HomeMy WebLinkAboutResolution 2011-49 Tax Roll Correction with Respect 2 FY 2009/2010 Levy - Communities Facilities District 2005-1 - University ParkCITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
Request: Approval of Resolution No. 2011-49 authorizing the levy of a special tax
during the 2011-2012 fiscal year for the Community Facilities District No.
2005-1 (University Park) to correct errors with the 2009-2010 levy.
Submitted By: Paul S. Gibson, Finance Director
Date: June 23, 2011
Contents: Resolution No. 2011- 49
Exhibit A
Recommendation
By Minute Motion, that Council approve and execute Resolution No. 2011- 49
authorizing the levy of a special tax during the 2011-2012 fiscal year for the
Community Facilities District No. 2005-1 (University Park) to correct errors with
the 2009-2010 levy.
Background
On an annual basis the City Council of the City of Palm Desert must approve the annual levy for
the Community Facilities District known as University Park (No. 2005-1). On June 11, 2009 the
City Council approved the 2009-2010 University Park levy as presented by staff and created by
Willdan Financial. During the 2010-2011 Fiscal Year it was discovered that several parcels were
either undercharged or overcharged for their related assessment pertaining to University Park
and the 2009-2010 levy. This resolution allows the district to place on the Riverside County Tax
Roll a correcting levy during the 2011-2012 fiscal year that will correct the 2009-2010 levy.
All parties involved will be informed of the 2009-2010 levy error and informed of the process to
seek reimbursement from the overcharged levies. Those levies that were undercharged will be
levied for the amount of the undercharge. The overcharged parcels will be refunded as timely
refund claims are filed. Overall, the overcharges and undercharges to the district had no impact
to the district levy as a whole; the overcharged and undercharged amounts were equal, thereby
not affecting the overall district.
The City will enter into an agreement with Willdan Financial, who have agreed to provide the
money for the refunds and accept the risk of non-payment by those parcels that were under -
levied.
Approval of the resolution will allow the County Auditor to collect taxes as they become due, and
allow Willdan to apply the correcting levy on the 2011-2012 tax roll. Staff requests that
Resolution No. 2011- 49 be approved.
Staff Report
Approval of Resolution correcting 2009-2010 levy on CFD 2005-1, University Park
June 23, 2011
Page 2 of 2
Fiscal Analysis
The agreement between the City and Willdan Financial mitigates the potential for refunds to be
paid by the district or the City of Palm Desert. Therefore, there is no fiscal impact relating to the
receipt of the undercharges and refunding of the overcharges.
Submitted by: Approval:
�, e�41A— C=24
Paul S. Gibson /-*JoKn M. Wohlmuth
Director of Finance/City Treasurer �Viity Manager
CITY COUNCIL ACTION
APPROVED ✓ DENIED
RECEIVED OTHER
MEETING DATE
r`
AYES: r1nj
vK °�
NOES: N041&
ABSENT: 90()L
ABSTAIN:
VERIFIED BY:
Original on File with City Clerk's dflice
C:\Users\nortega\HppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\VF496YYN\approval of levy
correction for CFD No 2005-1 fy 1112.doc
RESOLUTION NO. 2011- 49
RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA
AUTHORIZING THE SUBMITTAL TO THE RIVERSIDE COUNTY
AUDITOR OF TAX ROLL CORRECTIONS WITH RESPECT TO THE
2009-10 LEVY OF A SPECIAL TAX IN COMMUNITY FACILITES
DISTRICT NO. 2005-1 (UNIVERSITY PARK) REGARDING CERTAIN
PARCELS
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.
WHEREAS, this City Council, has determined that due to administrative error of
Willdan Financial Services, as special tax consultant (the "Special Tax Consultant"), in
Fiscal Year 2009/2010 certain parcels of land within the District were underlevied while
other parcels were overlevied.
WHEREAS, the City Council desires to correct the errors in the Fiscal Year
2009/2010 special tax levy by submitting to the Auditor of the County of Riverside (the
"County Auditor") corrections to the 2009/2010 tax roll, which will (a) charge the
2009/2010 deficiency with respect to each underlevied parcel on the Fiscal Year
2011/2012 tax bills and (b) result in the County Auditor's provision of notice to the
respective assessees of the overlevied parcels of a refund, to be paid by the District to
such assessees who timely submit their refund claims.
Resolution No. 2011- 49
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
SECTION 1. That the above recitals are true and correct.
SECTION 2. In sufficient time for 2009/2010 tax roll corrections to be enrolled in
the 2011/2012 special tax levy, the Special Tax Consultant is hereby directed and
authorized to provide to the County Auditor the specific tax roll corrections to the
2009/2010 special tax levy in such format as required by the County Auditor (the
"2009/2010 Corrections List"), provided that the total amount of each corrected
2009/2010 special tax levy, as adjusted by the 2009/2010 Corrections List, does not
exceed the amount as previously authorized by Ordinance of this Council, is not in
excess of that as previously approved by the qualified electors of the District, and is in
conformity with the rate and amount of the 2009/2010 special tax levy previously
approved by this City Council pursuant to Resolution No. 09-38 adopted on June 11,
2009, as set forth in the attached, referenced and incorporated Exhibit "A".
SECTION 3. 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 4. Monies collected as a result of 2009/2010 tax roll corrections for
underlevies shall be paid into the District funds. Subject to the pledge and lien of the
Bond Indenture, dated as of May 1, 2006, by an between the District and Wells Fargo
Bank, National Association, as Trustee, as amended and supplemented, the District
shall use the monies collected as a result of 2009/2010 tax roll corrections for
underlevied parcels to refund those parcels that were overlevied in fiscal year
2009/2010. Any differential between collected underlevied amounts and amounts for
timely -filed refund claims shall be paid by the Special Tax Consultant pursuant to an
agreement between the City and the Special Tax Consultant dated as of June 23, 2011.
2
Resolution No. 2011- 49
SECTION 5. Pursuant to Sections 4831 et seq. of the Revenue and Taxation
Code, including without limitation Sections 4834 and 4836, the County Auditor is hereby
directed to (a) enter the 2009/2010 roll corrections with respect to the 2009/2010
overlevied parcels, as identified on the 2009/2010 Corrections List provided by the
Special Tax Consultant to correct for the portion of the special tax installment that was
overlevied in that fiscal year, and (b) notify in writing the respective assessees of such
overlevied parcels with respect to 2009/2010 of the requirements for obtaining a refund
pursuant to the applicable provisions of the Revenue and Taxation Code, including but
not limited to a statement that the assessee is entitled to a refund and that a claim for a
refund shall be filed within 60 days of the notice.
SECTION 6. Pursuant to Sections 4831 et seq. of the Revenue and Taxation
Code, including without limitation Sections 4834 and 4836.5, the County Auditor 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 "Correction to the
2009/10 Assessment Year for underlevy pursuant to Sections 4831 et seq. of the
Revenue and Taxation Code" or by any other suitable designation, the portion of the
special tax installment that was underlevied in that fiscal year, as identified on the
2009/2010 Corrections List provided by the Special Tax Consultant.
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. The Finance Director of the City and the officers and staff or the
City of Palm Desert and the District responsible for the fiscal affairs of the District are
hereby authorized and directed to take any actions and execute and deliver any and all
documents as are necessary to accomplish the 2009/2010 tax roll corrections, refunds
3
Resolution No. 2011- 49
for 2009/2010 overpayments, and collections of 2009/2010 underpayments in
accordance with the provisions of this Resolution.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm Desert,
California this 23`d day of June, 2011 by the following vote to wit:
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
JEAN M. BENSON, MAYOR
APPROVED AS TO FORM:
DAVID J. ERWIN
CITY ATTORNEY
4
Resolution No. 2011- 49
Exhibit "A"
Community Facilities District No. 2005-1
(University Park)
Approved Special Tax Rates
Fiscal Year 2009/2010 (Per Resolution No. 09-38)
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 RATED)
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
Undevelo ed & Provisional Unde elojoed Proi.7erty
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
I "The Proposed Special Tax Rates to be Levied for Fiscal Year 2U1J9/21J1 U will not exceed the Maximum 5peciai i ax mates
described above.
Zone E: The following table summarizes the Maximum and the Proposed Special Tax Rates relating to
each land use class.
SPECIAL TAX RATE
RESIDENTIAL
MAXIMUM
PROPOSED
LAND USE CLASS
MULTIPLIER
FLOOR AREA
SPECIAL
SPECIAL
SQ FT
TAX RATE
TAX RATED)
Single Family Property
Per square foot of Residential
Greater than 2,300
$1.44
$1.44
Floor Area
Single Family Property
Per square foot of Residential
2,300 to 1,725
$1.67
$1.67
Floor Area
Single Family Property
Per square foot of Residential
Less than 1,725
$1.38
$1.38
Floor Area
Multifamily Property
Per square foot of Residential
N/A
$1.50
$1.50
Floor Area
Non Residential Property
Per Acre
N/A
$28,000
$28,000
Undeveloped Pro erty
Per Acre
N/A
1 $28,000
1 $28,000
"'The Proposed Special Tax Rates to be Levied for Fiscal Year 2009/2010 will not exceed the Maximum Special Tax Rates
described above.
A-1