ORDINANCE NO. XXXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN THE CITY OF FULLERTON COMMUNITY FACILITIES DISTRICT NO. 3 (THE PINES AT SUNRISE VILLAGE) THE CITY COUNCIL OF THE CITY OF FULLERTON ORDAINS AS FOLLOWS:
1. Authority; Resolution of Intention. City Council adopted Resolution No. 2023-045 on June 20, 2023 entitled “Resolution of Intention to Establish Community Facilities District” (the “Resolution of Intention”), stating its intention to form the “City of Fullerton Community Facilities District No. 3 (The Pines at Sunrise Village)” (the “CFD”), under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), commencing California Government Code Section 53311, Title 5, Division 2, Part 1, Chapter 2.5.
2. Public Hearing. City Council opened and held noticed public hearings on August 1, 2023 as required by the Act and the Resolution of Intention relative to (i) the determination to proceed with the formation of the CFD and the rate and method of apportionment of the special tax to levy within the CFD to finance a portion of the costs of the public facilities and (ii) the issuance of not to exceed $9,500,000 of bonds or other indebtedness for the CFD. City Council heard all persons desiring to be heard at the public hearings on all matters pertaining to the formation of the CFD and the levy of the special taxes and considered substantial evidence presented at the hearing and held a full and fair hearing.
3. Subsequent Resolutions. City Council adopted the following resolutions on August 1, 2023 following the public hearings: a resolution entitled “Resolution of Formation of Community Facilities District” (the “Resolution of Formation”), which established the CFD and defined the public facilities to be financed by the CFD (the "Facilities"); a resolution entitled “Resolution Determining Necessity to Incur Bonded Indebtedness” (the “Resolution Determining Necessity”), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $9,500,000 upon the security of the special tax to levy within the CFD pursuant to the Act; a resolution entitled “Resolution Calling Special Election” (the “Election Resolution”) submitting the propositions of the levy of the special tax, the incurring of a bonded indebtedness in the maximum aggregate principal amount of $9,500,000, and the approval of an annual appropriations limit of not to exceed $9,500,000, to the qualified electors of the CFD as required by the Act.
4. Special Election. City Council held a special election on August 1, 2023 pursuant to the Election Resolution within the CFD at which the eligible landowner electors approved such propositions by the two-thirds vote required by the Act.
5. Levy of Special Taxes. By the passage of this Ordinance City Council hereby authorizes and levies special taxes within the CFD pursuant to the Act, at the rate and in accordance with the formula (the "Rate and Method") set forth in the Resolution of Formation, which Resolution of Formation is by this reference incorporated herein. The special taxes are hereby levied starting in Fiscal Year 2023-24 and continuing until principal and interest on the Bonds have been repaid, the City’s costs of constructing or acquiring the Facilities have been paid, and all administrative expenses have been paid or reimbursed; provided, however, that in no event shall the special tax be levied after fiscal year 2072-73.
6. Determination of Special Tax Rate. City Council authorizes and directs the Director of Administrative Services each fiscal year to determine the specific special tax rate and amount to be levied for each parcel of real property within the CFD, in the manner and as provided in the Resolution of Formation and the Rate and Method.
7. Exemption from Special Taxes. Except as may otherwise be provided by law or by the Rate and Method, properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes. In no event shall the special taxes be levied on any parcel within the CFD in excess of the maximum tax specified in the Resolution of Formation and the Rate and Method.
8. Use of Special Tax Collections. All of the collections of the special tax shall be used as provided for in the Act and in the Resolution of Formation including, but not limited to, the payment of principal and interest on the Bonds, the replenishment of any reserve fund for the Bonds, the payment of the costs of the Facilities, the payment of the costs of the City in administering the CFD and the costs of collecting and administering the special tax.
9. Manner of Collection. The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that City Council authorizes the Director of Administrative Services to collect the special taxes by other appropriate methods of collection, including direct billing to the affected property owners at such intervals deemed appropriate. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments.
10. Severability. If a court of competent jurisdiction finds for any reason any portion of this Ordinance invalid, or finds the special tax inapplicable to any particular parcel within the CFD, the balance of this Ordinance and the application of the special tax to the remaining parcels within the CFD shall not be affected.
11. Execution and Publication. The Mayor shall sign this Ordinance and the City Clerk shall publish this Ordinance within 15 days after its passage at least once in a newspaper of general circulation published and circulated in the City.
12. Effective Date. This Ordinance shall take effect 30 days from the date of final passage.
ADOPTED BY THE FULLERTON CITY COUNCIL ON AUGUST 15, 2023.
Fred Jung
Mayor
ATTEST:
Lucinda Williams, MMC
City Clerk
Date