HomeMy WebLinkAbout2004-103t
1
2
3
4
5
7
8
9
10
it
14
15
16
17
18
211
RESOLUTION NO. 2004-103
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING GOALS AND POLICIES FOR THE USE
OF COMMUNITY FACILITIES DISTRICTS PURSUANT TO THE MELLO-
ROOS COMMUNITY FACILITIES DISTRICT ACT
WHEREAS, the City of San Bernardino, California (the "City"), is a municipal
corporation and charter city, duly organized and existing pursuant to the provisions of
the Constitution of the State of California; and
WHEREAS, the City wishes to establish a community facilities district pursuant
to the terms and provisions of California Government Code Section 53311 et seq.,
sometimes commonly referred to as the "Mello -Roos Community Facilities District
Act' (the "Act"); and
WHEREAS, Section 53312.7 of the Act requires the Mayor and Common
Council to consider and adopt local goals and policies relative to the use of community
facilities districts before initiating proceedings to establish a community facilities
district; and
WHEREAS, it is the intention of the Mayor and Common Council to adopt such
local goals and policies in order to proceed with such community facilities district
formation proceedings pursuant to the Act.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, AS FOLLOWS:
///
4821-1494-9888.1
1
2004-103
1 Section 1. The above Recitals are true and correct in all respects and are
2
incorporated herein by reference.
3
Section 2. In accordance with Government Code Section 53312.7 the Mayor
4
5 and Common Council hereby adopt the local goals and policies for use of community
6
11 facilities districts as set forth herein as Exhibit "A".
7 Section 3. This Resolution shall take effect upon adoption
///
%%
it
12
13 ///
14
15
16
17
20
///
21 HI
22
23
24
25
HI
26
27
28
4821-1494-9888.1
9
2004-103
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING GOALS AND POLICIES FOR THE USE
OF COMMUNITY FACILITIES DISTRICTS PURSUANT TO THE MELLO-
ROOS COMMUNITY FACILITIES DISTRICT ACT.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a ] t regula meeting
thereof, held on the 19 day of April , 2004, by the following vote, to wit:
COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT
ESTRADA x
LONGVILLE x
MCGINNIS x
DERRY x
KELLEY x
JOHNSON x
MC CAMMACK x
Rac e]-Clark, City Clerk
The foregoing Resolution is hereby approved this +JTday of April 2004.
Approved as to form
and legal content:
JAMES F. PENMAN
CityAtt mey
2004-103
1
EXHIBIT "A"
2 GOALS AND POLICIES CONCERNING THE MELLO-ROOS
3 COMMUNITY FACILITIES ACT OF 1982, AS AMENDED
►.]
511 THIS POLICY of the City of San Bernardino concerning the Mello -Roos Community
Facilities Act of 1982, as amended, Government Code Section 53311 et seq. (the "Act"), is
7 hereby adopted pursuant to the requirements of Government Code Section 53312.7.
8 (1) The priority for the financing of infrastructure and public facilities will be
9 determined at the sole discretion of the City. In general the highest priority will be placed on
10
11 infrastructure that provides for the health and safety of the public. The second level of priority
will be public welfare and education. The last category to receive priority will be those facilities
not necessary to assure public health, safety or welfare, such as landscaping and related
1411 amenities.
(2) Maximum special taxes for Community Facilities Districts shall adhere to the
1611 following:
17
a. The City shall require that the level of special taxes for different parcels within
18
19 each proposed community facilities district be allocated in an equitable manner
considering the general benefits to be realized by owners of the parcels as
2111 demonstrated by the proposed rate and method of apportionment for the special
tax.
b. The special tax shall include the annual administrative cost of the City to
administer the district.
The City may retain a special tax consultant to prepare a report which:
a. Recommends a special tax for the proposed CFD.
4834-3314-1248.1 1
2004-103
1
2
3
4
5
6
7
8
9
111
13
14
15
16
17
18
19
20
21
0l
b. Evaluates the special tax proposed to determine its ability to adequately fund
identified public improvements, administrative costs and other related
expenditures.
(3) The City will not issue bond indebtedness relative to a community facilities
district unless this policy is amended by subsequent action of the Mayor and Common Council.
Such amendment will not affect any community facilities district for which a Resolution of
Intention has been adopted prior to the date of such amendment (e.g., Community Facilities
District No. 1033). The City may establish standards and criteria for the credit quality for
community facilities district bond issues at such time that this policy is amended.
(4) For new development, prior to approval of a community facilities district, the
applicant/developer may be required to submit a financial plan which demonstrates to the City's
satisfaction the applicant/developer's ability to pay all assessments and/or special taxes through
build out of the project. Such enhancements may, for example, be required in cases where the
value -to -lien ratio for property within the district is insufficient, and may take the form of letters
of credit, or policies of insurance, or other vehicles.
The district property value -to -lien ratio shall be at least 3:1 after calculating the value of
the financed infrastructure and public facilities to be installed (or, in the case of an acquisition
assessment district, which are installed and to be acquired), and considering any prior or pending
special taxes or improvement liens. The City may require a higher value -to -lien ratio in its
discretion, in consideration of current market and related conditions. The actual value -to -lien
ratio required will be established by the City. The value of the property within the district, for
purposes of establishing the value -to -lien ratio, shall be determined by an appraisal process,
4834-3314-1248.1
2
2004-103
1 conducted by an MAI (Member, Appraisal Institute) appraiser under contract with the City. In
2 instances where the value -to -lien ratio is less than 3:1, or less than some higher ratio selected by
3
4 the City in its discretion, credit enhancement will be required in accordance with the provisions
5 of this policy. The actual form of the credit enhancement shall be in the discretion of the City, in
6 consultation with financial advisors. In the event that the overall value -to -lien ratio for the
7 district is at least 3:1 (or a higher ratio selected by the City), but as to one or more individual
8 properties is less than the required ratio, the City, at its discretion, may require a credit
9 enhancement for these properties.
10
The projected special assessment and/or special tax, when added to the ad valorem
11
12 property tax and other direct and overlapping debt for the proposed district (including other
13 projected benefit assessments, and any other anticipated special assessments, taxes or charges
14 which may be included on a property owner's annual property tax bill), shall not exceed two
15 percent (2.0%) of the projected assessed value of each improved parcel within the district. As it
16 pertains to commercial, industrial, or other parcels within the district, the City reserves the right
17
to exceed the two percent (2.0%) limit if, in the City's sole discretion, it is fiscally prudent. A
18
19 backup special tax shall be required to protect against changes in land use that may result in
20 insufficient annual special tax revenues.
21 (5) The City shall take the following steps to ensure that prospective property
22 purchasers are fully informed about their taxpaying obligations imposed under the Act:
23 The applicant/developer shall be responsible for compliance with all applicable federal and state
24 statutory disclosure requirements in transactions with purchasers of properties within the district.
25
Specifically, to ensure that prospective purchasers of property within a community facilities
26
27 district be fully informed, the applicant/developer shall disclose in writing all information
28
4834-3314-1248.1 3
2004-103
1 regarding their obligation to pay special taxes imposed under the Act. A Notice of Special Tax
2
shall be furnished to any individual requesting such notice. The Notice of Special Tax shall
3
4 conform to the specifications of Section 53340.2 et seq. of the Government Code. The
5 applicant/developer shall also comply Section 53341.5 of the Government Code which obligates
6 the owner of any property subject to a special facilities district tax to provide the Notice of
7 Special Tax described above prior to the sale or long-term lease (over five years) of such
8 property. The Notice of Special Tax (disclosure statement) shall be signed by the prospective
9 buyer prior to any binding commitment by the buyer to purchase the property.
(6) Appraisal criteria and methodology will follow any additional guidelines as
11
specified by the City.
13
14
15
16
17
21
24
26
27
28
4834-3314-1248.1 4