RESOLUTION NO. _______
RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE CITY OF RIALTO, CALIFORNIA, DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS AND ESTABLISHING CITY OF RIALTO COMMUNITY FACILITIES DISTRICT NO. 2024-1 (RENAISSANCE) The City Council of the City of Rialto, California (the “City Council”), does hereby resolve as follows:
WHEREAS, the City Council has heretofore adopted Resolution No. 8255 (“Resolution of Intention”) stating its intention to form City of Rialto Community Facilities District No. 2024-1 (Renaissance) (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, a copy of the Resolution of Intention is on file with the City Clerk and incorporated herein by reference; and WHEREAS, pursuant to the Act and in accordance with applicable laws in all material respects, this City Council held a public hearing on the formation of the District and the incurring of bonded indebtedness with respect to the District; and WHEREAS, prior to the commencement of the public hearing, there was filed with the City Council a Community Facilities District Report prepared by Webb Municipal Finance (the “CFD Report”) containing a boundary map, and a description and an estimate of the facilities and services and incidental expense to be financed by the District, and the CFD Report has been reviewed by the City Council and is incorporated herein and made a part of the record of the public hearing; and WHEREAS, at said hearing all persons not exempt from the special taxes desiring to be heard on all matters pertaining to the formation of the District and the issuance of debt were heard and a full and fair hearing was held; and WHEREAS, at said hearing evidence was presented to the City Council on said matters before it, and this City Council at the conclusion of said hearing is fully advised in the premises.
NOW, THEREFORE, the City Council of the City of Rialto, hereby resolves as follows:
SECTION 1. The above recitals are true and correct.
SECTION 2. Pursuant to Section 53325.1(b) of the Act, the City Council finds and determines that the proceedings prior hereto were valid and in conformity with the requirements of the Act in all material respects.
SECTION 3. Written protests against the establishment of the District, or against the furnishing of specified facilities or services or the levying of a specified special tax within the District, or the incurrence of indebtedness by the District, have not been filed by fifty percent (50%) or more of the registered voters or property owners of one-half (1/2) or more of the area of land within the District.
SECTION 4. A community facilities district to be designated “City of Rialto Community Facilities District No. 2024-1 (Renaissance)” is hereby established pursuant to the Act.
SECTION 5. The description and map of the boundaries of the District as shown on the map entitled “Map of Proposed Boundaries, City of Rialto Community Facilities District No. 2024-1 (Renaissance)” on file in the City Clerk’s office and as described in the Resolution of Intention and incorporated herein by reference, shall be the boundaries of the District. The map of the proposed boundaries of the District has been recorded in the Office of the County Recorder of San Bernardino County, California in Book 91, Page 83 of the Book of Maps of Assessment and Community Facilities Districts, as Document Number 2024-0185053.
SECTION 6. The facilities proposed to be financed by the District are public infrastructure facilities and other governmental facilities, including fees related thereto, with an estimated useful life of five years or longer, which the District is authorized by law to construct, own or operate and that are necessary to meet increased demands placed upon the City as a result of development occurring within the proposed District, as described on Exhibit B to the Resolution of Intention (the “Facilities”), and by this reference incorporated herein. Such Facilities need not be physically located within the District.
The types of services proposed to be provided for and financed by the District include, but shall not be limited to, maintenance and operation of public safety services, fire services, lighting, parkways, streets, roads, open space and any real property or other tangible property with an estimated useful life of five or more years that is owned by the City that are in addition to those provided in the territory within the District prior to the formation of the District and do not supplant services already available within the territory proposed to be included in the District, as described in Exhibit C to the Resolution of Intention (the “Services”), and by this reference incorporated herein. The Facilities and Services are more fully described in the CFD Report.
SECTION 7. In order to finance the Facilities and Services, the City Council shall levy annually in accordance with procedures contained in the Act (i) a special tax sufficient to pay for the Facilities, including the costs of administering the levy and collection and incidental expenses related thereto (“Special Tax A”), and (ii) a special tax sufficient to fund the Services including the costs of administering the levy and collection and incidental expenses related thereto (“Special Tax B”). The Special Tax A and Special Tax B shall be referred to collectively as the “Special Taxes.” SECTION 8. Except where funds are otherwise available, there shall be continued to be levied annually in accordance with procedures contained in the Act, a Special Tax A and a Special Tax B, 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 the Rate and Method of Apportionment described in the Resolution of Intention (the “RMA”) attached hereto as Exhibit “A” and incorporated herein by this reference. The RMA allows each landowner within the District to estimate the maximum amount that may be levied against each parcel.
SECTION 9. If the Special Tax A is 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 2024-25, 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 Special Tax B 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 City Council hereby determines the 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 wholly or partially exempt from the levy of the Special Taxes specified on Exhibit “A,” the City 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 Special Tax A may be prepaid as set forth in Exhibit “A.” SECTION 10. Upon recordation of a 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 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 11. The City 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 12. The City 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 13. 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 City Council hereby establishes 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 6 hereof. b. The proceeds of the levy of such Special Taxes shall be applied only to the specific purposes set forth in Section 6 hereof. c. The District shall establish accounts into which the proceeds of such Special Taxes shall be deposited. d. The City Manager or Finance Director will provide for such accounting and reporting for the Special Taxes as required by law. e. 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 53411.
SECTION 14. The appropriations limit for the District is hereby established and confirmed as an amount equal to $25,000,000 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 15. 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 16. The voting procedure with respect to the imposition of the Special Taxes, incurring bonded indebtedness and establishing an appropriations limit of the CFD shall be by hand delivered or mailed ballot election as provided in the Resolution of Intention, and is hereby incorporated in its entirety by reference hereto.
SECTION 17. Pursuant to Sections 53313.5 and 53314.9 of the Act, the City, on behalf of the CFD, intends to enter into a funding and construction agreement with developers relating to the construction, acquisition, payment and reimbursement of the Facilities (as defined herein).
SECTION 18. This Resolution shall take effect immediately upon its adoption.
SECTION 19. The City Clerk shall certify to the passage and adoption of this Resolution.
SECTION 20. The Mayor shall sign the passage and adoption of this resolution and thereupon the same shall take effect and be in force.
PASSED, APPROVED AND ADOPTED this 10th day of SEPTEMBER, 2024. _________________________________
DEBORAH ROBERTSON, MAYOR
ATTEST:
__________________________________
BARBARA 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 MCGEE, City Clerk of the City of Rialto, do hereby certify that the 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 ___________________, 2024.
Upon motion of Councilmember _______________, seconded by Councilmember ___________________, 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 of the City of Rialto this ______ day of __________________, 2024. ________________________________
BARBARA MCGEE, CITY CLERK
EXHIBIT A
CITY OF RIALTO
COMMUNITY FACILITIES DISTRICT NO. 2024-1 (RENAISSANCE)
RATE AND METHOD OF APPORTIONMENT
(to be attached)
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