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HomeMy WebLinkAboutCC Res 5048 2002-08-12 I I I RESOLUTION NO. .6i;te RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH ADOPTING A STATEMENT OF GOALS AND POLICIES FOR THE USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 RECITALS: WHEREAS, the CITY COUNCIL (the "Cily CouncIl") of the CITY OF SEAL BEACH (the "City") proposes to undertake proceedings pursuant to the Mello-Roos Community FacihtJes Act of 1982, as amended, commencing WIth Section 53311 of the CalifornIa Government Code (the "Act"), to form a commumty facilities district; and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community factlities district pursuant to the Acf only ifit has first considered and adopted local goals and policies concerning the use of the Act. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section I, The City Council finds thaf the Statement of Goals and Policies for the Use of the Mello-Roos Community Facilities Act of 1982, attached hereto and IOcorporated herein as Exhibit "A" (the "Goals and Pohcles"), meet the requirements of the Act and the City Council hereby adopts the Goals and Policies for purposes of complying with the Act. PASSED, APPROVED AND ADOPTED this 12th day of August, 2002. ~ ~V\1 Mayor ATTEST: STATE OF CALIFORNIA) COUNTY OF ORANGE ) SS CITY OF SEAL BEACH ) I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California, dg.b.;J~ certify that the foregoing Resolution is the original copy ofResolutJon Number~~. on file 10 the office of the City Clerjc. passed, approved. and ~opted by ~r CO~fthe City of Se Beach at a meetmg thereof held on theLZ ,day of ~ 2002. Resolution Number ~ EXHIBIT A CITY OF SEAL BEACH STATEMENT OF LOCAL GOALS AND POLICIES CONCERNING THE USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS AMENDED I Pursuant to Section 53312.7 of the California Government Code, the City Council of the City of Seal Beach (the "City Council") hereby states its goals and policies concemmg the use of Chapter 2.5 of Part I of Division 2 of Title 5 of the Government Code of the State of California (the "Act") in providmg pubhc mfrastructure improvements permitted to be financed pursuant to the Act for property wlthm the City of Seal Beach (the "City") and for the refunding of existing debt on land within the CIty. In addition, the Act may be used to proVIde for the maintenance, repair, reconstruction and replacement of any of the foregoing infrastructure improvements. The following goals and poliCIes shall apply to each commumty facilities district (a "CFO") hereafter formed by the City. Any policy or goal stated herem may be supplemented or amended or deviated from, and new goals and policies may be added hereto, from time to lime upon a determinallon by the City Council that such supplement, amendment, deVIation or addition is necessary or desirable, and any policy or goal stated herem shall be deemed amended or supplemented in tile event, and as of the date, if ever, that such amendment or supplement is required to ensllre compliance with the Act or any otller laws of tile State of California or federal laws of the Umted States of Amenca. I. Priority that Various Kinds of Public Facilities Shall have for Financing Throueh the Use of the Act It is the policy of the CIty to gtve first pnority to tile financing, througll the use of the 'Act, of public mfTastructure improvements directly benefitmg the CUy, which improvements may mclude, but are not limited to, streets, roads, water facilities, sewer facilities, storm dram facilities, I hbraries, parks, open spacc and golf courses and for the refundmg of existing debt on land Within a CFO. It is also the policy of the City to asSISt in the financing of othcr pubhc faclhlles when to do so will, in the sole discrellon of the CIty Council, acting as the legislative body of tile affected CFO, result in a savings to residents or property owners within the City boundanes, for example, by reducing costs of bond Issua'iiC'iian!iLor administrative expenses; provided that sllch assistance does not interfere with the financmg'ofi)ptiil.ic infrastructure improvements directly benefiting the Ctty. In additIOn to any other form of assis~~~rmissible under the law and under these goals and pohcies, the City may assist m'the financiqg d\tllcllities by using tile proceeds ofa special tax or a speCial tax bond to pay developmentl}:es;"\p~. pfut~~S of wluch WIll be used by the City or by another public agency to finance pubhc infriistnrl\t.U~evrovements. II. Credit. uaht to b~~. lIired of ond Issues Includin Criteria to be Used in Evaluatfug-the.Credt Oualitv. It is the policy of the City to comply with all proviSions of the Act including, but not limited to, Section 53345.8, as such Section may be amended from time to time. All CFD bond ISSlles should have at least a tllree to one property value to public hen ratio after calculating the vallie of the financed public inflastructure improvements to be Installed, IInless otherwise speCIfically approved by the City Coullcil as provided in Section 53345.8(b) or (c) of the Act. Property vallie may be based on either an appraIsal or on full cash values as indicated on the county assessor's tax roll. The appraiser shall be selected by or otherwise acceptable to the City, and the appraisal shall be based on standards promulgated by the State of California and othelwise determined applicable by City statf and consultants The date of value set forth in the appraisal mllst be within nine months of I the date the bonds are Issued. The Pllbhc lien amount shall include the bond issue currently being sold plus any public indebtedness secllred by a lien 011 real property currently existing against tlle properties to be taxed. Bond issues need not be rated by nationally-recogmzed tallng agencies, so long as all of the requirements of this Section II are met. It is the policy of the CIty to refrain from the issuance of any CFO bonds unless at the time of issuance of any CFO bonds each of the following condlllons IS met. A. SpecJaltax revenlles from thc CFD issumg the bonds are reasonably expected to provide at least one hllndred ten percent (110%) debt service coverage for each year of the teml of such bonds; and I I I Resolution Number ~t$ B. The CFD has established, and has covenanted to calise to be levied, covenant a spectal tax in an amount sufficient to maintam, for the term of such bonds (provided, however, that depletion may occllr to pay debt service in the last two (2) years of such term), a reserve fund secllring such bonds in an amount equaling the lowest of (i) ten percent (10%) of the original proceeds of such bonds, or (II) the largest amount, for any bond year during the term of such bonds, of principal and mterest payable on such bonds, or (iii) one hundred twenty-five percent (125%) of the average amount payable, for any bond year, of principal and mterest on the outstanding bonds of such bond isslle. III. Steps to be Taken to Ensure that Prospective Prooertv Pllrchasers are Fullv Informed About Their Taxoaymg Oblil!ations. It is the goal of the City that all taxpayers residing Wlthm, or owning property wltllin, the boundaries of a CFD heretofore or hereafter estabhshed by the City will receive the form of notice required by Section 53341.5 of the Act, at the time set forth therein, as such SectIon may'be amended from time to tIme In order to comply with this goal, it is the policy of the City to proVIde Section 53340 2 notice of special tax to any individual requesting such notIce or any owner of property subject to a specIal tax levied by the City WIthin five (5) workmg days ofreceivmg a request for such notice IV. Criteria for Evaluatinl! the Eauitv of Tax Allocation Formulas. and Concerning Desirable and MaXlmllm Amounts of Soecial Tax to be Levied Al!ainst Anv Parcel. It tS the goal of the City that each taxpayer residing within, or owmng property within, the boundaries of any CFD hereafter established by the City pay SpecIal taxes which generally reflect such taxpayer's fair and reasonable share of tlleir projected benefit from, and/or burden upon, the facilities to be constructed and/or maintained or of any refunding of existing debt within the CFD by such CFD. It IS the goal of the City that maximum Mello-Roos specIal taxes on residential owner-occupied property, when taken together with ad valorem taxes, any other speCIal taxes levied pursuant to the Act and assessments applicable to such propetty, do not exceed in any year two percent (2%) ofllle greater of the full cash value indicated on the County Assessor's tax roll or appraised value of such property. Nevertheless, special taxes, when taken together WIth ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property, may exceed in any year two percent (2%) of the greater of the full cash' value, or the appraised value of such properly if the CIty determines at the time of formatIon of a CFD that over the term of the bonds, the special taxes, ad valorem taxes and assessments are expected to average two percent (2%) or less per year of the greater of the full cash value or appraised vallie of such property. It IS further the policy of the CIty 10 comply WIth the provisions of Section 53321 of the Act with respect to the escalation of maximum taxes. V. Definitions. Standards, and Assumotions to be Used in Aporaisals Required by Section 53345 8. It is the goal of the City to conform, as nearly as practIcable, to the Cahfomia Debt and Investment Advisory Commission's Appraisal Standards for Land-Secured Financings, as such standards may be amended from time to time, provided, however, that this City Council may additionally amend such standards from lime to time as It deems necessary and reasonable, in its own discretIon, to provide needed infrastructure improvements within the City, whtle still accomplishing the goals set fOlth herein.