NOTICE OF PUBLIC HEARING ON CONSIDERATION TO
APPROVE A SECOND AMENDED AND RESTATED RATE
AND METHOD OF APPORTIONMENT OF SPECIAL TAX
FOR EACH OF IMPROVEMENT AREA NO. 1 AND
IMPROVEMENT AREA NO. 2 OF COMMUNITY
FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF LAKE
ELSINORE (TUSCANY VALLEY/CREST) AND INCREASE
THE AUTHORIZED BONDED INDEBTEDNESS FOR
EACH OF IMPROVEMENT AREA NO. 1 AND
IMPROVEMENT AREA NO. 2 OF THE DISTRICT
NOTICE IS HEREBY GIVEN that on July 22, 2025, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) adopted its Resolution No. 2025-51 (the “Resolution of Consideration”), declaring its intention to approve: (1) an amended and restated rate and method of apportionment of special tax for Improvement Area No. 1 (the “IA No. 1 Second Amended Rate and Method”) of Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) (“CFD No. 2021-1” or the “District”); and (2) an amended and restated rate and method of apportionment of special tax for Improvement Area No. 2 (the “IA No. 2 Second Amended Rate and Method”) of the District, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”) for the purpose of financing certain Facilities and Incidental Expenses (as such terms are defined below).
Additionally, the Resolution of Consideration proposes approving the authorized bonded indebtedness with respect to Improvement Area No. 1 from $14,000,000 to $16,000,000 and approving the authorized bonded indebtedness with respect to Improvement Area No. 2 from $10,000,000 to $12,000,000 (the “Bonded Indebtedness Increase”).
Improvement Area No. 1 and Improvement Area No. 2 of the District are referred to herein each as an “Improvement Area” and together as the “Improvement Areas.” Capitalized terms that are not otherwise defined herein shall have the respective meanings ascribed to them in the Resolution of Consideration and the exhibits thereto.
The proposed Facilities include the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, fire, roadway, traffic, administration and community center facilities, marina 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 (the “City Facilities”) 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.
The Facilities listed herein are representative of the types of improvements authorized to be financed by CFD No. 2021-1. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of the City. Addition, deletion or modification of descriptions of the Facilities may be made consistent with the requirements of the City Council, CFD No. 2021-1 and the Act.
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1 The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
All costs, including (1) 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 (2) any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
The Resolution of Consideration specifies the IA No. 1 Second Amended Rate and Method. The Resolution of Consideration proposes a Maximum Special Tax within Improvement Area No. 1 for Developed Property, which shall be the greater of (i) the amount derived by application of the Assigned Special Tax as set forth in the IA No. 1 Second Amended Rate and Method or (ii) the amount derived by application of the Backup Special Tax. For example, the Assigned Special Tax for a Single Family Residential Property in Improvement Area No. 1 ranges from $3,457 per taxable unit with building square footage of less than 1,600 square feet to $4,719 per taxable unit with a building square footage of greater than 2,950 square feet. The Assigned Special Tax on Multifamily Residential Property and Non-Residential Property in Improvement Area No. 1 is $32,023 per acre. The Maximum Special Tax for Undeveloped Property in Improvement Area No. 1 is $32,023 per acre. The foregoing rates shall increase by 2.0% per fiscal year.
The Resolution of Consideration specifies the IA No. 2 Second Amended Rate and Method. The Resolution of Consideration proposes a Maximum Special Tax within Improvement Area No. 2 for Developed Property, which shall be the greater of (i) the amount derived by application of the Assigned Special Tax as set forth in the IA No. 2 Second Amended Rate and Method or (ii) the amount derived by application of the Backup Special Tax. For example, the Assigned Special Tax for a Single Family Residential Property in Improvement Area No. 2 ranges from $3,619 per taxable unit with building square footage of less than 1,600 square feet to $4,882 per taxable unit with a building square footage of greater than 2,950 square feet. The Assigned Special Tax on Multifamily Residential Property and Non-Residential Property in Improvement Area No. 2 is $31,715 per acre. The Maximum Special Tax for Undeveloped Property in Improvement Area No. 2 is $31,715 per acre. The foregoing rates shall increase by 2.0% per fiscal year.
To satisfy the Special Tax Requirement for an Improvement Area, CFD No. 2021-1 shall first levy the Special Tax proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax as needed. If additional moneys are needed to satisfy the Special Tax Requirement, the Special Tax shall be levied: second, proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; third, proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; fourth, increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each Assessor’s Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax; and, fifth, proportionately on each Assessor’s Parcel of Provisional Undeveloped Property that is not Exempt Property, at up to 100% of the Maximum Special Tax.
The Backup Special Tax for Improvement Area No. 1 is to be determined in accordance with the IA No. 1 Rate and Method based on the final map within Improvement Area No. 1. The Backup Special Tax for Improvement Area No. 2 is to be determined in accordance with the IA No. 2 Rate and Method based on the final map within Improvement Area No. 2. 4936-8185-7082v3/022042-0035
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1 The Resolution of Consideration proposes that for each year in which any Bonds issued by CFD No. 2021-1 for an Improvement Area are outstanding the Special Tax within such Improvement Area shall be levied on all Assessor’s Parcels subject to the Special Tax within such Improvement Area. If any delinquent Special Tax amounts remain uncollected prior to or after all Bonds issued by CFD No. 2021-1 for such Improvement Area are retired, the Special Tax within such Improvement Area may be levied to the extent necessary to reimburse CFD No. 2021-1 for uncollected Special Tax amounts associated with the levy of such Special Tax within such Improvement Area, but the Special Tax shall not be levied after 2069-70 Fiscal Year.
The foregoing is only a summary of the Resolution of Consideration which is on file with the City Clerk. The full text of the Resolution of Consideration should be referred to by any interested party for greater detail.
PUBLIC HEARING
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD ON AUGUST 26, 2025, AT THE HOUR OF 7:00 P.M., OR AS SOON THEREAFTER AS SUCH MATTER CAN BE HEARD, AT A REGULAR MEETING OF THE CITY COUNCIL. THE CITY COUNCIL MEETING WILL BE HELD IN THE LAKE ELSINORE CULTURAL CENTER LOCATED AT 183 NORTH MAIN STREET, LAKE ELSINORE, CALIFORNIA. MEMBERS OF THE PUBLIC WHO
WISH TO PARTICIPATE IN THE PUBLIC HEARING ARE ADVISED TO REVIEW THE CITY COUNCIL’S AGENDA FOR INFORMATION WITH RESPECT TO THE METHOD OF PARTICIPATION. ALL AGENDA MATERIALS ARE AVAILABLE FOR REVIEW ON THE CITY’S WEBSITE AT LAKE-ELSINORE.ORG THE FRIDAY BEFORE THE PUBLIC HEARING.
AT THE PUBLIC HEARING, THE CITY COUNCIL WILL HEAR ALL EVIDENCE AND
TESTIMONY BY ALL INTERESTED PERSONS, PROPERTY OWNERS, VOTERS AND TAXPAYERS FOR OR AGAINST (1) THE LEVY OF SPECIAL TAXES FOR EACH IMPROVEMENT AREA IN ACCORDANCE WITH THE IA NO. 1 SECOND AMENDED RATE AND METHOD OR IA NO. 2 SECOND AMENDED RATE AND METHOD, AS APPLICABLE, (2) THE APPROVAL OF THE BONDED INDEBTEDNESS INCREASE, AND (3) ANY OTHER MATTERS AS SET FORTH IN THE RESOLUTION OF CONSIDERATION.
ALL PERSONS INTERESTED, INCLUDING PROPERTY OWNERS, TAXPAYERS AND
REGISTERED VOTERS, MAY PARTICIPATE AT THE PUBLIC HEARING AND PRESENT EVIDENCE AND TESTIMONY ORALLY OR IN WRITING FOR OR AGAINST ITEMS (1) AND (2) ABOVE. EACH INDIVIDUAL WISHING TO SPEAK WILL BE LIMITED TO A THREE MINUTE ORAL PRESENTATION. ANY PROTEST PERTAINING TO THE REGULARITY OR
SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE PROPOSED ISSUES DESCRIBED IN ITEMS (1) AND (2) ABOVE MUST BE IN WRITING AND SHALL CLEARLY
STATE THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE, AND SHALL BE FILED WITH THE CITY CLERK ON OR BEFORE THE TIME SET FOR THE HEARING.
IF THE OWNERS OF ONE-HALF (1/2) OR MORE OF THE AREA OF LAND WITHIN IMPROVEMENT AREA NO. 1 AND NOT EXEMPT FROM THE SPECIAL TAX OF IMPROVEMENT AREA NO. 1 FILE WRITTEN PROTESTS AGAINST ANY OF ITEMS (1) AND (4) ABOVE WITH RESPECT TO IMPROVEMENT AREA NO. 1, AND PROTESTS ARE NOT
WITHDRAWN SO AS TO REDUCE THE VALUE OF THE PROTESTS TO LESS THAN A
MAJORITY, THE CITY COUNCIL SHALL ABANDON THAT PORTION OF THE PROCEEDINGS
PERTAINING TO SUCH ITEM(S) AND NO FURTHER PROCEEDINGS WITH RESPECT TO
SUCH ITEM(S) SHALL BE TAKEN FOR A PERIOD OF ONE YEAR FROM THE DATE OF THE 4936-8185-7082v3/022042-0035
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1 DETERMINATION BY THE CITY COUNCIL. THE CITY COUNCIL MAY MODIFY THE PROCEEDINGS IF SUCH MAJORITY PROTESTS ARE ONLY AGAINST A SPECIFIED ISSUE.
IF THE OWNERS OF ONE-HALF (1/2) OR MORE OF THE AREA OF LAND WITHIN IMPROVEMENT AREA NO. 2 AND NOT EXEMPT FROM THE SPECIAL TAX OF IMPROVEMENT AREA NO. 2 FILE WRITTEN PROTESTS AGAINST ANY OF ITEMS (1) AND (4) ABOVE WITH RESPECT TO IMPROVEMENT AREA NO. 2, AND PROTESTS ARE NOT
WITHDRAWN SO AS TO REDUCE THE VALUE OF THE PROTESTS TO LESS THAN A
MAJORITY, THE CITY COUNCIL SHALL ABANDON THAT PORTION OF THE PROCEEDINGS
PERTAINING TO SUCH ITEM(S) AND NO FURTHER PROCEEDINGS WITH RESPECT TO
SUCH ITEM(S) SHALL BE TAKEN FOR A PERIOD OF ONE YEAR FROM THE DATE OF THE DETERMINATION BY THE CITY COUNCIL. THE CITY COUNCIL MAY MODIFY THE PROCEEDINGS IF SUCH MAJORITY PROTESTS ARE ONLY AGAINST A SPECIFIED ISSUE.
UNDER THE ACT, THE CITY COUNCIL MAY EITHER CONCLUDE THE PUBLIC HEARING ON AUGUST 26, 2025, OR MAY CONTINUE THE PUBLIC HEARING TO A LATER
DATE IF THE COMPLEXITY OF THE PROPOSED CHANGES TO THE DISTRICT OR THE NEED FOR PUBLIC PARTICIPATION REQUIRES ADDITIONAL TIME. IF THE CITY COUNCIL
DETERMINES TO SUBMIT THE QUESTION OF LEVYING THE SPECIAL TAXES IN ACCORDANCE WITH THE IA NO. 1 RATE AND METHOD OR IA NO. 2 RATE AND METHOD,
AS APPLICABLE AND THE BONDED INDEBTEDNESS INCREASE, AN ELECTION WILL BE HELD WITHIN EACH IMPROVEMENT AREA TO APPROVE THE IA NO. 1 RATE AND METHOD OR IA NO. 2 RATE AND METHOD, AS APPLICABLE AND THE BONDED INDEBTEDNESS INCREASE. AT SUCH ELECTIONS, EACH LANDOWNER WITHIN AN IMPROVEMENT AREA
SHALL BE ENTITLED TO CAST ONE VOTE FOR EACH ACRE OR PORTION THEREOF OWNED WITHIN SUCH IMPROVEMENT AREA. FOR A PROPOSITION TO BE ADOPTED,
TWO-THIRDS OF THE VOTES CAST ON THE PROPOSITION AT THE ELECTION MUST FAVOR PASSAGE.
INQUIRIES
The full text of the Resolution of Consideration, which includes the proposed IA No. 1 Rate and Method, the proposed IA No. 2 Rate and Method, the Bonded Indebtedness Increase and the list of Facilities and Incidental Expenses to be financed may be obtained from the person specified below.
For any questions relating to the proceedings, or any particulars, please contact the following designated person:
Mr. Jason Simpson
City Manager
City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
(951) 674-3124
Candice Alvarez, MMC
CITY CLERK OF THE
CITY OF LAKE ELSINORE