RESOLUTION NO. R- 2023-33
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLACENTIA
ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2014-01 DECLARING ITS INTENTION TO ANNEX
CERTAIN TERRITORY INTO SAID DISTRICT
A. Recitals
(i) The City Council of the City of Placentia ("City Council"), initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors to authorize the levy of a special tax in a community facilities district, all as authorized 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 California Government Code ("Act") denominated COMMUNITY FACILITIES DISTRICT NO. 2014-01 (Public Services) ("District"), Resolution No. 2014-10. (ii) The City Council heretofore adopted Ordinance No. 0-2014-03 which provided for the levying and collection of special taxes ("Special Taxes") within the District, as provided in the Act in accordance with the Rate and Method of Apportionment ("RMA") set forth in Resolution No. 2014-10.
(iii) The City Council has received a petition ("Petition") requesting the institution of proceedings for annexation to the District signed by the landowner(s) within the territory proposed to be annexed ("Property") pursuant to the Act. (iv) The City Council has determined that the Petition complies with the requirements of California Government Code § 53318 and now intends to annex the Property to the District.
(v) The City Council desires to adopt this Resolution of Intention to annex said Property to the District as provided in § 53339 of the Act consisting of the territory described in Exhibit "A" attached hereto and incorporated herein by reference, which the City Council hereby determines shall be known as "City of Placentia Community Facilities District No. 2014-01 (Public Services) JPI Annexation" ("JPI Annexation" or the "Annexation") pursuant to the Act to finance (1) the public services described in Exhibit "B" attached hereto and incorporated herein by reference ("Services"); and (2) the incidental expenses to be incurred in connection with financing the Services and forming and administering the District ("Incidental Expenses") . (vi) It is the intention of the City Council to consider financing the Services and the Incidental Expenses through the annexation of the Property to the District and the levy of a special tax therein to pay for the Services and the Incidental Expenses, provided that the special tax levies are approved at an election to be held within the District.
Resolution R-2023-33 ATTACHMENT 2
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. The facts set forth in the Recitals, Part A of this Resolution, are true and correct and incorporated herein by reference.
2. The Property is proposed to be annexed to the District pursuant to the terms of the Act. It is further proposed that the boundaries of the annexation shall be as described in Exhibit "A" hereto, which boundaries shall, upon recordation of the boundary map for the Annexation, include the entirety of all parcels subject to taxation by the District. The proposed boundaries of the Annexation are depicted on the map of the proposed Community Facilities District No. 2014- 01 JPI Annexation which is on file in the office of the City Clerk entitled "Map of Proposed Boundaries of City of Placentia Community Facilities District No. 2014-01 ( Public Services) JPI Annexation" which map indicates by a boundary line the extent of the territory included in the District and shall govern for all details as to the extent of the Annexation. On the original and one (1) copy of the map of said Annexation on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this Resolution. The City Clerk shall file the original of such map in the City Clerk's Office and, within fifteen (15) days after the adoption of this Resolution, shall file a copy of such map so endorsed in the records of the County Recorder, County of Orange, State of California, all as required by § 3111 of the California Streets and Highways Code.
3. The name of the proposed Annexation shall be "City of Placentia Community Facilities District No. 2014-01 (Public Services) JPI Annexation".
4. The Services proposed to be provided and financed by District are described on Exhibit "B" attached hereto. The cost of providing the Services includes Incidental Expenses, which include expenses to be incurred in connection with the determination of the amount of the levy of the special tax, the collection of the special tax including the expenses of collecting delinquencies, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of the District, and costs otherwise incurred in order to carry out the authorized purposes of the District.
The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the proposed Annexation to understand what the funds may be used to finance. The City Council hereby finds that the proposed Services are necessary to meet increased demands placed upon the City as a result of development occurring in the District, including the JPI Annexation thereto.
5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with procedures contained in the Act a special tax within the District, including the Annexation area, secured by recordation of a continuing lien against all nonexempt real property in the District, including the Annexation area, sufficient to pay for the Services and Incidental Expenses. The rate and method of Resolution R-2023-33 ATTACHMENT 2
apportionment and manner of collection of the special tax within the District is described in detail in the RMA attached hereto as Exhibit "C" and incorporated herein by reference.
Exhibit "C" allows each landowner within the District to estimate the maximum amount 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 the District all amounts, if any, transferred to the District pursuant to § 53314 of the Act and interest thereon.
6. If special taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall not be increased over time except that it may be increased by an amount not to exceed the greater of five percent (5%) or the annual percentage increase, if any, of the All Urban Consumers Consumer Price Index ("CPI"). The annual CPI used shall be for the area of Los Angeles - Riverside - Orange County, CA as determined by the Bureau of Labor Statistics for the twelve (12) months ending the preceding December 31 to the extent permitted in the rate and method of apportionment; (ii) such tax shall be levied for a period not to exceed fifty (50) years commencing with Fiscal Year 2014-15, as further described in Exhibit "C" hereto; and (iii) under no circumstances will such special tax be increased as a consequence of delinquency or default by the owner of any other parcels within the District by more than ten percent (10%).
7. The special tax within the proposed Annexation is based on the expected demand that each parcel of real property within the proposed Annexation will place on the Services and on the benefit that each parcel derives from the Services . The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City as a result of the development of land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax set forth in Exhibit "C" for the District to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to § 53325.3 of the Act and such special tax is not based upon the value or ownership of real property. In the event that a portion of the property within the Annexation shall become for any reason exempt, wholly or partially, from the levy of the special tax specified on Exhibit "C," the City Council shall, on behalf of the District No., cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Exhibit "C," to the extent necessary upon the remaining property within the District which is not delinquent or exempt in order to yield the special tax revenues required for the purposes described in § 5, above. The obligation to pay special taxes may be prepaid as set forth in Exhibit "C."
8. A public hearing ("Hearing") on the annexation of the Property to District, the proposed rate and method of apportionment of the special tax and Incidental Expenses shall be held on June 20, 2023, at 7 :00 0' clock p.m., or as soon thereafter as the matter may be heard, at the chambers of the City Council of the City of Placentia, 401 E. Chapman Avenue, Placentia, California 92870. Should the City Council determine to annex the Property to the District, immediately thereafter, a special election will be held within the District to authorize the levy of the special tax in accordance with the procedures contained in California Government Code § 53326. If held, the proposed voting procedure at the elections will be a landowner vote with each landowner who is the Resolution R-2023-33 ATTACHMENT 2
owner of record of land subject to annexation to 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 Annexation. Ballots for the special elections may be distributed by mail or by personal service prior to the Hearing.
9. 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 proposed Annexation may appear and be heard.
10. The City Clerk is hereby directed to publish a notice ("Notice") of the Hearing pursuant to California Government Code § 6061 in a newspaper of general circulation published in the area of the proposed District. Such Notice shall contain the text of this Resolution, state 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 Annexation as provided in § 53324 of the Act 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.
ADOPTED AND APPROVED this 16th day of May 2023.
Ward L. Smith, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
I, Robert S. McKinnell, City Clerk of the City of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 16th day of May 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution R-2023-33 ATTACHMENT 2
EXHIBIT "A"
ANNEXATION BOUNDARIES
Resolution R-2023-33 ATTACHMENT 2
EXHIBIT "B"
SERVICES
Police protection services and fire protection and suppression services, including but not limited to (i) the costs of contracting services, (ii) equipment, vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff that directly provide police protection services and fire protection and suppression services and other services as defined herein, respectively, and (iv) City overhead costs associated with providing such services within the District. On each July 1 following the Base Year the increases attributed to salaries and benefits shall be calculated and limited to the increase based on the Annual Escalation Factor as provided in the Rate and Method of Apportionment of the Special Taxes. The Special Tax will finance Services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. The Special Tax provides only partial funding for police and fire services.
Resolution R-2023-33 ATTACHMENT 2
EXHIBIT "C"
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
Resolution R-2023-33 ATTACHMENT 2
RATE AND METHOD OF APPORTIONMENT OF
SPECIAL TAX
CITY OF PLACENTIA
COMMUNITY FACILITIES DISTRICT NO. 2014-01
(PUBLIC SERVICES)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels within the City of Placentia Community Facilities District No. 2014-01 (Public Services), ("CFD No. 2014-01"), other than Assessor's Parcels classified as Exempt Property as defined herein, and collected each Fiscal Year commencing in Fiscal Year 2014-2015, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2014-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to CFD No. 2014-01, unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel, expressed in acres, 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 Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the Country Recorder. 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, Part 1, Division 2 of Tide 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated expenses related to the administration of FD No. 2014-01: the costs of determining the amount of the levy of Special Taxes, the collection of Special Taxes, including the expenses of collecting delinquencies and pursuing foreclosures, the payment of a proportional share of salaries and benefits of any City employee and City overhead whose duties are directly related to the administration of CFD No. 2014-01, fees and expenses for counsel, audits, costs associated with responding to public inquiries regarding CFD No. 2014-01, and any and all other costs incurred in connection with the administration of CFD No. 2014-01. "Annual Escalation Factor" means the greater of five percent (5%) or the annual percentage increase, if any, of the All Urban Consumers Consumer Price Index ("CPI").
The annual CPI used shall be for the area of Los Angeles — Riverside — Orange County, CA as determined by the Bureau of Labor Statistics for the twelve (12) months ending the preceding December 31.
"Assessor's Parcel" means a Condominium lot, Lot, or parcel shown in 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.
"Base Year" means Fiscal Year beginning July 1, 2014 and ending June 30, 2015.
W(LLDAN I 1
CFD No. 2014-01
Financial Services
ATTACHMENT 2
EXHIBIT B
"Boundary Map" means the map of the boundaries of CFD No. 2014-01 recorded on January 21, 2014 in the Orange County Recorder's Office in Book 94, Pages 46, of Maps of Assessments and Community Facilities Districts (instrument number 2014-24969), as the same may be amended by annexation from time to time hereafter. "Building Permit" means a permit issued for new construction of a residential dwelling. For purposes of this definition, `Building Permit" shall not include permits for construction or installation of retaining walls, grading, utility improvements, or other such improvements not intended for human habitation.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Services and providing for the levy and collection of the Special Taxes for CFD No. 2014-01.
"CFD No. 2014-01" means City of Placentia Community Facilities District No. 2014-01 (Public Services) established by the City Council under the Act. "City" means the City of Placentia.
"City Council" means the Council of the city of Placentia, acting as the legislative body of CFD No. 2014-01.
"Condominium" means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential, industrial or commercial building on such real property, such as an apartment, office or store. A condominium may include in addition a separate interest in other portions of such real property. Such estate may, with respect to the duration of its enjoyment, be either:
(1) An estate of inheritance or perpetual estate;
(2) An estate for life; or
(3) An estate for years, such as a leasehold or a sublease hold. "County" means the County of Orange.
"Developed Property" means an Assessor's Parcel of Taxable Property for which a Building Permit was issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied.
"Developed Residential Property" means an Assessor's Parcel of Taxable Property for which a Building Permit was issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied and which Building Permit was issued for purposes of constructing one or more Residential Unit(s).
"Exempt Property" means all Assessor's Parcels within CFD No. 2014-01 that are exempt from the Special Taxes pursuant to law or Section F herein. "Final Map" means an Assessor's Parcel Map, a Final Subdivision Map, condominium plan, lot line adjustment, or any other map functionally considered to be an equivalent development map that has been recorded in the Office of the County Recorder. "Final Subdivision Map" means a subdivision of property creating single family residential buildable Lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code § 66410, et seq.), or recordation of a condominium plan pursuant to California Civil Code § 1352, that creates individual Lots or condominium lots for which building permits may be issued without further subdivision and is recorded prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
yi WI LLDAN I 2 CFD No. 2014-01
Financial Services ATTACHMENT 2
"Future Annexation Area" means the areas designated for potential future annexation to CFD No. 2014-01 as shown in the "Map of Proposed Boundaries of City of Placentia Future Annexation Area of Community Facilities District No. 2014-01 (Public Services)" recorded and on file with the Orange County Recorder's Office.
"Land Use Type" means any of the land use types listed in Table 1 below. "Lot" means property within a Final Map identified by a lot number or condominium number for which a Building Permit has been issued or may be issued. "Maximum Special Tax" means the maximum Special Tax determined in accordance with Section C, which may be levied in any Fiscal Year on an Assessor's Parcel of Taxable Property. "Multi -Family Residential Property" or "MFR Property" means all Assessor's Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing a residential structure consisting of five (5) or more residential units that share common walls, including, but not limited to, condominiums, and apartment units. "Property Owner Association Property" means for each Fiscal Year any property within the boundaries of CFD 2014-01 that was owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub -association, as of June 1.
"Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels within each Land Use Type. "Public Property" means any property that is owned by, dedicated or irrevocably dedicated to a city, the federal government, the State of California, the County, or any other public agency (each, a "Public Entity"); provided, however, that if any such property is leased by such a Public Entity to a private entity and is thereby subject to taxation pursuant to § 53340.1 of the Act, such leasehold estate shall be classified and taxed according to the use thereof. "Residential Property" means all Assessor's Parcels of Developed Property within CFD No. 2014-01 for which a Building Permit has been issued for purposes of constructing one or more Residential Unit(s).
"Residential Unit" means any residence in which a person or persons may live, which is not considered to be used for non-residential purposes.
"Services" means those authorized services that may be funded by CFD No. 2014-01 pursuant to the Act, as amended, including, without limitation, those services authorized to be funded by CFD No. 2014-01 as set forth in the documents adopted by the City Council at the time CFD No. 2014-01 was formed.
"Single -Family Residential Property" or "SFR Property" means an Assessor's Parcel classified as Developed Property for which a Building Permit(s) has been issued for purposes of constructing one or more single-family residential dwelling units including residential structures or Condominium structures that consist of 4 or fewer units which share common walls. "Special Tax" means the special tax authorized to be levied within CFD No. 2014-01 pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement" means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish any operational reserve fund established for Services, (iv) pay incidental expenses related to the Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate WWILLDAN ! 3 CFD No. 2014-01
Finsnolai Services ATTACHMENT 2
of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied ("Estimated Special Tax Delinquency Amount") and (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Special Tax Requirement for Services for such Fiscal Year where such shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for Services for such Fiscal Year.
"Taxable Property" means all Assessor's Parcels that are not exempt from the Special Tax pursuant to law or Section F.
"Undeveloped Property" means an Assessor's Parcel of Taxable Property for which a Building Permit has not been issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied.
B. CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2014-2015, using the definitions above, each Assessor's Parcel within CFD 2014-01 shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such Fiscal Year, each Assessor's Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property. Developed Property shall be further classified as Single -Family Residential Property or Multi -Family Residential Property. Commencing with Fiscal Year 2014-2015 and for each subsequent Fiscal Year, Developed Residential Property shall be subject to the levy of Special Taxes pursuant to Section C below.
C. MAXIMUM ANNUAL SPECIAL TAXES
1. Developed Residential Property
Each Fiscal Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel of Developed Residential Property shall be subject to the Special Tax. The Maximum Special Tax for Developed Residential Property for Fiscal Year 2014-2015 is shown below in Table
1. TABLE 1
DEVELOPED RESIDENTIAL PROPERTY
MAXIMUM SPECIAL TAX RATES
Land Use Type
Maximum
Special Tax
Residential
SFR Property $225 per Residential Unit
MFR Property $170 per Residential Unit
For each subsequent Fiscal Year following the Base Year, the Maximum Special Tax rate shall be increased from the Maximum Special Tax rate in effect for the prior Fiscal Year by the Annual Escalation Factor.
VWILLDAN I 4 CFD No. 2014-01
Financial Sen+iaas ATTACHMENT 2
2. Annexed Property
Each Fiscal Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel of Developed Residential Property that has been annexed into CFD 2014-01 shall be subject to the prevailing Special Tax in effect during the then current Fiscal Year and as determined by Section C.1 above.
3. Undeveloped Property
Each Fiscal Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel classified as Undeveloped Property shall be exempt from the levy of the Special Tax
4. Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section F.
For each Fiscal Year, if the use or ownership of an Assessor's Parcel or Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in Section F, therefore making such Assessor's Parcel no longer eligible to be classified as Exempt Property, such Assessor's Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C.
D. METHOD OF APPORTIONMENT OF SPECIAL TAX
Commencing in Fiscal Year 2014-2015 and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property of CFD No. 2014-01 until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within CFD No. 2014-01 up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.
Notwithstanding any provision of this Section D to the contrary, under no circumstances will the Special Tax levied against any Assessor's Parcel of Developed Property that is classified as Residential Property be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Assessor's Parcel, excluding therefrom the increased amount levied pursuant to the Annual Escalation Factor.
E. PREPAYMENT OF SPECIAL TAX
The Special Tax shall be levied in perpetuity for the purpose of financing ongoing authorized services and therefore may not be prepaid.
F. EXEMPTIONS
The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii)Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, including but not limited to property designated for open space, trails, pathways, parks or park and recreation related facilities, (iv) property reasonably designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors.
VirWl LLDAN ! 5 CFD No. 2014-01
Financial Services
ATTACHMENT 2
G. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax that is disputed. The CFD 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 decision of the CFD Administrator 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) to compensate for the overpayment of the Special Tax.
H. MANNER OF COLLECTION
The annual Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the Special Taxes may be billed and collected at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2014-01.
WI LLDAN 6 CFD No. 2014-01
Financial Services
• ATTACHMENT 2