RESOLUTION R2023-____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MANTECA, STATE OF CALIFORNIA, DECLARING ITS INTENTION TO INCUR A BONDED INDEBTEDNESS IN AND FOR CITY OF MANTECA COMMUNITY FACILITIES DISTRICT NO. 2023-1 (VILLA TICINO WEST FACILITIES) IN AN AMOUNT NOT TO EXCEED $24,000,000 TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES WHEREAS, on the date hereof, the City Council (the “City Council”) of the City of Manteca (the “City”) has duly adopted “A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MANTECA TO FORM CITY OF MANTECA COMMUNITY FACILITIES DISTRICT NO. 2023-1 (VILLA TICINO WEST FACILITIES), DESIGNATE AN INITIAL IMPROVEMENT AREA THEREIN AND ESTABLISH A FUTURE ANNEXATION AREA, AND TO LEVY SPECIAL TAXES THEREIN TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES” (the “Resolution of Intention”), wherein it declared its intention to establish a community facilities district under and pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”), to be known and designated as the “City of Manteca Community Facilities District No. 2023-1 (Villa Ticino West Facilities)” (the “CFD”), designate therein “Improvement Area No. 1 of the City of Manteca Community Facilities District No. 2023-1 (Villa Ticino West Facilities)” (“Improvement Area No. 1”), form a future annexation area for the CFD (the “Future Annexation Area”), and to levy a special tax within the CFD to finance the acquisition and construction of certain public facilities (collectively, the “Facilities”) listed in Exhibit B to the Resolution of Intention and incorporated therein and made a part hereof; and WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities the expenditures related to the Facilities with the proceeds of bonded indebtedness and other debt issued by the City for the CFD; WHEREAS, in order to finance the costs of the Facilities, it is necessary to incur bonded indebtedness in and for the CFD in an amount not to exceed $24,000,000; and WHEREAS, the City Council is fully advised in this matter; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MANTECA, AS FOLLOWS:
1. The above recitals are true and correct, and the City Council so finds and determines.
2. The City Council hereby declares that the public convenience and necessity require that a bonded indebtedness in the principal amount of not to exceed $24,000,000 be incurred in one or more series to finance the acquisition and construction of the Facilities, which amount includes all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which such bonded indebtedness is proposed to be incurred in and for the CFD (the “Authorization”), initially allocated as follows: (i) for land within Improvement Area No. 1, $6,500,000 and (ii) for land within the Future Annexation Area, $17,500,000 (the “Future Improvement Area Indebtedness Limit”). Indebtedness subject to this limit shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act.
Upon designation of a parcel or parcels annexed into the CFD from the Future Annexation Area as a future improvement area of the CFD (each, a “Future Improvement Area”), the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels to be annexed shall include an authorization to incur bonded indebtedness for such Future Improvement Area in a maximum amount which does not exceed the Future Improvement Area Indebtedness Limit, net of the amount of the Future Improvement Area Indebtedness Limit previously used to establish an indebtedness limit for any other Future Improvement Area in connection with a prior annexation from the Future Annexation Area. Such allocation may be made without any requirement for further public hearings, City Council action or other additional proceedings, and the City shall include each Unanimous Consent in the records for the CFD.
3. This City Council, acting as legislative body for the CFD, intends to authorize the issuance and sale of bonds and other debt in and for Improvement Area No. 1 in one or more series in the maximum aggregate principal amount not to exceed the Improvement Area No. 1 bonded indebtedness limit described above, bearing interest payable semi-annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds and other debt, and maturing not to exceed 40 years from the date of the issuance of each series of the bonds and other debt.
This City Council, acting as legislative body for the CFD, intends to authorize the issuance and sale of bonds and other debt in and for each Future Improvement Area in one or more series in the maximum aggregate principal amount not to exceed the Future Improvement Area Indebtedness Limit in the aggregate, bearing interest payable semi-annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of each series of bonds and other debt, and maturing not to exceed 40 years from the date of the issuance of the respective series of bonds and other debt.
4. Notice is given that Tuesday, June 20, 2023, at the hour of 6:00 P.M., at the regular meeting place of the City Council, City Council Chambers, Manteca City Hall, 1001 W. Center Street, Manteca, California 95337, has been fixed by the City Council as the time and place for a public hearing to be held by the City Council to consider the incurring of such bonded indebtedness to finance the acquisition and construction of the Facilities in and for the CFD. At the hearing, testimony concerning the incurring of such bonded indebtedness secured by a special tax to be levied within the CFD to finance the acquisition and construction of the Facilities will be heard and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the land which would be subject to special taxation within the proposed the CFD will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing.
5. The City Clerk is hereby directed to cause notice of the public hearing to be given in the form required by the Act, which requires publication in a newspaper of general circulation circulated within the CFD, which such publication shall be made pursuant to Section 6061 of the Government Code of the State of California. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in Section 53346 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved.
6. The City hereby declares its intention to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities certain expenditures for the Facilities from the proceeds of the bonded indebtedness and other debt described in this Resolution, including costs of the Facilities paid by the City and/or other local agencies prior to the date of issuance of such bonded indebtedness and other debt not in excess of the amount described herein.
7. This Resolution shall in no way obligate the City Council to form the CFD or to issue bonds or other debt for the CFD. Issuance of the bonds and other debt shall be subject to the approval of this City Council by resolution following the holding of the public hearing referred to above.
8. This Resolution shall take effect immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Manteca at a public meeting of said City Council held on the 16th day of May, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
MAYOR:
GARY SINGH
Mayor
ATTEST:
CASSANDRA CANDINI-TILTON
City Clerk
R2023-__ Page 4 of 4 May 16, 2023
R2023-__ Page 1 of 7 April 4, 2023
Attachment 6