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 Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”); and
WHEREAS, the Desert Recreation District (the “District”) currently provides park and recreation services in the region surrounding the City, but not currently within the City, and 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 City, 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 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; Establishment. 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. 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 Tax 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 and the City, or any departments or political subdivisions thereof, and (ii) any other parcels exempt from the levy of the Special Tax under applicable law. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, the City will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the Rate and Method.
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 lien 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 electors 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. 5 PASSED, APPROVED AND ADOPTED this ________ day of ______________, 2022, by the following vote:
AYES:
NOES:
ABSET:
ABSTAIN:
MAYOR
ATTEST:
CITY CLERK
Exhibit A
EXHIBIT A
RATE, METHOD OF APPORTIONMENT AND MANNER OF COLLECTION OF
SPECIAL TAX
See attached.
Exhibit B
EXHIBIT B
LIST OF AUTHORIZED FACILITIES AND SERVICES
The public facilities, public services and incidental costs authorized to be financed by the special taxes levied in the CFD consist of the following:
Authorized Facilities. Authorized facilities consist of the purchase, construction, expansion, improvement, relocation or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer undertaken by the City or another public agency that is recreation-related, including community centers, parks, parkways, open space, and including all direct or indirect costs and expenses related thereto.
Authorized facilities also include payment of any bonds, notes, lease payments, indebtedness or other obligations for any authorized facility.
Authorized Services. Authorized services consist of (i) the operation, maintenance, repair and provision of any other services with respect to any authorized facility, including replacement and the funding of a reserve fund to pay for future repair and/or replacement of any authorized facility; such authorized services include, but are not limited to, all general or extraordinary activities deemed necessary or desirable by the City to provide for the use or enjoyment of any and all authorized facilities, whether provided by the City or any outside entity, including maintenance and operations contingencies and reserves with respect thereto; and (ii) any City services which protect public health, improve gang prevention efforts, and/or facilitate afterschool programs for at-risk youth.
Incidental Costs. In addition, costs eligible to be financed by the CFD shall include all costs and expenses incidental to the above and authorized by the Mello-Roos Community Facilities Act of 1982 that are determined by the City to be associated with the authorized facilities or the authorized services, the formation and ongoing administration of the CFD, the election, bonding, or levy and collection of special taxes, as well as all other costs incurred to carry out the authorized purposes of the CFD that are permitted by the Act.