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HomeMy WebLinkAbout21401 - RESOLUTIONS - 9/7/2005 ARESOLUTION NO. 21401 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING A STATEMENT OF GOALS AND POLICIES FOR THE USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982. WHEREAS, the CITY COUNCIL (the "City Council") of the CITY OF PALM SPRINGS (the "City") proposes to undertake proceedings pursuant to the Mello-Roos Community I-acilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act'), to form a community facilities district; and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district pursuant to the Act only if it has first considered and adopted local goals and policies concerning the use of the Act. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council finds that the Statement of Goals and Policies for the Use of the Mello-Roos Community Facilities Act of 1982, attached hereto and incorporated herein as Exhibit "A" (the "Statement of Goals and Policies") meets the requirements of the Act and the City Council hereby adopts the Statement of Goals and Policies for purposes of complying with the Act. ADOPTED this 71h day of September, 2005. David H. Ready, City Ma ATTEST: mes Thompson, City IerGk �� CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 21401 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on September 7, 2005, by the following vote: AYES: Members Foat, Mills, Pougnet NOES: Mayor Pro Tern McCulloch ABSENT: Mayor Oden ABSTAIN: None es Thompson, City C erk r ity of Palm Springs, California City of Palm Springs, California Goals and Policies for the use of the Mello-Roos Community Facilities Act of 1982 with respect to districts for which debt will not be issued Statement of Purpose: This document sets forth the goals and policies of the City of Palm Springs (the "City") concerning the use of the Mello-Roos Commmunity Facilities Act of 1982 (the "Act") (Section 53311 and following of the California Government Code) with respect to community facilities districts for which debt will not be issued. It has been prepared pursuant to the requirements of Section 53312.7 of the Act. Fundamental Policy: It is the policy of the City that, except as specifically limited by these goals and policies, the City Council may exercise all rights, powers, and authorities granted to it by the Act. The silence of these goals and policies with respect to any matter shall not be interpreted as creating any policy with regard to that matter. Any inconsistency between these goals and policies and the Act, as amended, shall be resolved in favor of the Act. Relationship to Other Goals and Policies These goals and policies shall only govern the establishment and administration of community facilities districts with respect to which the City has not issued, and does not plan to issue, special tax bonds or other marketable debt. The City has previously adopted local goals and policies with respect to the use of bond- financed community facilities districts for Special Assessment and Community Facility District Financing Programs. Those local goals and policies shall remain in effect notwithstanding the adoption of these local goals and policies. In the event a district is established that would be subject to both these goals and policies and some other local goals and policies previously or hereafter adopted by the City Council for a specific area of the City or for some special purpose, the City Council may designate with which of the goals and policies the district shall be consistent, and need not comply with any other goals and policies would otherwise be applicable. Financing Priorities: The purpose of the City's use of the Act is to finance services and facilities necessitated by development or planned development within a proposed Community Facilities District Page t of 5 Goals and Policies City of Palm Springs (a "District'). The City may also use the Act to finance other necessary or useful ' services or facilities authorized to be financed pursuant to the Act. In selecting services and facilities to be financed, the City may finance any services or facilities permitted to be financed under the Act. Priority for financing may be given to services, such as public safety services and similar City services, which will be demanded by the owners or occupants of parcels within a District as a result of increases in the intensity of use of territory within the District. As permitted by the Act, the City may finance services and facilities to be owned and operated by other public agencies, including school districts. Equity of Tax Allocation Formulas It is a goal of the City that any special tax levied pursuant to the Act be allocated equitably against all similar parcels within any District. Towards this end, the City will engage a qualified special tax consultant to assist in the development of the rate and method of apportionment for any special tax proposed in connection with a District. Parcels should, at a minimum, be classified according to whether they are undeveloped, approved with a final map, developed as a fractional use development, developed for residential uses, or developed for non-residential uses. Because undeveloped parcels, approved with a final map parcels, developed fi-actional use parcels, developed residential , parcels and developed non-residential parcels ,have dissimilar economic and other impacts upon the City and its residents, place different demands upon City resources, and provide different benefits to the City, its residents and its economy, a District may be created that levies a tax upon less than all of these five classes of parcels. Similarly, a District may be created that taxes only one of these classes of parcels where such differentiation is requested by a property owner to comply with requirements of the planning laws of the City. However, between parcels within a class, the City may attempt to maintain equity by, for example, taxing each single family dwelling within a _. District at the same rate, or taxing each fractional-use unit in a fractional development at _ the same rate per week of ownership interest. The City recognizes that any determination of tax equity must rely, to a large extent, on assumptions based on average characteristics of parcels, and that an exactly fair share of costs can not be perfectly estimated with respect to any parcel or class of parcel. Consequently, the City may rely on any reasonable tax apportionment analysis, in its sole and absolute discretion. Furthenrnore, in its sole and absolute discretion, the City may permit the allocation of special taxes on any basis that is rationally related to the purpose of the District. Because any special tax levied pursuant to these goals and policies will be for the ongoing provision of services and facilities, any special tax methodology may provide for , an annual rate increase to reflect inflation. Such annual inflation adjustment may be tied to the Consumer Price Index for All Urban Consumers for the Los Angeles-Orange- Riverside area, or to any other index deemed appropriate by the City. Page 2 of 5 Goals and Policies City of Palm Springs It is not desirable that the annual special tax on any parcel pursuant to these Goals and Policies exceed an amount equal to a total tax rate of 2%, including the general property taxes and other special taxes or assessments, per year per dwelling unit, hotel room or similar occupiable space. Taxes upon fractional use parcels shall be scaled proportionately to weeks of ownership interest represented by the parcel. This is the maximum tax that may be levied pursuant to these Goals and Policies unless the City Council finds that a higher amount would be more appropriate in light of the attributes of the parcel. The maximum tax rate for developed parcels that do not contain dwelling units, hotel rooms, or similar occupiable spaces shall be an equitable rate that is comparable to that given above, to be determined by the City Council. Issuance of Bonds—Statement Regarding Credit Policy and Appraisal Standards At this time, it is the policy of the City to utilize the Act pursuant to these goals and policies only for the financing of services and minor improvements to facilities. Therefore, these goals and policies do not authorize the issuance of bonds pursuant to Article 5 of the Act. As a consequence, these goals and policies do not include a statement regarding credit policies or a statement of definitions, standards, and assumptions to be used in appraisals. The City Council may, in the future, arnend these goals and policies to permit the issuance of bonds. Responsible Department The City's Department of Finance, which is located at 3200 E. Tahquitz Canyon Way, Patin Springs, CA 92262 and whose telephone number is (760) 323-8229 (the "Finance Department"), is designated as the department of the City responsible for: (i) preparing the annual roll of special tax obligations with respect to any District; (ii) providing information t Anterested_persons regarding the current and estimated future tax liability of owners or purchasers of real property subject to the special tax lien; and(iii) fmmishing notices of special tax as required by Section 53340.2 of the Act. Subject to the policies of the City, and as permitted by applicable law, the Finance Department may obtain the assistance of a qualified consultant to perform any of the duties set forth above. Transparency and Notification The City will take the following steps to ensure that prospective property purchasers are fully informed about their taxpaying obligations imposed under the Act: 1. It will conduct all proceedings required by the Act in the manner required by the Ralph M. Brown Act (Section 54950 and following of the California Government Code); Page 3 of 5 Goals and Policies City of Palm Springs 2. It will cause a map of the boundaries of any proposed District to be recorded, , pursuant to Section 3111 of the California Streets and Highways Code, in the Office of the Recorder of Riverside County within 15 days following the adoption, of a resolution of intention to form that District, pursuant to Section 53321 of the Act; 3. It will give notice, pursuant to Section 53322 of the Act, prior to holding any public hearing on the establishment of a District; 4. It will record a notice of special tax lien, in the form specified by Section 3114.5 of the California Streets and Highways Code, within 15 days of the City Council's determination that the requisite number of voters are in favor of the levy of a special tax in connection with a District. Such notice will include, among other information: (i) A description of the rate, method of apportionment, and manner of collection of the authorized special tax; (ii) Information about the conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien of the special tax canceled; (iii) The name(s) of the owner(s) and the assessor's tax parcel nunber(s) of the ' real property included within this community facilities district and not exempt from the special tax; and (iv) The name, address and telephone number of the Finance Department, so that may contact the Finance Department to obtain further information concerning the current and estimated future tax liability of owners or 'purchasers of real property subject to the special tax lien. 5. It will, through the Finance Department, furnish a notice of special tax, in the form set forth in Section 53340.2(c) of the Act to any individual requesting the notice or any owner of property subject to a special tax levied by the local agency within five working days of a request for such notice. The City Council may establish a reasonable fee for this service. CFD Costs Deposits and Reimbursements All City and consultant costs incurred in the establishment of Districts shall be paid by the entities, if any, requesting establishment of the District. Interpretation Page 4 of 5 Goals and Policies City of Palm Springs i The City Council is empowered to interpret these Goals and Policies. A finding by the City Council that a District conforms with the provisions of these Goals and Policies shall be conclusive evidence of such conformity. Amendment These Goals and Policies may be amended from time to time by resolution of the City Council. Certification I, Jaynes Thompson, City Clerk of the City of Palm Springs, certify that this is a true and correct copy of the "Goals and Policies for the use of theMello- Roos Community Facilities Act of 1982 with respect to districts,g�fo uh' �4ebt will not be issued" adopted on �rtt� by Resolution No. Z I b1c 1 of the City Council of the City of Palm Springs. p �u�sr_ a rse e n9r tD C za J es Thompson, City Cl r Date Page 5 of 5