HomeMy WebLinkAboutRes 2021-061
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RESOLUTION NO. 2021-06
A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT TO INCUR BONDED INDEBTEDNESS WITHIN
PROPOSED CITY OF PALM DESERT COMMUNITY FACILITIES
DISTRICT NO. 2021-1 (UNIVERSITY PARK)
RECITALS:
WHEREAS, the City Council (the "City Council") of the City of Palm Desert,
(the "City"), upon receipt of a petition as provided in Government Code Section 53318,
has heretofore adopted Resolution No. 2021-05 (the "Resolution of Intention"), stating the
City Council's intention to form City of Palm Desert Community Facilities District No. 2021-
1 (University Park) (the "District"), pursuant to the Mello -Roos Community Facilities Act
of 1982, as amended, commencing with Section 53311 of the California Government
Code (the "Act"), to finance certain facilities described therein and summarized as follows
(collectively, the "Facilities"): the acquisition, purchase, construction, expansion,
improvement, modification, or rehabilitation of certain public facilities necessary to meet
the increased demands placed upon the public infrastructure, the City, and the Coachella
Valley Water District as a result of the development of the property within the boundaries
of the District, including development impact fees therefor, and the prepayment of special
taxes levied by City of Palm Desert Community Facilities District No. 2005-1 (University
Park) ("CFD 2005-1") and those facilities previously financed by CFD 2005-1 and
proposed to be refinanced by such special tax prepayment; and including incidental
expenses to be incurred in financing the Facilities and forming and administering the
District; all as further provided in the Resolution of Intention and in Exhibit A hereto and
incorporated herein by reference; and
WHEREAS, the City Council estimates that the amount required to finance
the Facilities is $50 million; and
WHEREAS, in order to finance the Facilities it is necessary to incur bonded
indebtedness on behalf of the District in the amount not to exceed $50 million, the
repayment of which is to be secured by special taxes levied in accordance with Section
53340 et seq. of the Act on all non-exempt property within the District;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM
DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS:
Section 1. Bonded Indebtedness. It is necessary to incur bonded
indebtedness within the boundaries of the proposed District in an amount not to exceed
$50 million to finance the costs of the Facilities, as permitted by the Act.
Section 2. Purpose. The bonded indebtedness will be incurred for the
purpose of financing the costs of the Facilities, including, but not limited to, the funding of
reserve funds for the bonds, any remarketing, credit enhancement and liquidity facility
fees (including such fees for instruments which serve as the basis of a reserve fund in
lieu of cash), financing of the costs associated with the issuance of the bonds, and all
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RESOLUTION NO. 2021-06
other costs necessary to finance the Facilities which are permitted to be financed
pursuant to the Act.
Section 3. Terms. It is the intent of the City Council, acting as the
legislative body of the District, to authorize the issuance and sale of one or more series
of bonds in the maximum aggregate principal amount of $50 million, bearing interest
payable semi-annually or in such other manner as this City Council shall determine, at a
maximum interest rate of twelve (12%) percent per annum or such rate not in excess of
the maximum rate permitted by law at the time the bonds are issued. The term of the
bonds of each series shall be determined pursuant to a resolution of the City Council
authorizing the issuance of such series, but such term shall in no event exceed forty (40)
years from the date of issuance of such series of bonds or such longer term as is then
permitted by law.
Section 4. Hearing. A public hearing on the proposed debt issues (the
"Hearing") shall be held on April 22, 2021, at 4:00 p.m., or as soon thereafter as
practicable, at the chambers of the City Council of the City of Palm Desert, 73-510 Fred
Waring Drive, California 92260. Any interested persons, including all persons owning
land or registered to vote within the proposed District, may appear and be heard at the
Hearing.
Section 5. Voting. The proposition to incur bonded indebtedness in the
maximum aggregate principal amount of $50 million shall be submitted to the qualified
electors of the District at a special election. Ballots shall be distributed to the qualified
electors by mail with return postage prepaid or by personal service.
Section 6. Published Notice. The City Clerk is hereby directed to publish
a notice of the Hearing and the special bond election ("Notice") pursuant to Section 6061
of the California Government Code in a newspaper of general circulation circulated within
the proposed District. Such Notice shall be substantially in the form specified in Section
53346 of the Act. The publication of the Notice shall be completed at least seven (7) days
before the date herein set for the Hearing.
Section 7. Mailed Notice. The City Clerk is hereby directed to send a
copy of the Notice of the Hearing by first-class mail, postage prepaid, to each registered
voter and to each landowner within the proposed District as shown on the last equalized
assessment roll. Mailing of the Notice shall be completed at least fifteen (15) days prior
to the date of the Hearing.
Section 8. Effective Date. This Resolution shall take effect immediately
upon adoption.
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RESOLUTION NO. 2021-06
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PASSED, APPROVED and ADOPTED by the City Council of the City of
Palm Desert, California, on this 11th day of March, 2021, by the following vote, to wit:
AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
KATHL N KELLY, MAYOR
ATTEST:
dee, /- L '9X&
GRACE L. ROCHA, ACTING CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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