HomeMy WebLinkAbout1715 - ORDINANCES - 7/18/2007 ORDINANCE NO. 1715
' AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL
TAX WITHIN CITY OF PALM SPRINGS COMMUNITY
FACILITIES DISTRICT NO. 2005-1 (PUBLIC SAFETY
SERVICES), ANNEXATION NO. 4
City Attorney's Summary
This Ordinance annexes the area of land within a previously approved
development, Annexation No. 4, to the boundaries of Community Facilities
District No. 2005-1 and property owners within such area will be
responsible for the payment of an annual public safety services tax as
required under Community Facilities District No, 2005-01.
WHEREAS, the City Council of the City of Palm Spring, California (the "City
Council'), has initiated proceedings, held a public hearing, conducted an election and
received a favorable vote from the qualified electors authorizing the levy of a special
taxes in a community facilities district, all as authorized pursuant to the terms and
provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5,
Part 1. Division 2, Title 5 of the Government Code of the State of California (the "Act")
and the City of Palm Springs Community Facilities District Ordinance enacted pursuant
' to the powers reserved by the City of Palm Springs under Sections 3, 5 and 7 of Article
XI of the Constitution of the State of California (the "Ordinance") (the Act and the
Ordinance may be referred to collectively as the "Community Facilities District Law").
This Community Facilities District is designated as Community Facilities District No.
2005-1, Annexation No. 4 (the "District').
The City Council of the City of Palm Springs, California, acting as the legislative body of
Community Facilities District No. 2005-1, Annexation No. 4, does hereby ordain as
follows:
SECTION 1. This City Council does, by the passage of this ordinance, authorize the
levy of special taxes within the District pursuant to the Rate and Method of
Apportionment of Special Taxes as set forth in Exhibit A attached hereto (the "Rate and
Method"), referenced and so incorporated.
SECTION 2. The Finance Director of the City is hereby authorized and directed each
fiscal year to determine the specific special tax rate and amount to be levied for the next
ensuing fiscal year for each parcel of real property within the District, in the manner and
as provided in the Resolution of Annexation.
SECTION 3. The special taxes herein authorized, to the extent possible, shall be
collected in the same manner as ad valorem property taxes and shall be subject to the
' same penalties, procedure, sale and lien priority in any case of delinquency as
applicable for ad valorem taxes; provided, however, the District may utilize a direct
Ordinance No. 1715
Page 2
billing procedure for any special taxes that cannot be collected on the County tax roll or
' may, by resolution, elect to collect the special taxes at a different time or in a different
manner if necessary to meet its financial obligations.
SECTION 4. The special taxes shall be secured by the lien imposed pursuant to
Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of
California, which lien shall be a continuing lien and shall secure each levy of the special
tax. The lien of the special tax shall continue in force and effect until the special tax
obligation is prepaid, permanently satisfied and canceled in accordance with Section
53344 of the Government Code of the State of California or until the special tax ceases
to be levied by the City Council in the manner provided in Section 53330.5 of said
Government Code.
SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption. Within
fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be
published in a newspaper of general circulation in the City pursuant to the provisions of
Government Code Section 36933.
PASSED, APPROVED, AND ADOPTED THIS 18TH DAY OF JULY, 2007.
IRON ODEN, MAYOR
' ATTEST:
/k ES THOMPSON, CITY CLERK
4XCERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby
certify that Urgency Ordinance No. 1715 is a full, true, and correct copy, and was
introduced at a regular meeting of the Palm Springs City Council held on June 20, 2007
and adopted at a regular meeting held on the July 18, 2007 by the following vote:
AYES: Councilmember Foat, Councilmember Mills, Mayor Pro Tern Pougnet, and
Mayor Oden.
NOES: Councilmember McCulloch.
ABSENT: None.
ABSTAIN: None.
' a�m6s Thompson, City Clerk
ity of Palm Springs, California
Ordinance No. 1715
Page 3
EXHIBIT A
CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(PUBLIC SAFETY SERVICES)
RATE AND METHOD OF APPORTIONMENT
A Special Tax of Community Facilities District No. 2005-1 (Public Safety Services) of
the City of Palm Springs (the "District") shall be levied on all Assessor's Parcels in the
District and collected each Fiscal Year commencing in Fiscal Year 2006-07 in an
amount determined by the City through the application of the rate and method of
apportionment of the Special Tax set forth below. All of the real property in the District,
unless exempted by law or by the provisions hereof, 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:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an
Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel
Map, the land area shown on the applicable final subdivision map, other final
' map, other parcel map, other condominium plan, or functionally equivalent map
or instrument recorded in the Office of the County Recorder. The square footage
of an Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, being Chapter
2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of
California, as amended, which authorizes the establishment of the District to
finance: a) police protection services, and b) fire protection and suppression
services, and life safety services including but not limited to ambulance and
paramedic services.
"Administrative Expenses" means the actual or estimated costs incurred by the
City as administrator of the District to determine, levy and collect the Special
Taxes, including the proportionate amount of the salaries and benefits of City
employees whose duties are directly related to administration of the District and
the fees of consultants, legal counsel, the costs of collecting installments of the
Special Taxes upon the general tax rolls, preparation of required reports; and any
other costs required to administer the District as determined by the City.
"Annual Escalation Factor" means the greater of the increase in the annual
percentage change of the All Urban Consumers Consumer Price Index (CPI) or
the percent increase of salaries and benefits for public safety employees as
stated in the Memorandum of Understanding for the fiscal year of the Special
' Tax. The annual CPI used shall be for the area of Los Angeles-Riverside-
Orange County, CA as reflected in the then-current April update. The annual CPI
Ordinance No. 1715
Page 4
used shall be as determined by the United States Department of Labor, Bureau
of Labor Statistics, and may be obtained through the California Division of Labor
Statistics and Research (www.dir.ca.gov/dlsr). If the foregoing index is not
available, the CFD Administrator shall select a reasonably comparable index.
"Assessor's Parcel" means a lot or parcel shown in an Assessors Parcel Map
with an assigned assessor's parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County
designating parcels by assessor's parcel number.
"Base Year" means Fiscal Year ending June 30, 2007.
"City" means the City of Palm Springs.
"Council" means the City Council of the City of Palm Springs, acting as the
legislative body of the District.
"County" means the County of Riverside, California.
"Developed Multi-Family Residence" means all Assessor's Parcels of Developed
Property for which a building permit has been issued for purposes of constructing
a residential structure consisting of two or more residential units that share
common walls, including, but not limited to, duplexes, triplexes, town homes,
condominiums, and apartment units.
"Developed Property" means all Taxable Property, exclusive of Property Owner
Association Property, Non-Residential Property, or Public Property, for which a
building permit was issued after January 1, 2006 and prior to May 1st preceding
the Fiscal Year in which the Special Tax is being levied.
"Developed Single-Family Residence" means all Assessors' Parcels of
Developed Property for which a building permit(s) has been issued for purposes
of constructing one single-family residential dwelling unit.
"District Administrator" means an official of the City, or designee thereof,
responsible for determining the Special Tax Requirement and providing for the
levy and collection of the Special Taxes.
"District" means Community Facilities District No. 2005-1 (Public Safety Services)
of the City of Palm Springs.
"Entitled Property" means an Assessor's Parcel and/or Lot in the District, which
has a Final Map recorded prior to January 1 st preceding the Fiscal Year in which
the Special Tax is being levied, but for which no building permit has been issued
prior to the May 15t preceding the Fiscal Year in which the Special Tax is being
levied. The term "Entitled Property" shall apply only to Assessors' Parcels and/or
' Lots, which have been subdivided for the purpose of residential development,
excluding any Assessor's Parcel that is designated as a remainder parcel
Ordinance No. 1715
Page 5
determined by final documents and/or maps available to the District
' Administrator.
"Final Map means an Assessor's Parcel Map, a final subdivision map, other
parcel map, other final map, other condominium plan, or functionally equivalent
map that has been recorded in the Office of the County Recorder.
"Fiscal Year" means the period starting July 1 and ending on the following
June 30.
"Land Use Class" means any of the classes listed in Table 1.
"Lot" means property within a recorded Final Map identified by a lot number for
which a building permit has been issued or may be issued.
"Maximum Special Tax" means the maximum Special Tax, determined in
accordance with Section C below that can be levied in the District in any Fiscal
Year on any Assessor's Parcel.
"Non-Residential Property" means all Assessors' Parcels for which a building
permit(s) has been issued for a non-residential use and does not contain any
residential units as defined under Developed Single Family Residence or
Developed Multi-Family Residence.
' "Property Owner Association Property" means any property within the
boundaries of the District that is owned by, or irrevocably dedicated as indicated
in an instrument recorded with the County Recorder to a property owner
association, including any master or sub-association.
"Proportionately" means in a manner such that the ratio of the actual Special Tax
levy to the Maximum Special Tax is equal for all Assessor's Parcels within each
Land Use Class.
"Public Property" means any property within the boundaries of the District that is,
at the time of the District formation or at the time of an annexation, expected to
be used for rights-of-way, parks, schools or any other public purpose and is
owned by or irrevocably offered for dedication to the federal government, the
State, the County, the City or any other public agency.
"Public Safety Service Costs" means the estimated and reasonable costs of
providing police services and fire protection and suppression services and life
safety services, including but not limited to (i) the costs of contracting services,
(ii) equipment, vehicles, ambulances and paramedics, fire apparatus, supplies,
(iii) the salaries and benefits of City staff that directly provide police services and
fire protection and suppression services and life safety services, respectively,
and (iv) City overhead costs associated with providing such services within the
District. On each July 1 following the Base Year the increases attributed to
salaries and benefits shall be calculated and limited to the increase based on the
Annual Escalation Factor. The Special Tax provides only partial funding for
police, fire and life safety services.
Ordinance No. 1715
Page 6
"Special Tax" means the Special Tax to be levied in each Fiscal Year on each
Assessors Parcel of Taxable Property to fund the Special Tax Requirement, and
shall include Special Taxes levied or to be levied under Sections C and D, below.
"Special Tax Requirement" means that amount required in any Fiscal Year for
the District to: (i) pay for Public Safety Service Costs; (ii) pay reasonable
Administrative Expenses; (iii) pay any amounts required to establish or replenish
any reserve funds; and (iv) pay for reasonably anticipated delinquent Special
Taxes based on the delinquency rate for Special Taxes levied in the previous
Fiscal Year; less any surplus of funds available from the previous Fiscal Year's
Special Tax levy.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of
the District and any future annexation to the District that are not exempt from the
Special Tax pursuant to law or as defined herein.
"Tax-Exempt Property" means an Assessor's Parcel not subject to the Special
Tax. Tax-Exempt Property includes: (i) Public Property, (ii) Property Owner
Association Property, (iii) Non-Residential Property, and (iv) property designated
by the City or District Administrator as Tax-Exempt Property.
' "Undeveloped Property" means, for each Fiscal Year, all Assessor's Parcels of
Taxable Property not classified as Developed Property or Entitled Property,
including an Assessor's Parcel that is designated as a remainder parcel and is
not identified as potential Public Property by any final documents and/or maps
available to the District Administrator.
"Unit" means any separate residential dwelling unit in which a person or persons
may live, which comprises an independent facility capable of conveyance
separate from adjacent residential dwelling units and is not considered to be for
commercial or industrial use.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year using the definitions above, all Taxable Property within the District
shall be classified as Developed Property, Entitled Property, or Undeveloped Property.
Developed Property shall be further classified as Developed Single-Family Residence
or Developed Multi-Family Residence. Commencing with the Base Year and for each
subsequent Fiscal Year, all Taxable Property shall be subject to Special Taxes pursuant
to Sections C and D below.
1
Ordinance No. 1715
Page 7
' C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
TABLE 1
Maximum Special Tax for Developed Property
Community Facilities District No. 2005-1
(Public Safety Services)
Maximum
Land Use Description Special Tax
Class Per Unit
1 Developed Single- $350 per Unit
Family Residence
2 Developed Multi-Family $295 per Unit
Residence
On each July 1 following the Base Year (Le., July 1, 2007), the Maximum
Special Tax Rates in Table 1 shall be increased in accordance with the
Annual Escalation Factor. Once the Maximum Special Tax Per Unit is
' equal to $500 per Unit, no further Annual Escalation Factor shall be
applied and the Maximum Special Tax Per Unit shall not exceed $500.
2. Entitled Property
TABLE 2
Maximum Special Tax for Entitled Property
Community Facilities District No. 2005-1
(Public Safety Services)
Maximum
Land Use Description Special Tax
Class Per Lot
3 Entitled Property $100 per Lot
No Annual Escalation Factor shall be applied to the Maximum Special Tax
Per Lot for Entitled Property.
3. Undeveloped Property
' Undeveloped Property will be assigned a Maximum Special Tax Rate of
$500 per acre or portion thereof, with a minimum rate of $100 for
Ordinance No. 1715
Page 8
Undeveloped Property less than or equal to one-forth (1/4) of an Acre as
described in Table 3.
TABLE 3
Maximum Special Tax for Undeveloped Property
Community Facilities District No. 2005-1
(Public Safety Services)
Maximum
Land Use Description Special Tax
Class Per Parcel/Acre
Undeveloped $100 per
4 Property 9/4 Acre Assessors
Parcel
5 Undeveloped
Property >114 Acre $500 per Acre
No Annual Escalation Factor shall be applied to the Maximum Special Tax
Per Parcel/Acre for Undeveloped Property.
4. Tax-Exempt Property
No Special Tax shall be levied on Tax-Exempt Property.
5. Multiple Land Use Classes
In some instances an Assessor's Parcel may contain more than one Land
Use Class. The Maximum Special Tax levied on an Assessor's Parcel
shall be the sum of the Maximum Special Tax levies that can be imposed
on all Land Use Classes located on that Assessor's Parcel.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2006-07, and for each subsequent Fiscal Year, the
District Administrator shall calculate the Special Tax Requirement based on the
definitions in Section A and levy the Special Tax as follows until the amount of
the Special Tax levied equals the Special Tax Requirement. First, the Special
Tax shall be levied each Fiscal Year on each Assessor's Parcel of Developed
Property Proportionately between Developed Single-Family Residence and
Developed Multi-Family Residence up to 100% of the applicable Maximum
Special Tax. Second, if the Special Tax Requirement has not been satisfied by
the first step, then the Special Tax shall be levied each Fiscal Year on each
' Assessor's Parcel of Entitled Property up to 100% of the applicable Maximum
Special Tax for Entitled Property. Lastly, if the first two steps have not satisfied
the Special Tax Requirement, then the Special Tax shall be levied each Fiscal
Ordinance No, 1715
Page 9
Year on each Assessor's Parcel of Undeveloped Property up to 100% of the
' applicable Maximum Special Tax for Undeveloped Property.
E. APPEALS
Any taxpayer that believes that the amount of the Special Tax assigned to an
Assessor's Parcel is in error may file a written notice with the District
Administrator appealing the levy of the Special Tax. This notice is required to be
filed with the District Administrator during the Fiscal Year the error is believed to
have occurred. The District Administrator or designee will then promptly review
the appeal and, if necessary, meet with the taxpayer. If the District Administrator
verifies that the tax should be changed the Special Tax levy shall be corrected
and, if applicable in any case, a refund shall be granted.
F. EXEMPTIONS
1. Residential Property
Residential Properties which annually meet one or more of the following
standards shall be exempt from payment of the Special Tax:
' a. A Residential Property consisting of one or two person(s) earning
$15,300 or less gross income per year, upon complying with
procedures to establish such exemption, or
b. A Residential Property consisting of three persons earning $17,900
or less gross income per year, upon complying with procedures to
establish such exemption, or
C. A Residential Property which qualifies for either the Low Income
Rate Assistance (LIRA) exemption for electrical or gas services or
the Lifeline exemption for telephone services.
The City is authorized and directed to promulgate administrative rules and
procedures for verification of eligibility for the exemptions referred to in section F.
G. MANNER OF COLLECTION
Special Tax as levied pursuant to Section D above shall be collected in the same
manner and at the same time as ordinary ad valorem property taxes; provided,
however, that the District Administrator may directly bill the Special Tax, may
collect Special Taxes at a different time or in a different manner if necessary to
meet the financial obligations of the District or as otherwise determined
appropriate by the District Administrator.
Ordinance No. 1715
Page 10
H. TERM OF SPECIAL TAX
Every five years after the establishment of the District, the City Council may
reexamine, if deemed necessary by City Council, the necessity of the
continuance of the Special Tax through the preparation of a Fiscal Impact
Analysis, otherwise the Special Tax shall be levied in perpetuity.