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Home My WebLink AboutRes 2020-52 FY 20-21 Community Facilities District (CFD) 2005-1 University ParkSTAFF REPORT CITY OF PALM DESERT FINANCE DEPARTMENT MEETING DATE: June 25, 2020 PREPARED BY: Anthony Hernandez, Senior Financial Analyst REQUEST: APPROVAL OF RESOLUTION NO. 2020-52 AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILTIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2020-21 Recommendation By Minute Motion, that the City Council: 1) Approve Resolution No. 2020-52 authorizing the levy of a special tax in Community Facilities District No. 2005-1 (University Park) for Fiscal Year 2020-2021. Strateaic Plan Obiective N/A Executive Summary On an annual basis, the levy for special taxes for Community Facility District No. 2005-1 (University Park) requires City Council's approval. Backqround Analvsis In 2006, the City created the Community Facilities District (CFD) known as University Park (No. 2005-1) is the area north of Desert Willow between Portola and Cook Street. The improvements, including streets, infrastructure, water, sewer, park improvements, and land acquisitions, were financed by the CFD's issuance of approximately $68 million in bonds. Annually, the City Council must authorize the levy of the special tax in order to submit the request to the County of Riverside for inclusion on the tax roll. Staff requests that the City Council authorize the levy of a special tax to pay debt service and ancillary costs related to the CFD. The maximum rate of the special tax for the next fiscal year is attached to the Resolution as Exhibit A. June 25, 2020 — Staff Report City of Palm Desert — Approval of Resolution No. 2020-52 Special District Levy Page 2 of 2 Fiscal Analvsis The CFD 2005-1 (University Park) bonds are repaid through taxes collected on the respective parcels located within the boundaries of the district. Approval of the resolution will allow the parcels to be levied for the 2020-2021 tax year for the payment of debt service. LEGAL REVIEW N/A DEPT. REVIEW gc�,w�' 1'�1. ?'floo�w FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves City Attorney gaw�'�'�1. ?�'loou Janet M. Moore Janet M. Moore Director of Finance Director of Finance City Manager Lauri Aylaian: � ATTACHMENTS: Resolution 2020-52 Exhibit "A" — Proposed Special Tax Rates N/A Andy Firestine Assistant City Manager W.�Staf'f' Repons - Shared\FINAL RC•PORTSW6-25-2020�Finance - PRIN't'ED\L'mversity Park\02 SR Approval for Levy CFD 2005-I 2021.Joc RESOLUTION NO. 2020-52 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 2020/2021 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 ne� 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 (2020/2021) 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. RESOLUTION NO. 2020-52 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". 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 2020l2021 Tax Roll subsequent to the submittal deadline of August 10, 2020, 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, Califomia this day of , 2020 by the following vote: AYES: NAYS: ABSENT: ABSTAIN: ATTEST: GINA NESTANDE, MAYOR GRACE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER Exhibit “A” Community Facilities District No. 2005-1 (University Park) Proposed Special Tax Rates Fiscal Year 2020/2021 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 2020/2021 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 2020/2021 will not exceed the Maximum Special Tax Rates described above. RESOLUTION NO. 2020-52