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HomeMy WebLinkAboutRes 2017-41 - CFD 91-1 Indian Ridge (84383) RESOLUTION NO. 2017-41 CITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: APPROVAL OF RESOLUTION NO. 2017- 41 AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 91-1 (INDIAN RIDGE) FOR FISCAL YEAR 2017/2018 SUBMITTED BY: ANTHONY HERNANDEZ, SENIOR FINANCIAL ANALYST DATE: JUNE 8, 2017 CONTENTS: RESOLUTION NO. 41 EXHIBIT A Recommendation Waive further reading and adopt Resolution No. 2017- 41 authorizing the levy of a special tax in Community Facilities District No. 91-1 (Indian Ridge) for Fiscal Year 2017/2018. Background The Community Facilities District (CFD) known as CFD 91-1 (Indian Ridge) is located in the northern section of the City known at the time of formation as "Indian Ridge Country Club". CFD 91-1 issued $11.87 million in 1992 and $12.385 million in 1995. In 1997, the bonds were refunded into one bond issuance in the amount of $22.989 million. The bonds were issued to fund the improvements for streets, medians, water and sewer improvements. Legal counsel has reviewed the bond documents and indicated that the City Council must approve the levy of the special tax for 91-1 on an annual basis. The specific 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. A report will be provided at the close of the tax collection period indicating the amounts collected. Therefore, staff requests that the resolution be approved. Approval of Resolution No. 2017- 41 - Special Tax Levy in CFD No. 91-1 June 8, 2017 Page 2 of 2 Fiscal Analysis The CFD 91-1 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 2017-2018 tax year and provide the City with the funds to pay the debt service on a timely basis. Subm. t b : Department d: fo-114" t ony na dez Janet M. ore Senior Financial Analyst Director o Fi ance/City Treasurer Approval: • uri Aylaian City Manager G:\Finance\Niamh OrtegaAssessment District Administration\CFD 91-1\SR-approval of levy in CFD 91-1fy 1718.doc RESOLUTION NO. 2017- 41 RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 91-1 (INDIAN RIDGE) FOR FISCAL YEAR 2017/2018 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. 91-1 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 (2017/2018) 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. 2017- 41 Page 2 of 4 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 2017/2018 Tax Roll subsequent to the submittal deadline of August 15, 2017, 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". SECTION 9. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to effectuate the purposes of this Resolution, the levy of special taxes by the District authorized by Ordinance No. 674, and the documents referenced herein, and any such actions previously taken by such officers, including without limitation the levy by the District of special taxes authorized by Ordinance No. 674 in prior fiscal years, are hereby ratified and confirmed. Resolution No. 2017- 41 Page 3 of 4 PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm Desert, California this 8th day of June, 2017 by the following vote to wit: AYES: NAYS: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER Resolution No. 2017- 41 Page 4 of 4 Exhibit "A" Community Facilities District No. 91-1 (INDIAN RIDGE) Proposed Special Tax Rates Fiscal Year 2017/2018 Land Use Class : The following table summarizes the Maximum Special Tax Rates relating to each land use class. LAND USE CLASS LAND USE CLASS GROSS FLOOR MAXIMUM SPECIAL DESCRIPTION AREA TAX RATE Developed Property _ 1 A Detached Residential Over 3,600 $3,850 per Dwelling Unit 1 B Detached Residential 3,100-3,599 $3,300 per Dwelling Unit 1 C Detached Residential 2,600-3,099 $2,750 per Dwelling Unit 1 D Detached Residential 2,100-2,599 $2,450 per Dwelling Unit 1 E _ Detached Residential Under 2,099 $1,650 per Dwelling Unit 2A Attached Residential Over 2,500 $2,100 per Dwelling Unit 2B Attached Residential 2,100-2,499 $1,800 per Dwelling Unit 2C Attached Residential 1,700-2,099 $1,500 per Dwelling Unit 2D Attached Residential 1,300-1,699 $1,200 per Dwelling Unit 2E Attached Residential Under 1,299 $900 per Dwelling Unit Undeveloped Property Undeveloped Property N/A $13,120per Acre Golf Course Property N/A $1,500 per Acre