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HomeMy WebLinkAboutRes 2025-008RESOLUTION NO. 2025-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS, FORMING THE CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SHADOW RIDGE PUBLIC SERVICES), AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, ESTABLISHING AN APPROPRIATIONS LIMIT, AND TAKING CERTAIN OTHER ACTIONS RELATING TO SAID DISTRICT WHEREAS, the City Council of the City of Palm Desert adopted Resolution No. 2025-1 (the “Resolution of Intention”), stating its intention to form City of Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public Services) (the “CFD”) pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”); and WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the CFD, and stating the services to be provided, and the rate and method of apportionment of the special tax to be levied within the CFD to pay for the services, is on file with the City Clerk and the provisions of the Resolution of Intention are incorporated herein by this reference as if fully set forth herein; and WHEREAS, on February 13, 2025, the City Council held a noticed public hearing as required by the Act and the Resolution of Intention with respect to the proposed formation of the CFD; and WHEREAS, at the hearing, all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the services to be provided therein and the levy of such special tax were heard and a full and fair hearing was held; and WHEREAS, at the hearing, evidence was presented to the City Council on such matters before it, including a special report (the “Report”), attached as Exhibit C hereto and hereby incorporated herein, prepared by, or on behalf of, the City officer who is or will be responsible for the CFD describing the services to be provided through the CFD and the costs thereof pursuant to the Resolution of Intention, a copy of which is on file with the City Clerk; and WHEREAS, no written protests have been filed with the City Clerk by 50% or more of the property owners that own one-half or more of the area of land within the CFD, and not exempt from the proposed special taxes. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The City Council finds and determines that all the foregoing recitals are true and correct and incorporated herein. Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 2 SECTION 2. No Majority Protest. The proposed special tax to be levied within the CFD has not been precluded by majority protest pursuant to Section 53324 of the Act. SECTION 3. Prior Proceedings Valid. All prior proceedings taken by the City Council in connection with the establishment of the CFD, and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act, including without limitation, the filing of a petition of a landowner requesting institution of proceedings to establish the CFD, adoption of the Resolution of Intention, publication of notice of public hearing on the establishment of the CFD, and conducting the public hearing on the establishment of the CFD. SECTION 4. Report. The Report, as now submitted is hereby approved and is made a part of the record of the hearing, and is kept on file with the transcript of these proceedings and open for public inspection. SECTION 5. Name of CFD. The community facilities district designated “City of Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public Services)” is hereby established pursuant to the Act. SECTION 6. Boundaries of CFD. The boundaries of the CFD, as set forth in the map of the CFD, on file with the City Clerk’s office and as described in the Resolution of Intention, and recorded in the Riverside County Recorder’s Office on January 28, 2025 in Book 95 of Maps of Assessment and Community Facilities Districts, at page 13, as Document No. 2025-0027288 are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD. SECTION 7. Description of Services. The type of public services proposed to be financed by the CFD pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference incorporated herein (the “Services”). SECTION 8. Special Tax. a. Except to the extent that funds are otherwise available to the CFD to pay for the Services, a special tax (the “Special Tax”) sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the CFD, is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by the City Council. b. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD are shown in Exhibit B attached hereto and hereby incorporated herein, and include sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay. SECTION 9. Increased Demands. It is hereby found and determined that the Services are necessary to meet increased demands placed upon local agencies, including the City, as the result of development occurring in the CFD. The Services are in addition to those provided in the territory of the CFD as of the date hereof and will not Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 3 supplant services already available within the territory of the CFD as of the date hereof. The City Council hereby determines the rate and method of apportionment set forth in Exhibit B to be reasonable. SECTION 10. Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby establishes the following accountability measures pertaining to the levy by the CFD of the Special Tax above: c. Such Special Tax shall be levied for the specific purposes set forth herein. d. The proceeds of the levy of such Special Tax shall be applied only to the specific purposes set forth herein. e. The CFD shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited. f. The Director of Finance, or their designee, acting for an on behalf of the CFD, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 11. Responsible Official. The City’s Director of Finance, or designee thereof, 73-510 Fred Waring Drive, Palm Desert, California, telephone number (760) 346- 0611, is the officer of the City who will be responsible for preparing annually a current roll of the levy of the Special Tax obligations by assessor’s parcel number and who will be responsible for estimating future levies of the Special Tax. SECTION 12. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in the CFD, and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the City ceases. SECTION 13. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is hereby preliminarily established at an amount equal to all the proceeds of the special tax collected annually within the District, and such appropriations limit shall be submitted to the voters of the CFD as hereafter provided. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the Constitution. SECTION 14. Election. Pursuant to the provisions of the Act, the proposed levy of the Special Tax and the proposed establishment of the appropriations limit specified above shall be submitted to the qualified electors of the CFD at an election, the time, place and conditions of which election, shall be as specified by a separate resolution of Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 4 this Council. The City Clerk is directed to certify and attest to this Resolution and to take any and all necessary acts to call, hold, canvass, and certify an election or elections on the levy of the Special Tax and the establishment of the appropriations limit. SECTION 14. Effective Date. This resolution shall take effect upon its adoption. ADOPTED ON FEBRUARY 13, 2025 JAN C. HARNIK MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-008 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on February 13, 2025, by the following vote: AYES: NOES: NESTANDE, PRADETTO, QUINTANILLA, AND TRUBEE NONE ABSENT: HARNIK ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________. ANTHONY J. MEJIA CITY CLERK Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED 2/18/2025 Resolution No. 2025-008 Page 5 EXHIBIT A CITY OF PALM DESERT Community Facilities District No. 2025-1 (Shadow Ridge Public Services) DESCRIPTION OF SERVICES The services to be funded, in whole or in part, by the community facilities district (the "CFD") include, but are not limited to: (i) police protection and related services of the City of Palm Desert required to sustain the public safety service delivery capability for emergency and non-emergency services including related facilities, equipment, vehicles, services, supplies and personnel; (ii) Fire protection and suppression services, and ambulance and paramedic services; (iii) maintenance and lighting of parks, parkways, streets, roads and open space; (iv) flood and storm protection services; and (v) other public services authorized to be funded under Section 53313 of the California Government Code. The District may fund any of the following related to the services described in the preceding sentence: obtaining, constructing, furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of services. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. The services to be financed by the District are in addition to those provided in the territory of the District before the date of creation of the District, and will not supplant services already available within that territory when the District is created. Administrative Expenses: The administrative expenses to be funded by the District include the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of Riverside related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City's general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be financed by the District, and expenses incurred by the City in undertaking action to foreclose on properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District. Other: The incidental expenses that may be funded by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District. Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 6 EXHIBIT B CITY OF PALM DESERT Community Facilities District No. 2025-1 (Shadow Ridge Public Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX For the City of Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public Services), County of Riverside, State of California The Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels within the City of Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public Services), (“CFD 2025-1”), other than Assessor’s Parcels classified as Exempt Property as defined herein and collected each Fiscal Year commencing in Fiscal Year 2025-26, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD 2025-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: “Act” means the Mello-Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the following actual or reasonably estimated expenses related to the administration of CFD 2025-1: (i) the costs of determining the amount of the levy of the Special Tax, the collection of Special Taxes, including the expenses of collecting delinquencies and pursuing foreclosures; (ii) the payment of a proportional share of salaries and benefits of any City employee and City overhead whose duties are directly related to the administration of CFD 2025-1; (iii) fees and expenses for counsel, audits, costs associated with responding to public inquiries regarding CFD 2025- 1; and (iv) any and all other costs incurred in connection with the administration of CFD 2025-1. “Annual Escalation Factor” means two percent (2%). “Assessor’s Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned assessor’s parcel number. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by assessor’s parcel number. Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 7 “Base Year” means the first year that any Assessor’s Parcel of Taxable Property is classified as Developed Property. “Building Permit” means a permit issued for new construction of a Residential Unit. For purposes of this definition, “Building Permit” shall not include permits for construction or installation of retaining walls, grading, utility improvements, or other such improvements not intended for human habitation. “Certificate of Occupancy” means a document issued by the City certifying that a newly constructed Residential Unit complies with all applicable codes and ordinances and that it is suitable and safe for occupancy. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax for CFD 2025-1. “CFD 2025-1” means City of Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public Services) established by the City Council under the Act. “City” means the City of Palm Desert. “City Council” means the Council of the City of Palm Desert, acting as the legislative body of CFD 2025-1. “County” means the County of Riverside. “Developed Property” means an Assessor’s Parcel of Taxable Residential Property for which a Certificate of Occupancy was issued on or before June 1 preceding the Fiscal Year for which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels within CFD 2025-1 that are exempt from the Special Tax pursuant to the Act or Section F herein. “Fiscal Year” means the period commencing on July 1 of any year and ending the following June 30. “Land Use Type” means any of the land use types listed in Table 1 below. “Maximum Special Tax” means the maximum Special Tax determined in accordance with Section C, which may be levied in any Fiscal Year on an Assessor’s Parcel of Taxable Property. “Property Owner Association Property” means for each Fiscal Year any property within the boundaries of CFD 2025-1 that was owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to a property owner association, including any master or sub-association, as of June 1. “Proportionately” means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels within each Land Use Class. Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 8 “Public Property” means any property that is owned by, dedicated or irrevocably dedicated to a city, the federal government, the State of California, the County, or any other public agency (each, a “Public Entity”); provided, however, that any such property is leased by such a Public Entity to a private entity and is thereby subject to taxation pursuant to Section 53340.1 of the Act, such leasehold estate shall be classified and taxed according to the use thereof. “Public Services” means those authorized services that may be funded by CFD 2025- 1 pursuant to the Act, as amended including but not limited to police protection services, fire protection services, paramedic services, park maintenance, street maintenance and flood control. “Residential Property” means Assessor’s Parcels of Developed Property within CFD 2025-1 for which a Building Permit has been issued for purposes of constructing one or more Residential Unit(s). “Residential Unit” means any residence in which a person or persons may live, which is not considered to be used for non-residential purposes. “Special Tax” means the special tax authorized to be levied within CFD 2025-1 pursuant to the Act, to fund the Special Tax Requirement. “Special Tax Requirement” means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Public Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish any operational reserve fund established for Public Services, (iv) pay incidental expenses related to the Public Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied (“Estimated Special Tax Delinquency Amount”) and (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Special Tax Requirement for such Fiscal Year where such shortfall resulted from delinquencies in the payment of the Special Tax in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for such Fiscal Year. “Taxable Property” means all Assessor’s Parcels that are not exempt from the Special Tax pursuant to the Act or Section F. “Undeveloped Property” means an Assessor’s Parcel of Taxable Property which is not classified as Developed Property. B. CLASSIFICATION OF ASSESSOR’S PARCELS Each Fiscal Year, beginning with Fiscal Year 2025-26, using the definitions above, each Assessor’s Parcel within CFD 2025-1 shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such Fiscal Year, each Assessor’s Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property and subject to the levy of the Special Tax pursuant to Section C below. Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 9 C. SPECIAL TAX RATES 1.Developed Property Each Fiscal Year commencing in Fiscal Year 2025-26, each Assessor’s Parcel of Developed Property shall be subject to the Special Tax. The initial Maximum Special Tax for each Assessor’s Parcel of Developed Property in its Base Year shall be $2,200. For each subsequent Fiscal Year following the Base Year, the Maximum Special Tax rates shall be increased from the Maximum Special Tax rate in effect for the prior Fiscal Year by the Annual Escalation Factor. 2.Undeveloped Property Each Assessor’s Parcel classified as Undeveloped Property shall be exempt from the levy of the Special Tax. 3.Exempt Property No Special Tax shall be levied on Exempt Property as defined in Section F. For each Fiscal Year, if the use or ownership of an Assessor’s Parcel or Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in Section F, therefore making such Assessor’s Parcel no longer eligible to be classified as Exempt Property, such Assessor’s Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C. D.METHOD OF APPORTIONMENT OF SPECIAL TAX Commencing in Fiscal Year 2025-26 and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property of CFD 2025-1 until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property within CFD 2025-1 up to 100% of the Maximum Special Tax to satisfy the Special Tax Requirement. Notwithstanding any provision of this Section D to the contrary, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property that is classified as Residential Property be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default in the payment of the Special Tax by the owner of any other Assessor’s Parcel. E. PREPAYMENT OF SPECIAL TAX The Special Tax for an Assessor’s Parcel of Undeveloped Property that has been issued a Building Permit or for an Assessor’s Parcel of Developed Property may be prepaid. The prepayment amount shall be the lesser of (i) $66,000 or (ii) the Maximum Special Tax that will be in effect the following Fiscal Year times the number of Fiscal Years remaining in the 30-year period defined in Section I below. Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 10 F.EXEMPTIONS The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, including but not limited to property designated for open space, trails, pathways, parks or park and recreation related facilities, and (iv) property reasonably designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors. G. APPEALS Any property owner claiming that the amounts or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the decision of the CFD Administrator requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special Tax. H.MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the Special Tax may be billed and collected at a different time or in a different manner if necessary to meet the financial obligations of CFD 2025-1. I. DURATION OF TAX For each Residential Unit, the Special Tax shall be levied for a cumulative 30-year period to fund the Special Tax Requirement unless such tax is no longer required as determined by the City Council. J.INTERPRETATION The City may interpret, clarify, and revise this Rate and Method to correct any inconsistency, vagueness, or ambiguity, by resolution and/or ordinance, that does not create a material adverse effect on the levy and collection of the Special Tax. Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 11 EXHIBIT C CITY OF PALM DESERT Community Facilities District No. 2025-1 (Shadow Ridge Public Services) CFD REPORT (see attached) Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 12 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 13 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 14 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 15 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 16 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 17 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 18 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 19 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 20 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 21 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 22 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 23 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 24 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED Resolution No. 2025-008 Page 25 Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1FD55A13A8ED