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STATISTICAL
SECTION
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CONTENTS PAGES
Financial Trends
These schedules contain trend information to help the reader understand how the government's 172-181
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant local revenue sources, sales taxes and property tax. 183-191 Debt Capacity
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue 192-198 Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. 199-200 Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides
and the activities it performs. 201-204
The City of Lake Elsinore's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health. The statistical section offers operational, economic, and historical data that provide a context for assessing the City's economic condition.
June 30, 2022
City of Lake Elsinore, California
Statistical Section Contents
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CITY OF LAKE ELSINORE, CALIFORNIA
Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Suite 203 Brea,CA92821 Phone: 714.672.0022 December 22, 2022
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elsinore, California (the City) for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, the State Controller’s Minimum Audit Standards for California Special Districts, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 22, 2022. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Significant Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during fiscal year 2021-2022. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Management’s estimates of its net pension liability, net other post-employment benefits (OPEB) liability, are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability, net OPEB liability, in determining that they are reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Significant or Unusual Transactions
Management is responsible for the policies and practices used to account for significant or unusual transactions. No significant unusual transactions have occurred during fiscal year 2021-2022.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. In addition, we detected misstatements as a result of audit procedures which were material and were subsequently corrected by management. The details of these misstatements are described in a separate letter dated December 22, 2022 Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 22, 2022.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the significant events or transactions that occurred during the year, business conditions affecting the City and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis, the budgetary comparison schedules, and the required pension and other post-employment benefits schedules, as listed in the Annual Comprehensive Financial Report’s table of contents, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on combining statements and individual fund statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
We were not engaged to report on the introduction or statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2021-2022 audit:
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.
The following GASB pronouncements are effective in the following fiscal years’ audits and should be reviewed for proper implementation by management:
Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangement.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
Fiscal year 2024
GASB Statement No. 99, Omnibus 2022.
GASB Statement No. 100, Accounting Changes and Error Corrections.
Fiscal year 2025
GASB Statement No. 101, Compensated Absences.
Restriction on Use
This information is intended solely for the use of City Council and management of the City of Lake Elsinore, California and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Brea, California
Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Suite 203 Brea,CA92821 Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elsinore, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 22, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as item 2022-001 that we consider to be material weaknesses.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and responses as item 2022-001.
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
City of Lake Elsinore, California’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Brea, California
December 22, 2022
To the Honorable Mayor and Members of the City Council
City of Lake Elsinore, California
SCHEDULE OF FINDINGS AND RESPONSES
Reference No.: 2022-001 – Inadequate Controls Over Financial Reporting Evaluation of Finding:
Material weakness.
Criteria:
Management is responsible for the preparation and fair presentation, as well as the accuracy of its financial statements, including disclosures in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.
Condition:
During the audit, we found the following conditions that resulted in significant audit adjustments to the financial statements:
Accuracy in External Financial Reporting
The year-end closing process did not ensure that account balances were reconciled and accurate in advance of the audit requiring adjusting journal entries to correct the final financial statements. It appears these errors were primarily caused by the trial balance being prepared from data that was not always complete. The more significant entries identified include:
Adjustments to record assets not properly capitalized in the Launch Pointe Fund (approximately $19 million) and the City General Fixed Asset Fund (approximately $13.4 million). Current year and prior period adjustments to record accumulated depreciation related to the assets previously mentioned in the Launch Pointe Fund (approximately $1.5 million) and the City General Fixed Asset Fund (approximately $562,000).
Adjustment to record unavailable revenues instead of revenues for grant programs (approximately $6.4 million) and for Prop 65 fees (approximately $1.1 million) for cash receipts that were not received within the revenue recognition period.
Effect or Potential Effect of Condition:
Unavailable Revenues: Revenues would have been overstated as of June 30, 2022.
Capital Assets: Assets were overstated at FYE 2021 and expenses were understated. Assets would have been further overstated at FY 2022 and expenses would have been further understated.
Recommendation:
The City should include in their year-end close process a review of capital assets not being depreciate to ensure they have not been placed in service. In addition, the City should evaluate whether revenues were collected within the availability period to ensure proper revenue recognition.
Client Response:
Thank you for your review and recommendation of putting in place formalized year end close procedures.
The City does have formalized year end close procedures for unavailable revenue and capitalization of assets; however, perhaps in these instances for the year ending 06-30-2022, our procedures need some details added to our list as well as additional instructional notes to help close the gap to mitigate errors.
REPORT TO CITY COUNCIL
To: Honorable Mayor or Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Jason Simpson, City Manager
Date: January 10, 2023
Subject: Lake Elsinore Community Facilities District No. 2015-1 (Safety Services) Declaring Its Intention to Consider Annexing Territory Tract No. 38116 Annexation No. 13
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF LAKE ELSINORE (SAFETY SERVICES), DECLARING ITS
INTENTION TO CONSIDER ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF LAKE ELSINORE (SAFETY SERVICES).
Background
In 2016, the City formed Community Facilities District No. 2015-1 of the City of Lake Elsinore (Safety Services) (“Community Facilities District No. 2015-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”). The District is authorized to levy a special tax within its boundaries to provide, among others, police protection services, fire protection and suppression services, and paramedic services.
The owner, Tri Pointe Homes IE-SD, Inc., (the “Owner”), owns property containing 140 proposed residential lots within the City has requested that the City assist them in annexing territory into CFD No. 2015-1 (Safety Services) to cover the costs associated with safety services. Such property is located at the northeast corner of Grand Avenue and Riverside Drive, in the western part of the City of Lake Elsinore.
The landowner has advised the City that the area described in Exhibit “B” of the Resolution of Intention to be annexed into CFD No. 2015-1 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit “C”.
The proposed total maximum tax rate is $917.08 per unit per year, starting Fiscal Year 2022-23.
The Annual Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 4%.
CFD 2015-1 Annexation No. 13
Discussion
The City has agreed to the annexation into the CFD and the Owners have submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings pursuant to the Mello-Roos Act of 1982, requesting the annexation of property to CFD No. 2015-1 (Safety Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
The next step to annex the property to CFD No. 2015-1 is to publish a notification of the proposed Annexation along with the "Resolution of Intention" and Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on February 14, 2023 and at that time the Council will formally consider approval of Annexation No. 13.
Fiscal Impact
The Owners have made a deposit to pay for the costs of the Annexation.
The Annexation will result in property owners paying a tax of $917.08 per unit for single family property plus an annual escalation of the greater of CPI or 4%.
Attachments
Attachment 1- Project Map
Attachment 2- Resolution of Intention
Exhibit A-Description of Proposed Territory to be Annexed Exhibit B-City of Lake Elsinore
Exhibit C-Rate and Method of Apportionment
Exhibit D-Annexation and Potential Boundary Maps
Exhibit E-Petition
Exhibit F-Notice of Public Hearing
Exhibit G-Ballot
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CFD NO. 2015-1
ANNEXATION NO. 13
PROJECT MAP
RESOLUTION NO. 2023-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF LAKE ELSINORE (SAFETY
SERVICES), DECLARING ITS INTENTION TO CONSIDER ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY
OF LAKE ELSINORE (SAFETY SERVICES)
Whereas, on March 8, 2016, the City Council (the “City Council”) of the City of Lake Elsinore adopted Resolution No. 2016-022 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2015-1 of the City of Lake Elsinore (Safety Services) (“Community Facilities District No. 2015-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
Whereas, after a duly noticed public hearing, the City Council adopted Resolution No. 2016-035 (the “Resolution of Formation”) establishing Community Facilities District No. 2015-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit “C” attached to the Resolution of Intention (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2015-1; and
Whereas, the City Council has received a petition from and signed by Tri Pointe Homes IE-SD, Inc. (the “Owner”), requesting (i) the annexation of the territory within the boundaries set forth in Exhibit “A”, hereto (the “Annexation Territory”) to the District; (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Exhibit “C”, hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein and (iii) the waiving certain election requirements; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. Recitals. Each of the above recitals is true and correct.
Section 2. Intent to Annex. The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory.
Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The map showing the original boundaries of the District designated as “Map of Proposed Boundaries of Community Facilities District No. 2015-1 of the City of Lake Elsinore (Safety Services),” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 79 Page No. 45-46, on March 14, 2016 as Instrument No. 2016-00978338.
The boundaries of the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown on the annexation map set forth in Exhibit “D” hereto (the “Boundary Map”). The City Clerk is hereby directed to sign the boundary map and record it with all CC Res. No. 2023-_____
proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 4. Description of Authorized Services. The Services (as defined in the Rate and Method) proposed to be provided for the benefit of the Annexation Territory are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory the Annexation Territory, at the present time and do not supplant services already available within the Annexation Territory at the present time. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the Annexation Territory, to understand what the funds of the District may be used to finance. The Services Incidental Expenses (as defined in the Rate and Method) expected to be incurred within the Annexation Territory are set forth in the Rate and Method. The amount and term of the special tax to be levied by the District within the Annexation Territory and the Services to be provided by the District within the Annexation Territory shall be identical to those within the original boundaries of the District.
Section 5. Levy of Special Taxes. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the Annexation Territory, sufficient to pay for the Services and the Services Incidental Expenses. The rate and method of apportionment and manner of collection of the special taxes set forth in Exhibit “C” allows each homeowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel.
The special taxes for Services may be increased based on the consumer price index by an amount not to exceed four percent (4%) per year to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Exhibit “B” hereto.
The special taxes are based on the expected demand that each parcel of real property within the Annexation Territory will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police, fire, rescue and paramedic services in the City as a result of the development of the land proposed for annexation to the District. The City Council hereby determines the rate and method of apportionment of the special taxes set forth in Exhibit “C” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon value or ownership of real property.
Section 6. Public Hearing. A public hearing (the “Hearing”) on the annexation of the Annexation Territory to the District, the levy of the special tax within the Annexation Territory in accordance with the Rate and Method to finance the Services shall be held at 7:00 p.m., or as soon thereafter as practicable, on February 14, 2023, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to annex the Annexation Territory to the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within Annexation Territory at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the Annexation Territory.
Ballots for the special election may be distributed by mail or by personal service.
CC Res. No. 2023-_____
Section 7. Adjustments. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.
Section 8. Public Hearing. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Annexation Territory, may appear to be heard.
Section 9. Notice of Public Hearing. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Annexation Territory. The City Clerk is further directed to mail a copy of the Notice to each landowner within the Annexation Territory at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
Section 10. Effective Date. This Resolution shall be effective upon its adoption.
PASSED and ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 10th day of January 2023.
_____________________________
Natasha Johnson, Mayor
ATTEST:
_____________________________
Candice Alvarez, MMC, City Clerk
CC Res. No. 2023-_____
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2023-___ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of January 10, 2023, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Candice Alvarez, MMC, City Clerk
EXHBIT A
DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Lake Elsinore Community Facilities District No. 2015-1 (Safety Services) (the “CFD No. 2015-1”) Annexation No. 13 is currently comprised of three (3) parcels, located within the city boundaries. The properties are identified by the following Riverside County Assessor's Parcel Numbers (APNs).
APN Tract Number Owner Name
379-060-005 TR 38116 Tri Pointe Homes IE-SD, Inc.
379-060-022 TR 38116 Tri Pointe Homes IE-SD, Inc.
379-060-027 TR 38116 Tri Pointe Homes IE-SD, Inc.
EXHBIT B
DESCRIPTION OF AUTHORIZED SERVICES
EXHIBIT B
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-1
(SAFETY SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2015-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.
These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay "Administrative Expenses" as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD No. 2015-1 and the Future Annexation Area of CFD No. 2015-1 or for the benefit of the properties within the boundaries of CFD No. 2015-1 and the Future Annexation Area of CFD No. 2015-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2015-1 before CFD No. 2015-1 was created.
EXHBIT C
RATE AND METHOD OF APPORTIONMENT
City of Lake Elsinore Page 1
Community Facilities District No. 2015‐1 (Safety Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2015‐1 (SAFETY SERVICES)
OF THE CITY OF LAKE ELSINORE
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2015‐1 (Safety Services) (the “CFD No. 2015‐1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2016, in an amount determined by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2015‐1, by applying the rate and method of apportionment set forth below.
All of the real property in CFD No. 2015‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2015‐1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the coststo the City, CFD No. 2015‐1, or any designee thereof associated with fulfilling the CFD No. 2015‐1 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2015‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2015‐1 for any other administrative purposes of CFD No. 2015‐1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Lake Elsinore, or his or her designee. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2015‐1” means the City of Lake Elsinore Community Facilities District No. 2015‐1 (Safety Services).
“City” means the City of Lake Elsinore.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Developed Multi‐Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more City of Lake Elsinore Page 2
Community Facilities District No. 2015‐1 (Safety Services) Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Developed Single Family Property” means any residential property other than a Developed Multi‐ Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section E.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Future Annexation Area” means any area included inside the boundaries of the proposed boundary map included in Appendix C.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2015‐1 as set forth in Appendix B.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2015‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection and suppression services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses.
Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2015‐1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
City of Lake Elsinore Page 3
Community Facilities District No. 2015‐1 (Safety Services) B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2016, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Single Family Property or a Developed Multi‐Family Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.
The Maximum Special Tax for Fiscal Year 2016‐2017 for a Developed Single Family Property and a Developed Multi‐Family Property are shown below in Table 1.
TABLE 1
MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2016‐2017
Description
Taxable
Unit
Maximum
Special Tax
Developed Single Family Property RU $685
Developed Multi‐Family Property RU $419
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2017 the Maximum Special Tax for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater.
No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2015‐1 is an Exempt Property.
C. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2015‐1 from time to time.
Pursuant to California Government Code section 53339 et seq., the rate and method adopted for the annexed property shall reflect the Maximum Special Tax rate at the then current year’s Maximum Special Tax rate as set forth in Appendix A.
D. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2015‐1.
E. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2015‐1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, City of Lake Elsinore Page 4
Community Facilities District No. 2015‐1 (Safety Services) encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Developed Single Family Property or a Developed Multi‐Family Property.
F. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustmentshall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
G. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.
However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceasesto be levied in the manner provided by Section 53330.5 of the Government Code.
City of Lake Elsinore Page 5
Community Facilities District No. 2015‐1 (Safety Services)
APPENDIX A
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐1
(SAFETY SERVICES)
ANNEXATION SUMMARY
Safety Services ‐ It is estimated that the cost of providing police, fire protection, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2015‐1 (Safety Services) will be as follows for the Fiscal Year 2016‐2017:
$685 per residential unit for Developed Single Family Residential Property $419 per residential unit for Developed Multi‐Family Residential Property Annual Escalation ‐ On each July 1, commencing on July 1, 2017 the Maximum Special Tax for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater.
Annex.
#
Fiscal
Year Tract
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special
Tax at Annex. Subdivider
Original 2016‐17 36557 Terracina 452 Developed Single
Family Property $685.00
Terracina Investors, LLC
& C/O Spectrum
Communities
Original 2016‐17 36682 Senterra 74 Developed Single
Family Property $685.00 Pardee Homes
1 2016‐17 33486 Makenna Court 81 Developed Single
Family Property $685.00 SAM‐McKenna
2 2016‐17 28214
‐6, ‐7, ‐8
Skypointe at
Alberhill Ranch 82 Developed SingleFamily Property $685.00 KB Homes 3 2018‐19 31957 Running Deer 96 Developed Single
Family Property $740.90 SAM‐Running Deer
4 2018‐19 37381 &
37382 Wasson Canyon II 272 Developed SingleFamily Property $740.90 Ava Karras 5 2019‐20 33267 Westlake 163 Developed Single
Family Property $770.53 Pardee Homes
6 2019‐20 37305 Nichols Ranch 168 Developed Single
Family Property $770.53 Nichols RD Partners, LLC
7 2020‐21 30698 &
32129 Rosetta Hills 178 Developed SingleFamily Property $801.35 Three Strands Properties
& Spectrum
Communities
8 2021‐22 33370 Tessera 90 Developed Single
Family Property $833.41 JLJ, LP
9 2021‐22 33725 &
25475
Tuscany Valley/
Crest 335 Developed SingleFamily Property $833.41 Shopoff RealtyInvestment 10 2021‐22 38008 Ridgeline at
Westridge 60 Developed SingleFamily Property $833.41 Tri Pointe Homes 11 2021‐22 38214‐9 Alberhill Ranch 344 Developed Single Family Property $833.41 Alberhill Development,LLC
12 2022‐23 37280 Lakeshore 140 Developed Single
Family Property $917.08 Lake Elsinore Lakeshore,LLC & Erin Crowder 13 2022‐23 38116 Lakeside 140 Developed Single
Family Property $917.08 Tri Pointe Homes IE‐SD,Inc.
City of Lake Elsinore Page 6
Community Facilities District No. 2015‐1 (Safety Services)
PPENDIX B
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐1
(SAFETY SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2015‐1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.
These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD No. 2015‐1 and the Future Annexation Area of CFD No. 2015‐1 or for the benefit of the properties within the boundaries of CFD No. 2015‐1 and the Future Annexation Area of CFD No. 2015‐1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2015‐1 before CFD No. 2015‐1 was created.
City of Lake Elsinore Page 7
Community Facilities District No. 2015‐1 (Safety Services)
APPENDIX C
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐1 (SAFETY SERVICES) PROPOSED BOUNDARIES AND BOUNDARIES ‐ FUTURE ANNEXATION AREA
EXHBIT D
ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS
r ________________________ ___CJL:.bi._�7'1 5\
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING
THE PROPOSEO BOUNDARIES OF THE POTENTIAL
ANNEXATION AREA OF COMMUNITY FA□LITIES
DISTRICT NO. 2015-1 (SAFETY SERVICE5), □TY OF LAKE
ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,
WAS APPROVED BY THE □TY COUN□L OF THE □TY
OF LAKE ELSINORE, AT A REGULAR MEETING
THEREOF, HELD ON -1I!!2._ DAY OF 1!M.b, 20...!!L....,
BY ITS RESOLUTION NO� .
o�CM,., ca. 9c,?1W:-:'. □TY CLERK
□TY OF LAKE ELSINORE
FILED IN THE omCE OF THE □TY CLERK, □TY OF LAKE
ELSINORE, THIS �DAY OF .D'.J=h., 20.!i!.
8u.wJ'fl.�
□TY CLERK
□TY OF LAKE ELSINORE
RECORDED THIS �DAY OF Harch , 20.lk
AT THE HOUR OF lJ:.fi,, O'CLOCK 11.M IN BOOK 21
PAGE '51. OF MAPS OF A5SESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE: ij \ D .OD NO.: dDllo ,ffi979,::)� PETI:R AIDANA, A5SESSOR, COUNTY CLERK, RECORDER BY: (�j��
DEPUTY
VICINITY MAP
NOTTO SCALE
�-------. THIS BOUNDARY MAP CORRECTLY SHOWS
ALBERT A. WEBB
ASSOCIATES
UiCl."££lllJl;G CO!llfl/1.TAIHS
THE BOUNDARIES OF THE COMMUNITY FACTLI11ES
DISTRICT. FOR OITAILS CONCERNING THE
UNES ANO DIMENSIONS OF LOTS OR
PARCELS REFER ro THE COUNTY ASSESSORS MAPS FOR FISCAL YEAR 2016-2017.
BOUNDARIES-POTENTIALANNEXATIONAREA
COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES)
CITY OF LAKE ELSINORE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
�
�-
LEGEND
�
�
ANNEXATION BOUNDARY
NOT APART
CFO BOUNDARY
3Miles
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NOTTO SCALE
w.o. 14-0295
379-060-005
379-060-027
379-060-022
GRAND
AVE
MACY ST
SERENA WAY
R VI ERSIDE DR
74}|·þ
ANNEXATION MAP NO. 13
COMMUNITY FACILITIES DISTRICT NO. 2015-1
(SAFETY SERVICES)
CITY OF LAKE ELSINORE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
ANNEX NO. 13
\_
74}|·þ 74}|·þ
74}|·þ
215
§¨¦ 15
§¨¦
LAKE ELSINORE
/ THIS ANNEXATION MAP CORRECTY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2022-23.
THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BEANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-1(SAFETY SERVICES), OF THE CITY OF LAKE ELSINORE, COUNTYOF RIVERSIDE, STATE OF CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONMARCH 14, 2016 IN BOOK 79 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGES 45-46 ANDAS INSTRUMENT NO. 2016-00978338 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF RIVERSIDE,STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2015-1(SAFETY SERVICES), CITY OF LAKE ELSINORE, COUNTY OFRIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THECITY COUNCIL OF THE CITY OF LAKE ELSINORE AT A REGULARMEETING THEREOF, HELD ON ______ DAY OF ______, 20____, BY RESOLUTION NO. _______________ ___________________________________CITY CLERK CITY OF LAKE ELSINORE RECORDED THIS ____ DAY OF _______________, 20____ ATTHE HOUR OF ____ O'CLOCK __M IN BOOK _____PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITYFACILITIES DISTRICTS IN THE OFFICE OF THE COUNTYRECORDER, IN THE COUNTY OF RIVERSIDE, STATE OFCALIFORNIA. FEE: _____________ NO.: ______________________ PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDERBY: _______________________________ DEPUTY LEGEND
ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARY
XXX-XXX-XXX ASSESSOR PARCEL NUMBER
EXHBIT E
PETITION
Petition Form
PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
REQUESTING TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-1 WITHIN THE CITY OF LAKE ELSINORE AND
A WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS
UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND
CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY THE
COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES
DISTRICT
1. The undersigned requests that the City Council of the City of Lake Elsinore, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), for the annexation of territory to community facilities district no. 2015-1 of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.
2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance to provide police protection services, including but not limited to criminal justice services, and fire protection and suppression services in the area surrounding the subject project.
3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the community facilities district described in Exhibit A hereto and as shown on the map Exhibit B hereto.
4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the annexation of territory to community facilities district no. 2015-1 or at the next available meeting.
5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any Petition Form
notice provided for by compliance with the provisions of Section 4101 of the California Elections Code.
6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annex territory to community facilities district no. 2015-1 of the portion of the incorporated area of the City of Lake Elsinore or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure.
IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___.
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE THIS ____ DAY OF __________, 20___.
_____________________________________
City Clerk of the City Council of the
City of Lake Elsinore
Tri Pointe Homes IE-SD. Inc., a California Corporation
By: _____________________________________
Name:
Title:
OWNER'S PROPERTY:
TRACT MAP OR PARCEL MAP NO.
or PROJECT NO. Tract No. 38116
OWNER'S MAILING ADDRESS:
1250 Corona Pointe Court, Suite 600
Corona, CA 92879
Chris Willis
V.P. of Land Acquisition & Project Management
EXHBIT F
NOTICE OF PUBLIC HEARING
NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2015-1 (SAFETY SERVICES) (ANNEXATION NO. 13)
NOTICE IS HEREBY GIVEN that the City Council of the City of Lake Elsinore on January 10, 2023 adopted its Resolution No. 2023-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2015-1 (Safety Services) (the "CFD No. 2015-1"), and to levy a special tax to pay for certain safety services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax.
No change in the tax levied in the existing CFD No. 2015-1 is proposed.
NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Tuesday, February 14, 2023 in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2015-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the February 14, 2023 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Lake Elsinore (www.lakeelsinore.org), and outside of City Hall at 130 S. Main Street, Lake Elsinore, CA 92530. A copy of the Agenda will be made available upon request to the Lake Elsinore City Clerk's office at 951-674-3124; Ext. 262 DATED: ____________, 20___ _________________________________________ City Clerk of the City of Lake Elsinore
EXHBIT G
BALLOT
SPECIAL TAX ELECTION
CITY OF LAKE ELSINORE
ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) ANNEXATION NO. 13
(February 14, 2023)
This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 13 of the Community Facilities District No. 2015-1 (Safety Services) (“CFD No. 2015-1”) of the City of Lake Elsinore:
Name of Landowner
Number of Acres
Owned Total Votes
Tri Pointe Homes IE-SD, Inc. 34.81 35
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Lake Elsinore (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.
This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2015-1, City of Lake Elsinore, County of Riverside, State of California. Please advise the City Clerk, at (951) 674- 3124 x 261 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:
Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than January 31, 2023, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.
Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on February 14, 2023, at the Clerk’s office at 130 N Main St. Lake Elsinore, CA 92530.
However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on February 14, 2023.
Very truly yours,
Candice Alvarez, MMC,
City Clerk
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):
Tri Pointe Homes IE-SD, Inc.
Attn: Chris Willis
1250 Corona Pointe Court, Suite 600
Corona, CA 92879
379-060-005, 379-060-022, 379-060-027
ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) ANNEXATION NO. 13
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:
Shall the City Council of the City of Lake Elsinore be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2015-1 (Safety Services) adopted by the City Council on January 10, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 13 of Community Facilities District No. 2015-1 (Safety Services) City of Lake Elsinore” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2015-1 (Safety Services) in the amount of special taxes collected?
YES _________
NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.
Chris Willis
Vice President
Signature
Print Name
Title
REPORT TO CITY COUNCIL
To: Honorable Mayor or Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Jason Simpson, City Manager
Date: January 10, 2023
Subject: Annexation No. 18 into Community Facilities District No. 2015-2 (Maintenance Services) for TR 38116 (Lakeside)
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 18) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN.
Background
On September 22, 2015, the City Council approved Resolution No. 2015-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore (the "CFD No. 2015-2" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.
Tri Pointe Homes IE-SD. Inc. (the “Owner”), owns 34.81 gross acres of a vacant residential lot within the City. The Owners have requested that the City assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs associated with the maintenance of public improvements. The improvements proposed to be maintained include items such as landscaping, lighting, street maintenance, parks, and graffiti abatement.
The landowners have advised the City that the area described in Exhibit “B” of the Resolution of Intention to be annexed into CFD No. 2015-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit “C”.
The original area proposed within Annexation No. 18 will encompass 140 detached single-family residential lots. The territory proposed to be annexed into CFD No. 2015-2 will be included in Tax Zone 21. The property is located at the northeast corner of Grand Avenue and Riverside Drive, in the northwestern part of the City. The proposed total maximum tax rate is $387 per unit per CFD 2015-2 Annexation 18
year for Special Tax A and $82 per unit per year for Special Tax B. The maximum annual tax rates are proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%. See Exhibit 3 for a maintenance exhibit illustrating which services are being maintained by the CFD.
Discussion
The Owner has agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings pursuant to the MelloRoos Act of 1982, requesting the annexation of property to CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
The next step to annex the property to CFD No. 2015-2 is to publish a notification of the proposed district along with the "Resolution of Intention" and Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on February 14, 2023, and at that time the Council will formally consider approval of Annexation No. 18.
Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will be subject to the special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to the buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be on undeveloped property within the Tax Zones. Once developed, the Special Tax A for Tax Zone 21 will generate $54,180 for maintenance services.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibit A - Description of Proposed Territory to be Annexed Exhibit B - Description of Authorized Services
Exhibit C - Rate and Method of Apportionment
Exhibit D - Annexation and Potential Annexation Boundary Maps Exhibit E - Petition
Exhibit F - Notice of Public Hearing Exhibit G-Ballot
Attachment 3 - CFD Maintenance Exhibit
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CFD NO. 2015-2
ANNEXATION NO. 18
PROJECT MAP
RESOLUTION NO. 2023-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY
OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 18) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES
THEREIN
Whereas, on September 22, 2015, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) approved Resolution No. 2015-078 establishing Community Facilities District No. 2015- 2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California, defined the "CFD No. 2015-2", for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and
Whereas, the City Council has received a written instrument from the landowner in the CFD No. 2015-2 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2015-2 and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and Whereas, the City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2015-2, that a rate and method of apportionment of the special tax to be levied therein be established;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.
Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2015-2 (Maintenance Services)”.
Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2015-2 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California,” as recorded on August 19, 2015 in Book 78 of Maps of Assessment and Community Facilities District, Page 74, and as Instrument No. 2015-0369598 in the official records of the County of Riverside. The territory proposed to be annexed to the CFD No. 2015-2 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 18, Community Facilities District No. 2015-2 (Maintenance Services), CC Res. No. 2023-_____
City of Lake Elsinore, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.
Section 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2015-2 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2015-2, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2015-2. The Services authorized to be financed by CFD No. 2015-2 are in addition to those currently provided in the territory of CFD No. 2015-2 and do not supplant services already available within that territory.
Section 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2015-2, will be levied annually within CFD No. 2015-2. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C.
Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2015-2. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.
Section 7. Public Hearing. The City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Tuesday, February 14, 2023, in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2015-2.
Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2015-2. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.
Section 9. Mailing Ballots. In anticipation of its action on Tuesday, February 14, 2023 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2015-2 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.
CC Res. No. 2023-_____
PASSED and ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 10th day of January 2023.
_____________________________
Natasha Johnson, Mayor
ATTEST:
_____________________________
Candice Alvarez, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2023-___ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of January 10, 2023, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Candice Alvarez, MMC, City Clerk
EXHIBIT A
DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Lake Elsinore Community Facilities District No. 2015-2 (Maintenance Services) (the “CFD No. 2015- 2”) Annexation No. 18 is currently comprised of three (3) parcels, located within the city boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).
TAX ZONE 21
APN Owner Name
379-060-005 Tri Pointe Homes IE-SD, Inc.
379-060-022 Tri Pointe Homes IE-SD, Inc.
379-060-027 Tri Pointe Homes IE-SD, Inc.
EXHIBIT B
DESCRIPTION OF AUTHORIZED SERVICES
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2015‐2, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways,streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2015‐2; as well as local roads within residential subdivisions located within CFD No. 2015‐2; and any portions adjacent to the properties within CFD No. 2015‐2; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2015‐2 or for the benefit of the properties within the boundaries of CFD No. 2015‐2, asthe boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015‐2 only to the extent that they are in addition to those provided in the territory of CFD No. 2015‐2 before CFD No. 2015‐2 was created.
EXHIBIT C
RATE AND METHOD OF APPORTIONMENT
City of Lake Elsinore 1
Community Facilities District No. 2015‐2 (Maintenance Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)
OF THE CITY OF LAKE ELSINORE
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2015‐2 (Maintenance Services) (the “CFD No. 2015‐2” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2015, in an amount determined by the City Council of the City of Lake Elsinore, acting ex officio as the legislative body of CFD No. 2015‐2, by applying the rate and method of apportionment set forth below.
All of the real property in CFD No. 2015‐2, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2015‐2 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the coststo the City, CFD No. 2015‐2, or any designee thereof associated with fulfilling the CFD No. 2015‐2 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2015‐2 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2015‐2 for any other administrative purposes of CFD No. 2015‐2, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Lake Elsinore, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
City of Lake Elsinore 2
Community Facilities District No. 2015‐2 (Maintenance Services) “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non‐Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2015‐2” means the City of Lake Elsinore Community Facilities District No. 2015‐2 (Maintenance Services).
“City” has the meaning set forth in the preamble.
“Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 etseq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2015‐2.
City of Lake Elsinore 3
Community Facilities District No. 2015‐2 (Maintenance Services) “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2015‐2.
“Multi‐Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit.
“Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2015‐2 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi‐Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2015‐2 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
City of Lake Elsinore 4
Community Facilities District No. 2015‐2 (Maintenance Services) “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2015‐2, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2015‐2 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2015‐2 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non‐Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi‐Family Residential Property and the number of Residential Units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. For Parcels of undeveloped property zoned for development of single family attached or multi‐family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.
City of Lake Elsinore 5
Community Facilities District No. 2015‐2 (Maintenance Services) For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone below or as included in Appendix A as each Annexation occurs.
1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2015‐2016 within Tax Zone 1 isidentified in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 LLA‐2014‐2743 Non‐Residential Property Acre $121
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2016 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved property Fiscal Year 2015‐2016 within Tax Zone 1 is identified in Table 2 below:
City of Lake Elsinore 6
Community Facilities District No. 2015‐2 (Maintenance Services) TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 LLA‐2014‐2743 Non‐Residential Property Acre $121
On each July 1, commencing on July 1, 2016 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2015‐2016 within Tax Zone 1 is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 LLA‐2014‐2743 Acre $121
On each July 1, commencing on July 1, 2016 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
2. Special Tax B (Contingent)
(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 1 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2015‐ 2016 within Tax Zone 1 is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 LLA‐2014‐2743 Non‐Residential Property Acre $0
City of Lake Elsinore 7
Community Facilities District No. 2015‐2 (Maintenance Services) (ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2016 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax B (Contingent) for Fiscal Year 2015‐2016 within the Tax Zone is identified in Table 5 below:
TABLE 5
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 LLA‐2014‐2743 Non‐Residential Property Acre $0
On each July 1, commencing on July 1, 2016 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015‐2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax B (Contingent) for Fiscal Year 2015‐2016 within the Tax Zone is identified in Table 6 below:
City of Lake Elsinore 8
Community Facilities District No. 2015‐2 (Maintenance Services) TABLE 6
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 LLA‐2014‐2743 Acre $0
On each July 1, commencing on July 1, 2016 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2015‐2016 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:
First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax A Requirement for such Tax Zone;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax A for Undeveloped Property.
2. Special Tax B (Contingent)
Commencing with Fiscal Year 2015‐2016 and for each following Fiscal Year, the Council shall determine the Contingent Special Tax B Requirement and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax B (Contingent) equals the Contingent Special Tax B Requirement. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Contingent Special Tax B Requirement;
Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
City of Lake Elsinore 9
Community Facilities District No. 2015‐2 (Maintenance Services) Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2015‐2 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A.
F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Taxes shall be levied as long as the Services are being provided.
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2015‐2, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which isin use in the performance of a public function as determined by the Administrator.
H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2015‐2 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2015‐2 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
City of Lake Elsinore 10
Community Facilities District No. 2015‐2 (Maintenance Services)
APPENDIX A
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)
COST ESTIMATE
Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2022‐23. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2015‐2.
TAX ZONE 21
TR 38116
Item Description Estimated Cost
1 Landscaping $2,202
2 Lighting $2,376
3 Streets $4,852
4 Parks $33,520
5 Graffiti $589
6 Reserves $4,042
7 Admin $6,531
Total $54,112
Special Tax B Contingent Services – The estimate in the table below breaks down the costs of providing one year’s contingent services for Fiscal Year 2022‐23. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2015‐2 Tax Zone 21.
TAX ZONE 21 (CONTINGENT SERVICES)
TR 38116
Item Description Estimated Cost
1 Drainage $9,188
2 Reserves $919
3 Admin $1,378
Total $11,485
TAX ZONE 21
FY 2022‐23 MAXIMUM SPECIAL TAX RATES
DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Single Family Residential RU $387 $82
Non‐Residential Property Acre $4,964 $1,054
City of Lake Elsinore 11
Community Facilities District No. 2015‐2 (Maintenance Services) TAX ZONE 21
FY 2022‐23 MAXIMUM SPECIAL TAX RATES
UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $4,964 $1,054
City of Lake Elsinore 12
Community Facilities District No. 2015‐2 (Maintenance Services)
TAX ZONE SUMMARY
Annexation
Tax
Zone
Tract
APN
Fiscal
Year
Maximum
Special Tax A
Maximum
Special Tax B Subdivider
Original 1 LLA‐2014‐2743 2015‐16 $121 / Acre $0 / Acre Tractor Supply 1 2 36682 2016‐17 $354 / RU $102 / RU Pardee Homes
2 3 PM 29996 2017‐18 $951 / Acre $165 / Acre Pasadena Industrial Park, LLC 3 4 PM 36551 2017‐18 $2,671 / Acre $201 / Acre ARI Chaney Street, LLC 4 5 TR 32996 2017‐18 $378 / RU $321 / RU LE Cottage Lane, LLC 5 6 365‐030‐001 2018‐19 $1,004/ Acre $0 / Acre Lake Elsinore CCR, LLC 6 7 TR 33267 2019‐20 $350 / RU $56 / RU Pardee Homes
7 8 PM 37284 2019‐20 $1,953 / Acre $0 / Acre Central Plaza 8 9 TR 37305 2019‐20 $951 / RU $384 / RU Nichols Rd Partners, LLC 8 10 TR 37305; Lot 169 2019‐20 $2,600 / Acre $0 / Acre Nichols Rd Partners, LLC 9 11 TR 32129 & 30698 2020‐21 $541 / RU $69 / RU
Donald S. Clurman &
Three Strands Properties, LLC &
Spectrum Communities, LLC
10 12 TR 33370 2021‐22 $294 / RU $30 / RU JLJ. LLC
11 13 PM 37534 2021‐22 $1,113 / Acre $0 / Acre SRZ Yuma, LLC 12 14 TR 33725 2021‐22 $749 / RU $87 / RU SPT‐AREP III Tuscany Associates 12 15 TR 25475 2021‐22 $594 / RU $62 / RU SPT‐AREP III Tuscany Associates 13 16 LLA 2019‐007 2021‐22 $407 / Acre $0 / Acre Wal‐Mart Real Estate Business Trust
14 17 TR 38008 2021‐22 $366 / RU $123 / RU Tri Pointe Homes IE‐SD, Inc. 15 18 TPM 37751 2021‐22 $2,188 / Acre $2,540 / Acre Boos‐Up Lake Elsinore 16 19 PM 37710 2021‐22 $1,034 / Acre $0 / Acre Pennington Industrial, LLC 17 20 TR 37280 2022‐23 $323 / RU $5 / RU Lake Elsinore Lakeshore, LLC and Erin Crowder
18 21 TR 38116 2022‐23 $387 / RU $82 / RU Tri Pointe Homes IE‐SD, Inc.
ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2016 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
City of Lake Elsinore 13
Community Facilities District No. 2015‐2 (Maintenance Services)
APPENDIX B
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2015‐2, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways,streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2015‐2; as well as local roads within residential subdivisions located within CFD No. 2015‐2; and any portions adjacent to the properties within CFD No. 2015‐2; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2015‐2 or for the benefit of the properties within the boundaries of CFD No. 2015‐2, asthe boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015‐2 only to the extent that they are in addition to those provided in the territory of CFD No. 2015‐2 before CFD No. 2015‐2 was created.
City of Lake Elsinore 14
Community Facilities District No. 2015‐2 (Maintenance Services)
APPENDIX C
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)
PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES
EXHIBIT D
ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS
379-060-005
379-060-027
379-060-022
GRAND AVE
MACY ST
SERENA WAY
RIVERSIDE DR
74 }þ|·
ANNEXATION MAP NO. 18
COMMUNITY FACILITIES DISTRICT NO. 2015-2
(MAINTENANCE SERVICES)
CITY OF LAKE ELSINORE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2(MAINTENANCE SERVICES), OF THE CITY OF LAKE ELSINORE, COUNTYOF RIVERSIDE, STATE OF CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONAUGUST 13, 2015 IN BOOK 78 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 73 ANDAS INSTRUMENT NO. 2015-0361493 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF RIVERSIDE,STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICTNO. 2015-2 (MAINTENANCE SERVICES), CITY OF LAKE ELSINORE,COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVEDBY THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AT A REGULARMEETING THEREOF, HELD ON ______ DAY OF ______, 20____, BY RESOLUTION NO. _______________ ___________________________________CITY CLERK CITY OF LAKE ELSINORE FILED IN THE OFFICE OF THE CITY CLERK, CITY OF LAKEELSINORE THIS ______ DAY OF ______, 20___.___________________________________CITY CLERK CITY OF LAKE ELSINORE RECORDED THIS ____ DAY OF _______________, 20____ ATTHE HOUR OF ____ O'CLOCK __M IN BOOK _____PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITYFACILITIES DISTRICTS IN THE OFFICE OF THE COUNTYRECORDER, IN THE COUNTY OF RIVERSIDE, STATE OFCALIFORNIA. FEE: _____________ NO.: ______________________ PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDERBY: _______________________________ DEPUTY CFD 2015-2
TAX ZONE 21
^_
74}|·þ
74}|·þ 15
§¨¦
215
§¨¦
LAKE ELSINORE
- THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2022-23. 21 LEGEND
ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARY
XXX-XXX-XXX ASSESSOR PARCEL NUMBER 21 TAX ZONE
EXHIBIT E
PETITION
PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE REQUESTING ANNEXING TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF PROPERTY WITHIN THE CITY OF LAKE ELSINORE
AND A WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO
THE LEVY OF SPECIAL TAXES THEREON TO PAY THE COSTS OF SERVICES TO
BE PROVIDED BY THE COMMUNITY FACILITIES DISTRICT
1. The undersigned requests that the City Council of the City of Lake Elsinore, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), for the annexation of territory to Community Facilities District No. 2015-2 (Maintenance Services) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the Community Facilities District.
2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep landscape lighting, street lighting, flood control facilities, ground cover, shrubs, plants and tree, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition.
3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District described in Exhibit A hereto and as shown on the map Exhibit B hereto.
4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed annexation into Community Facilities District No. 2015-2. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the meeting on annexing territory into Community Facilities District No. 2015-2 or at the next available meeting.
5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code.
6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2015-2 of the portion of the incorporated area of the City of Lake Elsinore or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure.
Petition Form
IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___.
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE THIS ____ DAY OF __________, 20___.
_____________________________________
City Clerk of the City Council of the
City of Lake Elsinore
Tri Pointe Homes IE-SD. Inc., a California Corporation
By: _____________________________________
Name:
Title:
OWNER'S PROPERTY:
TRACT MAP OR PARCEL MAP NO.
or PROJECT NO. Tract No. 38116
OWNER'S MAILING ADDRESS:
1250 Corona Pointe Court, Suite 600
Corona, CA 92879
Chris Willis
V.P. of Land Acquisition & Project Management
Acknowledgment Regarding Property to be Included into Community Facilities District No. 2015-2 (Maintenance Services)
The developer/property owner of (Tract No. / Assessor's Parcel Nos.) 38116 /379-060-005, 379-060-022 AND 379-060-027 hereby acknowledges that:
If the landscaping, drainage, lighting and eligible public improvements within the Community Facilities District No. 2015-2 (Maintenance Services) the maintenance areas of (Assessor's Parcel Nos.) 379-060-005, 379-060-022 and 379-060-027, which are to be included in the Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, are completed prior to the levy and collection of special taxes upon property within said tract for the maintenance of such landscape and improvements, the developer/property owner will continue to be responsible for and will maintain the landscaping, drainage, lighting, and eligible public improvements within such maintenance areas at its sole expense, and the City will not assume responsibility for the maintenance of such landscaping, drainage, lighting and eligible public improvements until such time as the City is able to collect such special taxes to pay the costs of the maintenance of such landscaping, drainage, lighting, and eligible public improvements.
DATED: 0WNER(S):
__________________
(Print Name)
(Print Name)
(Signature)
(Title)
(Signature)
(Title)
V.P. of Land Acquisition & Project Management
TriPointe Homes IE-SD, Inc., a California Corp,
EXHIBIT F
NOTICE OF PUBLIC HEARING
NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 18)
NOTICE IS HEREBY GIVEN that the City Council of the City of Lake Elsinore on January 10, 2023 adopted its Resolution No. 2023-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2015-2 (Maintenance Services) (the "CFD No. 2015-2"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2015-2 is proposed.
NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Tuesday, February 14, 2023 in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2015-2. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the February 14, 2023 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Lake Elsinore (www.lakeelsinore.org), and outside of City Hall at 130 S. Main Street, Lake Elsinore, CA 92530. A copy of the Agenda will be made available upon request to the Lake Elsinore City Clerk's office at 951-674-3124; Ext. 262 DATED: ____________, 20___ _________________________________________ City Clerk of the City of Lake Elsinore
EXHIBIT G
BALLOT
SPECIAL TAX ELECTION
CITY OF LAKE ELSINORE
ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 18
(February 14, 2023)
This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 18 of the Community Facilities District No. 2015-2 (Maintenance Services) (“CFD No. 2015-2”) of the City of Lake Elsinore:
Name of Landowner
Number of Acres
Owned Total Votes
Tri Pointe Homes IE-SD, Inc. 34.81 35
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Lake Elsinore (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.
This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2015-2, City of Lake Elsinore, County of Riverside, State of California. Please advise the City Clerk, at (951) 674-3124 x 261 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:
Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than January 31, 2023, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.
Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on February 14, 2023, at the Clerk’s office at 130 N Main St. Lake Elsinore, CA 92530.
However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on February 14, 2023.
Very truly yours,
Candice Alvarez, MMC,
City Clerk
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):
Tri Pointe Homes IE-SD, Inc.
Attn: Chris Willis
1250 Corona Pointe Court, Suite 600
Corona, CA 92879
379-060-005, 379-060-022, 379-060-027
ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 18
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:
Shall the City Council of the City of Lake Elsinore be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2015-2 (Maintenance Services) adopted by the City Council on January 10, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 18 of Community Facilities District No. 2015-2 (Maintenance Services) City of Lake Elsinore” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2015-2 (Maintenance Services) in the amount of special taxes collected?
YES _________
NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.
Chris Willis
Vice President
Signature
Print Name
Title
REPORT TO CITY COUNCIL
To: Honorable Mayor or Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: January 10, 2023
Subject: Intention to Establish Community Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside)
Recommendation
1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, STATING THE INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2023-1 OF THE CITY OF LAKE ELSINORE (LAKESIDE); and
2. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, STATING THE INTENTION TO INCUR BONDED INDEBTEDNESS FOR COMMUNITY FACILITIES DISTRICT NO. 2023-1 OF THE CITY OF LAKE ELSINORE (LAKESIDE)
Background
The property to be included within proposed Community Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside) (“CFD No. 2023-1” or the “District”) is located on the northeast corner of Grand Avenue and Riverside Drive, in the western part of the City of Lake Elsinore (the “Property”) (see the attached project map). Collectively, the Property is approximately 35 gross acres with plans to be entitled for 140 single family residential lots. The Property is currently owned by Tri Pointe Homes IE-SD, Inc. (the “Property Owner”).
The Property Owner has requested that the City form CFD No. 2023-1 to encompass the Property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $9 million.
Intention to Establish CFD No. 2023-1
The Property Owner has requested that the boundaries of CFD No. 2023-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2023-1 presented at this meeting (the “Resolution of Intention”), and that special taxes be levied within the boundaries of the District in accordance with the Rate and Method of Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention.
Discussion
The Resolution of Intention is the first step in the process of forming CFD No. 2023-1. The attached Resolutions declare the City’s intention to establish CFD No. 2023-1, its intention to incur bonded indebtedness by CFD No. 2023-1, and call for a public hearing. A public hearing on the matter will take place on February 21, 2023, and at that time the Council will formally consider the establishment of CFD No. 2023-1, and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2023-1.
Fiscal Impact
The Property Owner has made a deposit to pay for the costs of the formation proceedings which may be reimbursed to the Property Owner in accordance with a reimbursement agreement with the Property Owner. If established and subject to necessary Council and voter approvals, CFD No. 2023-1 will annually levy special taxes on all of the taxable property within the District in accordance with the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for the costs of facilities, debt service on bonds and administration of CFD No. 2023-1.
Any bonds issued by CFD No. 2023-1 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2023-1.
The RMA provides that the annual special tax rates will range from $3,228 for home sizes less than 1,900 square feet to $3,564 for home sizes greater than 2,100 square feet, which rates escalate at 2% per year.
Attachments
Attachment 1 - Resolution of Intention to Establish CFD 2023-1 Attachment 2 - Resolution of Intention to Incur Debt
Attachment 3 - Landowner Petition
Exhibit A - Project Map
Attachment 4 - Reimbursement Agreement
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RESOLUTION NO. __________
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF LAKE ELSINORE TO ESTABLISH COMMUNITY
FACILITIES DISTRICT NO. 2023-1 OF THE CITY OF LAKE
ELSINORE (LAKESIDE), TO AUTHORIZE THE LEVY OF A
SPECIAL TAX TO PAY THE COSTS OF ACQUIRING OR
CONSTRUCTING CERTAIN FACILITIES AND TO PAY DEBT
SERVICE ON BONDED INDEBTEDNESS
Whereas, the City of Lake Elsinore (the “City”) received a petition signed by the owners of all of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
Whereas, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside)” (“Community Facilities District No. 2023-1” or the “District”) pursuant to the MelloRoos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and Whereas, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2023-1; and Whereas, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2023-1 and the issuance of bonded indebtedness in an amount not to exceed $9,000,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2023-1; Whereas, the City desires to enter into a reimbursement agreement with Tri Pointe Homes IESD, Inc., a California corporation (the “Developer”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District; Whereas, the District and the Developer propose to enter into a joint community facilities agreements (the “JCFA”) with Elsinore Valley Municipal Water District (the “Water District”) relating to certain facilities proposed to be financed by the District and owned and operated by the Water District, and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2023-1 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk-Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside).” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2023-1 are public facilities as defined in the Act, which the City and the Water District, with respect to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District.
The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.
All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.
Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash). The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to 3 4880-5326-6239v3/022042-0046
the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.
If the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Attachment “C” hereto, (ii) such Special Tax not shall be levied after fiscal year 2069-70, as described in Attachment “C” hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2023-1 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Attachment “C” to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2023-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment “C,” the City Council shall, on behalf of Community Facilities District No. 2023-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment “C,” to the extent necessary upon the remaining property within proposed Community Facilities District No. 2023- 1 which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment “C” hereto.
Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2023-1, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 7:00 p.m., or as soon thereafter as practicable, on February 21, 2023, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.
Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2023-1 shall be established and as to the method of apportionment of the special tax and shall consider:
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(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2023-1 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2023-1 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2023-1, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2023-1 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.
Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2023-1, may appear and be heard.
Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2023-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2023-1 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.
Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2023-1. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.
Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2023-1. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
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Section 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Nine Million Dollars ($9,000,000).
Section 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval.
Section 14. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
Section 15. This Resolution shall be effective upon its adoption.
Passed and Adopted on this 10th day of January, 2023.
_____________________________
Natasha Johnson, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2023-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of January 10, 2023 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
A-1
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ATTACHMENT A
BOUNDARY MAP
B-1
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ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside) The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, fire, roadway, traffic, administration and community center facilities, marina/lakeside and animal shelter facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended, and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.
C-1
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2023-1
OF THE CITY OF LAKE ELSINORE
(LAKESIDE)
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Lake Elsinore Community Facilities District No. 2023-1 (Lakeside) ("CFD No. 2023-1”).
The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2023-1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a standalone Residential Unit. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2023-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2023-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2023-1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2023-1 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2023- 1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2023-1 for any other administrative purposes C-2
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of CFD No. 2023-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax of CFD No. 2023-1 have been pledged.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2023-1” means Community Facilities District No. 2023-1 (Lakeside Highlands) established by the City under the Act.
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“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2023-1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 6624.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) has an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2023-1 in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
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"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Sections F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2023-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2023-1 or the payment of debt services on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2023-1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
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“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022-2023, each Assessor’s Parcel within CFD No. 2023-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property, or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further categorized into Land Use Categories based on its Building Square Footage and assigned to its appropriate Assigned Special Tax rate.
In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and shall be taxed as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all other Undeveloped Property multiplied by the total of the amount determined in clause (1), less the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Non-Residential or Multifamily Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
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a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential Property RU Less than 1,900 sq. ft $3,228.00
2. Single Family Residential Property RU 1,900 sq. ft to 2,100 sq. ft $3,366.00
3. Single Family Residential Property RU Greater than 2,100 sq. ft $3,564.00
4. Multifamily Property Acre N/A $48,372.00
5. Non-Residential Property Acre N/A $48,372.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel.
The CFD Administrator’s allocation to each type of property shall be final. c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $3,766 per Residential Unit.
Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2023-1 is subsequently changed or modified, then the Backup Special Tax for Single Family Residential Property or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the total number of Residential Units constructed and/or anticipated to be constructed within such changed or modified Final Map or condominium plan area, as reasonably determined by the CFD Administrator.
The result of paragraph 2 is the Backup Special Tax per Residential Unit which shall be applicable to Assessor’s Parcels of Single Family Residential Property or Approved Property C-7
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in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2023-1.
Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property for which a certificate of occupancy has been granted may not be revised.
On each July 1, commencing July 1, 2023, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $48,372 per Acre.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of $48,372 multiplied by the Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Undeveloped and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied C-8
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Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than
9.84 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 9.84 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 9.84 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $8,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the C-9
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authorized bonding program for CFD No. 2023-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible to be financed by CFD No. 2023-1. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the city of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded through existing construction or escrow accounts funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property, or Provisional Undeveloped Property that are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):
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Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property, Property Owner’s Association Property, or Provisional Undeveloped Property to be prepaid compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.
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10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.
In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
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Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.
2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2069-2070 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2023-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2023-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent C-13
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Special Tax remain uncollected and (iv) all other obligations of CFD No. 2023-1 have been satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2023-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.
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RESOLUTION NO. _________
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF THE CITY OF LAKE ELSINORE TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $9,000,000
WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO.
2023-1 OF THE CITY OF LAKE ELSINORE (LAKESIDE)
Whereas, the City Council of the City of Lake Elsinore (the “City Council”) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside) (“Community Facilities District No. 2023-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. 2023-___ (the “Resolution of Intention to Establish”) adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Attachment “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and, Whereas, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $9,000,000; and,
Whereas, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $9,000,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2023-1, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment “C” to the Resolution of Intention to Establish.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2023-1 in an amount not to exceed $9,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.
Section 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.
Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $9,000,000 and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the 2 4866-1141-0239v4/022042-0046
legislative body of the District authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.
Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 7:00 p.m. or as soon thereafter as practicable, on February 21, 2023, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California.
Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2023-1, may appear and be heard.
Section 7. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2023-1. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2023-1 at least 15 days prior to the Hearing.
Passed and Adopted on this 10th day of January, 2023.
_____________________________
Natasha Johnson, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
3 4866-1141-0239v4/022042-0046
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2023-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of January 10, 2023 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
A-1
4866-1141-0239v4/022042-0046
ATTACHMENT A
Types of Facilities
to Be Financed by Community
Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside) The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, fire, roadway, traffic, administration and community center facilities, marina/lakeside and animal shelter facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended, and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District. 1 4895-0022-9184v3/022042-0046
PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE REQUESTING INSTITUTION OF PROCEEDINGS
FOR ESTABLISHMENT OF A COMMUNITY FACILITIES
DISTRICT (COMMUNITY FACILITIES DISTRICT NO. 2023-1 OF
THE CITY OF LAKE ELSINORE (LAKESIDE))
1. The undersigned (the “Owner”) owns all of the land depicted and described in Exhibit A hereto (the “Property”), which land is expected to be all of the land included within the boundaries of a community facilities district hereby proposed to be established. The Property is located within the City of Lake Elsinore (the “City”) in the County of Riverside.`
2. The Owner requests that the City Council of the City (the “City Council”) institute proceedings to establish a community facilities district to be known as “Community Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside)” (referred to herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”) to include all of the Property.
3. The boundaries of the territory which is proposed for inclusion in the District are those described and depicted in Exhibit A hereto.
4. The Owner requests that the proposed District be used to finance the construction, purchase, modification, expansion and/or improvement of (i) drainage, library, park, fire, roadway, traffic, administration and community center facilities, marina/lakeside and animal shelter facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
5. The Owner further requests that the City Council authorize the levy of special taxes in the District to pay the costs of the Facilities and the incidental costs described in paragraph 4 above (the “Special Tax”) and to pay principal of, interest and premium, if any, on the bonds in order to contribute to the financing of the Facilities and costs described in paragraph 4 above.
2 4895-0022-9184v3/022042-0046
6. The Owner further requests that, upon the sale of bonds, the City Council, as legislative body of the District, annually levy Special Taxes on the property within the District for the construction, acquisition and rehabilitation of the Facilities, for the payment of the aggregate amount of principal of and interest owing on the bonds in each fiscal year, including the maintenance of reserves therefor, and for the payment of administrative expenses of the District.
7. The Owner has advanced to the City the amounts necessary to pay for the costs related to the formation of the District, which amounts will be reimbursed, without interest, from the proceeds of the first sale of the bonds, if any. The reimbursement of such amounts is expected to be governed by the terms of that certain Reimbursement Agreement to be entered into by and between the City and the Owner relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended for costs incurred, but will reimburse any unexpended amounts advanced by the Owner as set forth in the Reimbursement Agreement.
8. This petition may be executed in counterparts.
Dated: January __, 2023
TRI POINTE HOMES IE-SD, INC., a California
corporation
By:
Michael C. Taylor, President
A-1
4895-0022-9184v3/022042-0046
EXHIBIT A
BOUNDARY MAP AND LEGAL DESCRIPTION
A-2
4895-0022-9184v3/022042-0046
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as follows:
Riverside County Assessor Parcel Nos.:
379-060-005
379-060-022
379-060-027
MACY
ST
WINDOVER CT
SERENA WAY
TILLER LN
HILL
ST
FAIRVIEW
ST
CALIFORNIA ST
ULLA
LN
RIVERSIDE
DR
GRAND AVE
·|}þ74
^_
LAKESHORE DR
3RD
ST
N ICHOL S R D
MACY ST
MCV CI K E R CANYON PARK RD
MAIN ST
LASHST
RIVERSIDE DR
GUNNERSON ST
ROLANDO RD
OH OI ST AMBER LN
PASADENA ST
SKYLINEDR
LAKE ST
§¨¦15
·|}þ74
CFD NO. 2023-1 (LAKESIDE)
PROJECT MAP
4877-7611-1936v4/022042-0046
REIMBURSEMENT AGREEMENT
RE PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2023-1
OF THE CITY OF LAKE ELSINORE (LAKESIDE)
THIS REIMBURSEMENT AGREEMENT RE PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2023-1 OF THE CITY OF LAKE ELSINORE (LAKESIDE) (the “Agreement”) dated as of January 1, 2023, is entered into by and between the City of Lake Elsinore, a general law city organized and existing under the laws and constitution of the State of California (the “City”), and Tri Pointe Homes IE-SD, Inc., a California corporation (the “Owner”).
R E C I T A L S :
A. The Owner own approximately 34.81 acres of land described in Exhibit A attached hereto (the “Property”) for which the Owner desires to include within proposed Community Facilities District No. 2023-1 of the City of Lake Elsinore (Lakeside) (the “District”) to be established by the City pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”).
B. The City and the Owner are desirous of entering into this Agreement in order to provide a mechanism by which the Owner may advance certain costs related to the cost of formation of the District, and to provide that such District, if formed, will reimburse the Owner for the amounts advanced hereunder.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:
1. Recitals. Each of the above recitals is incorporated herein and is true and correct.
2. Potential Formation of the District and Issuance of Bonds. (a) At the request of the Owner, the City will undertake to form the District.
The City will retain, at the Owner’s expense, the necessary consultants to analyze the proposed formation of the District and issuance of bonds, including an engineer, special tax consultant, financial advisor, bond counsel, market absorption consultant, appraiser and other consultants deemed necessary by the City. In addition, City staff time spent in connection with the formation of the District and the issuance of bonds shall be at Owner’s expense. (b) In order to begin the process of analyzing the potential formation of the District, the Owner has advanced to the City a sum totaling $50,000. From time to time, the Owner shall make additional advances to the City within 15 days following receipt from the City of a request for an additional advance to cover the costs of forming the District and/or issuing bonds. In the event the Owner does not deliver the requested amount to the City within such 15-day period, the City will have no obligation to proceed with the analysis or bond issue unless and until such additional advance is received. The Owner shall have the right to notify the City at any time, in writing, of its intention to abandon the formation of the District or the issuance of bonds. Upon receipt of such notice, the City shall instruct its consultants to cease work as soon 2 4877-7611-1936v4/022042-0046
as practicable. The Owner shall be responsible to pay all costs and expenses incurred by the City or any City consultant or advisor prior to the date on which the City’s consultants are notified of the Owner’s notice of abandonment. Notwithstanding a decision of the Owner to abandon the formation of the District or the issuance of bonds, the City may, in its sole discretion, elect to proceed with formation of the District and/or the issuance of bonds with funds other than those of the Owner; provided, however, that, in executing this Agreement, the Owner shall not be deemed to have waived their right to object to the formation of the District or the issuance of bonds.
(c) The City will provide to the Owner on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by the Owner will be reimbursable to the Owner, without interest, from the proceeds of bonds issued by the District when and if the District is formed. In the event that bonds are not issued to provide a source of reimbursement to the Owner, the City shall have no liability to the Owner to reimburse them for any of amounts previously advanced by the Owner and expended by the City in accordance with this Agreement.
3. Reimbursement Procedure. The City shall return any funds which have been advanced by the Owner which are not expended on the purposes set forth in Section 2 above.
Such returned funds shall be without interest.
4. Abandonment of CFD Formation Process. The Owner understands that any formation of the District shall be in the sole discretion of the City. No provision of this Agreement shall be construed as a promise, warranty or agreement by the City to form the District, to annex the Property to any other district or improvement area of the City or to issue any bonds. The City shall have no liability to Owner for its decision not to form the District or issue bonds.
5. Indemnification and Hold Harmless. The Owner hereby assumes the defense of, and indemnifies and saves harmless, jointly and severally, the City and each of its officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or arising out of any acts or omissions taken by the Owner or any of the Owner’s officers, employees, contractors and agents with respect to the formation of the District.
6. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses:
Owner Tri Pointe Homes IE-SD, Inc.
1250 Corona Pointe Court, Suite 600
Corona, California 92879
Attention: Chris Willis
Telephone: (951) 396-0426
Email: [email protected]
City: City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Manager
Telephone: (951) 674-3124
Email: [email protected]
3 4877-7611-1936v4/022042-0046
With a copy to: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath, Esq.
Telephone: (949) 725-4193
Email: [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
7. Assignment. The Owner may assign its interest in this Agreement at any time provided, however, that the Owner shall provide written evidence of any assignment to the City.
8. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law.
9. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein.
10. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties.
11. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.
12. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.
13. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City and the Owner, any rights, remedies, obligations or liabilities under or by reason of this Agreement.
14. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.
15. Termination. This Agreement shall terminate and be of no further force and effect on December 1, 2027 unless expressly amended by the parties; provided, however, that the Owner’s obligations under Section 5 shall survive the termination and the City’s obligation to provide reimbursement in accordance with Section 3 for expenses incurred prior to the termination date shall also survive termination.
S-1
4877-7611-1936v4/022042-0046
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.
CITY OF LAKE ELSINORE, a political subdivision
of the State of California
By:
City Manager
ATTEST:
By:
Candice Alvarez, City Clerk
TRI POINTE HOMES IE-SD, INC., a
California corporation
By:____________
Michael C. Taylor, President
APPROVED AS TO FORM:
CITY ATTORNEY
By:
A-1
4877-7611-1936v4/022042-0046
EXHIBIT A
DESCRIPTION OF PROPERTY
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as follows:
Riverside County Assessor Parcel Nos.:
379-060-005
379-060-022
379-060-027