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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 D g�Ds�.Zoo 7 -4 d5,,A1 Z . V 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 2 4,?ALMS iy c U N � x i e W � Oxni¢o`e"a 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 00 PAAP OF PROPOSED BOUNDARIES OF GHEE t OF 2 COMMIJ N ITY FAC[IATI ES D ISTRICT MO.207-1 (PUBLIC SAFETY SERVICES) CR[CFFA l5PFJa5 O I4 OF PNEMOE STAMQ C LL. R.'VN ZN. ScSn CAIuR rtr _xt Pss ���'.v91Y �sr - I fE I N cc m.rin�c�.m�rv¢trccaaim 1V��E - Y � y^s.:f u-rsrarc�ru os atm u.nfvao-m.m w.F.no--__ry cv m_i.n.sas ntaia[a.arr_.s L MD MW 3 K u S, CD ws:�siEvr l.fA%� 5 3f i a MuniFinanciaP T`y'iu zn rt�i lvi --. Q P== A-1 MAP OF PROPOSED BOUNDARIES OF SHE 2 OF Y COMMUNITY FACILITIES DISTRICT NO.2DD7 1 (PUBLIC SAFETY SERVICES) Cn L£FPL1I$PFR439 G U%W OFM DE STAT OFCPLZFVK \ O fr £ l� LMMD 1.1 E WITNAS ' I I � 41£ l I 5 I 1 MunPFinancial Q Q Q }_a �U A-2 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) nn o�snua:valsns wmma=a•ralo= sur ce curav�,i I - I — I f w xw.x�.c��wmw—i.irn+•.rvcurtur.� i p 3 i >asw- rw _ wl.-�mr_-s Eaum `IIII I y sw�a..aTMlii 40[��£�i�P WNWS(n,w�5 OI I _ I y � � Lj I � o O+ ssses��nu:+eu ' I I Mt ainnancial O O O A-1 MAP OF PROPOSED BOUNDARIES OF Sr z c�z \ COMMUNITY FACILITIES DISTRICT NO.2007-1 (PUBLIC SAFETY SERVICES) \ CT FP"5F..5 \ LUJfFY I CFNVEP51]E S TWFGmL 913E —V--:: R^I M u ��r-,Lr LEGEND Ir � om�rmcr�xrn:nr I v+maa I JJJ I � 9 G � 3 + 5 I ! !n I I I �MuniFinancfal O O O ' 2�2 c� A-2 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