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HomeMy WebLinkAboutRes 2019-22 - Levy CFD 2005-1 FY 19-20STAFF REPORT CITY OF PALM DESERT FINANCE DEPARTMENT MEETING DATE: May 23, 2019 PREPARED BY: Anthony Hernandez, Senior Financial Analyst 2019-22 REQUEST: APPROVAL OF RESOLUTION NO. AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILTIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2019-20 Recommendation By Minute Motion, that the City Council: 2019-22 1) Approve Resolution No. authorizing the levy of a special tax in Community Facilities District No. 2005-1 (University Park) for Fiscal Year 2019-2020. Strateqic 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. Background Analysis 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. Currently, the University Park CFD is being analyzed to determine whether refunding the debt will reduce the levies imposed on each property. Since the refunding is not completed, staff recommends authorizing the County to impose the levy for the 2019-20 fiscal year at the current rates. Approval of the resolution will allow the County Auditor to collect taxes as they become due. May 23, 2019 — Staff Report 2019-22 City of Palm Desert — Approval of Resolution No. Special District Levy 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 2019-2020 tax year and provide the city with the funds to pay the debt service on a timely basis. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER NA ) Robert Hargreaves et Moore t Moore Lauri Aylaian Legal Counsel Director of Finance Director of Finance Executive Director ATTACHMENTS: Resolution 2019-22 Exhibit "A" — Proposed Special Tax Rates H .WPDOCS' Inicrofticc Memos\Assessment Districts\Uni ersny Park.CounciI Staff Reports'ApprovaI for LcNy CFD 2005-1 1920 staff repori.doc RESOLUTION NO. 2019-22 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 2019/2020 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 (2019/2020) 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". 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 2019/2020 Tax Roll subsequent to the submittal deadline of August 9, 2019, 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 day of , 2019 by the following vote: AYES: NAYS: ABSENT: ABSTAIN: MAYOR OF THE CITY OF PALM DESERT SUSAN MARIE WEBER ATTEST: RACHELLE D. KLASSEN, 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 2019/2020 Zones A — D : The following table summarizes the Maximum and the Proposed Special Tax Rates relating to each land use class. Zone A Per Acre 4i-/I,Uuu ?/- I,VVV Zone B Per Acre $27000 $27,000 Zone C Per Acre $27:000 $27,000 Zone D Per Acre $23,000 1, $23,000 Undeveloped 8 Provisional Undeveloped Property iI 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 ")The Proposed Special Tax Rates to be Levied for Fiscal Year 2019/2020 will not exceed the Maximum Special Tax Rates described above. Zone Ei The following table summarizes the Maximum and the Proposed Special Tax Rates relating to each land use class. 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 NIA $1,50 I $1.50 Non Residential Property ' Per Acre N/A $28,000 $28,000 Undeveloped Property Per Acre N/A $28,000 $28,000 ")The Proposed Special Tax Rates to be Levied for Fiscal Year 2019/2020 will not exceed the maximum Special Tax Rates described above.