HomeMy WebLinkAbout9/5/2007 - STAFF REPORTS - 2.U. PETITION
To Create a Community Facilities District
and Related Matters
2CC1d SF.,'
CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2007-1 J,.3 J
(PUBLIC SAFETY SERVICES)
To the Honorable City Council,
CITY OF PALM SPRINGS
3200 FAST TAHQUITZ CANYON WAY
PALM SPRINGS, CALIFORNIA 92262
Mel nbers of the Council:
This is a petition to initiate proceedings ro create a Community Facilities District witbru the City
of Palm Springs, and related matters pursuant to the Mello-Roos Cor ununity Facilities Act of 1982,
commencing with Section 53311 of the Cahforwa Government Code (the "Act") and ii states as
follows:
1. Petitioner. This Petition is submitted by the person (tbc "Petitioner's (whether one or
more) identified below as or for the record owner(s) of the parcel(s) of land identified below (the
"Property"). The undersigned warrants ro the City that the Petitioner is such owner, or is a legally
authorized representative of such owner(s), and that such owncr4dp constitutes ownership of more
than 10% of the property described in F_xlvbit A attached hereto and mote particularly described in
Section 3 herein.
2. Proceedings Requested- This Petition asks that the City Council undertake proceedings
under the Act to create a community facilities district to be designated "City of Palm Springs
Community Facilities District No. 2005-1 (public Safety Services)" (the "District") to levy special taxes
in the District.
3. Boundaries. This Petition asks that die territory to be included in the bomidarics of the
District consist of that shown on a map of the proposed boundaries of the District filed with the City
Clerk of the City and which map is attached hereto as Exhibit A and hereby made a part this Petition
and which map includes the Property.
4. Purpose. This Petition asks that the District be created, the special taxes be levied to
finance all or a part of the public services (the "Services") shown in Exhibit Ii attached hereto and
made a part hereof.
5. Special Taxes. The Pensioner agrees that it has reviewed and preliminarily approves the
Rate and Method of Apportionment of Special Taxes attached hereto as Exhibit C and made a part
hereof, which Rate and Method is proposed to be used by the City fot the levy of Special Taxes in the
District to pay for the Services, subject to the completion of all proceedings by the City under the Act.
6. Election. The Petitioner asks that the special election to be held under the Act to authorize
the special taxes and to establish any appropriations limits for the District be conducted by dic City and
its officials, using a mailed or hand-delivered ballot and that such ballot be canvassed and the results
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certified at the same meeting of the City Council as the public hearing on the District under the Act or
as soon thereafter as possible.
7. Waivers. To expedite the completion of the proceedings for the District, the Petitioner
waives all, notices of hearing and all published notices regarding the establishment of the Disrrict,
norices of election, applicable waiting periods under the Act for the holding of any public hearing and
for election and all ballot arguments and analysis for the election, it being acknowledged by the
Petitioner that all such notices are for the benefit of the Petitioner and may be waived. The Petitioner
agrees to timely complete and return a consent and waiver to be provided to Petitioner by the City in
order to expedite such proceedings.
8. Authority Warranted. The Petitioner warrants to the City that the presentation of this
Petition, any waivers contained herein, casting of ballots at the property owner election and other
actions mandated by the City for the formation of the District shall not constitute or be construed as
events of default or delinquencies under any existing or proposed financing documents entered inro or
to be entered into by the Petitioner for the Propery, including any "due-on-encumbrance" clauses
under any existing security nnstniments secured by the Property. If requesred by the City, the Petitioner
agrees, ar its expense, to supply to the City, current tide evidence so that the City may supply any notice
and ballot required under the Act for the establishment of the Disrricr.
9. Due-Diligence and Disclosures. The Peritioner agrees to cooperate with the City, its,
attorneys and consultants and provide all information and disclosures required by the City about the
Special Taxes to purchasers of the Property or any part of it.
10. Agreements. The Petitioner further agrees to execute such additional or supplemental
agreements as may be required by the City to provide for any of the actions and conditions under this
Perition, including any amount of cash deposit required to pay for the City's cosrs in establishing the
District. By executing this Petition, the Petitioner agrees to all of the above.
The Property is Riverside County
Assessor Parcel hlo(s):
508-600-004 and 508-600-006
and the Property contains a royal of 9.49 acres.
The Petitioner is:
T nited States of America
rid R. Razzar, xecutive Director of the
Agvua Caliente Development Authority
The address of the above receiving
any nonce and ballot is:
Fred R. Razzar
c/o D. L. Freeman, Inc.
72-880 Fred Waring Dr., Suite C-13
Palm Desert, CA 92260
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C.'` FOV- 'P City Council Staff Report
DATE: September 5, 2007 Consent Agenda
SUBJECT: Formation of a Mello-Roos Community Facilities District for Allotted Land
FROM: David H. Ready, City Manager
SUMMARY
The City Council has heretofore created a Community Facilities District (CFD) to assist
in the financing of police, fire and life safety services to new residential development.
Staff has determined that several of the residential developments currently being
constructed are located on Allotted Land and cannot be annexed into the existing CFD
due to their unique ownership status. Although Allotee owners are not considered
"landowners" for the purposes of a CFD and cannot be taxed directly, the possessory or
leasehold interest that the developer has entered into to construct the project is subject
to taxation. The recommended actions will allow the City Council to farm a separate
Community Facilities Districts (CFDs) for Allotted Land and levy a special tax for public
safety services.
RECOMMENDATION:
1. Accept the petition, and consent and waiver from the developer regarding the
formation of the CFD;
2. Adopt a Resolution of the City Council of the City of Palm Springs Declaring Its
Intention to Establish the Proposed Community Facilities District No. 2007-1
(Public Safety Services) of the City of Palm Springs, and to Authorize the Levy of
a Special Tax therein to Finance Certain Services (Exhibit A);
3. Adopt a Resolution of the City Council Approving a Boundary Map Showing the
Boundaries of the Territory Proposed for the Inclusion in Proposed Community
Facilities District No. 2007-1 (Exhibit B)
4. Adopt a Resolution of the City Council of the City of Palm Springs Ordering the
Preparation of the CFD Report, which will be Prepared by MuniFinancial
(Exhibit C);
5. Set a public hearing for 6:00 p.m. on October 17, 2007 for public comment, for
and against, and for the filing of written protest by a property owner regarding the
establishment of the foregoing Community Facilities District, and the levy of a
special tax for public safety services. (If there is no "majority protest', a special
landowner election will be called for immediately thereafter).
1TEr�n yQ- .1��
City Council Staff Report
September 5, 2007 -- Page 2
Public Safety Services CFD 2007-1
STAFF ANALYSIS.
The City Council has heretofore created a Community Facilities District (CFD) to assist
in the financing of police, fire and life safety services to new residential development.
This type of financing program, which is authorized under the Mello-Roos Community
Facilities Act of 1982 (the "Act"), envisioned the participation of all future additional new
development projects, either by formation of new districts or annexation into the existing
CFD.
As new residential developments have been approved by the City they have been
annexed into the original CFD for Public Safety Services (2005-1). Unfortunately, staff
has determined that several of the residential developments that have been approved
and currently under construction are located on Allotted Land and cannot be annexed
into the existing CFD for Public Safety Services due to their unique ownership status.
Under both Federal and State case law, Allottee land is held "in trust" by the Federal
government for the benefit of its Allottee owners. As such, the land has been
determined "an instrumentality" of the Federal government and is not subject to direct
taxation, including the special tax levied through the CFD.
Although Allotee owners are not considered "landowners" for purposes of the Act and
cannot be taxed directly, the City's consultant, MuniFinancial, has determined that the
possessory or leasehold interest is subject to taxation. Since the original CFD does not
provide for an encumbrance against a possessory interest, the City's consultant is
recommending the formation of a new CFD to accommodate the Allotted Land, as well
as to attach the burden of the CFD to the possessory interest.
Approval of the resolutions listed above constitutes the next step in the formation
process and essentially declares the City's intention to form a CFD for Allotted Land.
The Resolution of Intention sets forth terms and conditions under which the CFD may
be formed. The Resolution Approving the Boundary Map establishes the boundaries of
the CFD. The Resolution Ordering the Preparation of the CFD Report directs
MuniFinancial to prepare a report, which sets forth the type of services to be financed.
There are currently two (2) residential developments that will be included in the
formation of the new CFD. These developments, which total 110 units, include: Tract
33576 (Village Traditions); and Tract 33623 (Alexander Village). As additional
residential developments on Allotted Land are approved, they will be annexed into this
CFD.
The proposed tax to be assessed on these developments is the same as the existing
CFD. The amount of the tax, which is based upon a Fiscal Impact Analysis that was
prepared by MuniFinancial, is $350.00 per single-family residential unit per year. The
tax rate for multi-family residences is $295.00 per year. The proposed tax rate for
entitled undeveloped property is $100.00 per acre per year.
000002
City Council Staff Report
September 5, 2007 -- Page 3
Public Safety Services CFD 2007-1
The proposed CFD for Allotted Land has been reviewed and approved by the Tribe and
the Bureau of Indian Affairs (BIA). Included in your materials is a Consent and Waiver
from each developer which waives certain timing and notice requirements which allow
the City to expedite the formation of the CFD.
Although the proposed CFD is similar in every aspect to the original CFD for Public
Safety Services, since it involves leased land, it is not perpetual in nature and will expire
at such time that the lease ends.
FISCAL IMPACT:
Based on the total number of residential units within the two (2) developments identified
above, it is estimated that upon build-out the City will receive approximately $38,500 a
year in revenues for public safety services.
by . BuWa A tant City Manager David H. Ready, City I�I1
Atta ents: Ca r
J
1. Developer Petition
2. Exhibit A -- Resolution of Intention
3. Exhibit B -- Resolution Approving Boundary Map
4. Exhibit C -- Resolution Ordering the Preparation of the CFD Report
000663
Developer Petitions
On File with the City Clerk
000a��
Exhibit A
000005
RESOLUTION NO.
RESOLUTION OF THE, CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA. DECLARING ITS JNTENTION TO
ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2007-1
(PUBLIC SAFETY SERVICES) AND TO AUTHORIZE THE LEVY OF A
SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES
WHEREAS, the City Council of the City of Palm Springs, California, (the "City
Council'), has received a petition proposing to form a community facilities district from
landowners owning more than ten percent (10%) of the property proposed to be included in the
community facilities district and the City Council desires to initiate proceedings to create a
conununity facilities district pursuant to the terns 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, as amended (the "Act"), for the purpose of
financing public safety services. This community facilities district shall hereinafter be referred to
as City of Palm Springs Community Facilities District No. 2007-1 (Public Safety Services) (the
"District"); and,
WHEREAS, this City Cotuzcil is now required to proceed to adopt its Resolution of
Intention to initiate the proceedings for the establishment of such District, to set forth the
boundaries for such District, to indicate the type of services to be financed by such District, to
indicate a rate and method of apportionment of special taxes proposed to be levied sufficient to
finance such services, and to set a time and place for a public hearing relating to the
establishment of such District.
WHEREAS, a map of such District has been submitted showing the boundaries of the
territory proposed to be included in the District which territory includes the properties, parcels of
land, and leasehold interests associated with said parcels, which are proposed to be subject to the
levy of a special tax by the District
NOW, THEREFORE, iT IS HEREBY RESOLVED DETERMINED AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS:
SECTION 1 Recitals. The above recitals are all true and correct.
SECTION 2 initiation of Proceedings. These proceedings are initiated by this City
Council pursuant to the provisions of the Act.
SECTION 3 Boundaries of District. it is the intention of this City Council to establish
the District pursuant to the provisions of the Act, and to determine the boundaries, parcels and
leasehold interests on which special taxes may be levied to finance certain services. A
description of the boundaries of the territory proposed for inclusion in the District including
properties, parcels of land and leasehold interests proposed to he subject to the levy of a special
tax by the District is as shown on the boundary map designated as "Proposed Boundaries of City
00000E
of Palm Springs Community Facilities District No. 2007-1 (Public Safety Services)," attached
hereto as Exhibit A acid hereby incorporated by reference.
SECTION Name of District. The proposed community facilities district shall be
known and designated as "City of Palm Springs Community Facilities District No. 2007-1
(Public Safety Services)."
SECTION 5 Description of Services. It is the intention of this City Council to finance
certain services that are in addition to those provided in or required for the territory within the
District and will not be replacing services already available. A general description of the
services to be provided is as follows:
PUBLIC SAFETY SERVTCFS
New police services, lire protection and suppression services, and life safety
services (the "Services") of the City of Palm Springs required to sustain the
service delivery capability for emergency and non-emergency services to new
growth areas of the City of Palm Springs, including but not limited to, equipment,
vehicles, ambulances and paramedics, lire apparatus, services, supplies and
personnel; provided, however, that any increases in special taxes for costs related
to employee wages and benefits shall be limited as provided in the Rate and
Method o f Apportionment of the Special Taxes to fund such Services.
SECTION 6 Special Tax. It is hereby further proposed that, except where funds are
otherwise available, a special tax sufficient to pay for such services and related incidental
expenses authorized by the Act, secured by recordation of a continuing lien against all non-
exempt real property in the District, will be levied annually within the boundaries of the District.
Under no circumstances will the special Lax authorized to be levied within the District be
increased as a consequence o1•'delinquency or default by the owner of any other parcel or surface
estate for private residential purposes and located within the District by more than 10 percent.
For further particulars as to the rate and method of apportionment of the special tax proposed to
be levied within the District, reference is made to the attached and incorporated Exhibit B, which
sets forth in sufficient detail the method of apportionment to allow each owner, resident or
Lessee within the District to clearly estimate the maximum amount that such person will have to
pay for such services.
The special taxes herein authorized, to the extent possible, shall be collected in the sarne
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. Any special taxes
that may not be collected on the County tax roll shall be collected through a direct billing
procedure by the Treasurer_
SECTION 7 Public I.learinm. Notice is given that on the 17°' day of October, 2007, at
the hour of 6 o'clock p.m., in the regular meeting place of the City Council being the Council
Chambers, located at 3200 East Tahquitz Canyon Way, Palm Springs, California, 92262, a
public hearing will be held where this City Council will consider the establishment of the
proposed District, the proposed rate and method of apportionment of the special taxes proposed
2 000a0a
to lie levied, and all other matters as set forth in this resolution of intention. At the above-
mentioned time and place for public heating any persons interested, including but not limited to
taxpayers and property owners, may appear and be heard. The testimony of all interested persons
for or against the establishment of the District, the extent of the District, or the furnishing of the
services, will be heard and considered. Any protests may be trade orally or in writing. However,
any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and
clearly set forth the irregularities and defects to which the objection is made. All written protests
shall be tiled with the City Clerk of the City Council on or before the time fixed for the public
heating. Written protests may be withdrawn in writing at any time prior to the conclusion of the
public hearing.
If a written majority protest against the establishment of the District is fled, the
proceedings shall he abandoned. If such majority protest is limited to certain services or portions
of the special tax, those services or LhaL tax may be eliminated by the City Council.
SECTION 8 Election. If, following the public hearing described in the Section above,
the City Council determines to establish the District and proposes to levy a special tax within the
District, the City Council shall then submit the levy of the special taxes to the qualified electors
of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12)
persons, have been registered to vote within the District for each of the ninety (90) days
preceding the close of the public hearing, the vote shall be by registered voters of the District,
with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of the
District who were the owners of record at the close of the subject hearing, with each landowner
or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of
land owned within the District.
The elections shall be conducted by the City Clerk, and shall be held on a date selected
by the City Council in conformance with the provisions of Section 53326 of the California
Government Code and pursuant to the provisions of the California Elections Code governing
elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the
ballots for the election shall be distributed to the qualified electors of the District by mail with
return postage prepaid or by personal service, and the special election shall be conducted as a
mail ballot election.
A successful election relating to the special tax authorization shall, as applicable,
establish and/or change the appropriations limit as authorized by Article XIIIB of the California
Constitution as it is applicable to this District.
SECTION 9 Notice. Notice of the time and place of the public hearing shall be given
by the City Clerk by causing a Notice of Public Hearing to be published in the legally designated
newspaper of general circulation, such publication pursuant to Section 6061 of the Govermnent
Code, with such publication to be completed at least seven (7) days prior to the date set for the
public hearing. In addition, notice of the time and place of said hearing shall also be given by
first-class mail to the qualified electors within the proposed District as prescribed by Section
53322.4 of said Code. Said notice shall be mailed at least fifteen (15) days before the date of the
hearing, and shall contain the infornation required by said Section 53322.
SECTION 10 Excmnt_ Properties. Pursuant to Section 53340 of the California
Government Code, properties of entities of the state, federal, and local governments not subject
to a leasehold interest shall be exempt from the levy of special taxes for the financing of the
Services of the proposed District. Property owned by the Redevelopment Agency of the City of
Pahn Springs shall not be exempt from the levy of special taxes.
SECTION 11 Necessity. The City Council finds that the proposed public safety
services described in Section 5 hereof are necessary to meet increased demands placed upon the
City as a result of new development occurring within the boundaries of the proposed District.
The foregoing Resolution No_ was passed and adopted by the City Council of the City
of Palm Springs on the 51h day of September, 2007, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM
4 000059
EXHIBIT" A
BOUNDARY MAP
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EXHIBIT B
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
RATE AND METHOD OF APPORTTONMENT
CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2007-1
(PUBLIC SAFETY SERVICES)
A Special Tax of Commroiity Facilities District No. 2007-1 (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 2009-09 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 proposes,to the extent and in the manner herein provided.
A. DEF/N/TMNS
The terms hereinafter set forth have the following meanings:
"Act" means the Mello-Roos Cormntuuty Facilities Act of 1982, being Chapter 2.5, Part 1,
Division 2 of Title 5 of the Govemment 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.
"Adz-Aurustrative Expenses" means the actual or estirrr<lted costs incurred by the City as
administrator of The District to determine, levy and collect the Special Taxes, including the
proportionate amotmt 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 yzar 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 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 District Administrator shall select a reasonably comparable index.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned assessor's parcel number.
B-1 City of-palm sprM
Convnym o)Faakies District No. 2007.1
(Public Safety SerucrQ 4
"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, 2008.
"BIA" means the Bureau of Indian Affairs within the Department of the Interior and any
tribe acting on behalf of the BIA.
"City" means the City of Pahn 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 an Assessor's Parcel of Developed Property
for which a building permit has been issued for purposes of constructing a residential
structure consisting of more than one residential Towelling Unit which 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 Propercy, Non-Residential Property, or Public Property, for which a building
permit was issued prior to May lst preceding the Fiscal Year in which the Special Tax is
being levied.
"Developed Single-Family Residence" means an Assessors' Parcel of Developed
Property for which a building perrnit(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. 2007-1 (Public Safety Services) of the
City of Palm Springs.
"Dwelling Unit" means any separate residential unit in which a person or persons may five,
which includes provisions for sleeping, cooking and sanitation, and is not considered to be
for commercial or industrial use.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Government Land" means an area of land, or interest therein ui which the Surface Estate
is owned bythe United States of America and administered bythe BIA.
B-2 City 006dm SPVP
Cor=v ityFadli6 Di tar No. 2007-1
Public Safety S O�Q
"Indian Land" means an area of land in which Interest in the Surface Estate is owned by a
tribe or individual Indian, including but not 1nited to Government Land or Tribal Land.
"Interest" means an ownership right to the Surface Estate of Indian Land that may be
unlimited or tuicertain in duration-
"Land Use Class" means any of the classes listed in Table 1.
"Lease" means a written agreement between the Government or Indian landowner(s) and
the Lessee, whereby the Lessee is granted a right to possession of Government or Indian
Land,for a specified propose and duration.
"Leasehold Interest" means the Lessee's independent and exclusive right to possession of,
or clai n to, the property tinder the terms and conditions specified in the Lease or Sublease.
For purposes of this definition, Leasehold Interest is also referred to as possessory into rst
within the County-
"Lessee" means a person or entity who has acquired a legal right of possession to Indian
Land by a Lease or Permit as defined in Section A, for which said person or entity-holds a
possessory interest un the property. For purposes of this definition, the Lessee may also be
referred to as the tenant.
"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
which is classified as either a Single-Family Residence or a Multi-Family Residence as defined
in Section A.
"Non-Residential Property" means an Assessors' Parcel for which a building permit(s) has
been issued for a non-residential use and does not contain any residential Dwelling Units as
defined in Section A.
"Permit" means a written agreement between the Indian Landowner(s) and the applicant
for the permit, also referred to as a peraruttee, whereby the penmittee is granted a revocable
privilege to use Indian Land or Government Land, for a specified purpose.
"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 die ratio of tine actual Special Tax levied to
the Maximum Special Tax is equal for all Assessor's Parcels within classified as Developed
Property.
"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
B-3 City of Palm SprtV
Cwm,aziryFaa 6i 5Dist Na 2007-1
(Public Safety Serz*0 a
offered for dedication to the federal govermncnt, 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 (t) the costs of contracting services, (ii) equipment, vehicles, ambulances
and paramedics, fire apparatus, supplies, (in) 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. The Special Tax provides only partial funding for police, fire and life
Safety Services.
"Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's
Parcel of Developed 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: (r) pay for Public Safety Service Costs; (u) pay reasonable Administrative
Expenses; (ii) pay any amounts required to establish or replenish any reserve funds; and (iv)
pay for reasonably anticipated delinquent Special Taxes; less any surplus of funds available
from the previous Fiscal Year's Special Tax levy.
"State" means the State of California.
"Sublease" means a written agreement by which the Lessee grants to an individual or entity
a right to possession no greater than that held bythe Lessee under the Lease.
"Surface Estate" means ownership of the surface of a particular area of land by any person
or persons who holds record title to the surface of the land, and which is identified by the
ownership records of the County in which the real property is situated.
"Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-
.Exempt Property includes: (r) Public Property, (ir) Property Owner Association Property; (1)
Non-Residential Properly, and (iv) property designated by the City or District Administrator
as Tax-Exempt Property.
"Tribal land" means the Surface Estate of land or any interest therein held by the United
States of America intrust for a tribe, band, community;group or pueblo of Indians, and land
that is held by a tribe, band, community, group or pueblo of Indians, subject to federal
restrictions against alienation or encumbrance, and includes such land reserved for BIA
administrative purposes when it is not immediately needed for such proposes.
B. ASSIGNMENT TO LAND USE GATEGORIES
Each Fiscal Year using the definitions above, all property withui the District shall be
classified as either Developed Properly or Tax-Exempt Properly. Developed Property shall
be further classified as either a Developed Single-Family Residence or a Developed Multi-
8-4 City ofPadmSprings
awn,mity Faalides.D�]zs=No 200"77--11
0,11X 144 Se D O 7
Family Residence. Commencing with the Base Year and for each subsequent Fiscal Year, all
Developed Property shall be subject to Special Taxes pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
TABLE 1
Maximum Special Tax for Developed Property
Community Facilities District No. 2007-1
(Public Safety Services)
Land Use Description Maximum Special Tax
Class
1 Developed Single-Family Residence $362 24 per Dwelling Unit
2 Developed Multi-Fan-lily Residence $305.32 per Dwelling Unit
On each July 1 following the Base Year (i.e.,July 1, 2008), the Maximum Special Tax Rates
in Table 1 shall be increased in accordance with the Annual Escalation Factor. Once the
Maximum Special Tax per Dwelling Unit is equal to $500 per Dwelling Unit, no further
Annual Escalation Factor shall be applied and the Maximum Special Tax per Dwelling Unit
shall not exceed$500.
2. Tax-Exempt Property
No Special Tax shall be levied on Tax-Exempt Property.
3. Multiple Land Use Classes
In some instances an .Assessor's Parcel may contain more than one Land Use Class.
The MaximLun 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.
A. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2008-09, 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 upon each Dwelling Unit of the Leasehold Interest (also
known as the "possessory interest") as follows, until the amount of the Special Tax levied
equals the Special Tax Requirement. 11e Special Tax shall be levied each Fiscal Year upon
the Leasehold Interest of each Assessor's Parcel of Developed Property Proportionately
B-5 City Of Pd7nSpnv
Crnrm,o*y Faalities District Na 2007-1
(PreRkSafety 5�)
between Developed Single-Family Residential Dwelling Units and Developed Multi-Family
Residential Dwelling Units up to 100% of the applicable MaximLun Special Tax,
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, an adjustment shall be made.
F. EXEMPTIONS
1. Assessor Parcels classified as Developed Property
Developed 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) collectivelyeaming
$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 collectively 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 COLLECTIL7N
The Special Tax as levied pursuant to Section D above shall be collected in the same manner
and at the same time as ordinary ad ttlotm 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.
H. TERM 47r 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.
8-6 City of Palmsltyn gs
Qw�, rrdty Failities Dzst Na 2007.1
(Punic Sal Ser:aa�5)
00019
Exhibit B
000020
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, ADOPTING A BOUNDARY MAP SHOWING
THE 13OUNDARIES OF THE TERRITORY PROPOSED FOR THE
INCLUSION IN PROPOSED COMMUNITY FACILITIES DISTRICT NO.
2007-1 (PUBLIC SAFETY SERVICES)
WHEREAS, the City Council of the City of Palm Springs, California, desires to initiate
proceedings to create a Community Facilities District pursuant to the terms and provisions of the
"Mello-Roos Community Facilities Act of 1932", being Chapter 2.5, Part 1, Division 2, Title 5
of the Government Code of the State of Califorriia, as amended (the "Act"). This Community
Facilities District shall hereinafter be designated as Community Facilities District No. 2007-1
(Public Safety Services) (the "District"); and,
WHEREAS, there has been submitted a map showing the boundaries of the territory proposed to
be included in the District, which territory includes the properties, parcels of land and leasehold
interests proposed to be subject to the levy of special taxes by the.District.
NOW, THEREFORE, IT IS HEREBY RESOLVED DETERMINED AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS:
SECTION 1 Recitals. The above recitals are all true and correct.
SECTION 2 Boundaries. The map designated as "Proposed Boundaries of City of
Palm Springs Community Facilities District No. 2007-1 (Public Safety Services)," attached
hereto as Exhibit A and hereby incorporated by reference, shows the boundaries of the territory
proposed to be included in the District, which territory includes the properties, parcels of land
and leasehold interests proposed to be subject to the levy of a special tax by the District.
SECTION 3 Recordation of Boundary Map. A certificate shall be endorsed on the
original and on at least one (1) copy of the snap of the District, evidencing the date and adoption
of this Resolution, and within tiFteen (15) days alter the adoption of the Resolution fixing the
time and place of the hearing on the formation of such District, a copy of such snap shall be filed
with the correct and proper endorsements thereon with the County Recorder, all in the manner
and forrn provided for in Sections 3110 and I I I of the Streets and Highways Code of the State
of California.
1 OOOQ�i1
The foregoing Resolution No. was passed and adopted by the City Council of the City
of Palm Springs on the 5t" day of September, 2007, by the Pollowing vote:
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Cleric City Manager
REVIEWED & APPROVED AS TO FORM
EXH1B1T A
BOUNDARY MAP
MAP OF PROPOSED BOUNDARIES OF SH` f°-2
COMMUNITY FACILITIES DISTRICT NO.2007-1
(PUBLIC SAFETY SERVICES)
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Exhibit C
00002
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, ORDERING AND DIRECTING THE
PREPARATION OF A COMMUNITY FACILITIES DISTRICT REPORT
FOR PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2007-1
(PUBLIC SAFETY SERVICES)
WHEREAS, the City Council of the City of Pahri Springs, California (the "City
Council"), has declared its intention to initiate proceedings to create a Community Facilities
District pursuant to the terms and provisions of the "Mello-Roos Connnunity Facilities Act of
1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Govennnent Code of the State of
California, as amended (the "Act'). This Commruity Facilities District shall hereinafter be
designated as Community Facilities District No. 2007-1 (Public Safety Services) (the "District');
and,
WHEREAS, this City Council directs, pursuant to the provisions of Section 53321.5 of
the Government Code of the State of California, the preparation of a Community Facilities
District Report to provide more detailed information relating to the proposed District, the
services proposed to be financed from the proceeds of special taxes to be levied, and estimate of
the cost of providing such services.
NOW, THEREFORE, IT IS HEREBY RESOLVED DETERMINED AND ORDERED BY
THE CITY COUNCIL OF TI3E CITY OF PALM SPRINGS:
SECTION 1 Recitals. The above recitals are all true and correct.
SECTION 2 Report. The Director of Public Works is hereby directed and ordered to
prepare a Connnunity Facilities District Report (the "Report") to be presented to this City
Council, generally setting forth and containing the following:
SERVICES: A full and complete description of the services proposed to be
financed from the levy of special taxes.
COST ESTIMATE: A general cost estimate setting forth costs of providing such
services.
SPECIAL TAX: Further information regarding the implementation of the rate
and method of apportionment of the special tax proposed to be levied.
SECTION 3 Necessity, The Report, upon its preparation, shall be submitted to this
City Council for review, and the Report shall be made a part of the record of the public hearing
at the time of the adoption of the Resolution of Formation to establish such District.
000027
1
The loregoing Resolution No. was passed and adopted by the City Council of the City
of Palm Sprints on the 5"' day of September, 2007, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Managcr
REVIEWED &APPROVED AS TO FORM
2 000028