07/12/2022 Item No.11.
EXHIBIT A
FOLSOM RANCH FINANCING AUTHORITY
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO.23
(FOLSOM RANCH) TMPROVEMENT AREA NO.3
SPECIAL TAX REVENUE BONDS
SERIES 2022
Schedule of Bond Maturities, Principal Amounts,Interest Rates, Yields and Initial Offering Prices
Matarity
Date
(September 1)
Principal
Amount
Initial
Offering
Price
10% Test
Used
Holdthe
Price
Offering Rule
UsedInterest Rute Yield
r Term Bonds.
c Priced to the |,z}_optional redemption date, at
Optional Redemption. The Bonds are subject to optional redemption by the Authority prior to their respective maturity dates as a whole or in part on any date on or after _,20-, from any source of available funds other than Minimum Sinking Fund Payments and Special Tax Prepayments, at the following redemption prices (computed upon the principal amount of the Bonds or portions thereof called for redemption) together with accrued interest thereon to the date fixed for redemption:
103% if redeemed on any date on or after _,20_ through _, 20-; 102% if redeemed on any date from _,20_ through _, 20-; I}Iyo if redeemed on any date from _,20_ through _, 2Q_; and I00% if redeemed otr _, 20_and any date thereafter
Extraordinary Redemption from Prepayment of Special Taxes. The Bonds are subject to extraordinary redemption by the Authority prior to their respective maturity dates, as a whole or in A-l
07/12/2022 Item No.11.
part on any Interest Payment Date on or after _, 20_, solely from funds derived from the extraordinary redemption of Local Obligations from Special Tax Prepayments, at the following redemption prices (computed upon the principal amount of the Bonds or portions thereof called for redemption) together with accrued interest thereon to the date fixed for redemption:
I03% if redeemed on an Interest Payment Date on or after _,20_ through _, 20-; T02% if redeemed on an Interest Payment Date on _,20- and _,20-; rcl% if redeemed on an Interest Payment Date on _,20- and _,20-; and 100% if redeemed on September 1,2032 and any Interest Payment Date thereafter.
Mandatory Sinking Fand Redemption of Bonds. The Bonds maturing on September l, 20- are subject to mandatory redemption in part by lot on September 1 of each year commencing September 1,20_, at a redemption price equal to one hundred percent (100%) of the principal amount thereof called for redemption together with accrued interest thereon to the date fixed for redemption:
Minimum Sinking Fund
Payment Date
(September 1)
Bonds
Minimum Sinking Fund Payment
t Maturity
The Bonds maturing on September I,20- are subject to mandatory redemption in part on September 1 of each year commencing September 1,20-, at a redemption price equal to one hundred percent (100%) of the principal amount thereof called for redemption together with accrued interest thereon to the date fixed for redemption:
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07/12/2022 Item No.11.
Minimum Sinking Fund
Payment Date
(September 1)
Bonds
Minimum Sinking Fund Payment
t Maturity.
If the Bonds subject to mandatory redemption are redeemed in part prior to their stated maturity date other than from Minimum Sinking Fund Payments, the Minimum Sinking Fund Payments for such Bonds shall be reduced proportionately by the principal amount of such Bonds so redeemed.
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EXHIBIT B
FOLSOM RANCH FINAI\CING AUTHORITY
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO.23
(FOLSOM RANCH) TMPROVEMENT AREA NO.3
SPECIAL TAX REVENUE BONDS
SERIES 2022
LETTER OF REPRESENTATIONS OF THE DISTRICT
_,2022
Piper Sandler & Co.
3 626 F air Oaks Boulevard
Sacramento, California 9 5864
City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Bonds, Series 2022
Ladies and Gentlemen:
In connection with the proposed offer and sale of the above-referenced bonds (the "special Tax Bonds"), the City of Folsom Community Facilities District No. 23 (Folsom Ranch) (theooCommunity Facilities District") hereby represents and covenants to Piper Sandler & Co., as underwriter (the "Underwriter") of the Folsom Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Revenue Bonds, Series 2022 (he "Bonds"), as follows:
A. The City of Folsom (the "City") is duly organized and validly existing as a municipal corporation and charter city under the Constitution and laws of the State of California and the Charter and the Community Facilities District is a community facilities district organized and existing pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part l, Division 2,Title 5 of the Government Code of the State of California.
B. The City has duly authorized the formation of the Community Facilities District and the establishment of Improvement Area No. 3 therein (the "Improvement Area") pursuant to resolutions and an ordinance duly adopted by the City Council (collectively, the "Community Facilities District Formation Resolution" and, together with Resolution No. 10835 authorizing the issuance and sale of the Special Tax Bonds, the "Community Facilities District Resolutions") and the Community Facilities District Act. The City Council, acting as the legislative body of the Community Facilities District has duly adopted the Community Facilities District Resolutions, and has caused to be recorded in the real property records of the County of Sacramento, a notice of special tax lien (the "Notice of Special Tax Lien") (the Community Facilities District Formation Resolution and Notice of Special Tax Lien being collectively referred to herein as the "Formation Documents"). Each of the Formation Documents remains in full force and effect as of the date hereofand has not been amended.
Re:
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C. The Community Facilities District has, and at the Closing Date will have, as the case may be, full legal right, power and authority: (i) to execute, deliver and perform its obligations under the District Indenture, ihe Trust Agreement, the Continuing Disclosure Certificate and the Local Obligation Purchase Contract, and to carry out all transactions contemplated by each of such documents; (ii) to issue, sell and deliver its Special Tax Bonds to the Authority; and (iii) to carry out, give effect to'and consummate the transactions contemplated by the Formation Documents, the birt irt Indenture, the Trust Agreement, the Local Obligation Purchase Contract, the Special Tax Bonds, this Letter of Representations, the Continuing Disclosure Certificate and the Official Statement.
This Letter of Representations, the Trust Agreement, the District Indenture, the Local Obligation Purchase Contract, the Special Tax Bonds and the Continuing Disclosure Certificate are collectively referred to herein as the "District Documents'" D. The Community Facilities District has complied, and will at the Closing Date be in compliance in all material respects, with the Formation Documents and the District Documents, and immaterial noncompliance by the Community Facilities District, if any, will not impair the ability of the Community Facilities District to carry out, give effect to or consummate the transactions contemplated by the foregoing. From and after the date of issuance of its Special Tax Bonds, the Community Facilities District will continue to comply with the covenants of the Community Facilities District contained in the District Documents.
E. Except as described in the Preliminary Official Statement, the Community Facilities District is not, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State of California, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenfure, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance of its obligations under the District Documents and compliance with the provisions of each thereof, or the perf6rmance of the conditions precedent to be performed by the Community Facilities District pursuant to the District Documents, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner that would materially and adversely affect the performance by the Community Facilities District of its obligations under the District Documents or the performance of the conditions precedent to be performed by the Community Facilities District pursuant to the District Documents.
F. Except as may be required under the 'oblue sky" or other securities laws of any jurisdiction, all approvals, consents, authorizations, elections and orders of, or filings or registrations with, any governmental authority, board, agency or commission having jurisdiction which would constitutl a condition precedent to, or the absence of which would materially adversely affect, the performance by the Community Facilities District of its obligations under the District Documents, ^have
been or will be obtained at the Closing Date and are or will be in full force and effect at the Closing Date.
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G. The District Documents conform as to form and tenor to the descriptions thereof contained in the Preliminary Official Statement.
H. The Special Tax Bonds are payable from the Special Tax, as set forth in the District Indenture, the levy of which has been duly and validly authorized pursuant to the Community Facilities District Act and the Special Tax within the Improvement Area will be fixed and levied in an amount which, together with other available funds, is required for the payment of the principal of, and interest on, the Special Tax Bonds when due and payable, all as provided in the District Indenture. The Community Facilities District has covenanted to cause the Special Tax to be levied and collected at the same time and in the same manner as ordinary ad valorem property taxes.
I. The District Indenture creates a valid pledge of, first lien upon and security interest in, the Special Tax, and in the moneys in the Special Tax Fund established pursuant to the District Indenture, on the terms and conditions set forth in the District Indenture.
J. Except as disclosed in the Preliminary Official Statement, there are, to the best of the Community Facilities District's knowledge, no entities with outstanding assessment liens against any of the properties within the Improvement Area or which are senior to or on a parity with the Special Tax referred to in paragraph (H) hereof.
K. The information contained in the Preliminary Official Statement (other than statements therein pertaining to the Authority, DTC and its book-entry system and under the caption "PROPOSED PROPERTY DEVELOPMENT -
Property Ownership,)) 4- Development Plan and
Status of Development," 6(- psyslspment Plans of Finance" and "CONTINUING DISCLOSURE - The Developer," as to which no view is expressed) does not and shall not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and, upon delivery and up to and including 25 days after the End of the Underwriting Period (as defined in paragraph (L) below), the Official Statement will be amended and supplemented so as to contain no misstatement of any material fact or omission of any statement necessary to make the statements contained therein, in the light of the circumstances in which such statements were made, not misleading.
L. Up to and including 25 days after the End of the Underwriting Period, the Community Facilities District will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably *ithh"ld. The Community Facilities District will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise materially affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds. As used herein, the term "End of the Underwriting Period" means the later of such time as:
(i) the Bonds are delivered to the Underwriter; or (ii) the Underwriter does not retain, directly or as a member of an underwriting syndicate, an unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the End of the Underwriting Period shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be a written notice delivered to the City at or prior to the Closing Date, and shall specifr a date (other than the Closing Date) to be deemed the "End of the Underwriting Period'" B-3
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M. There is no action pending (notice of which has been served on the Community Facilities District or the City) or to the best knowledge of the Community Facilities District threatened, in which any such action: (i) in any way questions the existence of the Community Facilities District or the titles of the officers of the City to their respective offices; (ii) affects, contests or seeks to prohibit, restrain or enjoin the issuance or delivery of the Bonds or the Special Tax Bonds or the payment or collection of the Special Tax or any amounts pledged or to be pledged to pay the principal of and interest on the Special Tax Bonds or the Bonds, or in any way contests or afficis the validity of the Formation Documents or the District Documents or the consummation of the transactions on the part of the Community Facilities District contemplated thereby; (iii) contests the exemption of interest on the Bonds or the Special Tax Bonds from federal or State income taxation, as applicable, or contests the powers of the City or the Community Facilities District which may result in any material adverse change relating to the financial condition of the Community Facilities District; or (iv) contests the completeness or accuracy of the Preliminary Official Statement or any supplement or amendment thereto or asserts that the Preliminary Official Statement contained any untrue statement of a materi al fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and there is no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clauses (i) through (iv) of this sentence.
N. Any certificate signed on behalf of the Community Facilities District by any officer or employee of the City authorized to do so shall be deemed a representation by the Community Faciliiies District to the Authority and the Underwriter on behalf of itself and the Community Facilities District as to the statements made therein.
O. At or prior to the Closing, the Community Facilities District will have duly authorized, executed and delivered the Continuing Disclosure Certificate in substantially the form attached as Appendix D to the Official Statement. Except as disclosed in the Preliminary Official Statement, the City has not failed to comply in all respects with any previous undertakings with regard to the Rule to provide annual reports or notices of material events in the last five years' P. The Community Facilities District will apply the proceeds of its Special Tax Bonds in accordance with the District Indenture.
a. Between the date of the Purchase Agreement and the date of Closing, the Community Facilities District will not offer or issue any bonds, notes or other obligations for borrowed money not previously disclosed to the Underwriter.
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Capitalizedterms not otherwise defined herein shall have the meaning ascribed to them in the Bond Purchase Agreement by and between the Authority and the Underwriter.
CITY OF FOLSOM COMMUNITY FACILITIES
DrsTRrcr No. 23 (FOLSOM RANCH)
Finance Director of the City of Folsom
By
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07/12/2022 Item No.11.
EXHIBIT C
FOLSOM RANCH FINANCING AUTHORITY
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 23
(FOLSOM RANCH) IMPROVEMENT AREA NO. 3
SPECIAL TAX REVENUE BONDS
SERIES 2022
LETTER OF REPRESENTATIONS OF
TOLL WEST INC., DIB/ATOLL BROTHERS WEST INC.
2022_)
Folsom Ranch Financing Authority
50 Natoma Street
Folsom, California 95630
City of Folsom Community Facilities District No. 23
(Folsom Ranch)
50 Natoma Street
Folsom, California 95630
Piper Sandler & Co.
3626Fair Oaks Boulevard, Suite 100
Sacramento, California 9 5864
Ladies and Gentlemen:
Reference is made to the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Revenue Bonds, Series 2022 (the "Bonds") and to the Bond Purchase Agreement to be entered into in connection therewith (the "Purchase Agreement"). This Letter of Representations of Toll West Inc., dlblaToll Brothers West Inc., a Delaware corporation (the "Letter of Representations") is delivered pursuant to the Purchase Agreement. Capitalized terms used and not otherwise defined herein have the meanings ascribed to them in the Purchase Agreement.
The undersigned certifies that he or she is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer or representative of Toll West Inc., dlbla Toll Brothers West Inc., a Delaware corporation (the "Developer"), and the undersigned, on behalf of the Developer further certifies as follows:
1. The Developer is a limited liability company validly existing and in good standing under the laws of the State of California and is duly registered to transact intrastate business in the State of California and is in good standing in the State of California and has all requisite right, power and authority: (i) to execute and deliver this Letter of Representations; (ii) executive and deliver the Developer Continuing Disclosure Certificate; and (iii) to undertake all of the transactions on its part described in the Preliminary Official Statement. c-l
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2. As set forth in the Preliminary Official Statement, certain property within Improvement Area No. 3 (the "Improvement Area") of City of Folsom Community Facilities District No. 23 (Folsom Ranch) (the "Community Facilities District") is held in the name of the Developer or its Affiliatesl (herein the "Property"). The undersigned, on behalf of the Developer, makes the representations herein with respect to all such Property.
3. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned,t (u) the Developer and its Affiliates are not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond or note (collectively, the "Material Agreements") to which the Developer or its Affiliates are a party or otherwise subject, which breach or default could reasonably be expected to materially and adversely affect the Developer's ability to complete the development of the Property as described in the Preliminary Official Statement or to pay the Special Tax on the Property (to the extent the responsibility of the Developer or its Affiliates) prior to delinquency and (b) no event has occured and is continuing that with the passage of time or giving of notice, or both, would constitute such a breach or default.
4. To the Actual Knowledge of the Undersigned, neither the Developer, nor any of its Affiliates is in default on any obligation to repay borrowed money, which default is reasonably likely to materially and adversely affect the Developer's ability to complete the development of the Property as described in the Preliminary Official Statement or to pay the Special Tax on the Property (to the extent the responsibility of the Developer or its Affiliates) prior to delinquency.
5. Except as set forth in the Preliminary Official Statement, no action, suit, proceeding, inquiry or investigation at law or in equity, before or by any court, regulatory agency, public board or body is pending against the Developer (with proper service of process or proper notice to the Developer having been accomplished) or, to the Actual Knowledge of the Undersigned, is pending against any current Affiliate (with proper service of process to such Affiliate having been accomplished) or to the Actual Knowledge of the Undersigned is threatened in writing against the Developer or any such Affiliate which if successful, is reasonably likely to materially and adversely affect the Developer's ability to complete the development of the Property as described in the Preliminary Official Statement or to pay the Special Tax or ad valorem tax obligations on its Property (to the extent the responsibility of the Developer or its Affiliates) prior to delinquency. 1 "Affili"t." means, with respect to a Person (i) any other Person directly, or indirectly through one or more intermediaries, controlling, controlled by or under common control with such Person, and (ii) for whom information, including financial information or operating dat4 concerning such Person referenced in clause (i) is material to potential investors in their evaluation of the Improvement Area and investment decision regarding the Bonds (i.e., information relevant to the Developer's development plans with respect to its Property and the payment of its Special Tax on the Property prior to delinquency, or such Person's assets or funds that would materially affect the Developer's ability to develop its Property as described in the Preliminary Official Statement or to pay its Special Tax on the Property prior to delinquency). "Person" means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. For purposes hereof the term "control" (including the terms "controlling," "controlled by" or "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
2 As used in this Letter of Representations, the phrase "Actual Knowledge of the Undersigned" shall mean the knowledge of the undersigned as of the date hereof obtained from interviews with such current officers and responsible employees of the Developer and its Affiliates as the undersigned has determined are likely, in the ordinary course oftheir respective duties, to have knowledge ofthe matters set forth herein. The undersigned has not conducted any extraordinary inspection or inquiry otherthan such inspections or inquiries as are prudent and customary in connection with the ordinary course of the Developer's current business and operations.
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6. To the Actual Knowledge of the Undersigned as of the date thereof, the Preliminary Official Statement, solely with respect to information contained therein with respect to the Developer, its Affiliates, ownership of the Property, the Developer's development plan, the Developer's financing plan, the Developer's lenders, if any, and contractual arrangements of the Developer or any Affiliates (including, if material to the Developer's development plan or the Developer's financing plan, other loans of such Affiliates) as set forth under the caption "PROPOSED PROPERTY DEVELOPMENT" is true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
7. The Developer covenants that, while the Bonds or any refunding obligations related thereto are outstanding, the Developer and its Affiliates which it controls will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the Community Facilities District or the Improvement Area, to challenge the adoption of Ordinance No. 1305 of the City levying the Special Tax within the Improvement Area, to invalidate the Community Facilities District, the Improvement Area or any of the Bonds or any refunding bonds related thereto, or to invalidate the special tax liens imposed under Section3115.5 of the Streets and Highways Code based on recordation of the amended notice of special tax lien relating thereto. The foregoing covenant shall not prevent the Developer in any way from bringing any other action, suit or proceeding including, without limitation, (a) an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the Community Facilities District's Rate and Method of Apportionment of Special Taxes for the Improvement Area pursuant to which the Special Tax is levied, or (b) an action or suit with respect to the application or use of the Special Tax levied and collected.
8. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer is not aware that any other public debt secured by a tax or assessment on the Properly exists or is in the process of being authorized or any assessment districts or community facilities districts have been or are in the process of being formed that include any portion of the Property.
9. The Developer has been developing or has been involved in the development of numerous projects over an extended period of time. It is likely that the Developer has been delinquent at one time or another in the payment of ad valorem property taxes, special assessments or special taxes. However, except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, neither the Developer nor any Affiliate is currently in default in, or in the last five (5) years has ever defaulted to any material extent in the payment of any ad valorem property tax, special assessment or special tax on property owned by the Developer or any Affiliate within the boundaries of a community facilities district or an assessment district within California that (a) caused a draw on a reserve fund relating to such assessment district or community facilities district financing or (b) resulted in a foreclosure action being commenced against the Developer or any such Affiliate.
10. The Developer intends to comply with the provision of the Mello-Roos Community Facilities District Act of 1982, as amended, relating to the Notice of Special Tax described in Government Code Section 5334I.5 in connection with the sale of the Property, or portions thereof. c-3
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I 1. To the Actual Knowledge of the Undersigned, the Developer is able to pay its bills as they become due and no legal proceedings are pending against the Developer (with proper service of process to the Developer having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened in writing in which the Developer may be adjudicated as bankrupt or discharged from any and all of its debts or obligations, or granted an extension of time to pay its debts or obligations, or be allowed to reorganize or readjust its debts, or be subject to control or supervision of the Federal Deposit Insurance Corporation.
12. To the Actual Knowledge of the Undersigned, Affiliates of the Developer are able to pay their bills as they become due and no legal proceedings are pending against any Affiliates of the Developer (with proper service of process to such Affiliate having been accomplished) or to the Actual Knowledge of the Undersigned, threatened in writing in which the Affiliates of the Developer may be adjudicated as bankrupt or discharged from any or all of their debts or obligations, or granted an extension of time to pay their debts or obligations, or be allowed to reorganize or readjust their debts or obligations, or be subject to control or supervision of the Federal Deposit Insurance Corporation.
13. If between the date hereof and the Closing Date any event relating to or affecting the Developer, its Affiliates, ownership of the Property, the Developer's development plan, the Developer's financing plan, the Developer's lenders, if any, and contractual arrangements of the Developer or any Affiliates (including, if material to the Developer's development plan or the Developer's financing plan, other loans of such Affiliates) shall occur of which the undersigned has actual knowledge and which the undersigned believes would cause the information under the sections of the Preliminary Official Statement indicated in Paragraph 6 hereof, to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the undersigned shall notify the City and the Underwriter and if in the opinion of counsel to the City or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Preliminary Official Statement, the Developer shall reasonably cooperate with the City in the preparation of an amendment or supplement to the Preliminary Official Statement in form and substance reasonably satisfactory to counsel to the City and to the Underwriter.
14. For the period through 25 days after the "End of the Underwriting Period" as defined in the Purchase Agreement, if any event relating to or affecting the Developer, its Affiliates, ownership of the Property, the Developer's development plan, the Developer's financing plan, the Developer's lenders, if any, and contractual arrangements of the Developer or any Affiliates (including, if material to the Developer's development plan or the Developer's financing plan, other loans of such Affiliates) shall occur as a result of which it is necessary, in the opinion of the Underwriter or counsel to the City, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, the Developer shall reasonably cooperate with the City and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance reasonably satisfactory to the Underwriter and Disclosure Counsel which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. c-4
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15. The Developer agrees to deliver a Closing Certificate dated the date of issuance of the Bonds at the time of issuance of the Bonds in substantially the form attached as Exhibit D to the Purchase Agreement.
16. The Developer agrees to deliver the Developer Continuing Disclosure Certificate in substantially the form attached as Appendix D to the Preliminary Official Statement.
17. On behalf of the Developer, I have reviewed the contents of this Letter of Representations and have met with counsel to the Developer for the purpose of discussing the meaning of its contents.
The undersigned has executed this Letter of Representations solely in his or her capacity as an officer or authorized representative of Developer and he or she will have no personal liability arising from or relating to this Letter of Representations.
TOLL WEST rNC., D{BIA TOLL BROTHERS
WEST INC., a Delaware corporation
By:
Its:
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EXHIBIT D
FOLSOM RANCH FINA}ICING AUTHORITY
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO.23
(FOLSOM RANCH)
SPECIAL TAX REVENUE BONDS
SERIES 2022
cLosING CERTIFICATE OF TOLL WEST INC., D|B/A TOLL BROTHERS WEST rNC. 2022
-,
Folsom Ranch Financing AuthoritY
50 Natoma Street
Folsom, CA,95630
City of Folsom Community Facilities DistrictNo. 23
(Folsom Ranch)
50 Natoma Street
Folsom, CA,95630
Piper Sandler & Co.
3626 F air Oaks Boulevard
Sacramento, California 9 5864
Ladies and Gentlemen:
Reference is made to the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Revenue Bonds, Series 2022 (the "Bonds") and to the Bond Purchase Agreement, dated -,2022
(the "Purchase
Agreement"), entered into in connection therewith. This certificate is delivered by Toll West Inc., dlbla toll Brothers West Inc., a Delaware corporation (the "Developer") pursuant to the Purchase Agreement' Capitalized terms used herein or in the Leffer of Representations (defined below) and not otherwise defined have the meanings ascribed to them in the Purchase Agreement. A copy of a Leffer of Representations (the "Letter of Representations"), dated , 2022, delivered by the Developer, is attached hereto as Exhibit A.
The undersigned certifies that he or she is familiar with the facts herein certified and is authorized and qualified to certifi' the same as an authorized officer or representative of the Developer, and the undersigned, on behalf of the Developer, further certifies as follows:
1. The Developer has received the final Official Statement relating to the Bonds. Each statement, representation and warranty made in the Letter of Representations is true and correct in all material respicts on and as of the date hereof with the same effect as if made on the date hereof, except that all refeiences therein to the Preliminary Official Statement shall be deemed to be references to the final Official Statement.
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2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Preliminary Official Statement affecting the statements and information described in Paragraph 6 of the Letter of Representations relating to the Developer, its Affiliates, ownership of the Property, the Developer's development plan, the Developer's financing plan, the Developer's lenders, if any, and contractual arrangements of the Developer or any Affiliates (including, if material to the Developer's development plan or the Developer's financing plan, other loans of such Affiliates) which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make such statements and information contained in the Official Statement not misleading in any material respect.
3. The Developer has duly and validly executed and delivered the Developer Continuing Disclosure Certificate.
4. The undersigned has executed this Certificate solely in his or her capacity as an officer of Developer and he or she will have no personal liability arising from or relating to this Certificate.
TOLL WEST rNC., D{B/A TOLL BROTHERS
WEST INC., a Delaware corporation
By:
Its:
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EXHIBIT E
SUPPLEMENTAL OPINION OF BOND COUNSEL
2022
-,
Piper Sandler & Co., as Underwriter
Sacramento, California
Folsom Ranch Financing AuthoritY
City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3
Tax Revenue Bonds. Sefies2022
(Supplemental OPinion)
Ladies and Gentlemen:
This letter is addressed to you, as Undenvriter, pursuant to Section 4.F.7. of the Bond Purchase Agreement, dated _) 2022 (the "Purchase Agreement"), between you and the Folsom Ranch Financing Authority (the "Authority"), providing for the purchase of $- aggregate principal u-ount of Folsom Ranch Financing Authority City of Folsom Community Facilities bitt iit No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Revenue Bonds, Series 2022 (the "Bonds"). The Bonds are being issued pursuant to a Trust Agreement, dated as of -
1,2022
(the "Trust Agreemenf'), among the Authority, the City of Folsom Community Facilities District No. 23 (Folsom Ranch) (the "Community Facilities District") and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"). Capitalizedterms not otherwise defined herein shall have the meanings ascribed thereto in the Trust Agreement or, if not defined in the Trust Agreement, in the Purchase Agreement.
We have delivered our final legal opinion (the "Bond Opinion") as bond counsel to the Authority concerning the validity of the Bonds and certain other matters, dated the date hereof and addressed to the Authority. You may rely on such opinion as though the same were addressed to you.
In connection with our role as bond counsel to the Authority, we have reviewed the Purchase Agreement; the Trust Agreement; the Local Obligations Indenture; the Tax Certificate, dated the date hereof (the "Tax Certificate"), executed and delivered by the Authority, the Community Facilities District and the City of Folsom (the "City"); certain portions of the electronic version of the preliminary official statement of the Authority, dated -_t 2022 and posted oil -:
2022, with
respect to the Bonds (the "Preliminary Official Statement") and of the electronic version of the official statement of the Authority, dated
-,2022
and posted on 2022,with respect to
the Bonds (the "Official Statement"); opinions of counsel to the Authority, the Community Facilities District and the Trustee; certificates of the Authority, the Community Facilities District, the Trustee, Integra Realty Resources (the "Appraiser"), NBS (the "special Tax Consultant"), Toll West Inc., ab|mllBrothers West Inc. (the "Developer"), and others; and such other documents, opinions and matters to the extent we deemed necessary to render the opinions and conclusions set forth herein.
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The opinions and conclusions expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. Such opinions or conclusions may be affected by actions taken or omitted or events occurring after the original delivery of the Bonds on the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions are taken or omitted or events do occur or any other matters come to our attention after the original delivery of the Bonds on the date hereof.
We have assumed the genuineness of all documents and signatures provided to us and the due and legal execution and delivery thereof by, and validity against, any parties other than the Authority.
We have assumed, without undertaking to veriff, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions, referred to in the third paragraph hereof. We have fuither assumed compliance with all covenants and agreements contained in such documents. In addition, we call attention to the fact that the rights and obligations under the Bonds, the Trust Agreement, the Local Obligations Indenture, the Tax Certificate and the Purchase Agreement and their enforceability may be subject to bankruptcy, insolvency, reorganization, receivership, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against governmental entities such as the Authority and the Community Facilities District in the State of California. We express no opinion with respect to any indemnification, contribution, liquidated damages, penalty (including any remedy deemed to constitute or to have the effect of a penalty), right of set-off, arbitration, judicial reference, choice of law, choice of forum, choice of venue, non- exclusivity of remedies, waiver or severability provisions contained in the foregoing documents, nor do we express any opinions with respect to the state or quality of title to or interest in any assets described in or as subject to the lien of the Trust Agreement or the Local Obligations Indenture or the accuracy or sufficiency of the description contained therein of, or the remedies available to enforce liens on, any such assets. We also express no opinion regarding plans, specifications, maps, financial reports or other engineering or financial details of the proceedings, or upon the Rate and Method of Apportionment for Improvement Area No. 3 of the Community Facilities District or the validity of the Special Tax levied upon any individual parcel.
Based on and subject to the foregoing, and in reliance thereon, as of the date hereof, we are of the following opinions and conclusions:
1. The Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Trust Agreement is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended.
2. The Purchase Agreement has been duly executed and delivered by, and constitutes a valid and binding obligation of, the Authority.
3. The statements contained in the Official Statement under the captions "THE BONDS," "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS" (excluding therefrom the information under the headings "-special Tax Analysis", "-Special Tax Calculation" and "-The Teeter Plan"), and "TAX MATTERS," and in APPENDIX E-"PROPOSED FORM OF OPINION OF BOND COUNSEL" and APPENDIX C-"SUMMARY OF PRINCIPAL DOCUMENTS," excluding any material that may be treated as included under such captions by cross-reference or reference to other documents or sources, insofar as such statements expressly summarize certain provisions of the Trust Agreement, or set out the content of our Bond Opinion, are accurate in all material respects.
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4. We are not passing upon and do not assume any responsibility for the accuracy, completeness or fairness of any of the statements contained in the Preliminary Official Statement or (exclpt as explicitly stated in paragraph 3 above) in the Official Statement and make no iepresentation ihat we have independently verified the accuracy, completeness or fairness of any .uih ,tut"-ents. In our capacity as bond counsel to the Authority in connection with issuance of the Bonds, we participated in conferences with your representatives, your counsel, representatives of the Community Facilities District, the City, the Authority, their counsel, representatives of the Developer and their clunsel, the Appraiser, the Special Tax Consultant and others, during which the contents of the Preliminary Official Statement or the Official Statement and related matters were discussed.
Based on oui participation in the above-mentioned conferences (which, with respect to the Preliminary Official Statement, did not extend beyond the date of the Purchase Agreement, and with respect to ihe Official Statement did not extend beyond its date), and in reliance thereon, on oral and written statements and representations of the Authority, the Community Facilities District, and others and on the records, documents, certificates, opinions and matters herein mentioned, subject to the limitations on our role as bond counsel to the Authority, we advise you as a matter of fact and not opinion that (a) no facts had come to the attention of the attorneys in our firm rendering legal services with respect to the Preliminary Official Statement which caused us to believe as of the date of the Purchase Agreement, based on the documents, drafts and facts in existence and reviewed as of that date that the Preliminary Official Statement contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (except any information marked as preliminary or subject to change, any information permitted to be omitted by Securities and ^Exchange -Commisiion
Rule l5c-12 or otherwise left blank and any other differences with the informaiion in the Official Statement), and (b) no facts had come to the attention of the attomeys in our firm rendering legal service with respect to the Official Statement which caused us to believe as of the date of the bffr"iut Statement and as of the date hereof that the Official Statement contained or contains any untrue statement of a material fact or omitted or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, we expressly exclude from the scope of this paragraph and express no opinion oi conclusion, with respect to both the Preliminary Official Statement and the Official Statement, about any CUSIP numbers, financial, accounting, statistical or economic, engineering or demographic data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions o. "*pi"5ions of opinion, any information about feasibility, valuation, appraisals, absorpiion, real estate or environmental matters, any statements about compliance with prior continuing disclosure undertakings, or any information about book-entry, DTC, Cede & Co., ratings, rating agencies, underwriters, underwriting, and the information contained in Appendices A, B, D, F and b included or refeled to therein or omitted therefrom. No responsibility is undertaken or conclusion expressed with respect to any other disclosure document, materials or activity, or as to any information from another document or source referred to by or incorporated by reference in the Preliminary Official Statement or the Official Statement.
This letter is furnished by us as bond counsel to the Authority. No attorney-client relationship has existed or exists between our firm and you in connection with the Bonds or by virtue of this letter. We disclaim any obligation to update this letter. This letter is delivered to you as Underwriter of the Bonds, is solely for your benefit as such Underwriter in connection with the original delivery of the Bonds on the date hereof, and is not to be used, circulated, quoted or otherwise referred to or relied upon for any other purpose or by any other person. This letter is not intended to, and may not, be relied upon by owners of the Bonds or by any other party to whom it is not specifically addressed.
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Very truly yours,
ORzuCK, HERRINGTON & SUTCLIFFE lt-P
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EXHIBIT F
FOLSOM RANCH FINAIICING AUTHORITY
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 23
(FOLSOM RANCH) TMPROVEMENT AREA NO.3
SPECIAL TAX REVENUE BONDS
SERIES 2022
FORM OF ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Piper Sandler & Co. (the "PSC"), hereby certifies as set forth below with respect to the sale and issuance of the above-captioned bonds (the "Bonds").
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least lUYo of such Maturity was sold to the Public is the respective price listed in Schedule A.
2. Initial Offering Price of the Hold-the-Offering-Price Maturities. (a) PSC offered the Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B.
(b) As set forth in the Bond Purchase Agreement, dated April2T,2022,by and between PSC and the Issuer, PSC has agreed in writing that (i) for each Maturity of the Hold-the-Offering- Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "hold-the-offering-price rule"); and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker-dealer who is a par1ry to the retail distribution agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold-the-Offering-Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period.
3. DeJined Terms
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "General Rule Maturities."
(b) Hold+he-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "Hold-the-Offering-Price Maturities." (c) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the April2T ,2022 (he Sale Date), or (ii) the date on which the Underwriter has sold at least 10% of such F-1
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Hold-the-Offering-Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Ho ld-the-Offering-Price Maturity.
(d) Issuer means the Folsom Ranch Financing Authority.
(e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(0 Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related pu.ty to an Underwriter.
The term oorelated party" for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is Apri\27,2022. (h) (Jnderwriter means: (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public; and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificatJrepresents PSC's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder.
The undersigned understands thitt the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Onick Herrington & Sutciiffe LLP, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
PIPER SANDLER & CO.
Name
Dated: May 11,2022
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SCHEDULE A
(Attached)
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SCHEDULE B
PRICING WIRE
(Attached)
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EXHIBIT G
FOLSOM RANCH FINA}ICING AUTHORIT}
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 23
(FOLSOM RANCH) IMPROVEMENT AREA NO. 3
SPECIAL TAX REVENUE BONDS
SERIES 2022
CERTIF'ICATE OF APPRAISER
Folsom Ranch Financing Authority
50 Natoma Street,
Folsom, CA,95630
City of Folsom Community Facilities District No. 23
(Folsom Ranch)
50 Natoma Street,
Folsom, CA,95630
Piper Sandler & Co.
3626Fair Oaks Boulevard, Suite 200
Sacramento, California 9 5864
The undersigned hereby states and certifies:
1. That he is an authorized principal of Integra Realty Resources (the "Appraiser") and as such is familiar with the facts herein certified and is authorized and qualified to certify the same.
2. That the Appraiser has prepared an appraisal report, dated -,
2022 (the
"Appraisal Report"), on behalf of the City of Folsom Community Facilities DistrictNo. 23 (Folsom nancfr; (the "Community Facilities District") and the Folsom Ranch Financing Authority (the "Authority") in connection with the Preliminary Official Statement, dated -,
2022 (the
"Preliminary Official Statement") and the Official Statement dated -,
2022 ("Official
Statement"), for the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Revenue Bonds, Senes 2022 (the "Bonds").
3. That the Appraiser hereby consents to the reproduction and use of the Appraisal Report appended to the Preliminary Official Statement and the Official Statement. The Appraiser alsb conients to the references to the Appraiser and the Appraisal made in the Preliminary Official Statement and the Official Statement.
4. In the opinion of the Appraiser the assumptions made in the Appraisal Report are reasonable. Since the date of value of the Appraisal Report, the Appraiser is not aware of any facts that would cause its opinion of value of the taxable property in Improvement Area No. 3 (the 'olmprovement Area") of the Community Facilities District to be lower than the value in the Appraisal.
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5. Each of the parcels appraised by the Appraiser is encompassed within the Improvement Area as set forth in the boundary map of the Community Facilities District.
6. That, as of the date of the Preliminary Official Statement, as of the date of the Official Statement and as of the date hereof, the Appraisal Report appended to the Preliminary Official Statement and the Official Statement, to the best of my knowledge and belief, and subject to all of the Limiting Conditions and Major Assumptions set forth in the Appraisal Report, did not and does not contain any untrue statement of a material fact or omit to state a mateial fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were made, not misleading, and no events or occuffences have been ascertained by us or have come to our attention that would substantially change the estimated values stated in the Appraisal Report.
However, we have not performed any procedures since the date of the Appraisal Report to obtain knowledge of such events or occurrences nor are we obligated to do so in the future.
7. The Community Facilities District and the Underwriter, Piper Sandler & Co., are entitled to rely on the Certificate.
Dated: _,2022 INTEGRA REALTY RESOURCES
By
Authorized Representative
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ATTACHMENT 8
07/12/2022 Item No.11.
DISTRICT CONTINUING DISCLOSURE CERTIFICATE
THIS DISTRICT CONTINUING DISCLOSURE CERTIFICATE (this "Disclosure certificate"), dated as of 2022, is executed and delivered by the City of Folsom Community Facilities District No. 23 (Folsom Ranch) (the "District") relative to the Folsom Ranch Financing Authority (the "Authority") in connection with the issuance by the Authority of the Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special TaxRevenue Bonds, Series 2022(the "Bonds"). The Bonds are being issued pursuant to a Trust Agreement (the "Trust Agreement"), among the District, the Authority and U'S. Bank Association (the "Trustee"). The District covenants and agrees as follows.
Trust Company, National
SECTION l. Purpose of the Disclosure Certificate. The Disclosure Certificate is being executed and delivered by the District for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 1 5c2-12(bX5).
SECTION 2. Definitions. In addition to the definitions set forth in the Trust Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the followin g capitalized terms shall have the following meanings:
"Annual Report" means any Annual Report provided by the District pursuant to, and as described in, Sections 3 and4 hereof.
,,Annual Report Date" means the date in each year that is nine months after the end of the District's fiscal year, which date, as of the date of this Disclosure Certificate, is April 1. ,'Dissemination Agent" shall mean NBS, or any successor Dissemination Agent desiguated in writing by the District and which has filed with the District a wriffen acceptance of such designation. .,EMMA System" means the MSRB's Electronic Municipal Market Access system, or such other electronic system designated by the MSRB.
"Financial Obligation" means, for purposes of the Listed Events set out in Section 5(a)(10) and Section 5(bX7), a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of paymint for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii)' The term ,,Financial Obligation" shall not include Municipal Securities (as defined in the Securities Exchange Act of 1934, as amended) as to which afrnal official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule.
"Listed Events" means any of the events listed in subsection (a) of Section 5 hereof. "MSRB" means the Municipal Securities Rulemaking Board, or any successor thereto' "Official Statement" means the Official Statement, dated 2022, rclating to the Bonds.
,.Participating Underwriter" means the original underwriter of the Bonds required to comply with the Rule in connection with the offering of the Bonds.
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"Rule" means Rule l5c2-12(bX5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.
SECTION 3. Provision of Annual Reports.
(a) The District shall, or shall cause the Dissemination Agent to, provide to the MSRB through the EMMA System, in an electronic format and accompanied by identifring information all as prescribed by the MSRB, an Annual Report which is consistent with the requirements of Section 4 hereof, not later than the Annual Report Date, commencing with the report for the 2021-22 Fiscal Year. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 hereof; provided, however, that the audited financial statements of the District may be submitted separately from the balance of the Annual Report, and later than the date required above for the filing of the Annual Report if not available by that date. If the District's fiscal year changes, it shall, or shall instruct the Dissemination Agent to, give notice of such change in the same manner as for a Listed Event under subsection (e) of Section 5 hereof. The first Annual Report may include the filing of or reference to the Official Statement. (b) Not later than 15 business days prior to the date specified in subsection (a) of this Section for the providing of the Annual Report to the MSRB, the District shall provide the Annual Report to the Dissemination Agent.
(c) If the Dissemination Agent is other than the District, then not later than fifteen (15) Business Days prior to said date, the District shall provide the Annual Report to the Dissemination Agent.
If the District is unable to provide the Annual Report to the MSRB by the Annual Report Date, the District shall send a notice to the MSRB in substantially the form attached as Exhibit A to the Disclosure Certificate. (d) The Dissemination Agent shall:
(i) provide any Annual Report received by it to the MSRB, as provided herein; and (ii) file a report with the District certiffing that the Annual Report has been provided pursuant to this Disclosure Certificate and stating the date it was so provided.
SECTION 4. Content of Annual Reports. The District's Annual Report shall contain or incorporate by reference the following:
(a) The District's audited financial statements, if any, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the District's audited financial statements, if any, are not available by the time the Annual Report is required to be filed pursuantto subsection (a) of Section 3 hereof, the Annual Report shall contain unaudited financial statements, and the audited financial statements, if any, shall be filed in the same manner as the Annual Report when they become available. If the District's financial statement is included or consolidated with the financial statement for the City of Folsom (the "City"),then the District shall file the City's audited financial statements as its own. (b) The following information:
(i) The principal amount of Bonds and any bonds secured by Additional Local Obligations (as defined in the Official Statement) Outstanding as of the December 31 next preceding the Annual Report Date along with debt service schedules for the Bonds and any bonds 2
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secured by Additional Local Obligations (as defined in the Official Statement) Outstanding as of such date;
(ii) The balance in each reserve account for the Local Obligations, and a statement of the required bond reserve amount, as of the December 31 next preceding the Annual Report Date; (iii) The total assessed value of all parcels within the Improvement Area on which the Special Taxes are levied, as shown on the assessment roll of the Sacramento County Assessor last equalized prior to the December 31 next preceding the Annual Report Date, and a statement of asiessed value-to-lien ratios therefor based on special tax and assessment debt, either by individual parcel or by categories (e.g., "below 3:1," "3:l to 4:1" etc.); (iv) The Special Tax delinquency rate for the Improvement Area as of the December 31 next preceding the Annual Report Date; the number of parcels within the Improvement Area delinquent in payment of special taxes as of the December 31 next preceding the Annual Report Date; the amount of each delinquency; the length of time delinquent and the date on which foreclosure was commenced, or similar information pertaining to delinquencies deemed appropriate by the District; provided, however, that parcels with aggregate delinquencies of $1,000 oi-t"ri (excluding penalties and interest) may be grouped together and such information may be provided by category;
(v) The status of foreclosure proceedings and a summary of the results of any foreclosure sales in the Improvement Area as of the December 31 next preceding the Annual Report Date;
(vi) The identity of any property owner, representing more than 5oh of the Special Tax levy, delinquent in payment of special taxes as of the December 3l next preceding the Annual Report Date;
(vii) All tentative and final maps approved and/or recorded within the Improvement Area, describing the gross acres, the planned commercial acres and the number and type of planned residential dwelling units;
(viii) The number of new building permits issued and a description of the purpose of such permits (e.g., new single-family, new multi-family, new commercial, new industrial); (ix) A land ownership summary listing the top ten Special Tax payers for the Improvement Area, as shown on the assessment roll of the Sacramento County Assessor last equalized prior to the December 3l next preceding the Annual Report Date; and (x) For the current Fiscal Year, the amount of the Effective Tax Rate Evaluation Maximum Facilities Special Tax, the Maximum Special Tax, the actual Facilities Special Tax levied within the Improvement Area and the actual Special Tax levied within the Improvement Area, with such amounts reported separately for Developed Property, Small Lot Final Map Property and Large Lot Property; provided, however, that once all Taxable Property within the Improvement Area is beveloped Property, the Maximum Special Tax and the actual Facilities Special Tax and the actual Special Tax levied may each be shown on an aggregate basis in the Annual Report. For the purposei of this subparagraph (x), all capitalizedterms used but not otherwise defined herein shall have the meanings ascribed thereto in the Amended Rate and Method of Apportionment for the Improvement Area.
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In addition to any of the information expressly required to be provided under this Section, as set forth above, the District shall provide such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the District or related public entities, which have been submitted to the MSRB through the EMMA System. The District shall clearly identifu each such other document so included by reference.
SECTION 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section, the District shall give notice, or cause notice to be given, not less than ten Business Days after the occurrence of any of the following events with respect to the Bonds:
(i) Principal and interest payment delinquencies.
(iD Unscheduled draws on debt service reserves reflecting financial difficulties. (iiD Unscheduled draws on credit enhancements reflecting financial difficulties. (iv) Substitution of credit or liquidity providers, or their failure to perform. (v) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations oftaxability, Notices of Proposed Issue IRS Form 5701 TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax-exempt status of the security.
(vi) Defeasances
(vii) Tender offers
(viii) Bankruptcy, insolvency, receivership or similar event of the obligated person.
Note: For the purposes of the event identified in subparagraph (ix), the event is considered to occur when any of the following occur: the appointment of a receiver, trustee or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision orjurisdiction over substantially all ofthe assets or business of the obligated person.
4 (ix) Rating changes.
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(x) Default, event of acceleration, termination event, modification of terms or other similar events under the terms of a financial Obligation of the District, any of which reflect financial difficulties.
(b) The District shall give notice, or cause notice to be given, not less than ten Business Days after the occurrence of any of the following events with respect to the Bonds, if material:
(i) Modifications to rights of Bond holders.
(ii) Bond calls.
(iii) Release, substitution or sale of property securing repayment of the Bonds (iv) Non-paymentrelateddefaults.
(v) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms.
(vi) Appointment of a successor or additional trustee or the change of name of a trustee.
(vii) Incurrence of a Financial Obligation of the District, or agreement to covenants, events of default, remedies, priority rights, or similar terms of a Financial Obligation of the District, any of which affect Bondholders.
(c) Whenever the District obtains knowledge of the occurrence of a Listed Event described in subsection (b) above, the District shall determine if such event would be material under applicable federal securities laws.
(d) If the District learns of the occurrence of a Listed Event described in subsection (a) of this Section, or determines that knowledge of a Listed Event described in subsection (b) of this Section would be material under applicable federal securities laws, the District shall notifu the Dissemination Agent thereof in writing and instruct the Dissemination Agent to report the occurrence pursuant to subsection (e) of this Section. If in response to a request under subsection (b) of this Section, the District determines that the Listed Event would not be material under applicable Federal securities law, the District shall so notiff the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence pursuant to subsection (e) ofthis Section.
(e) If the Dissemination Agent has been instructed by the District to report the occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with the MSRB through the EMMA System. Notwithstanding the foregoing, notice of Listed Events described in paragraph (vii) of subsection (a) ofthis Section and paragraph (ii) ofsubsection (b) ofthis Section need not be given under this subsection any earlier than the notice (ifany) ofthe underlying event is given to holders ofaffected Bonds pursuant to the Trust Agreement.
SECTION 6. Termination of Reporting Obligation. The District's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the 5
07/12/2022 Item No.11.
final maturity of the Bonds, the District shall give notice of such termination in the same manner as for a Listed Event under subsection (e) of Section 5 hereof' SECTION 7. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the District pursuant to the Disclosure Ceftificate.
SECTION 8. Amendmentl Waiver. Notwithstanding any other provision of this Disclosure Certificate, the District may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of subsection (a) of Section 3 hereof, Section 4 hereof or subsections (a) and (b) of Section 5 hereof, it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and
(c) the proposed amendment or waiver (i) is approved by Owners of the Bonds in the manner provided in the Trust Agreement for amendments to the Trust Agreement with the consent of Owners, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of Owners or Beneficial Owners of the Bonds.
If the annual financial information or operating datato be provided in the Annual Report is amended pursuant to the provisions hereof, the annual financial information containing the amended operating data -or
financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.
If an amendment is made to the undertaking specifuing the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial statements or information, in order to provide information to investors to enable them to evaluate the ability of the District to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. A notice of the change in thi accounting principles shall be given in the same manner as for a Listed Event under subsection (e) of Section 5 hereof.
SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure 6
07/12/2022 Item No.11.
Certificate. If the District chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the District shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
SECTION 10. Default. In the event of a failure of the District or the Dissemination Agent to comply with any provision of this Disclosure Certificate, any Holder or Beneficial Owner of outstanding Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the District to comply with its obligations under the Disclosure Certificate.
A default under the Disclosure Certificate shall not be deemed an Event of Default under the Trust Agreement, and the sole remedy under the Disclosure Certificate in the event of any failure of the District to comply with the Disclosure Certificate shall be an action to compel performance.
SECTION 11 T)rrfiac T*-'.-ifiac anrl I iahi l:+i^. of T\i..--;-^+;^a A aanr The Dissemination Agent shall be entitled to the protections and limitations from liability afforded to the Trustee under the Trust Agreement. The Dissemination Agent shall not be responsible for the form or content of any Annual Report or notice of Listed Event. The Dissemination Agent shall receive reasonable compensation for its services provided under this Disclosure Certificate. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the District agrees to indemnif'and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys' fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The obligations of the District under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the District, the Dissemination Agent, the Participating Underwriter and Owners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
SECTION 13. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the District has executed this Disclosure Certificate as of the date first above written.
CITY OF FOLSOM COMMUNITY
FACILITIES DISTRICT NO. 23
(FOLSOM RANCTT)
7 By:
07/12/2022 Item No.11.
EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Folsom Ranch Financing AuthorityName of Issuer:
Name of Issue: Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Revenue Bonds, Series 2022
Date of Issuance: 2022
NOTICE IS HEREBY GIVEN that the City of Folsom Community Facilities District No. 23 (Folsom Ranch) (the "District") has not provided an Annual Report with respect to the above-named Bonds as required by Section 3 of the Continuing Disclosure Certificate, dated 2022, executed by the District for the benefit of the Holders and Beneficial Owners of the above-referenced bonds. [The District anticipates that the Annual Report will be filed by Dated:
CITY OF FOLSOM COMMUNITY
FACILITIES DISTRICT NO. 23
(FOLSOM RANCTT)
By
Finance Director of the City of Folsom
8
07/12/2022 Item No.11.
ATTACHMENT 9
07/12/2022 Item No.11.
City of Folsom
City of Folsom CFD No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Bonds, Sedes 2022
SB 450 Summary / Govemment Code 5852.1*
Estimated Pat Amount $8,940,000
.{. True Intetest'C'ost (TIC) of the Bonds 5.4Ea/o
I
B, Sum of all fees and chatges paid to 3td parties $411,?50 2 c. Bond Ptoceeds Net of Reserves, Capitalized lnterest and 3rd Party Fees and Chatges
Net proceeds
Less Reserve Fund
Less Sum of all fees and charges paid to 3rd parties
Less Capitalized Interest
D. Total Payrrent Amount
Total Principal and Interest to Maturity*x
Special Tax Admin. /Continuing Disclosure Fee
Fiscal Agent Fee
Arbitrage /Rebate Fee
C ounty C<illection Chatge
$7,741,228
8,899,301
1 (718,7e0) I
(411,750)
1 Q7,$2)1
$19,833,850
19,092,850
1 585,000
3 96,000
4 22,500
5 37,500
6 *Summary leflecrs good faith estimates rc o{ 6/15/22 and all costs associated vdth the firrancingi subject to change bzsed on interest rates, market conditions, and other factors **Less Capitalized Interest
Sources:
t P..lirrrinrry Cash Flows from Piper Sandler * of 6/15/22 2 Costs oflssuance
t NBS - estimated 30 years at $19,500 pet ye t
t US Brnk - 30 years at $3,200 per year
' NBS - estimated 30 years at $750 per ye r
o NBS - estimated 30 yeats at $1,250 per yeat
FIELDMAN iROLAPP
& .\5Q-1,\.I l:s
07/12/2022 Item No.11.
Folsom Ranch Financing Authority
City of Folsom CFD No. 23 (Folsom Ranch) Improvement Area No.3 Special Tax Revenue Bonds, Series 2022
SB 450 Summary / Govemment Code 5852.1*
Estimated Pat Amount $8,940,000
I
,{, True.Interest-Cost (fIG} of the Borrds 5.45el*
I
B. Sum of all fees and charges paid to 3td paties s411,750 2 c. Bond Proceeds Net of Reserves, Capitalized Interest and 3rd Party Fecs and Chatges
Net proceeds
Less Reserve Fund
Less Sum ofail fees and chargcs paid to 3rd parties
Less Capitalized Interest
D. Total Payment Amount
Total Principal and Interest to Maturity**
Special Tax Admin. /Continuing Disclosure Fee
Fiscal Agent Fee
A*biuage /Rebate Fee
County Collection Chatge
fi7,741,228
8,899,301
1 (718,790)
1 (411,7s0)
1 (27,*2)
1 $19,79?,850
19,092,850
1 585,000
3 60,000
4 22,500
5 37,500
6 *Summary reflects good faith estimates as of 6/23/22 and all costs associated rvith the financing; subject to change based oa interest rates, market conditions, and other factors *-Less Capite li"ed Interest
Sources:
t Pr.liminzry Cash Flows ftom Piper Sandler as af 6/23/22 t Cort, of Issuance
t NBS - estimated 30 years at $19,500 per year
t US B"nl - 30 years at $2,000 per year
' NBS - estimated 30 years at $750 per year
o NBS - esrimated 30 years at $1,250 per year
F1ELDMAN:ROLAPP
& ,\S5(X'li]F.5
07/12/2022 Item No.11.
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07/12/2022 Item No.11.
Folsom Clty Council
Staff Re ort
MEETING DATE: 71t212022
AGENDA SECTION: New Business
SUBJECT: General Municipal Election -November 8,2022
l. A. Resolution No. 10889 - A Resolution Authorizingthe Submission of a Ballot Measure to the Qualified Voters
of the City to Add a Transactions and Use Tax at the Rate of One-Half Percent (0.5%), Authorizing the Filing of
Written Arguments Regarding the City's Revenue
Measure, and Directing the City Attorney to Prepare an
Impartial Analysis for Said Measure; or
B. Resolution No. 10890 - A Resolution Authorizingthe
Submission of a Ballot Measure to the Qualified Voters
of the City to Add a Transactions and Use Tax at the Rate of One Percent (l%), Authorizing the Filing of Written
Arguments Regarding the City's Revenue Measure, and
Directing the City Attorney to Prepare an Impartial
Analysis for Said Measure
2. A. Ordinance No. 1328 - An Ordinance of the People of the City of Folsom Imposing a One-Half Percent (0.5%)
Transactions and Use Tax by Adding Chapter 3.140,
"Folsom Essential City Services Maintenance and
Investment Measure", to the Folsom Municipal Code to
be Administered by the California Department of Tax
and Fee Administration (Approve Submission to
Voters); or
B. Ordinance No. 1329 - An Ordinance of the People of
the City of Folsom Imposing a One Percent (1%)
Transactions and Use Tax by Adding Chapter 3.I40,
"Folsom Essential City Services Maintenance and
Investment Measure", to the Folsom Municipal Code to
1
07/12/2022 Item No.12.
be Administered by the California Department of Tax
and Fee Administration (Approve Submission to
Voters).
FROM: City Attorney's Office
RECOMMENDATION / CITY COUNCIL ACTION
1. Staff recommends that the City Council pass and adopt either:
A. Resolution No. 10889 - A Resolution Authorizing the Submission of a Ballot Measure to the Qualified Voters of the City to Add a Transactions and Use Tax at the Rate of One-Half Percent (0.5%), Authorizing the Filing of Written Arguments Regarding the City's Revenue Measure, and Directing the City Attorney to Prepare an Impartial Analysis for Said Measure; or
B. Resolution No. 10890 - A Resolution Authorizing the Submission of a Ballot Measure to the Qualified Voters of the City to Add a Transactions and use Tax at the Rate of one Percent (l%), Authorizing the Filing of Written Arguments Regarding the City's Revenue Measure, and Directing the City Attorney to Prepare an Impartial Analysis for Said Measure.
NOTE: To be effective, the Revenue Measure requires a2l3 super-majority vote (at least 4 of 5 affirmative votes of the City Council) for placement on the November 8, 2022 ballot.
2. Staff recommends that the City Council approve one of the following Ordinances for submission to the voters of the City at the November 8, 2022 General Municipal Election:
A. Ordinance No. 1328 - An Ordinance of the People of the City of Folsom Imposing a One-Half Percent (0.5%) Transactions and Use Tax by Adding Chapter 3.l40, "Folsom Essential City Services Maintenance and Investment Measure", to the Folsom Municipal Code to be Administered by the California Department of Tax and Fee Administration; or B. Ordinance No. 1329 -An Ordinance of the People of the City of Folsom Imposing a One Percent (1%) Transactions and Use Tax by Adding Chapter 3.l40, "Folsom Essential City Services Maintenance and Investment Measure", to the Folsom Municipal Code to be Administered by the California Department of Tax and Fee Administration. 2Page 518
07/12/2022 Item No.12.
BACKGROUND / ISSUE
A Statewide General Election is scheduled to be held in Sacramento County on November 8, 2022. A General Municipal Election for the City of folsom may be consolidated with the Statewide General Election for the purpose of electing members of the City Council to fill openings due to the expiration of the current term of three Councilmembers this December, as well as submitting ballot measures to the voters as desired by the City Council.
While the election of three City Councilmembers will be by-district (i.e., only eligible voters in Council Districts 1,3, and 5 will vote for a Councilmember in their respective Districts), all eligible voters throughout the City will be able to vote to approve or reject the proposed revenue measure.
POLICY / RULE
Revenue and Taxation Code Section 7285.9 authorizes all cities to levy, increase, or extend a transactions and use tax for general pulposes, at arate of 0.125% or a multiple thereof, subject to approval of two-thirds (213) of the City Council and a majority of qualified votets voting on the issue.
Elections Code Section 9222 provides that the legislative body of a city may submit to the voters a proposition for the repeal, amendment or enactment of any ordinance at a regular city election, and if the proposition submitted receives a majority of the votes cast on it at the election, the ordinance shall be repealed, amended or enacted accordingly.
ANALYSIS
At the November 8,2022 General Municipal Election, the qualified voters of the City will be asked to elect three Councilmembers in Council Districts 1, 3, and 5 to fillthe seats following the expiration of the current terms of three Councilmembers. The election will be by-district.
Additionally, the City Council may submit ballot measures to all voters of the City at said election for consideration. Staff has presented a proposed ballot measure to enact a new sales tax in the City in the amount of either Yz centor 1 cent, as deemed appropriate and selected by the City Council.
A. Ballot Measure - City Revenue Measure (% Cent or 1 Cent Transactions and Use Tax)
During the past several years, the State of California has reduced funding for infrastructure improvements to local jurisdictions, including the City of Folsom. While many local jurisdictions had to decrease or eliminate altogether certain levels, quality and frequency of services to their residents, under City Council direction and prudent fiscal management, Folsom has weathered through some of the toughest economic challenges in recent memory without any measurable or significant impact on Folsom residents.
JPage 519
07/12/2022 Item No.12.
Nevertheless, since State funding has declined, and maintenance costs have grown, additional funding is needed to address current and long-term needs. The City is pursuing dependable and local sources of revenue in order to continue to fund and support ongoing and future services, facilities and programs including, for example, capital improvement projects such as construction of transportation and traffic improvements, parks, trails, and bike paths; efforts to promote economic development and redevelopment to attractnew businesses and employers to the City; augmentation of existing essential City services including but not limited to fire, paramedic, police emergency response and crime prevention programs; and expansion of the City's great tradition in parks and recreation, senior, library, school and education, arts, cultural and historical progmms which our citizens enjoy and/or depend upon. In order to address the widest range of core service needs, the City is contemplating placing a potential general transaction and use tax on the November 8,2022 ballot.
California Revenue and Taxation Code section 7285.9 authorizes the City Council to levy transactions and use (sales) tax via ordinance, provided that the ordinance establishing the general tax is approved by a majorrty (50% + 1) vote of the qualified voters of the city.
Currently, the cumulative tax rate on retail sales in Folsom is 7 .75Yo of the purchase price.
The tax revenue is allocated among the State, Sacramento County, the City of Folsom, and other public agencies. Folsom's share is 1.0% of the purchase price.
The City Council may submit a proposed revenue measure to the voters of the City to decide whether or not to enact a new sales tax on tangible personal property sold at retail in the City, at the rate of one-half cent for every dollar spent (%oh) or, alternatively, at the rate of one cent for every dollar spent (1%). All revenue from the new local tax stays in the City without sharing with other agencies. If passed, the proposed one-half cent revenue measure would increase the cumulative tax rate in Folsom to 8.25Yo, and Folsom's share of the purchase price would increase from 1.0% to l.5o/o. The proposed one cent revenue measure, if passed, would increase the cumulative tax rate in Folsom to 8.75%o, and Folsom's share of the purchase price would increase from 1 .0%oto 2.0%. Staff estimates that a one- half cent Measure would initially generate approximately $11 million per year, while a one cent Measure would initially generate approximately $22 million per year.
The proposed revenue measure proposes a "general" tax, from which the revenue would be deposited in the Crty's general fund for the City to use for all governmental purposes. There will be an annual audit on the proceeds and expenditure of the tax, as well as annual accounting to the City Council prior to adoption of the City budget.
If passed by a simple majority vote of the voters voting on the proposed revenue measure, the Folsom Municipal Code would be amended by the enactment of an ordinance imposing the new tax. The proposed tax would be administered by the California Department of Tax and Fee Administration, in the same manner that sales tax is currently administered, in order to reduce the cost of collecting the tax and to minimize the burden of record-keeping upon retailers subject to the tax.
Collection of the proposed tax would begin on April I,2023 and would continue until repealed by voters of the City in a future election.
4 Page 520
07/12/2022 Item No.12.
A copy of the proposed text of the Revenue Measure can be found in Attachments 3 and 6 to this Staff Report.
To be effective, the Revenue Measure requires a 2/3 super-majority vote (at least 4 of 5 affirmative votes of the City Council) for placement on the November 8r2022 ballot.
B. Written Ballot/Rebuttal Arguments
The proposed Resolution authorizes the filing of written arguments and rebuttals for the City Council-sponsored ballot measures, as well as directing the City Attorney to prepare an impartial analysis for each ballot measure.
Elections Code Secti on 9287 provides that, if more than onO argument for or against any clty measure is submitted to the city election official within the presuibed time frame, the city election official shall select one of the arguments for printing and distribution to the voters. In selecting the argument, the election official shall give preference and priority to the arguments as follows:
1. The legislative body, or member(s) of the legislative body authorizedby that body.
2. The individual voter, or bona fide association of citizens, or combination of voters and associations, who are bona fide sponsors or proponents of the measure.
3. Bona fide associations of citizens.
4. Individual voters who are eligible to vote on the measure.
Accordingly, City Council has first priority to file and submit arguments for City Council- sponsored ballot measures, and the proposed Resolution designates the Mayor and/or others selected by the Mayor who are qualified to sign arguments under the Elections Code to file written arguments regarding the ballot measure sponsored by the City Council. Pursuant to the timeline set forth in Elections Code Sections 9286 and 9295, written ballot arguments for or against a ballot measure must be filed between July 13,2022 and July 26,2022. The public examination period for arguments would be July 27 , 2022 to Aug 5 , 2022.
Pursuant to Elections Code Section 9285, rebuttal arguments must be filed between July 27, 2022 and August 5,2022. The public examination period would be August 6,2022 to August 15,2022.
The City Council may direct the City Attorney to prepare an impartial analysis on the proposed measures. The analysis would be due no later than July 26,2022. The public examination period would be July 27,2022 to August 5,2022.
FINANCIAL IMPACT
The Sacramento County Registrar of Voters has estimated the election cost at approximately $42,000 for the election of three City Council candidates. Adding an additional contest to the ballot will cost approximately an additional $5,100, based on the County's fee schedule of 5 Page 521
07/12/2022 Item No.12.
$0.1035 per registered voter for "additional contests". Funds have been budgeted within the FY 2022-23 budget to cover this expense.
ENVIRO AI, REVIE\M
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines $15061(cX3)), or are otherwise not considered a project as defined by Public Resources Code 921065 and CEQA Guidelines $15060(c)(3) and $15378. The Council's approval of the attached Resolution and Ordinance meets the above criteria and is not subject to CEQA. No environmental review is required.
ATTACHMENTS
1 . Resolution No. 10889 - A Resolution Authorizing the Submission of a Ballot Measure to the Qualified Voters of the City to Add a Transactions and Use Tax at the Rate of One- Half Percent(0.5Yo), Authorizing the Filing of Written Arguments Regarding the City's Revenue Measure, and Directing the City Attorney to Prepare an Impartial Analysis for Said Measure
2. Ordinance No. 1328 - An Ordinance of the People of the City of Folsom Imposing a One- Half Percent(0.5%) Transactions and Use Tax by Adding Chapter 3.140, "Folsom Essential City Services Maintenance and Investment Measure", to the Folsom Municipal Code to be Administered by the California Department of Tax and Fee Administration (Approve Submission to Voters)
3. Ballot Measure Language, One-Half Percent (0.5%)
4. Resolution No.10890 - A Resolution Authorizing the Submission of a Ballot Measure to the Qualified Voters of the City to Add a Transactions and Use Tax at the Rate of One Percent (l%), Authorizing the Filing of Written Arguments Regarding the City's Revenue Measure, and Directing the City Attorney to Prepare an Impartial Analysis for Said Measure
5. Ordinance No. 1329 - An Ordinance of the People of the City of Folsom Imposing a One Percent (1%) Transactions and Use Tax by Adding Chapter 3.140, ooFolsom Essential City Services Maintenance and Investment Measure", to the Folsom Municipal Code to be Administered by the California Department of Tax and Fee Administration (Approve Submission to Voters).
6. Ballot Measure Language, One Percent (1.0%)
Respectfully submitted,
6 Steven Wang, City Attorney
07/12/2022 Item No.12.
Attachment 1.
Resolution No. 10889 - A Resolution Authorizingthe Submission of a Ballot Measure to the Qualified Voters of the City to Add a Transactions and Use Tax at the Rate of One-Half Percent (0.5%), Authorizing the Filing of Written Arguments Regarding the Crty's Revenue Measure, and Directing the City Attorney to Prepare an Impartial Analysis for Said Measure
07/12/2022 Item No.12.
RESOLUTION NO. 10889
A RESOLUTION AUTHORIZING THE SUBMISSION OF A BALLOT MEASURE TO
THE QUALIFIED VOTERS OF'THE CITY TO ADD A TRANSACTIONS AND USE TAX AT THE RATE OF ONE-HALF PERCENT (0.5%)o AUTHORIZING THE FILING
OF WRITTEN ARGUMENTS REGARDING THE CITY'S REVENUE MEASURE, AND
DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS FOR
SAID MEASURE
WHEREAS, under the provisions of the Charter of the City of Folsom and the Folsom Municipal Code, a General Municipal Election shall be held onNovember 8,2022 for the election of three City Councilmembers; and,
WHEREAS, Revenue and Taxation Code Section 7285.9 authorizes all cities to levy, increase, or extend atransactions and use tax for general purposes, atarate of0.l25Yo or a multiple thereof, subject to approval of two-thirds (213) of the City Council and a majority of qualified voters voting on the issue; and,
WHEREAS, an election regarding the increase of a transactions and use tax for general pulposes must be consolidated with a regularly scheduled general election for the City Council, except in cases of an emergency declared by a unanimous vote of the City Council; and, WHEREAS, the City Council desires to submit a ballot measure on a transactions and use tax to the voters of the City of Folsom at a General Municipal Election to be held in the City on November 8,2022.
NOW' THEREFORE' BE IT RESOLVED by the City Council of the City of Folsom as follows:
SECTION 1. Pursuant to Article XI, $5 and Article XIII C, $2 of the California Constitution, Elections Code Section 9222, Folsom Municipal Code Section 2.40.010 and Revenue and Taxation Code Section 7285.9, a General Municipal Election is called and ordered to be held in the City of Folsom, California, on Tuesday, November 8,2022 for the purpose of submitting the following proposed Revenue Measure to the voters of the City:
07/12/2022 Item No.12.
CITY OF'FOLSOM
MEASURE (a ,,
FOLSOM ESSENTIAL CITY SERVICES MAINTENANCE AND
INVESTMENT MEASURE
To maintain and enhance essential City of Folsom services/ facilities, such as:
maintaining 9-1-l emergency firefighter/ medical response times; enhancing and maintaining parks/ trails; repairing potholes/ city streets; enhancing wildfire prevention/ neighborhood fire protection; and maintaining neighborhood police patrols; shall the City of Folsom measure be adopted establishing a one-half cent sales tax, providing $11,000,000 annually, for general government use, until ended by voters, requiring local control, citizen oversight and independent annual audits, and all funds staying in Folsom?
SECTION 2. The complete text of the proposed measure to be submitted to the voters in Section t hereof is attached hereto as Exhibit "A". The full text of the Ordinance will not be printed in its entirety in the County Voter Information Guide. Relevant information will be provided within the Impartial Analysis, and a full copy of the text is on file in the Office of the City Clerk.
SECTION 3. The vote requirement for the measure, submitted to the voters in Section 1 hereof, to pass is a simple majority (50% + 1) of the votes cast.
SECTION 4. The City Council authorizes pursuant to Elections Code Section 9282(b) the following:
The Mayor andlor Others Selected by the Mayor Who are Qualified to Sign Arguments under the Elections Code
a
to file a written argument not exceeding 300 words regarding the City measure as specified in Section 1, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with California Elections Code Section 9282. The arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk.
The arguments shall be filed with the City Clerk, signed, with 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 at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Filer Statement Form to be filed by author(s) of argument.
Resolution No. 10889
07/12/2022 Item No.12.
SECTION 5. The City Council adopts Elections Code Section9285 to accept rebuttal arguments. The rebuttal arguments shall be filed with the City Clerk, signed, with 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 at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Filer Statement Form to be filed by author(s).
SECTION 6. The City Council directs the City Clerk to transmit a copy of the measure to the City Attorney, unless the organization or salaries of the Office of the City Attorney are affected. The City Attorney shall prepare an impartial analysis of said measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of said measure. If any measure affects the organization or salaries of the Office of the City Attorney, the City Clerk shall prepare the impartial analysis. The analysis shall include a statement indicating whether any measure was placed on the ballot by a petition signed by the requisite number of voters or by the goveming body of the City. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than l0-point, the following: "The above statement is an impartial analysis of the measure. If you desire a copy of the measure, please call the election official's office at: 916-461-6035 or email [email protected] and a copy will be provided at no cost to you." The impartial analysis shall be frled by the date set by the City Clerk for the filing of primary arguments.
SECTION 7. The ballots to be used at the election shall be in form and content as required by law.
SECTION 8. Said General Municipal Election hereby called shall be held and conducted, and the votes there at received and canvassed, and the returned thereof made, and the result thereof ascertained and determined in accordance with the general election laws of the State of California, except as herein provided.
SECTION 9. All persons qualified to vote at municipal elections in the City of Folsom shall be qualified to vote at said General Municipal Election.
SECTION 7. The City Clerk is authorized, instructed, and directed to coordinate with the Clerk and Registrar of Voters of the County of Sacramento to procure and furnish any and all official ballots, notices, printed matter, and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.
SECTION 1,0. Unless a longer period is provided by the County Elections Department, the polls shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, pursuant to California Elections Code 510242, except as provided in the California Elections Code $14401.
SECTION 11. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
Resolution No. 10889
07/12/2022 Item No.12.
SECTION 12. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form, and manner as required by law.
SECTION 13. The full text of the revenue measure Ordinance will not be printed in its entirety in the Sample Ballot. Relevant information will be provided within the Impartial Analysis for each measure and a full copy of the text is on file in the Offrce of the City Clerk.
SECTION 14. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.
SECTION 15. At the next regular meeting of this City Council occurring after the retums of said General Municipal Election have been canvassed, and the certification of the results thereof to this City Council, or at a special meeting called thereafter for such purpose, this City Council shall cause to be spread upon its minutes a statement of the results of said General Municipal Election as ascertained by said canvass.
SECTION 16. The City Clerk shall certifr to the passage and adoption of this Resolution and enter it into the book of original Resolutions, and to take other appropriate actions necessary to ensure the placement of said proposition before the voters of the City of Folsom at said General Municipal Election.
PASSED AND ADOPTED this 12th day of July,2022 by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Member(s):
Council Member(s):
Council Member(s):
Council Member(s):
Keni M. Howell, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
List of Exhibit:
Exhibit A - Folsom Essential City Services Maintenance and Investment Measure Resolution No. 10889
07/12/2022 Item No.12.
Attachment 2.
Ordinance No. 1328 - An Ordinance of the People of the City of Folsom Imposing a One-Half Percent (0.5%) Transactions and Use Tax by Adding Chapter 3.I40, "Folsom Essential City Services Maintenance and Investment Measure", to the Folsom Municipal Code to be Administered by the California Department of Tax and Fee Administration (Approve Submission to Voters)
07/12/2022 Item No.12.
EXHIBIT A
TO
RESOLUTION NO. 10889
Folsom Essential City Services Maintenance and Investment Measure Measure to be Submitted Directly to the Voters
ORDINANCE NO. 1328
AN ORDINANCE OF THE PEOPLE OF CITY OF FOLSOM IMPOSING A ONE.
HALF PERCENT (0.5%) TRANSACTIONS AND USE TAX BY ADDING
CHAPTER 3.140, "FOLSOM ESSENTIAL CITY SERVICES MAINTENANCE AND INVESTMENT MEASURE'" TO THE FOLSOM MUNICIPAL CODE TO
BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION
WHEREAS, many residents live in the City of Folsom because the City offers a higher level of amenities, service, programs, and quality of life than in neighboring cities, and creating and preserving local revenue sources will ensure that the City can maintain and improve the quality of the amenities, services, and programs that residents desire and expect; and
WHEREAS, many businesses operate and thrive in the City due to the City's business-friendly environment, robust and year-round recreational activities and events, high-quality public facilities and amenities, as well as proactive economic development efforts, all leading to a higher level of shopping experience; and WHEREAS, the City's unique geography, with its lakes, creeks, trails, bikeways and scenic hillsides, combined with the age of its infrastructures such as roads, sidewalks, public buildings and drainage systems, make it an expensive City to maintain.
WHEREAS, during each of the past several years, the State of California has reduced funding for infrastructure improvements to local jurisdictions, including the City of Folsom; and,
WHEREAS, the City needs dependable and local sources of revenue to fund and to support locally-controlled, strategically enhanced spending on services, facilities and programs including, for example, capital improvement projects such as construction of transportation and traffic improvements, parks, trails, and bike paths; efforts to promote economic development and redevelopment to attract new businesses and employers to the City; augmentation of existing essential City services including but not limited to fire, paramedic, police emergency response and crime prevention programs; and expansion of 1
07/12/2022 Item No.12.
the City's great tradition in parks and recreation, senior, library, school and education, arts, cultural and historical programs which our citizens enjoy and/or depend upon.
BE IT ORDAINED BY THE PEOPLE OF'' THE CITY OF FOLSOM AS F'OLLOWS:
SECTION 1. ADDITION TO CODE
Chapter 3.140, ooFolsom Essential City Services Maintenance and Investment Measure", is hereby added to the Folsom Municipal Code to read as follows:
Chapter 3.140
F'OLSOM ESSENTIAL CITY SERVICES MAINTENANCE
AND INVESTMENT MEASURE
(General Transactions (Sales) and Use Tax)
Sections:
3.140.010
3.140.020
3.140.030
3.140.040
3.140.050
3.r40.060
3.140.070
3.140.080
3.140.090
3.140.100
3.140.110
3.140.120
3.r40.130
3.140.140
3.140.150
3.140.160
3.140.170
3.140.180
3.140.190
Chapter Title.
Need for Chapter.
Operative Date.
Purpose.
Contract with State.
Transactions Tax Rate.
Place of Sale.
Use Tax Rate.
Adoption of Provisions of State Law.
Limitations on Adoption of State Law and Collection of Use Taxes.
Permit Not Required.
Exemptions and Exclusions.
Amendments.
Enj oining Collection Forbidden.
Citizens Oversight Committee
Accounting and Report.
Independent Audit.
Authority to Amend.
Termination Date.
3.140.010 Chapter Title.
This Chapter shall be known as the o'Folsom Essential City Services Maintenance and Investment Measure" (the "Measure"). This Chapter shall be applicable in the incorporated territory of the City.
2 Page 530
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3.140.020 Need for Chapter.
The People of the City of Folsom declare that this Chapter, pursuant to the Measure, is adopted as a general tax to provide funding for general governmental pu{poses, which are funded by the City's General Fund.
3.140.030 Operative Date.
The general transactions and use tax imposed hereunder shall be operative the first day of the first calendar quarter commencing more than 110 days after the adoption of this Chapter ("Operative Date"). Based on a November 8,2022 election, the Operative Date for the general transactions and use tax imposed hereunder shall be April 1, 2023, and the revenue from said tax can be spent for unrestricted general revenue purposes.
3.140.040 Purpose.
Pursuant to the requirements of the California Department of Tax and Fee Administration, this Chapter is adopted to achieve the following, among other pu{poses, and directs that the provisions hereof be interpreted in order to accomplish those purposes :
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with SectionT2ll) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1 .7 of Division 2, and which authorizes the City to adopt this tax ordinance, which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
J Page 531
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D. To adopt arctail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimizethe burden of record keeping upon persons subject to taxation under the provisions of this Chapter.
3.140.050 Contract with State.
Prior to the Operative Date of this Chapter, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax imposed under this Chapter; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the Operative Date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.140.060 Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated tenitory of the City at the rate of one-half of one percent (0.50%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the Operative Date of this Chapter.
3.140.070 Place of Sale.
For the pu{poses of this Chapter, all retail sales are consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer, or his or her agent, to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State, or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.140.080 Use Tax Rate.
An excise tax is hereby imposed on the storage, use, or other consumption in the City of tangible personal property purchased from any retailer on and after the Operative Date of this Chapter for storage, use, or other consumption in the City at the rate of one-half of one percent (0.50%) of the sales price of the property. The sales price shall include 4 Page 532
07/12/2022 Item No.12.
delivery charges when such charges are subject to the State sales or use tax regardless of the place to which delivery is made.
3.140.090 Adoption of Provisions of State Law.
Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made apart of this Chapter as though fully set forth herein.
3.140.100
Taxes.
Limitations on Adoption of State Law and Collection of Use In adopting the provisions of Part I of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Chapter.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of Califomia, where the result of the substitution would be to:
a. Provide an exemption from this use tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that code.
4. In Sections 670I,6702 (except in the last sentence thereof), 6711,6715, 6737,6797 or 6828 ofthe Revenue and Taxation Code.
5 Page 533
07/12/2022 Item No.12.
B. The word "cityu shall be substituted for the word ooState" in the phrase 'oretailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203 of the Revenue and Taxation Code. A o'retailer engaged in business in the State" shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
3.f40.110 Permit Not Required.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Cod., an additional transactor's permit shall not be required by this Chapter.
3.140.120 Exemptions and Exclusions.
A. There shall be excluded from the measure of the transactions and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any State-administered transactions or use tax.
B. There are exempted from the computation of the amount of the transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this patagtaph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft.licensed in compliance with Section 2l4l1of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9340) of the Vehicle Code by registration to an out-of- 6 Page 534
07/12/2022 Item No.12.
City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this Chapter.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this Chapter.
5. For the purposes of subparagraphs (3) and (4) of this Section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which arLy party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this Chapter, the storage, use, or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.I of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this Chapter.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this Chapter
5. For the purposes ofsubparagraphs (3) and (4) ofthis Section, storage, use, or other consumption, or possession of, or exercise of any right or power over, 7 Page 535
07/12/2022 Item No.12.
tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 2l4ll of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9340) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
3.140.130 Amendments.
All amendments subsequent to the effective date of this Chapter to Part I of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become apatt of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter.
3.140.140 EnjoiningCollectionForbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this Chapter, or Part 1 .6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected hereunder. 8 Page 536
07/12/2022 Item No.12.
3.140.150 CitizensOversightCommittee.
A Citizens Oversight Committee to review the revenues and the projected revenues for the funds generated by this Chapter shall be established by the City Council within six months of approval of this Ordinance by the voters.
3.140.160 Accounting and Report.
Prior to the adoption of the City budget each year, the City Manager and the Finance Director shall present to the City Council an accounting of the tax revenues received and expenditures made under this Chapter.
3.140.170 Independent Audit.
After the close of every fiscal year in which the tax imposed hereunder is levied, the City shall cause an independent audit to be conducted as to the revenue generated as a result of this Measure and to ensure the proper expenditure thereof consistent with the purposes of this Chapter.
3.140.180 Authority to Amend.
A. In order to further the purposes and intent of this Chapter, the City Council is authorized to amend this Chapter in the following areas without a further vote of the People:
1. The suspension or reactivation of this Chapter if the revenue generated under this Chapter is diverted by the State of Califomia for purposes other than those specifically enumerated herein;
2. Any change required by the State of Califomia as a precondition to the collection of the tax authorized hereunder.
B. Notwithstanding any provision to the contrary, any proposed change to the taxrate imposed under this Chapter shall be submitted to the vote of the People.
3.140.190 Termination Date.
The authority to levy the tax imposed hereunder shall continue until ended by voters.
SECTION 2 EFFECTM DATE. This Ordinance relates to the levying and collecting of the City transactions and use tax shall be in full force and effect thirty (30) days after the certification by the City Council of the election returns indicating passage of the Ordinance by a majority of the voters casting votes in the election; however, the 9 Page 537
07/12/2022 Item No.12.
collection of the transaction and use tax shall be in accordance with Section 3.140.030 of the Folsom Municipal Code as the Operative Date.
SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The People of the City of Folsom hereby declare that they would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereofbe declared invalid or unconstitutional.
SECTION 4. PUBLICATION. The City Clerk is directed to cause a copy of this Ordinance to be published in full or in summary in the offrcial newspaper at least once within twenty (20) days after its approval by the voters in a newspaper of general circulation in the City.
The foregoing Ordinance was approved by the voters of the City of Folsom at a General Municipal Election held on the 8th day of November 2022, by the following vote tally:
YES
NOES:
OTHER:
APPROVED:
Keni M. Howell, MAYOR
ATTEST
Christa Freemantle, CITY CLERK
10 Page 538
07/12/2022 Item No.12.
Attachment 3.
Ballot Measure Language, One-Half Percent (0.5%)
07/12/2022 Item No.12.
CITY OF FOLSOM
MEASURE'6 ,,
FOLSOM ESSENTIAL CITY SERVICES MAINTENANCE AND
INVESTMENT MEASURE
To maintain and enhance essential City of Folsom services/ facilities, such as:
maintaining 9-1-1 emergency firefighter/ medical response times; enhancing and maintaining parks/ trails; repairing potholes/ city streets; enhancing wildfire prevention/ neighborhood fire protection; and maintaining neighborhood police patrols; shall the City of Folsom measure be adopted establishing a one-half cent sales tax, providing $11,000,000 annually, for general government use, until ended by voters, requiring local control, citizen oversight and independent annual audits, and all funds staying in Folsom?
07/12/2022 Item No.12.
Attachment 4.
Resolution No.10890 - A Resolution Authorizing the Submission of a Ballot Measure to the Qualified Voters of the City to Add a Transactions and Use Tax at the Rate of One Percent (l%), Authorizing the Filing of Written Arguments Regarding the City's Revenue Measure, and Directing the City Attomey to Prepare an Impartial Analysis for Said Measure
07/12/2022 Item No.12.
RESOLUTION NO. 10890
A RESOLUTION AUTHORIZING THE SUBMISSION OF A BALLOT MEASURE TO
THE QUALIFIED VOTERS OF THE CITY TO ADD A TRANSACTIONS AND USE TAX AT THE RATE OF ONE PERCENT (I%), AUTHORIZING THE F'ILING OF
WRITTEN ARGUMENTS REGARDING THE CITY'S REVENUE MEASURE, AND
DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS FOR
SAID MEASURE
WHEREAS, under the provisions of the Charter of the City of Folsom and the Folsom Municipal Code, a General Municipal Election shall be held onNovember 8,2022 for the election of three City Councilmembers; and,
WHEREAS, Revenue and Taxation Code Section 7285.9 authorizes all cities to levy, increase, or extend a transactions and use tax for general pulposes, at arate of 0.l25Yo or a multiple thereof, subject to approval of two-thirds (213) of the City Council and a majority of qualified voters voting on the issue; and,
WHEREAS, an election regarding the increase of a transactions and use tax for general purposes must be consolidated with a regularly scheduled general election for the City Council, except in cases of an emergency declared by a unanimous vote of the City Council; and, WHEREAS, the City Council desires to submit a ballot measure on a transactions and use tax to the voters of the City of Folsom at a General Municipal Election to be held in the City on November 8,2022.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom as follows:
SECTION 1. Pursuant to Article XI, $5 and Article XIII C, $2 of the California Constitution, Elections Code Section 9222,Folsom Municipal Code Section 2.40.010 and Revenue and Taxation Code Section 7285.9, a General Municipal Election is called and ordered to be held in the City of Folsom, California, on Tuesday, November 8,2022 for the purpose of submitting the following proposed Revenue Measure to the voters of the City:
07/12/2022 Item No.12.
CITY OF F'OLSOM
MEASURE $ ')
FOLSOM ESSENTIAL CITY SERVICES MAINTENANCE AI\[D
IIIVESTMENT MEASURE
To maintain and enhance essential City of Folsom services/ facilities, such as:
maintaining 9-1-1 emergency firefighter/ medical response times; enhancing and maintaining parks/ trails; repairing potholes/ city streets; enhancing wildfire prevention/ neighborhood fire protection; and maintaining neighborhood police patrols; shall the City of Folsom measure be adopted establishing a one cent sales tax, providing $22,000,000 annually, for general government use, until ended by voters, requiring local control, citizen oversight and independent annual audits, and all funds staying in Folsom?
SECTION 2. The complete text of the proposed measure to be submitted to the voters in Section I hereof is attached hereto as Exhibit ooA". The full text of the Ordinance will not be printed in its entirety in the County Voter Information Guide. Relevant information will be provided within the Impartial Analysis, and a full copy of the text is on file in the Office of the City Clerk.
SECTION 3. The vote requirement for the measure, submitted to the voters in Section I hereof, to pass is a simple majority (50% + 1) of the votes cast.
SECTION 4. The City Council authorizes pursuant to Elections Code Section 9282(b) the following:
The Mayor andlor Others Selected by the Mayor Who are Qualified to Sign Arguments under the Elections Code
to file a written argument not exceeding 300 words regarding the City measure as specified in Section 1, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with California Elections Code Section 9282. The arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk.
The arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organi zafion, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Filer Statement Form to be filed by author(s) of argument.
Resolution No. 10890
a
07/12/2022 Item No.12.
SECTION 5. The City Council adopts Elections Code Section 9285 to accept rebuttal arguments. The rebuttal arguments shall be filed with the City Clerk, signed, with 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 at least one of its principal offrcers who is the author of the argument. The arguments shall be accompanied by the Filer Statement Form to be filed by author(s) of argument.
SECTION 6. The City Council directs the City Clerk to transmit a copy of the measure to the City Attomey, unless the organization or salaries of the Office of the City Attomey are affected. The City Attorney shall prepare an impartial analysis of said measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of said measure. If any measure affects lhe organization or salaries of the Office of the City Attorney, the City Clerk shall prepare the impartial analysis. The analysis shall include a statement indicating whether any measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the City. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10-point, the following: 'oThe above statement is an impartial analysis of the measure. If you desire a copy of the measure, please call the election official's office at: 916-461-6035 or email [email protected] and a copy will be provided at no cost to you." The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.
SECTION 7. The ballots to be used at the election shall be in form and content as required by law.
SECTION 8. Said General Municipal Election hereby called shall be held and conducted, and the votes thereat received and canvassed, and the returned thereof made, and the result thereof ascertained and determined in accordance with the general election laws of the State of Califomia, except as herein provided.
SECTION 9. All persons qualified to vote at municipal elections in the City of Folsom shall be qualified to vote at said General Municipal Election.
SECTION 7. The City Clerk is authorized, instructed, and directed to coordinate with the Clerk and Registrar of Voters of the County of Sacramento to procure and furnish any and all official ballots, notices, printed matter, and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.
SECTION 10. Unless a longer period is provided by the County Elections Department, the polls shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, pursuant to California Elections Code 510242, except as provided in the California Elections Code $14401.
Resolution No. 10890
07/12/2022 Item No.12.
SECTION 11. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
SECTION 12. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form, and manner as required by law.
SECTION 13. The fulltext of the revenue measure Ordinance will not be printed in its entirety in the Sample Ballot. Relevant information will be provided within the Impartial Analysis for each measure and a full copy of the text is on file in the Office of the City Clerk.
SECTION 14. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.
SECTION 15. At the next regular meeting of this City Council occurring after the returns of said General Municipal Election have been canvassed, and the certification of the results thereof to this City Council, or at a special meeting called thereafter for such purpose, this City Council shall cause to be spread upon its minutes a statement of the results of said General Municipal Election as ascertained by said canvass.
SECTION 16. The City Clerk shall certiff to the passage and adoption of this Resolution and enter it into the book of original Resolutions, and to take other appropriate actions necessary to ensure the placement of said proposition before the voters of the City of Folsom at said General Municipal Election.
PASSED AND ADOPTED this 12th day of July,2022 by the following ro11 call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Keni M. Howell, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
List of Exhibit:
Exhibit A - Folsom Essential City Services Maintenance and Investment Measure Resolution No. 10890
Council Member(s):
Council Member(s):
Council Member(s):
Council Member(s):
07/12/2022 Item No.12.
Attachment 5.
Ordinance No. 1329 - An Ordinance of the People of the City of Folsom Imposing a One Percent (l%) Transactions and Use Tax by Adding Chapter 3.I40, "Folsom Essential City Services Maintenance and Investment Measure", to the Folsom Municipa'""0'l"ohi*$-Tf,
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07/12/2022 Item No.12.
EXHIBIT A
TO
RESOLUTION NO. 10890
Folsom Essential City Services Maintenance and Investment Measure Measure to be Submitted Directly to the Voters
ORDINANCE NO. 1329
AN ORDINANCE OF'THE PEOPLE OF CITY OF F'OLSOM IMPOSING A ONE PERCENT TRANSACTIONS AND USE TAX BY ADDING CHAPTER 3.140, "F'OLSOM ESSENTIAL CITY SERVICES MAINTENANCE AND
INVESTMENT MEASURE'" TO THE FOLSOM MUNICIPAL CODE TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION
WHEREAS, many residents live in the City of Folsom because the City offers a higher level of amenities, service, programs, and quality of life than in neighboring cities, and creating and preserving local revenue sources will ensure that the City can maintain and improve the quality of the amenities, services, and programs that residents desire and expect; and
WHEREAS, many businesses operate and thrive in the City due to the City's business-friendly environment, robust and year-round recreational activities and events, high-quality public facilities and amenities, as well as proactive economic development efforts, all leading to a higher level of shopping experience; and WHEREAS, the City's unique geography, with its lakes, creeks, trails, bikeways and scenic hillsides, combined with the age of its infrastructures such as roads, sidewalks, public buildings and drainage systems, make it an expensive City to maintain.
WHEREAS, during each of the past several years, the State of California has reduced funding for infrastructure improvements to local jurisdictions, including the City of Folsom; and,
WHEREAS, the City needs dependable and local sources of revenue to fund and to support locally-controlled, strategically enhanced spending on services, facilities and programs including, for example, capital improvement projects such as construction of transportation and traffic improvements, parks, trails, and bike paths; efforts to promote economic development and redevelopment to attract new businesses and employers to the City; augmentation of existing essential City services including but not limited to fire, paramedic, police emergency response and crime prevention programs; and expansion of I Page 547
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the City's great tradition in parks and recreation, senior, library, school and education, arts, cultural and historical programs which our citizens enjoy and/or depend upon.
BE IT ORDAINED BY THE PEOPLE OF'THE CITY OF'FOLSOM AS
FOLLOWS:
SECTION 1. ADDITION TO CODE
Chapter 3.140, "Folsom Essential City Services Maintenance and Investment Measure", is hereby added to the Folsom Municipal Code to read as follows:
Chapter 3.140
FOLSOM ESSENTIAL CITY SERVICES MAINTENANCE
AND INVESTMENT MEASURS
(General Transactions (Sales) and Use Tax)
Sections:
3.140.010
3.t40.020
3.140.030
3.140.040
3.140.050
3.140.060
3.t40.070
3.140.080
3.140.090
3.140.100
3.140.110
3.140.120
3.140.130
3.t40.140
3.140.150
3.r40.160
3.r40.170
3.140.180
3.140.190
Chapter Title.
Need for Chapter.
Operative Date.
Purpose.
Contract with State.
Transactions Tax Rate.
Place of Sale.
Use Tax Rate.
Adoption of Provisions of State Law.
Limitations on Adoption of State Law and Collection of Use Taxes.
Permit Not Required.
Exemptions and Exclusions.
Amendments.
Enj oining Collection Forbidden.
Citizens Oversight Committee.
Accounting and Report.
Independent Audit.
Authority to Amend.
Termination Date.
3.140.010 Chapter Title.
This Chapter shall be known as the ooFolsom Essential City Services Maintenance and Investment Measure" (the "Measure"). This Chapter shall be applicable in the incorporated territory of the City.
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3.140.020 Need for Chapter.
The People of the City of Folsom declare that this Chapter, pursuant to the Measure, is adopted as a general tax to provide funding for general governmental pu{poses, which are funded by the City's General Fund.
3.L40.030 Operative Date.
The general transactions and use tax imposed hereunder shall be operative the first day of the first calendar quarter commencing more than 110 days after the adoption of this Chapter ("Operative Date"). Based on aNovember 8,2022 election, the Operative Date for the general transactions and use tax imposed hereunder shall be April 1,2023, and the revenue from said tax can be spent for unrestricted general revenue purposes.
3.140.040 Purpose.
Pursuant to the requirements of the California Department of Tax and Fee Administration, this Chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose aretailtransactions and use tax in accordance with the provisions of Part 1.6 (commencing with SectionT2ll) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, and which authorizes the City to adopt this tax ordinance, which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the Califomia Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the Califomia State Sales and Use Taxes.
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D. To adopt aretail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this Chapter.
3.140.050 Contract with State.
Prior to the Operative Date of this Chapter, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax imposed under this Chapter; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the Operative Date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.140.060 Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated tenitory of the City atthe rate of one percent ( I %) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the Operative Date of this Chapter.
3.140.070 Place of Sale.
For the pulposes of this Chapter, all retail sales are consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer, or his or her agent, to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State, or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.140.080 Use Tax Rate.
An excise tax is hereby imposed on the storage, use, or other consumption in the City of tangible personal property purchased from any retailer on and after the Operative Date of this Chapter for storage, use, or other consumption in the City at the rate of one percent (l%) of the sales price of the property. The sales price shall include delivery charges 4 Page 550
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when such charges are subject to the State sales or use tax regardless of the place to which delivery is made.
3.140.090 Adoption of Provisions of State Law.
Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part I (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made apart of this Chapter as though fully set forth herein.
3.140.100
Taxes.
Limitations on Adoption of State Law and Collection of Use In adopting the provisions of Part I of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Chapter.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this use tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that code.
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4. In Sections 6701,6702 (except in the last sentence thereoQ, 6711,6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203 of the Revenue and Taxation Code. A'oretailer engaged in business in the State" shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
3.140.110 Permit Not Required.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this Chapter.
3.140.120 ExemptionsandExclusions.
A. There shall be excluded from the measure of the transactions and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Bums Uniform Local Sales and Use Tax Law or the amount of any State-administered transactions or use tax.
B. There are exempted from the computation of the amount of the transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter I (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 2I4ll of the 6 Page 552
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Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of- City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this Chapter.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this Chapter.
5. For the purposes ofsubparagraphs (3) and (4) ofthis Section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this Chapter, the storage, use, or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this Chapter.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this Chapter 7 Page 553
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5. For the purposes ofsubparagraphs (3) and (4) ofthis Section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 2l4ll of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
3.140.130 Amendments.
All amendments subsequent to the effective date of this Chapter to Part I of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part I .6 and Part 1 .7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become apart of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter.
3.140.140 EnjoiningCollectionForbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this 8 Page 554
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Chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected hereunder.
3.140.150 Citizens Oversight Committee.
A Citizens Oversight Committee to review the revenues and the projected revenues for the funds generated by this Chapter shall be established by the City Council within six months of approval of this Ordinance by the voters.
3.140.160 Accounting and Report.
Prior to the adoption of the City budget each year, the City Manager and the Finance Director shall present to the City Council an accounting of the tax revenues received and expenditures made under this Chapter.
3.140.170 Independent Audit.
After the close of every fiscal year in which the tax imposed hereunder is levied, the City shall cause an independent audit to be conducted as to the revenue generated as a result of this Measure and to ensure the proper expenditure thereof consistent with the purposes of this Chapter.
3.140.180 Authority to Amend.
A. In order to further the purposes and intent of this Chapter, the City Council is authorized to amend this Chapter in the following areas without a further vote of the People:
1. The suspension or reactivation of this Chapter if the revenue generated under this Chapter is diverted by the State of California for purposes other than those specifically enumerated herein;
2. Any change required by the State of California as a precondition to the collection of the tax authorized hereunder.
B. Notwithstanding any provision to the contrary, any proposed change to the tax rate imposed under this Chapter shall be submitted to the vote of the People.
3.140.1.90 Termination Date.
The authority to levy the tax imposed hereunder shall continue until ended by voters.
SECTION 2 EFFECTIVE DATE. This Ordinance relates to the levying and collecting of the City transactions and use tax shall be in full force and effect thirty (30) days after the certification by the City Council of the election returns indicating passage 9 Page 555
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of the Ordinance by a majority of the voters casting votes in the election; however, the collection of the transaction and use tax shall be in accordance with Section 3.140.030 of the Folsom Municipal Code as the Operative Date.
SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The People of the City of Folsom hereby declare that they would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the factthat any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereofbe declared invalid or unconstitutional.
SECTION 4. PUBLICATION. The City Clerk is directed to cause a copy of this Ordinance to be published in full or in summary in the offrcial newspaper at least once within twenty (20) days after its approval by the voters in a newspaper of general circulation in the City.
The foregoing Ordinance was approved by the voters of the City of Folsom at a General Municipal Election held on the 8th day of November 2022, by the following vote tally:
YES
NOES
OTHER:
APPROVED:
Keni M. Howell, MAYOR
ATTEST:
Christa Freemantle, CITY CLERK
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Attachment 6
Ballot Measure Language, One Percent (1.0%)
07/12/2022 Item No.12.
CITY OF'F'OLSOM
MEASURE ( ,,
FOLSOM ESSENTIAL CITY SERVICES MAINTENAIICE AND
INVESTMENT MEASI]RE
To maintain and enhance essential City of Folsom services/ facilities, such as:
maintaining 9-1-1 emergency firefighter/ medical response times; enhancing and maintaining parks/ trails; repairing potholes/ city streets; enhancing wildfire prevention/ neighborhood fire protection; and maintaining neighborhood police patrols; shall the City of Folsom measure be adopted establishing a one cent sales tax, providing $22,000,000 annually, for general government use, until ended by voters, requiring local control, citizen oversight and independent annual audits, and all funds staying in Folsom?
07/12/2022 Item No.12.