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Home My WebLink About20 Res 2021-49 Levy CFD 2005-1 University ParkMEETING DATE PREPARED BY: REQUEST Recommendation CTCY COUNCILA TTON STAFF REPO,RT>>zovFn � nFrnFn CITY OF PALM D98Hk42vEr� OTIIEA FINANCE DEPART��FniT 1! i F I:TING DATE .�� " �g ` 2o"Z� July 8, 2021 AYrS: u�+w��-.�+•�-�,t.1«�w.de,1�.N!„•:tk kr_ll� Anthony Hernandez, Senior Fina�r��r(Sp•�� y t� i�751T`.l�"f" �1)�a,o. r� r� APPROVAL OF RESOLUTION S 1 µ � hv iuiv� I Y1t LCV T OF A SPECIAL TAX IN COMM [�, �� ty�,%i•k s�0� e�- 1(UNIVERSITY PARK) FOR FI A$. ��t �F- By Minute Motion, that the City Council approve Resolution No. 2021-49 authorizing the annual levy of a special tax in Community Facilities District No. 2005-1 (University Park) for Fiscal Year 2021-2022. Backpround Analvsis The Community Facilities District (CFD) known as University Park (No. 2005-1) is the area north of Desert Willow between Portola and Cook Street whose improvements are financed by the issuance of the $50 Million and $17.915 Million bonds issued to fund the improvements for streets, infrastructure, water, sewer, park improvements, and land acquisitions. Annually, the City Council must approve the levy of the special tax. Staff requests that the City Council authorize the levy of a special tax to pay for costs and expenses related to this District. The maximum rate of the special tax for the next fiscal year is attached to the Resolution as Exhibit A. Approval of the resolution will allow the County Auditor to collect taxes as they become due. Fiscal Analvsis The CFD 2005-1 (University Park) bonds are repaid through taxes collected on the respective parcels located within the boundaries. Approval of the resolution will allow the parcels to be levied for the 2021-2022 tax year and provide the city with the funds to pay the debt service on a timely basis. As previously directed by the Council on September 10, 2020, staff is presently working with the City's financing team on the issuance of refunding bonds to refund the outstanding prior bonds of CFD 2005-1 (University Park) for debt service savings. Assuming that market conditions continue to be favorable, refunding bonds are expected to be issued prior to the County's due date for the submitting levies for the 2021-2022 tax year, and the 2021-2022 tax levies for CFD 2005-1 (University Park) would reflect the debt service and special tax savings from the refunding. LEGAL REVIEW D. ChuanglRWG DEPT. REVIEW gccrw"i?'h, i�loou FINANCIAL REVIEW ASSISTANT CITY MANAGER �c�.w'('1�7. ?�'loou Bond Attorney Janet M. Moore Janet M. Moore Director of Finance Director of Finance City Manager, L. Todd Hileman: L. Todd HiLLw�Aw .`indy firestine Andy Firestine Assistant City Manager ATTACHMENTS: Resolution No. 2021-49 Exhibit "A" — Proposed Special Tax Rates [This page has intentionally been left blank.] RESOLUTION NO. 2021-49 RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2021/2022 WHEREAS, the City Council of the City of Palm Desert (hereinafter referred to as the "Agency"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a Community Facilities District, as authorized pursuant to the terms and provisions of the "Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. Community Facilities District No. 2005-1 shall hereinafter be referred to as "District" and, WHEREAS, this City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said District, and this City Council is desirous to establish the specific rate of the special tax to be collected for the next fiscal year. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are true and correct. SECTION 2. That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2021/2022) for the referenced District, is hereby determined and established as set forth in the attached, referenced and incorporated Exhibit “A”. SECTION 3. That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of this Council, and is not in excess of that as previously approved by the qualified electors of the District. SECTION 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties, procedures and sale in case of any delinquency for ad valorem taxes, and the Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. SECTION 5. Monies above collected shall be paid into the District funds. SECTION 6. The Auditor of the County is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked "public improvements, special tax" or by any other suitable designation, the installment of the special tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit “A”. RESOLUTION NO. 2021-49 SECTION 7. The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. SECTION 8. Special Taxes are to be levied on non-exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2021/2022 Tax Roll subsequent to the submittal deadline of August 10, 2021, the City Council directs the City of Palm Desert staff or their agents to bill such parcels directly via U.S. mail using the rates as approved in Exhibit “A”. PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm Desert, California this 8TH day of July, 2021 by the following vote: AYES: NAYS: ABSENT: ABSTAIN: KATHLEEN KELLY MAYOR ATTEST: M. GLORIA SANCHEZ, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES CITY ATTORNEY RESOLUTION NO. 2021-49 Exhibit “A” Community Facilities District No. 2005-1 (University Park) Proposed Special Tax Rates Fiscal Year 2021/2022 Zones A – D : The following table summarizes the Maximum and the Proposed Special Tax Rates relating to each land use class. LAND USE CLASS SPECIAL TAX RATE MULTIPLIER MAXIMUM SPECIAL TAX RATE PROPOSED SPECIAL TAX RATE(1) Developed Property Zone A Per Acre $21,000 $21,000 Zone B Per Acre $27,000 $27,000 Zone C Per Acre $27,000 $27,000 Zone D Per Acre $23,000 $23,000 Undeveloped & Provisional Undeveloped Property Zone A Per Acre $21,000 $21,000 Zone B Per Acre $27,000 $27,000 Zone C Per Acre $27,000 $27,000 Zone D Per Acre $23,000 $23,000 (1)The Proposed Special Tax Rates to be Levied for Fiscal Year 2021/2022 will not exceed the Maximum Special Tax Rates described above. Zone E: The following table summarizes the Maximum and the Proposed Special Tax Rates relating to each land use class. LAND USE CLASS SPECIAL TAX RATE MULTIPLIER RESIDENTIAL FLOOR AREA (SQ. FT) MAXIMUM SPECIAL TAX RATE PROPOSED SPECIAL TAX RATE(1) Single Family Property Per square foot of Residential Floor Area Greater than 2,300 $1.44 $1.44 Single Family Property Per square foot of Residential Floor Area 2,300 to 1,725 $1.67 $1.67 Single Family Property Per square foot of Residential Floor Area Less than 1,725 $1.38 $1.38 Multifamily Property Per square foot of Residential Floor Area N/A $1.50 $1.50 Non Residential Property Per Acre N/A $28,000 $28,000 Undeveloped Property Per Acre N/A $28,000 $28,000 (1)The Proposed Special Tax Rates to be Levied for Fiscal Year 2021/2022 will not exceed the Maximum Special Tax Rates described above.