4885-7878-5032v4/022042-0035
RESOLUTION NO. 2025-______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF LAKE ELSINORE (TUSCANY
VALLEY/CREST), APPROVING AN AMENDED AND RESTATED RATE AND
METHOD OF APPORTIONMENT OF SPECIAL TAX FOR EACH OF IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 OF THE DISTRICT AND
INCREASING THE AUTHORIZED BONDED INDEBTEDNESS FOR EACH OF IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 OF THE DISTRICT
AND CALLING ELECTIONS THEREIN
Whereas, on March 23, 2021, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2021-25 stating its intention to form Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) (“Community Facilities District No. 2021-1” or the “District”) and designate Improvement Area No. 1 (“Improvement Area No. 1”) and Improvement Area No. 2 (“Improvement Area No. 2” and together with Improvement Area No. 1, the “Improvement Areas”) therein 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, on March 23, 2021, the City Council also adopted Resolution No. 2021-26 stating its intention to incur bonded indebtedness within Improvement Area No. 1 in the amount not to exceed $14,000,000 and within Improvement Area No. 2 in the amount not to exceed $10,000,000 to finance the facilities and improvements identified in Resolution No. 2021-53 (collectively, the “Improvements”), and the incidental expenses to be incurred in financing the Improvements and forming and administering the District (the “Incidental Expenses”); and Whereas, a notice calling a public hearing on April 27, 2021, was published as required by law relative to the intention of the City Council to establish Community Facilities District No. 2021-1 and to incur bonded indebtedness within Community Facilities District No. 2021-1 for the Improvement Areas; and
Whereas, on April 27, 2021, the City Council conducted a noticed public hearing to determine whether it should proceed with the establishment of Community Facilities District No. 2021-1, issue bonds for the benefit of Community Facilities District No. 2021-1 to pay for the Improvements and Incidental Expenses and authorize the rate and method of apportionment of the special taxes for Improvement Area No. 1 in the form attached as Attachment C to Resolution No. 2021-25 (the “Improvement Area No. 1 Rate and Method”) and the rate and method of apportionment of the special taxes for Improvement Area No. 2 in the form attached as Attachment D to Resolution No. 2021-25 (the “Improvement Area No. 2 Rate and Method”) to be levied within Improvement Area No. 1 and Improvement Area No. 2, respectively, for the purposes described in the Resolution of Formation (defined below); and Whereas, at the April 27, 2021, public hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2021-1, the levy of the special taxes in accordance with the Improvement Area No. 1 Rate and Method and the Improvement Area No. 2 Rate and Method and the issuance of bonds within Community Facilities District No. 2021-1 for Improvement Area No. 1 and Improvement Area No. 2 to pay for the cost of the 2 4885-7878-5032v4/022042-0035
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6 proposed Improvements and Incidental Expenses were heard and a full and fair hearing was held; and
Whereas, after the public hearing, on April 27, 2021, the City Council adopted Resolution Nos. 2021-53 (the “Resolution of Formation”) and 2021-54 which formed the District, designated Improvement Area No. 1 and Improvement Area No. 2 therein and called a special election on April 27, 2021, within each of Improvement Area No. 1 and Improvement Area No. 2 on propositions relating to the levying of the special taxes, the incurring of bonded indebtedness and the establishment of an appropriations limit for the District, which were approved by more than two-thirds vote by the qualified electors on April 27, 2021; and Whereas, pursuant to Resolution No. 2021-55, adopted on April 27, 2021, the City Council, acting as the legislative body of Community Facilities District No. 2021-1, declared the results of the special elections and directed the recording of notices of special tax liens within Improvement Area No. 1 and Improvement Area No. 2 of Community Facilities District No. 2021-1; and Whereas, on December 14, 2021, the City Council, acting as the legislative body of Community Facilities District No. 2021-1, adopted Resolution No. 2021-130, stating its intention to consider the approval of an Amended and Restated Rate and Method of Apportionment for each of Improvement Area No. 1 and Improvement Area No. 2 (the “Amended and Restated Rate and Methods”); and
Whereas, a notice calling a public hearing on January 25, 2022, was published as required by law relative to the intention of the City Council to consider the approval of the Amended and Restated Rate and Methods; and
Whereas, on January 25, 2022, this Council conducted a noticed public hearing to determine whether it should proceed with the approval of the Amended and Restated Rate and Methods; and
Whereas, at the January 25, 2022, public hearing all persons desiring to be heard on all matters pertaining to the approval of the Amended and Restated Rate and Methods were heard and a full and fair hearing was held; and
Whereas, after the public hearing, on January 25, 2022 the City Council adopted Resolution No. 2022-9 which approved the Amended and Restated Rate and Method and called a special election on January 25, 2022, within each of Improvement Area No. 1 and Improvement Area No. 2 on a proposition relating to the approval of the Amended and Restated Rate and Method, which was approved by more than two-thirds vote by the qualified electors on January 25, 2022; and Whereas, pursuant to Resolution No. 2022-10, adopted on January 25, 2022, the City Council, acting as the legislative body of Community Facilities District No. 2021-1, declared the results of the special elections and directed the recording of notices of special tax liens within Improvement Area No. 1 and Improvement Area No. 2 of Community Facilities District No. 2021-1; and Whereas, the District has received a petition signed by KB HOME Cal Management Services LLC, a Delaware limited liability company (the “Owner”), which owns all of the land within Community Facilities District No. 2021-1, the boundaries of which are described in the Resolution of Consideration (defined below) which petition meets the requirements of Section 53332 of the Act, requesting that the District initiate proceedings to (i) approve the new rate and method of apportionment for Improvement Area No. 1, attached to the Resolution of Consideration as 3 4885-7878-5032v4/022042-0035
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6 Attachment “B” (the “Second Amended and Restated Improvement Area No. 1 Rate and Method”) and the new rate and method of apportionment for Improvement Area No. 2, attached to the Resolution of Consideration as Attachment “C” (the “Second Amended and Restated Improvement Area No. 2 Rate and Method” and together with the Second Amended and Restated Improvement Area No. 1 Rate and Method, the “Rates and Methods”) and (ii) increase the authorized bonded indebtedness with respect to Improvement Area No. 1 from $14,000,000 to $16,000,000 and increase the authorized bonded indebtedness with respect to Improvement Area No. 2 from $10,000,000 to $12,000,000; and
Whereas, on July 22, 2025, the City Council, acting as the legislative body of Community Facilities District No. 2022-1, adopted Resolution No. 2025-51 (the “Resolution of Consideration”), stating its intention to consider the approval of the Rates and Methods; and Whereas, a notice calling a public hearing on August 26, 2025, was published as required by law relative to the intention of the City Council to consider the approval of the Rates and Methods and approval of increasing the authorized bonded indebtedness with respect to Improvement Area No. 1 and Improvement Area No. 2; and
Whereas, on August 26, 2025, this Council conducted a noticed public hearing to determine whether it should proceed with the approval of the Rates and Methods and approval of increasing the authorized bonded indebtedness with respect to Improvement Area No. 1 and Improvement Area No. 2; and
Whereas, at the August 26, 2025, public hearing all persons desiring to be heard on all matters pertaining to the approval of the Rates and Methods and approval of increasing the authorized bonded indebtedness with respect to Improvement Area No. 1 and Improvement Area No. 2 were heard and a full and fair hearing was held; and
Whereas, at the August 26, 2025 public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
Whereas, the City Council has determined that there have been fewer than twelve registered voters residing in the District for the period of 90 days prior to August 26, 2025, and that the qualified electors in each Improvement Area are the landowners within such Improvement Area; and
Whereas, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the approval of the Rates and Methods and approval of increasing the authorized bonded indebtedness with respect to Improvement Area No. 1 and Improvement Area No. 2 as described herein;
NOW, THEREFORE, THE CITY COUNCIL OF CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF
LAKE ELSINORE (TUSCANY VALLEY/CREST), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOW:
Section 1.Each of the above recitals is true and correct. 4 4885-7878-5032v4/022042-0035
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6 Section 2. The City Council hereby adopts the Second Amended and Restated Improvement Area No. 1 Rate and Method as the rate and method for Improvement Area No. 1. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within Improvement Area No. 1, to levy the proposed special taxes at the rates for Improvement Area No. 1 set forth in the Second Amended and Restated Improvement Area No. 1 Rate and Method on all non-exempt property within Improvement Area No. 1 sufficient to pay for (i) the Improvements, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued by the District for Improvement Area No. 1 to finance the Improvements and Incidental Expenses, including the establishment and replenishment of reserve funds, 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), administrative expenses and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses.
The Second Amended and Restated Improvement Area No. 1 Rate and Method is described in detail in Attachment “B” to the Resolution of Consideration which is incorporated herein by this reference, and the City Council hereby finds that the Second Amended and Restated Improvement Area No. 1 Rate and Method contains sufficient detail to allow each landowner within Improvement Area No. 1 to estimate the maximum amount that may be levied against each parcel. The Special Tax (as defined in the Second Amended and Restated Improvement Area No. 1 Rate and Method) shall be levied on each assessor’s parcel within Improvement Area No. 1 for a period not to exceed Fiscal Year 2069-70.
The City Council hereby adopts the Second Amended and Restated Improvement Area No. 2 Rate and Method as the rate and method for Improvement Area No. 2. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within Improvement Area No. 2, to levy the proposed special taxes at the rates for Improvement Area No. 2 set forth in the Second Amended and Restated Improvement Area No. 2 Rate and Method on all non-exempt property within Improvement Area No. 2 sufficient to pay for (i) the Improvements, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued by the District for Improvement Area No. 2 to finance the Improvements and Incidental Expenses, including the establishment and replenishment of reserve funds, 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), administrative expenses and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses.
The Second Amended and Restated Improvement Area No. 2 Rate and Method is described in detail in Attachment “C” to the Resolution of Consideration which is incorporated herein by this reference, and the City Council hereby finds that the Second Amended and Restated Improvement Area No. 2 Rate and Method contains sufficient detail to allow each landowner within Improvement Area No. 2 to estimate the maximum amount that may be levied against each parcel. The Special Tax (as defined in the Second Amended and Restated Improvement Area No. 2 Rate and Method) shall be levied on each assessor’s parcel within Improvement Area No. 2 for a period not to exceed Fiscal Year 2069-70.
Section 3. The City Council hereby approves increasing the authorized indebtedness for Improvement Area No. 1 from $14,000,000 to $16,000,000.
Section 4. The City Council hereby approves increasing the authorized indebtedness for Improvement Area No. 2 from $10,000,000 to $12,000,000.
Section 5. Upon recordation of a second amended and restated notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code for each of the Improvement Areas, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property 5 4885-7878-5032v4/022042-0035
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6 in each of such Improvement Areas and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special tax for such Improvement Area ceases.
Section 6. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Improvements, as described in Resolution No. 2021-53, financing the Incidental Expenses, and carrying out the powers and purposes of Community Facilities District No. 2021-1, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying 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), administrative expenses and other expenses of the type authorized by Section 53345.3 of the Act.
Section 7. Written protests against the approval of the Second Amended and Restated Improvement Area No. 1 Rate and Method and the Second Amended and Restated Improvement Area No. 2 Rate and Method have not been filed by one-half or more of the registered voters within the boundaries of the District or either Improvement Area or by the property owners of one- half or more of the area of land within the boundaries of the District or either Improvement Area.
The City Council hereby finds that the approval of the Second Amended and Restated Improvement Area No. 1 Rate and Method and the Second Amended and Restated Improvement Area No. 2 Rate and Method with respect to the applicable Improvement Area has not been precluded by a majority protest pursuant to Section 53337 of the Act.
Section 8. An election is hereby called for Improvement Area No. 1 on the proposition of approving the Second Amended and Restated Improvement Area No. 1 Rate and Method and increasing the authorized bonded indebtedness with respect to Improvement Area No. 1 from $14,000,000 to $16,000,000. The proposition to be placed on the ballot for the District is attached hereto as Attachment “A.” Following certification of a landowner vote in favor of the adoption of the Second Amended and Restated Improvement Area No. 1 Rate and Method and increasing the authorized bonded indebtedness with respect to Improvement Area No. 1 from $14,000,000 to $16,000,000, the District shall record a second amended and restated notice of special tax lien Improvement Area No. 1.
An election is hereby called for Improvement Area No. 2 on the proposition of approving the Second Amended and Restated Improvement Area No. 2 Rate and Method and increasing the authorized bonded indebtedness with respect to Improvement Area No. 2 from $10,000,000 to $12,000,000. The proposition to be placed on the ballot for the District is attached hereto as Attachment “B.” Following certification of a landowner vote in favor of the adoption of the Second Amended and Restated Improvement Area No. 2 Rate and Method and increasing the authorized bonded indebtedness with respect to Improvement Area No. 2 from $10,000,000 to $12,000,000, the District shall record a second amended and restated notice of special tax lien Improvement Area No. 2.
Section 9. The date of the foregoing election for each of the Improvement Areas shall be August 26, 2025, or such later date as is consented to by the City Clerk and the landowners within the applicable Improvement Area. The City Clerk shall conduct the elections. Except as otherwise provided by the Act, the elections shall be conducted by personally delivered or mailed ballots and, except as otherwise provided by the Act, the elections shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.
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6 Section 10. It is hereby found that there are not more than twelve registered voters within the territory of either Improvement Area, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within the respective Improvement Area.
Section 11. The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the amendments to the rates and methods of apportionment of special tax for the Improvement Areas. The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.
Section 12. This Resolution shall take effect immediately upon its adoption.
Section 13. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.
Passed and Adopted on this 26 th day of August, 2025.
_____________________________
Brian Tisdale, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
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6 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. 2025-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of August 26, 2025 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
ATTACHMENT A
4885-7878-5032v4/022042-0035
ATTACHMENT “A”
SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2021-1
OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)
(IMPROVEMENT AREA NO. 1)
SPECIAL ELECTION
August 26, 2025
This ballot represents 29 votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the City Clerk of City of Lake Elsinore and obtain another.
PROPOSITION A: Shall a special tax with a Second Amended and Restated Rate and Method of Apportionment (the “Second Amended and Restated Rate and Method”) as provided in Attachment “B” to Resolution No. 2025-51 adopted by the City Council of the City of Lake Elsinore on July 22, 2025, acting as the legislative body of Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) (the “District”), be levied to pay for the Facilities, Incidental Expenses (as defined in Resolution No. 2021-53) and other purposes described in Resolution No. 2021-53, adopted by the City Council of the City of Lake Elsinore on April 27, 2021, including the payment of the principal of and interest on bonds issued by the District for Improvement Area No. 1 of the District to finance the Improvements and Incidental Expenses?
YES____
NO_____
PROPOSITION B: Shall the maximum authorized bonded indebtedness with respect to Improvement Area No. 1 be increased from $14,000,000 to $16,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2021-53 adopted by the City Council of the City of Lake Elsinore on April 27, 2021?
YES____
NO_____
ATTACHMENT B
4885-7878-5032v4/022042-0035
ATTACHMENT “B”
SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2021-1
OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)
(IMPROVEMENT AREA NO. 2)
SPECIAL ELECTION
August 26, 2025
This ballot represents 20 votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the City Clerk of City of Lake Elsinore and obtain another.
PROPOSITION A: Shall a special tax with a Second Amended and Restated Rate and Method of Apportionment (the “Second Amended and Restated Rate and Method”) as provided in Attachment “C” to Resolution No. 2025-51 adopted by the City Council of the City of Lake Elsinore on July 22, 2025, acting as the legislative body of Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) (the “District”), be levied to pay for the Facilities, Incidental Expenses (as defined in Resolution No. 2021-53) and other purposes described in Resolution No. 2021-53, adopted by the City Council of the City of Lake Elsinore on April 27, 2021, including the payment of the principal of and interest on bonds issued by the District for Improvement Area No. 2 of the District to finance the Improvements and Incidental Expenses?
YES____
NO_____
PROPOSITION B: Shall the maximum authorized bonded indebtedness with respect to Improvement Area No. 2 be increased from $10,000,000 to $12,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2021-53 adopted by the City Council of the City of Lake Elsinore on April 27, 2021?
YES______
NO_______