the full extent permitted by law.

9. No Third-Party Beneficiaries. This Agreement shall inure solely to the benefit of the Parties hereto and shall create no rights in any other person or entity.

10. Assignment. This Agreement may not be assigned by one Parity without the written consent of the other Party hereto.

11. Governing Law. The validity, interpretation an d performance of this Agreement shall be governed by the laws of the State of California applicable to contracts made and performed in California, without application of conflict of law principles.

[Signatures on Following Page]

2.A.b
Packet Pg. 52
Attachment: DRD - JCFA with Cathedral City (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert 4 IN WITNESS WHEREOF the Parties have caused this Agreement to be executed by their authorized representatives as of the effective date stated above.

CITY OF CATHEDRAL CITY

By:__________________________
Name:

Title:

DESERT RECREATION DISTRICT

By: ___________________________
Name:

Title:

2.A.b
Packet Pg. 53
Attachment: DRD - JCFA with Cathedral City (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert A-1

EXHIBIT A

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 includ ing 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 aut horized 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.

2.A.b
Packet Pg. 54
Attachment: DRD - JCFA with Cathedral City (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert B-1

EXHIBIT B

DISBURSEMENT REQUEST FORM

City of Cathedral City
Community Facilities District No. 2022-1
(Cathedral City Park & Recreation Services)
To:

City of Cathedral City
68700 Avenida Lalo Guerrero
Cathedral City, California 92234

The undersigned, a duly authorized officer of the Desert Recreation District (the “DRD”), hereby requests a disbursement from amounts held by or on behalf of the City of Cathedral City (the “City”) with respect to the above-referenced community facilities district (the “CFD”), in the amount(s) set forth below for the purpose(s) described herein:

Purpose(s) Amount(s)
[Description of Services and/or Facilities financed] $

Total:

[Applicable to all disbursement requests:]

1. These funds have been or will be used to pay for public services and/or public facilities that are authorized to be funded from the CFD.

2. None of the expenditures for which payment is requested have been previously reimbursed to DRD from the CFD or any other source.

[Applicable only to disbursement of Bond proceeds:]

3. These funds have been or will be used to acquire and/or construct capital improvements, and this disbursement is not being made for the purpose of reinvestment.

4. These funds are being used to finance or refinance public infrastructure and /or facilities (the “Improvements”). DRD will own, and for the entire useful life of such Improvements reasonably expects to own, all of such Improvements. The Improvements consist of the following:

[Describe the improvements]

5. To the extent any of the Improvements are sold to an entity that is not a state or local government agency, DRD will seek the advice and approval of bond counsel prior to any

2.A.b
Packet Pg. 55
Attachment: DRD - JCFA with Cathedral City (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert B-2
such sale. DRD will not allow any of the Improvements to be used (for example, by lease or other contract) in the trade or business of any nongovernmental persons (other than in their roles as members of the general public). All of the Improvements will be used in the performance of essential governmental functions of DRD or another state or local government agency. The average expected useful life of such Improvements is at least [30] years. The representations and covenants contained in this paragraph are intended to support the conclusion that the interest paid on the bonds issued to finance the Improvements is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”).

Dated:

Signature:

Name/Title:

2.A.b
Packet Pg. 56
Attachment: DRD - JCFA with Cathedral City (3325 : Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert

Cathedral City Page 1 of 2 Printed on 7/28/2022

Staff Report

City Council

Item No. 2.B

Meeting Date: August 3, 2022
From: Tami Scott, Administrative Services Director
Title: Resolution in Support of Parks & Recreation Ballot Measure

City Council

RECOMMENDATION:

Consider adopting a resolution in support of the Parks and Recreation Ballot Measure which, if approved by Cathedral City voters, would allow the City to invest up to $39 million in capital improvements to City parks and recreation facilities up front, and provide an annual revenue stream of approximately $4.5 million for parks and recreation services within the City.

BACKGROUND:

On August 3, 2022, the City Council of the City of Cathedral City approved a resolution calling a special election for Community Facilities District (CFD) 2 022-1, asking the voters to adopt a measure levying a special tax on property within the City, raising $4.5 million annually and authorizing bonds in the amount of $39 million that will be repaid through the special tax revenues, with all funds being used for parks and recreation facilities and services within the City of Cathedral City (the “Parks and Recreation Ballot Measure”).

DISCUSSION:

Cathedral City is the only Coachella Valley City without its own local parks and recreation department. As a result , local children, families and seniors have access to fewer parks and recreational programs and services than residents in surrounding communities. In addition, Cathedral City has been unable to maintain local parks and facilities to the same standards as neighboring communities. As such, the City has been working with Desert Recreation District (District) on efforts to annex the City to the District and allow the District to provide parks and recreation services within the City, including taking over the maintenance of existing and future planned parks in the City.

By the City annexing into the District, the District would be able to expand community recreational programs and facilities to provide Cathedral City’s 14,000 children and youth after -school, we ekend and holiday programs. Upgrading maintenance of Cathedral City parks, to the same standard as other DRD parks throughout the region, will help maintain safe drinking water at parks, repair deteriorating facilities and improve security lighting and fen cing. A nnexing into the District would give Cathedral City residents access to the parks and recreation facilities, programs and classes offered by the District a t lower resident rates, including community and fitness centers, sports

2.B
Packet Pg. 57

Cathedral City Page 2 of 2 Printed on 7/28/2022
fields, swimming pools, a golf course and driving range, as well as other various parks and open space.

Revenues generated from the Parks and Recreation Ballot Measure will fund capital improvements to parks and recreation facilities within the City and provide funding for on-going operations and maintenance, and cannot be diverted to other uses, ensuring a continual funding source for parks and recreation services for the City.

Based on identified facility needs and input from the community, Cathedral City is considering placing a local funding measure on the November 2022 ballot . If approved by voters, this measure would cost property owners 15 per building square foot annually on single-family residential units to:

FISCAL IMPACT:

Should voters vote in favor of the measure, this would raise approximately $4.5 million annually and authoriz e bonds in the amount of $39 million , which would be repaid through the special tax revenues from the measure. All funds must be used for parks and recreation facilities and services within the City of Cathedral City

ATTACHMENTS:

Resolution Supporting CFD 2022-1 Ballot Measure- Final

2.B
Packet Pg. 58
RIV #4826-0049-5062 v1
RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY

EXPRESSING THE CITY COUNCIL'S SUPPORT FOR THE BALLOT MEASURE

TO APPROVE THE INCURRING OF BONDED INDEBTEDNESS, ESTABLISH AN

APPROPRIATIONS LIMIT, AND AUTHORIZE THE LEVY OF A SPECIAL TAX FOR CITY OF CATHEDRAL CITY COMMUNITY FACILITIES DISTRICT NO. 2022-1 TO FUND PARKS AND RECREATION FACILITIES AND SERVICES

WITHIN THE CITY
WHEREAS, on August 3, 2022, the City Counc il of the City of Cathedral City approved a resolution calling a special election for Community Facilities District (CFD) 2022 -1, asking the voters to adopt a measure levying a special tax on property within the City, raising $4.5 million annually and auth orizing bonds in the amount of $39 million that will be repaid through the special tax revenues, with all funds being used for parks and recreation facilities and services within the City of Cathedral City (the “Parks and Recreation Ballot Measure”); and WHEREAS, Cathedral City is the only Coachella Valley City without its own local parks and recreation department. As a result, local children, families and seniors have access to fewer parks and recreational programs and services than residents in surrounding communities; and WHEREAS, Cathedral City is unable to maintain local parks and facilities to the same standards as neighboring communities; and

WHEREAS, the City has been working with Desert Recreation District (District) on efforts to annex the City to the District and allow the District to provide parks and recreation services within the City, including taking over the maintenance of existing and future planned parks in the City; and
WHEREAS, the District would also expand community recreational programs and facilities to provide Cathedral City’s 14,000 children and youth after-school, weekend and holiday; and,

WHEREAS, upgrading maintenance of Cathedral City parks, to the same standard as other DRD parks throughout the region, will help maintain safe drinking water at parks, repair deteriorating facilities and improve security lighting and fencing; and

WHEREAS, annexing into the District would give Cathedral City residents access to the parks and recrea tion facilities, programs and classes offered by the District a t resident rates, including community and fitness centers, sports fields, swimming pools, a golf course and driving range, as well as other various parks and open space; and WHEREAS, revenues generated from the Parks and Recreation Ballot Measure will fund capital improvements to parks and recreation facilities within the City and funding for on -going operations and maintenance, and cannot be diverted to other uses, ensuring a continual funding source for parks and recreation services for City; and

2.B.a
Packet Pg. 59
Attachment: Resolution Supporting CFD 2022-1 Ballot Measure- Final (3331 : Resolution in Support of Parks & Recreation Ballot Measure)

RIV #4826-0049-5062 v1 2
WHEREAS, based on identified facility needs and input from the community, Cathedral City is considering placing a local funding measure on the November 2022 ballot; and,

WHEREAS, if approved by voters, this measure would cost property owners 15 ￠per building square foot annually on single-family residential units to:

Provide safe and clean parks, playgrounds and recreational facilities in Cathedral City ● Maintain and improve neighborhood park safety
● Maintain safe drinking water and improve water conservation ● Enhance youth drug and gang prevention programs
● Provide affordable after-school and senior programs
● Address homelessness in local parks
WHEREAS, this resolution came before the City Council on August 3, 2022, at which time members of the public, including proponents and opponents of the measure, were free to comment on the measure and this resolution.

NOW THEREFORE, be it resolved as follows:

The City Council supports the Parks and Recreation Ballot Measure which, if approved by Cathedral City voters, would allow the City to invest up to $39 million in capital improvements to City parks and recreation facilities up front, and provide an annual revenue stream of approximately $4.5 million for parks and recreation services within the City.

APPROVED AND ADOPTED at a meeting of the City Council of the City of Cathedral City held on this 3rd day of August 2022.

___________________________

ERNESTO GUTIERREZ, MAYOR

ATTEST:

____________________________

TRACEY HERMOSILLO, CITY CLERK

APPROVED AS TO FORM:

__________________________
ERIC S. VAIL, CITY ATTORNEY

2.B.a
Packet Pg. 60
Attachment: Resolution Supporting CFD 2022-1 Ballot Measure- Final (3331 : Resolution in Support of Parks & Recreation Ballot Measure)

Cathedral City City CouncilAugust 3, 2022

Cathedral City City Council
August 3, 2022