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HomeMy WebLinkAbout11/7/2007 - STAFF REPORTS - 2.F. OF F P LM y.A� y V y City Council Staff Report c4<rpoxN`P. DATE: November 7, 2007 CONSENT CALENDAR SUBJECT: SECOND READING AND ADOPTION OF PROPOSED ORDINANCE NO. 1723, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE CITY OF PALM SPRINGS COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SAFETY SERVICES) FROM: David H. Ready, City Manager BY: Office of the City Clerk SUMMARY: The City Council will consider adoption of Ordinance No. 1723, RECOMMENDATION: Waive further reading and adopt Ordinance No. 1723, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE CITY OF PALM SPRINGS COMMUNITY FACILITIES DISTRICT NO- 2007-1 (PUBLIC SAFETY SERVICES)." STAFF ANALYSIS: At its October 17, 2007, meeting the City Council introduced on first reading the proposed ordinance. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30-days from adoption. dr. .-�mr�� ��.�� �• �� E°�1 �� - Jsmes Thompson David H. Ready, Esq:, Ph Lk City Clerk City Manager =" Attachment: Ordinance No. 1723 Item 2 . F . PROPOSED ORDINANCE NO. 1723 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE CITY OF PALM SPRINGS COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SAFETY SERVICES) WHEREAS, the City Council of the City of Palm Springs, 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 tax 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. 2007-1 (Public Safety Services) (the "CFD"). The City Council of the City of Palm Springs does hereby ordain as follows: SECTION 1 By the passage of this ordinance, the City Council authorizes the levy of special taxes within the CFD 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 of Palm Springs 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 CFD, in the manner and as provided in the Resolution of Formation. 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 CFD may utilize a direct 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. 2 SECTION 5 This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Council shall cause this Ordinance to be published in a newspaper of general circulation in the CFD boundaries pursuant to the provisions of Government Code Section 36933. Introduced by the City Council of the City of Palm Springs at a regular meeting thereof held on the 17'h day of October, 2007. Adopted at a regular meeting of the City Council of the City of Palm Springs, on the 7th day of November, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor, Ronald Oden City of Palm Springs Attest: James Thompson, City Clerk City of Palm Springs 3 EXHIBIT A RATE AND METHOD OF APPORTIONMENT 4 RATE AND METHOD OF; APPORTIONMENT CITY OF PALM SPRINGS COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SAFETY SERVICES) A Special Tax of Community 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 2008-09 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 purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "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 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/disr). If the foregoing index is not available, the District Administrator shall select a reasonably comparable index. City of Palw Spiing.r Co wN widD) Facilitie.r Di.rhsct No. 2007-1 (Pz bhe Safety Services) 5 "Assessor's Parcel" means a lot or parcel shown in an Assessor's 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, 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 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 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 Dwelling 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 Property, Non-Residential Property, or Public Property, for which a building permit was issued prior to May 1st 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 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. 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 live, 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, A-2 ---- Dry of Palm Springs Comnxvn,ty Facilifies Dulria No- 7007-1 ( i,iblic Safely Services) 6 "Government Land" means an area of land, or interest therein, in which the Surface Estate is owned by the United States of America and administered by the BIA. "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 limited to Government Land or Tribal Land. "Interest" means an ownership right to the Surface Estate of Indian Land that may be unlimited or uncertain 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 purpose and duration. "Leasehold Interest" means the Lessee's independent and exclusive right to possession of, or claim to, the property under the terms and conditions specified in the Lease or Sublease. For purposes of this definition, Leasehold Interest is also referred to as possessory interest 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 in 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 permittee, whereby the permittee 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. A-3 Cay ofPaAll S/b+zngr Commitniy Facili6ier District No. 2007-1 Public Safely Services) 7 "Proportionately" means in a manner such that the ratio of the 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 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. 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: (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; 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 by the 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! (i) Public Property, (ii) Property Owner -- All -- --- Ciy ofPalnr Spingr Cb9nnrurny Faci(ifier Drs/ria No. 2007-1 (Public Safcy Seruices) $ Association Property, (iii) Non-Residential Property, 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 in trust 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 purposes. E. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all property within the District shall be classified as either Developed Property or Tax-Exempt Property. Developed Property shall be further classified as either a Developed Single-Family Residence or a Developed Multi-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 $362.24 per Dwelling Unit Residence 2 Developed Multi-Family $305,32 per Dwelling Unit Residence 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- A-, --...-.. _.. — City of Palm Spriiigr Commumi�i.Facilities District No. 2007-1 (Pidblic Safety Services) 9 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 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 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. The Special Tax shall be levied each Fiscal Year upon the Leasehold Interest of each Assessor's Parcel of Developed Property Proportionately between Developed Single-Family Residential Dwelling Units and Developed Multi-Family Residential Dwelling Units up to 100% of the applicable Maximum 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) collectively earning $16,300 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 A-6 City of Palm Spliregs Comyrrmai_ty Facilities District No. 2007-1 (Public Safety Services) 10 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 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 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. 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. A-7 0,of Palm Spriizgs Communi6 i Fadli<ies District No- 2007.1 03u6kc Safety Services) 11 CITY OF PALM SPRINGS PUBLIC HEARING NOTIFICATION (a OFFICE OF THE CITY CLERK James Thompson, City Clerk City Council Meeting Date: November 7, 2007 Subject: Adoption of Ordinance No. 1723 AFFIDAVIT OF PUBLICATION I, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of Ordinance No. 1723, adopted by the City Council on November 7, 2007, was published in the Desert Sun on November 20, 2007. 1 declare under penalty of perjury that the foregoing is true and correct. \,�,i'�f\:✓V1 Ili _ Kathie Hart, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Dolores Strickstein, Secretary, of the City of Palm Springs, California, do hereby certify that a copy of Ordinance No. 1723 was posted at Office of the City Clerk, City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the City Clerk on or before November 19, 2007. 1 declare under penalty of perjury that the foregoing is true and correct. —/, ' Dolores Strickstein, Secretary PROOF OF PUBLICATION This i;No.35pp ORDINANCE NO.1723 (2015.C,C•C•P` AN CITY OF P OF THE CITYSPRINGS, COUNCIL OF G J J ) THE ORI OF PALM SPRINGA CALIFORNIA,TAX AUTHORIZING THE F P OF A RINGSSPECIAL TAX MWITHINUNIT THE FA CITY OF PALM SPRINGS COM- (PUBLIC FACILITIES DISTRICT NO. 20074 (PUBLIC SAFETY SERVICES). WHEREAS, the GIN Counell of mu City of Palm Springs, California ho "City Counell"), has maiat- ad proceedings,held a public hoaring,conducted an eluctlon and received a favorable vote tram the quallfmd elccmrt authorizing the levy of a Special lax In a community facilities district,all as authorizes ppursuant to the terms and provisions STATE ON CALIFORNIA of the "M,, c-Raps Community Faclllnus Act of 1962",being Chapter 2 5 Part 1. Dlvinen 2,Title County of Riverside 5 of rile Government Code of the State o1 Cellfor- nia(the"Act")and the City of Palm Springs Com- monity Facllltlas District Urdinanco enacted qul'- Luant to the powers reserved by the Gittyv of Palm Springgs under Sections 3,5 and 7 of Aiilde XI of- the Constitution of the State of California (the -Ordinance") (the Act and the Ordinance may be referred to collectively a;the Community Facili- ties District law) Thle Gommunlryry Facilities D,a- inct is designated ea Gammtm,F.climes District I am a citizen of the United States and a resident of No, 2007-1 (Public Safety Services) (the "CFD"), the County aforesaid;I am over the age of eighteen here y oCou it follows try of Palm Springs does years,and not a party to or interested in the SECTION 1 By the pavisage of this ordhlance, the above-entitled matter.I am the principal clerk of a el�tyy Council outhorzes rho levy of spacial taxes wlthln the CFD pursuant to tno Palo and Method printer of the,DESERT SUN PUBLI$IIING al Apppportionment of Special Taxe,;as rut forth In COMPANY a newspaper of general circulation, Exhlhll "A" (Sxhldlt A is on file in of Office of the Clty clerk) adacnod hereto (the 'Rate and Wth- printed and published in the city of Palm Springs, ad), refpronced and so Incorporated. County of Riverside,and which newspaper bus been SECTION 2 The Finance Director of the City of i adjudged a newspaper of general circulation by the Palm Springs s hereby authorized and directedeach fl,cal ear to determine the specific epodal Superior Court of the County of Riverside,State of the rate an amountto be levied for the next an- sulny fiscal year for each parcel of real property California under the date of March 24,1988.Case thehReuolufllGo'df Formationor and as provld�d In Number 191236;that the notice,of which the SECTION 3 The spacial taxes herein authorized,annexed is a printed copy,(set in type Rol smaller to the extent possible, shell be aollocted in the than non pariel,bag been published in each regular same manner as ad valorem pro�arty luxes and shall br,subject to the same penalties,procedure, and entire issue of said newspaper and not in any sale and lien priority In any case of delinquency as applicable for ad valorem taxes, provided supplement thereof on the following dates,to wit: however,thL CFD may utilize a direct bllling pro. cedpre for any speclal taxes:that cannot be ol- leced on the County tax roll or may, by resolu- a, lion, 0oet to collect the speel II taxes at a differ- November 20 ,2007 ant time or in a different manner if necrssary to -•--------. rn"t Its financial obligations. SECTION 4 The special taxes shill be^soured by -•--•- tllu lien imposed pursuant to Section 3114.5 and -- .-�- •--^-^- 3115.5 of the Streets and Highways Code of the •� State of California, which Tian shall be a commu- All in the year 2007 Ing Ilan and shall yecW a each levy of the special tax The lien of the speclal tax shall continue in force and effect until the speclal tax obligation Is I Certify(or declare)under penalty of perjury that the ncccrdanccrwitheS 11ctiion 5l 3da off,then canceled _ foregoing is true and correct. mant-Code of the Slate of California Pr-until-the -- spaclal.tax ceases to be levied by this Cl Court _ cil In the manner pprovided in Section 5360.5 of day said Government Code. Anted at Palm Springs,California this-^261°,--- SECTION 5 This Ordinance shall be effective thir. (30) days e11or Its adoption. Within fifteen 15 -- November -T--- '",2007 ays altar Its adoption, the City Ceuncll ;,all of----^• ) cause this Ordlnanee to be pubflsll in a news- paper of general circulation in o the f G ernmer- a puof gen to the provisions of Government Code Section 36939 Introduced by the City Council of the Clty of Palm X(I� ----- Spring+at a rappid ar meeting tl1oreof held on The -e 17th day of Dafaber,2007. -� APPROVED, PASSED,AND ADOPTED THIS 7Thl O DAY OF NOVEMBER, Z007 OO- C50 Nam. CERTIFICATION L►!") = �� STATE OF CALIFORNIA) 'm °-tat /l COUNTY OF RIVERSIDE) Q \ CITY OF PALM SPRINGS) IJ.IC Co `— \1\ I, JAMES THOMPSON, CIIyy Clerk of the City of �CL N } Palm Spring hereby certiry that Cedini No. La N(._. / 1723 is a lull,true and correct copy,and was In- Lr.. } tit— /� / traduced•d a regular meeting of the Palm Springs �o � �U '(1 City Council on the 17th of October. 200( and ((ff adopted at d regular meeting of the CIryry Council } N+ < held In the 7th day of November, 40 by the C iollawing vote' AYES. Councllmember Foai, Ceuncimemb•r Mills Mayor Pro Tam Pougnet, and Mayor Odt,n, NOES' Cauncllmumber McCulloch ABSENT Nano. ABSTAIN: None. James Thompson, City Clork I City of Palm Springs, California Pu6nshcd: 11/20/07 ORDINANCE NO. 1723 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE CITY OF PALM SPRINGS COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SAFETY SERVICES). WHEREAS, the City Council of the City of Palm Springs, 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 tax 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. 2007-1 (Public Safety Services) (the "CFD"), The City Council of the City of Palm Springs does hereby ordain as follows: SECTION 1 By the passage of this ordinance, the City Council authorizes the levy of special taxes within the CFD pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "A" (Exhibit A is on file in of Office of the City Clerk) attached hereto (the "Rate and Method"), referenced and so incorporated. SECTION 2 The Finance Director of the City of Palm Springs 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 CFD, in the manner and as provided in the Resolution of Formation. 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 CFD may utilize a direct 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 Council shall cause this Ordinance to be published in a newspaper of general circulation in the CFD boundaries pursuant to the provisions of Government Code Section 36933. Introduced by the City Council of the City of Palm Springs at a regular meeting thereof held on the 17th day of October, 2007, APPROVED, PASSED, AND ADOPTED THIS 7TH DAY OF NOVEMBER, 2007. CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 1723 is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 17th of October, 2007 and adopted at a regular meeting of the City Council held on the 7th day of November, 2007, by the following vote: AYES: Councilmember Foat, Councilmember Mills, Mayor Pro Tern Pougnet, and Mayor Oden. NOES: Councilmember McCulloch. ABSENT- None. ABSTAIN. None. ?aes Thompson, City Clerk Palm Springs, California