RESOLUTION NO ____
RESOLUTION OF CHANGE OF THE CITY COUNCIL OF THE CITY OF RIALTO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF RIALTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 (EL RANCHO VERDE), APPROVING CERTAIN MODIFICATIONS TO THE CITY OF RIALTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 (EL RANCHO VERDE), AND APPROVING THE EXECUTION AND DELIVERY OF AN AMENDED AND RESTATED FUNDING AND ACQUISITION AGREEMENT IN CONNECTION THEREWITH WHEREAS, the Legislative Body has previously conducted proceedings pertaining to certain modifications to the District, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”) being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and WHEREAS, the Legislative Body called and duly held a special election in the District pursuant to Resolution No. _____ (the “Resolution Calling Election”) adopted on September 13, 2022, for the purpose of presenting to the qualified electors the District a proposition (the “Proposition”) on modifications to the District to (a) eliminate of the designation of improvement areas within the District; (ii) modify the original rates and methods of apportionment to consolidate into one rate and method of apportionment and increase certain special tax rates as set forth in the Amended RMA as defined by Resolution No. 7953 adopted on August 9, 2022 (the “Resolution of Consideration”); (iii) increase the maximum bonded indebtedness for the District from the principal amount not to exceed $20,000,000 within Improvement Area No. 1 and $20,000,000 within Improvement Area No. 2, to not to exceed $50,000,000 within the District; (iv) modify the boundaries of the District to eliminate certain non-taxable property as set forth in the Amended Map as defined in the Resolution of Consideration; and (v) revise the appropriations limit for the District from the $20,000,000 for the Facilities Special Tax with respect to each Improvement Area and $250,000 (adjusted up by 3% annually) for the Services Special Tax for each Improvement Area to an amount equal to $50,000,000 for the Facilities Special Tax for the District and $700,000 (adjusted up by 3% annually) for the Services Special Tax for the District; all in accordance with the terms of the Resolution of Consideration; and WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on September 13, 2022; and WHEREAS, at such election the Proposition for making such modifications was approved by the qualified electors of the District; and WHEREAS, pursuant to Section 53113.5 and 53113.51, a District may finance the purchase of facilities and discrete components thereof; and WHEREAS, pursuant to Resolution No. 7645 adopted on July 15, 2020, the City, on behalf of the District, and the previous owners of the property with the District, entered into a Funding, Construction and Acquisition Agreement, dated as of July 14, 2020 (the “Acquisition Agreement”), relating to facilities and fees to be acquired and funded by the District; and WHEREAS, in light of the approved modifications to the District, Lennar Homes of California, LLC, a California limited liability company, (the “Owner”), the owner and developer of the land within the District, requests the Acquisition Agreement be modified; and WHEREAS, there is presented at this meeting and on file in the office of the City Clerk an Amended and Restated Funding, Construction and Acquisition Agreement (the “Amended Acquisition Agreement”), by and between the Owner and the City, acting on behalf of the District, relating to facilities and fees to be acquired and funded by the District, attached as Exhibit “B” hereto and by this reference incorporated herein; and WHEREAS, the Owner has approved the Amended Acquisition Agreement; and WHEREAS, the City, acting on behalf of the District, has determined that it is necessary and desirable to enter into the Amended Acquisition Agreement and that this agreement will be beneficial to the residents of the City.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rialto, acting as the legislative body of the City of Rialto Community Facilities District No. 2020-1 (El Rancho Verde), does hereby resolve as follows:
Section 1. The above recitals are true and correct.
Section 2. The removal of designated improvement areas within the District is hereby approved and confirmed.
Section 3. The Amended and Restated Map describing the boundaries of the District (the “Amended Map”) on file in the City Clerk's office and as described in the Resolution of Consideration and incorporated herein by reference, which eliminated certain non-taxable parcels, is hereby approved and shall be the boundaries of the District. The Amended Map shall supersede all previously recorded maps. The Amended Map has been recorded in the Office of the County Recorder of San Bernardino County, California in Book ___, Pages __ of the Book of Maps of Assessment and Community Facilities Districts, as Document Number 2022__________.
Section 4. The purpose for which the District was formed has not changed, which purpose is to finance: (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in the Resolution of Consideration, including all furnishings, equipment and supplies related thereto and the payment of development impact and other fees (collectively, the “Facilities”), which Facilities have a useful life of five years or longer; (2) services permitted to be financed by the Act and described in the Resolution of Consideration (the “Services”) and (3) the incidental expenses be incurred in connection with financing the Facilities and Services forming and administering the District (the “Incidental Expenses”).
Section 5. The type of Facilities, authorized to be provided within the District include certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities, and other governmental facilities which the City or West Valley Water District (“Water District”) is authorized by law to construct, own or operate, within or without the District, which is necessary to meet increased demands placed upon the City and/or the Water District as result of development or rehabilitation occurring within the District. The Facilities are more fully described in Exhibit “B” attached to the Resolution of Consideration and by this reference incorporated herein. The type of Services authorized to be provided within the District are additional services under the Act and are a result of the increased demand of development within the District and are more fully described in Exhibit “C” attached to the Resolution of Consideration and by this reference incorporated herein.
Section 6. In order to finance the Facilities, and Services, the Council shall levy annually in accordance with procedures contained in the Act (i) a Facilities Special Tax sufficient to pay for the Facilities and Incidental Expenses, and (ii) a Services Special Tax sufficient to fund the Services including the costs of administering the levy and collection of the Services Special Tax and incidental expenses related thereto. The Facilities Special Tax and Services Special Tax shall be referred to collectively as the “Special Taxes.” Section 7. Except where funds are otherwise available, there shall be continued to be levied annually in accordance with procedures contained in the Act, a Facilities Special Tax and a Services Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities, Services 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. The rate and method of apportionment and manner of collection of the Special Taxes is described in detail in Amended and Restated Rate and Method of Apportionment described in the Resolution of Consideration (the “Amended RMA”) attached hereto as Exhibit “A” and incorporated herein by this reference. The Amended RMA allows each landowner within the District to estimate the maximum amount that may be levied against each parcel.
Section 8. If the Facilities Special Taxes 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 two percent (2%) per year 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 2023-24, as further described in Exhibit “A” attached hereto; and (iii) under no circumstances will such special tax be increased more than ten percent (10%) as a consequence of delinquency or default by the owner of any other parcels within the District by more than ten percent.
The Services Special Tax shall be levied perpetually and is not subject to the limitations in the prior sentence. The Special Taxes are based on the expected demand that each parcel of real property within the District will place on the Facilities and Services, on the benefit that each parcel derives from the right to access the Facilities and Services and on other factors. The Council hereby determines the Amended RMA set forth in Exhibit “A” 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 based upon the value or ownership of real property.
In the event that a portion of the property within the District shall become for any reason exempt, wholly or partially, exempt from the levy of the Special Taxes specified on Exhibit “A,” the Council shall, on behalf of the District, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Exhibit “A” 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 herein. The obligation to pay Facilities Special Taxes may be prepaid as set forth in Exhibit “A.” Section 9. Upon recordation of an amendment to the notice of special tax lien pursuant to Section 3117.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall continue to attach to all nonexempt real property of the District, and this lien shall continue in force and effect until the Special Tax obligation is prepaid or otherwise permanently satisfied and the lien cancelled in accordance with law or until collection of the tax by the District ceases.
Section 10. The Council finds that the Facilities and Services are necessary to meet the increased demand put upon the City as a result of the development within the District.
Section 11. The Council finds that there is not an ad valorem property tax currently being levied on property within the District for the exclusive purpose of paying principal of or interest on bonds or other indebtedness incurred to finance construction of capital facilities which provide the same services to the territory of the District as provided by the Facilities.
Section 12. The Council hereby approves the increase of the authorization of the District to incur bonded indebtedness to a maximum aggregate principal amount not to exceed $50,000,000 within District for the purpose of financing all or a portion of the Facilities and Incidental Expenses. The maximum term of the bonds or any series thereof or any shall in no event exceed forty (40) years. The bonds or any series thereof shall bear interest at a rate not to exceed the lesser of twelve percent (12%) per annum or the maximum interest rate permitted by law, with the actual rates and times of payment to be determined at the time of sale thereof.
Section 13. Except for property within the District that is exempt, wholly or partially, from the levy of the Special Taxes specified in the Amended RMA, the whole of the property within the District shall pay for the applicable bonded indebtedness pursuant to the levy of the Facilities Special Tax authorized by this Resolution of Change.
Section 14. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, and the provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, the Council hereby continues the following accountability measures pertaining to the levy by the District of the Special Taxes described in Section 7 above:
a. Such Special Taxes shall be levied for the specific purposes set forth in Section 5 hereof. b. The proceeds of the levy of such Special Taxes shall be applied only to the specific purposes set forth in Section 5 hereof. c. The District shall establish accounts into which the proceeds of such Special Taxes shall be deposited. d. Bonded indebtedness shall be incurred for the specific purposes set forth in Section 12 above. e. The proceeds of any bonded indebtedness shall be applied only to the specific purposes identified in Section 12 above. f. The document or documents establishing the terms and conditions for the issuance of any such bonded indebtedness shall provide for the creation of an account or accounts into which the proceeds of such bonded indebtedness shall be deposited. g. The City Manager or Finance Director will provide for such accounting and reporting for the Facilities Special Taxes and the Services Special Taxes as required by law. h. The City Manager, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Sections 50075.3 and Government Code 53411.
Section 15. The appropriation limit for the District is hereby modified and confirmed as an amount equal to $50,000,000 for the Facilities Special Tax for the District and $700,000 (adjusted up by 3% annually) for the Services Special Tax for the District and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population.
Section 16. The Office of the City Manager, 150 South Palm Avenue, Rialto, California 92376, or its designee, is designated to be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and for estimating future special tax levies pursuant to Section 53340.1 of the Government Code.
Section 17. The City Clerk shall record a notice of cessation of special tax for the parcels excluded from the boundaries of the District in the office of the County Recorder of the County of San Bernardino pursuant to Sections 53330.5 and 53338.5 of the Act and Section 3114.5 of the California Streets and Highways Code.
Section 18. That said form of Amended Acquisition Agreement presented at this meeting and on file with the City Clerk be and is hereby approved, with such changes as may be approved by the Mayor, City Manager or Finance Director, said officer’s execution thereof to evidence approval of the changes. The Mayor, City Manager or Finance Director is hereby authorized and directed to execute the Amended Acquisition Agreement on behalf of the District with such execution to be attested to by the City Clerk.
Section 19. This Resolution shall take effect immediately upon its adoption.
Section 20. The City Clerk shall certify to the passage and adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this _____ day of ___, 2022.
Deborah Robertson, Mayor, City of Rialto
ATTEST:
Barbara A. McGee, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF RIALTO )
I, Barbara A. McGee, City Clerk of the City of Rialto, DO HEREBY CERTIFY that he foregoing Resolution No. ____ was duly passed and adopted at a regular meeting of the City Council of the city of Rialto held on the ___ day of ____, 2022.
Upon motion of __________, seconded by ______, the foregoing Resolution No. ____ was duly passed and adopted.
VOTE ON THE MOTION
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and the Official Seal o the City of Rialto this ____ day of ____, 2022.
Barbara A. McGee, City Clerk
EXHIBIT “A”
CITY OF RIALTO
COMMUNITY FACILITIES DISTRICT NO. 2020-1 (EL RANCHO VERDE)
AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT
(to be attached)
EXHIBIT B
CITY OF RIALTO
COMMUNITY FACILITIES DISTRICT NO. 2020-1
(EL RANCHO VERDE)
FORM OF AMENDED AND RESTATED
FUNDING, CONSTRUCTION AND ACQUISITION AGREEMENT
(to be attached)
-7-
-2-
A-1
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