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Res 90-076RESOLUTION NO. 90-076 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF POWAY TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 90-1 OF THE CITY OF POWAY AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 90-1 OF THE CITY OF POWAY (TECH BUSINESS CENTER) April 3, 1990 On motion of Councilmember Emery , duly seconded and carried, the following resolution was adopted: WHEREAS, the owners (the "Owners") of not less than 10 percent of the area of land depicted on the attached Exhibit "A# (the "Project Area 90-1") have filed a written petition with the City of Poway (the "City") to establish Community Facilities District No. 90-1 of the City of Poway (Tech Business Center) (the "Community Facilities District No. 90-1" or the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the "Act") to finance (1) the construction, purchase, modification, expansion, improvement or rehabilitation of certain roadway and street improvements and water, sewer and drainage facilities (including reservoirs, pump stations and transmission lines), public trails, parks and fire fighting equipment, both onsite and offsite, required to be constructed to facilitate development within the District (the "Facilities") and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming the District; and Resolution 90-076 Page 2 WHEREAS, the City Council has determined that the petition submitted by the Owners complies with the requirements of Section 53319 of the Act and now intends to form Community Facilities District No. 90-1 to serve the Project Area 90-1 pursuant to such petition and request; and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the incidental expenses for Community Facilities District No. 90-1; and WHEREAS, it is the intention of the City Council to finance the construction or acquisition of the Facilities for Project Area 90-1 through the formation of Community Facilities District No. 90-1 and to pay for certain incidental expenses necessary to the construction and acquisition of the Facilities, including costs associated with the creation of the District and the issuance of bonds, the establishment and replenishment of bond reserve and special reserve funds; provided that the sale of bonds and the levy of a special tax to pay for the principal and interest on the bonds and such incidental expenses is approved at an election to be held within the boundaries of Community Facilities District No. 90-1; and WHEREAS, the Owners has agreed to advance funds to the City to pay all costs incurred in creating the District and has incurred certain other direct costs related to the formation of the District and the construction of the Facilities which the -2- 8690n/2468-08 Resolution 90-076 Page 3 City desires to reimburse to the Owners from the proceeds of any bonds sold by the District as permitted by Section 53313.5 and 53314.9 of the Act; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1. The above recitals are true and correct. Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be as depicted on the attached Exhibit "A" as Community Facilities District No. 90-1 and as further described in the legal description attached as Exhibit "B~to the Owners' petition which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the County Recorder within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California. Section 3. The name of the proposed Community Facilities District shall be "Community Facilities District No. 90-1 of the City of Poway (Tech Business Center)". Section 4. The Facilities proposed to be provided within Community Facilities District No. 90-1 are public facilities as defined in the Act, which the City and the District are authorized by law to construct, acquire, own and operate. None of the Facilities have been completed as of the -3- 8690n/2468-08 Resolution 90-076 Page 4 date hereof. Exhibit #B" attached hereto contains an estimate of the incidental expenses incurred by the Owners with respect to the Facilities and the formation of the District prior to the date hereof. The City and the District intend to reimburse the Owners for the work performed to date described in Exhibit "B" in an amount equal to the lesser of the value or the cost of such work in accordance with the Act. Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a special tax sufficient to pay for: (i) the Facilities (including incidental expenses for the design, planning, engineering and inspection of the Facilities); (ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities, including the establishment and replenishment of any reserve funds deemed necessary by the District, any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash); and (iii) the costs of forming Community Facilities District No. 90-1 and administering the levy and collection of the special tax and all other administrative costs of the special tax levy and bond issue. The rate and method of apportionment of the special tax are described in detail in Exhibit "C" attached hereto. Exhibit "C" allows each landowner and resident within the District to estimate the maximum amount -4- 8690n/2468-08 Resolution 90-076 Page 5 that may be levied against each parcel. The special tax is based on the expected demand that each parcel of real property within Community Facilities District No. 90-1 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines the rate and method of apportionment of the special tax set forth in Exhibit "C" 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 on or based upon the ownership of real property. In the event that a portion of the property within Community Facilities District No. 90-1 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 Community Facilities District No. 90-1, 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 Community Facilities District No. 90-1 which is not delinquent or exempt in order to yield the special tax revenues required for the purposes described in this Section 5. Section 6. The City Council hereby finds that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of Project Area 90-1. -5- 8690n/2468-08 Resolution 90-076 Page 6 Section 7. A public hearing (the "Hearing") on the establishment of the proposed Community Facilities District No. 90-1 and the proposed rate and method of apportionment of the special tax shall be held at 7:00 p.m., or as soon thereafter as practicable, on May 8, 1990, at the City Council Meeting Room, 13325 Civic Center Drive, Poway, California 92064. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner having one vote for each acre of land or portion thereof owned within the District. Section 8. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 90-1 shall be established and as to the method of apportionment of the special .tax and shall consider: (a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 90-1 for the exclusive purpose of paying principal of or interest on bonds or other indebtedness, including state school building loans, incurred to finance construction of. ~apital facilities; and (b) if the capital facilities to be financed and constructed by Community Facilities District No. 90-1 will -6- 8690n/2468-08 Resolution 90-076 Page 7 provide the same services to the Area as were provided by the capital facilities mentioned in subsection (a); and (c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine that the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 90-1, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 90-1 is created, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question. Section 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 proposed Community Facilities District No. 90-1, may appear and be heard. Section 10. Each City officer who is or will be responsible for providing the Facilities within Community Facilities District No. 90-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 90-1, an estimate of the cost of providing those public -7- 8690n/2468-08 Resolution 90-076 Page 8 facilities and an estimate of the fair and reasonable cost of any incidental expenses to be incurred. Section 11. The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 90-1. The Notice shall contain the text of this Resolution, 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 district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least 7 days prior to the date of the Hearing. Section 12. The City Clerk is directed to send a copy of the Notice of the Hearing by first-class mail, postage prepaid, to each registered voter and to each landowner within proposed Community Facilities District No. 90-1 as shown on the last equalized assessment roll or otherwise known to the City Clerk to be a current owner of land within the proposed District. Said mailing shall be completed not less than fifteen (15) days prior to the date of the Hearing. -8- 8690n/2468-08 Resolution No. 90-076 Page 9 SIGNED AND APPROVED, this 3rd day of April, 1990 by the Mayor of %he City of Poway acting on behalf of the Community Facilities District No. 90-1 of the City of Poway. Don Higginson ,%~ayor ATTEST: Marjorie K. Wahlsten, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss. I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify under penalty of perjury that the foregoing Resolution No. 90- 076 was duly adopted by the City Council at a meeting of said City Council held on the 3rd day of April, 1990, and that it was so adopted by the following vote: AYES: EMERY, GOLDSMITH, KRUSE, HIGGINSON NOES: NONE ABSTAIN: NONE ABSENT: BRANNON Marjorie\.K. Wahlsten, City Clerk City of Poway Resolu%ion 90-0 76 Page 10 m Resolution 90-0 76 Page 11 EXHIBIT B INCIDENTAL EXPENSES INCURRED TO DATE Direct costs incurred by Owners for legal, market absorption and special tax consulants related to formation of the District. 8690n/2468-08 Resolution No. 90-076 Page 12 EXHIBIT C RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMI3NITY FACILITIES DISTRICT NO. 90-1 OF THE CITY OF POWAY (TECH BUSINESS CENTER) A Special Tax applicable to each Assessor's Parcel in Community Facilities District No. 90-1 (herein "CFD No. 90-1") shall be levied and collected according to the tax liability determined by the City Council of the City of Poway acting in its capacity as the legislative body of CFD No. 90-1 (herein the "City Council") through the application of the appropriate amount or rate for "Developed Property" or "Undeveloped Property", as described below. All of the property in CFD No. 90-1, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent and in the manner herein provided. A. Definitions. The terms hereinafter set forth have the following meanings: "Developed Property" means all Assessor's Parcels in CFD No. 90-1 for which a final subdivision map has been recorded as of March 1 of the preceding Fiscal Year; provided, however, that Developed Property shall not include property owned by a public agency and used for public right-of-way or open space or property offered for dedication to a public agency and being used by a public agency for public right-of-way or open space, or which is encumbered with public open space, street, roadway or utility easements and is being used exclusively for the purpose of such easement, which property is subject to tax as Undeveloped Property only to the extent set forth in Section F below. "Fiscal Year" means the period starting on July 1 and ending the following June 30. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by the City Council in any Fiscal Year for each class of Developed Property and for Undeveloped Property, as applicable. "Special Tax" means the Special Tax for each Land Use Class determined in accordance with Section B below, that can be levied by the City Council. Resolution No. 90-076 Page 13 "Taxable Property" is all of the area within the boundaries of CFD No. 90-1 which is not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means all Taxable Property in CFD No. 90-1 not classified as Developed Property. B. Assiqnment to Land Use Class. (1) A parcel shall be classified as a Developed Property for a Fiscal Year if a subdivision map has been recorded with respect to that parcel in the Office of the County Recorder for San Diego County as of the preceding March 1. (2) Ail Taxable Property not classified as Developed Property for a Fiscal Year shall be classified as Undeveloped Property. C. Maximum Special Tax Rate. The Maximum Special Tax for Fiscal Year 1990-91 shall be $15,000.00 per acre for an Assessor's Parcel classified as Developed Property and $12,400.00 per acre for an Assessor's Parcel classified as Undeveloped Property, and such Maximum Special Tax shall increase compounded annually in each subsequent Fiscal Year by 2.0%. For purposes of this Section C, the acreage of an Assessor's Parcel shall be determined by reference to the most current subdivision map recorded in the Office of the County Recorder for San Diego County or by another reliable means established by the District. D. Method of Apportionment of the Special Tax to Developed Property and Undeveloped Property. Starting in Fiscal Year 1990-91 and for each following Fiscal Year, the City Council shall determine the amount of money to be collected from Taxable Property in CFD No. 90-1 in that Fiscal Year. Such amount shall include the sums necessary to pay for debt service on indebtedness of CFD No. 90-1, to create or replenish reserve funds determined necessary by CFD No. 90-1 for existing or future indebtedness, and to pay for administrative and construction expenses to be paid from Special Tax proceeds. After taking into account other available revenues, the City Council shall levy the Special Tax as follows until the amount of the levy equals the amount to be collected: First: The Special Tax shall be levied proportionately on each parcel of Developed Property in equal percentages up to 87% of the Maximum Special Tax for such Fiscal Year; Resolution No. 90-076 Page 14 Second: If additional moneys are needed after the first step has been completed, the Special Tax shall be levied proportionately on each parcel of Undeveloped Property (exclusive of Undeveloped Property exempted pursuant to Section E below) up to 87% of the Maximum Special Tax for such Fiscal Year; Third: If additional moneys are needed after the first two steps have been completed, then the levy of the Special Tax on Developed Property and Undeveloped Property (exclusive of Undeveloped Property exempted pursuant to Section E below) shall be increased in equal percentages above the rates levied pursuant to the first and second steps above, up to the Maximum Special Tax for such Fiscal Year; Fourth: If additional moneys are needed after the first three steps have been completed, then the Special Tax shall be levied proportionately on each privately owned parcel of Undeveloped Property which is encumbered by an easement to a public utility and which is used exclusively for the purpose of such easement and which has not been exempted from the Special Tax pursuant to Section E, up to the Maximum Tax for such Fiscal Year for such property; and Fifth: If additional moneys are needed after the first four steps have been completed, then the Special Tax shall be levied proportionately on each privately owned parcel of Undeveloped Property dedicated to a public agency for use as a public right of way or open space which has not been exempted from the Special Tax pursuant to Section E, up to the Maximum Special Tax for such Fiscal Year for such property; and Sixth: If additional moneys are needed after the first five steps have been completed, then the Special Tax shall be levied proportionately on each parcel of Undeveloped Property owned by a public agency which has not been exempted from the Special Tax pursuant to Section E, up to the Maximum Special Tax for such Fiscal Year for such property. E. Limitations. The City Council shall not impose any Special Tax on up to 40 acres of property which is (1) owned by a public agency, or (2) is privately owned property which has been dedicated to a public agency for use as public right-of-way or open space, following the acceptance of such dedication by the public agency, or (3) is privately owned property which has been dedicated to a public utility for exclusive use by the public utility for unmanned facilities. Resolution No. 90-076 Page 15 If the total number of acres of land conveyed or offered for dedication to a public agency or a public utility exceeds 40 acres, then the .exempt acres shall be determined in the priority listed in (1), (2) and (3) of the preceding paragraph, with the property within each category receiving priority based on the date that it entered such category. The acres exceeding such total of 40 shall be taxed as Undeveloped Property to the extent set forth in steps four, five and six in Section D above.