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
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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
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Resolution 90-076
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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
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Resolution 90-076
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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.
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Resolution 90-076
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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
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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
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Resolution 90-076
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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.
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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.
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Resolution No. 90-076
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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;
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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
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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.