HomeMy WebLinkAboutRES CC 1997 1279 1997 0219RESOLUTION NO. 97- 1279
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK
ADOPTING LOCAL GOALS AND POLICIES FOR COMMUNITY
FACILITIES DISTRICTS
WHEREAS,
Section
53312. "1(a) cf the
California Government Code
requires that
the City
Council of the City of Moorpark (the "City ")
consider and
adopt:_
local goals and
policies for Community
Facilities Districts
adopted as the
"CFDs ") prior
to the initiation of
proceedings to
establish a CFD under t:hE.l
provisions of Chapter 2.5
of Part 1 of
Divis i o:i
2 of Title ;f
the California Government
Code (the "Act
"); a�,
WHEREAS, this City Council intends to consider the
establishment of a CFD related t-:) the proposed development of
Carlsberg Business Park, and desires at this time to adopt local
goals and policies I nr CFDs sc ` -hat: i ;ray commence proceedings for
establishing a (--FD; and
WHEREAS, City staff has caused to be prepared a draft of goals
and policies for CFDs of the City (the "Goals and Policies "), the
form of which is on file with the City Clerk, and this City Council
has duly considered said Goa : and P ,� ? cries.
NOW, THEREFORE, THE CITY COUNCIL
OF THE
CITY OF MOORPARK,
CALIFORNIA,
DOES RESOLVE
AS FOLLOWS: that
t=he
Goals and Policies,
in the form
on file with
the ":iAj C:ierk,
are hereby
adopted as the
local goals
and pol cies
of tla (-- ty for
CFDs,
and are intended to
satisfy the
requirements
of �r_��.t, ��r�;;i
%.., !a)
of the Act.
PASSED, APPROVED, AND ADOPTED THIS
1997.
ATTEST:
Lillian E. Hare, City Cl
D:A BUDGET \RESOLUTI \F.F SOAChIF.WI^
�6
itrick/- gutiter, Mayor
CITY OF MOORPARK
LOCAL GOALS AND POLICIES FOR
COMMUNITY FACILITIES DISTRICTS
(Adopted February 19, 1997)
1. INTRODUCTION. Section 53312.7(a) of the California Government Code requires that the City of
Moorpark (the "City") consider and adopt local goals and policies concerning the use of the Mello -Roos
Community Facilities Act of 1982 (the "Act "), prior to the initiation of proceedings on or after January 1,
1994 to establish a new community facilities district ( "CFD ") under the Act. The following goals and policies
are intended to satisfy the minimum requirements of the Act, and may be amended or supplemented by
resolution of the City Council of the City at any time.
II. GOALS. The City will consider the use of the Act for financing of public facilities and services only
in connection with commercial and industrial developments. CFDs may include property used for
commercial or industrial purposes, , or office buildings. Any request for a CFD which is not integral to a
commercial and/or industrial development will require amendment of these goals and policies, and will be
considered on a case by case basis.
All City and consultant costs incurred in the evaluation of new CFD applications and the establishment
and formation of CFDs will be paid by the applicant(s) by advance deposit increments. The applicant will
pay all consultant charges plus the City's standard overhead rate. Further, the applicant shall pay for all City
staff time at the standard rate as approved by City Council resolution. The City shall not incur any non -
reimbursable expense for processing CFDs. Expenses not chargeable to the CFD shall be borne by the
applicant.
III. ELIGIBLE PUBLIC FACILITIES AND SERVICES. The improvements eligible to be financed
by a CFD must be owned by a public agency or public utility, and must have a useful life of at least five (5)
years, except that up to five percent of the proceeds of an issue may be used for facilities owned and operated
by privately -owned public utility. The development proposed within a CFD must be consistent with the
City's general plan and must have received any required zoning or specific plan approvals. A CFD shall not
vest any rights to future land use on any properties. including those which are responsible for paying special
taxes.
The list of public facilities eligible to be financed by a CFD include. but are not limited to, the following:
• Streets, highways and bridges
• Street lighting o Libraries
• Traffic signals and safety lighting o Public utilities
• Parks o Police and fire protection facilities
• Governmental facilities 0 Recreation facilities, including golf courses
• Sanitary sewer facilities a Biological mitigation measures involving
• Storm drain facilities land acquisition, dedication and revegetation
• Flood control facilities
• Potable and reclaimed water facilities
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The funding of public facilities to be owned and operated by public agencies other than the City shall be
considered on a case -by -case basis. if the proposed financing is consistent with a public facilities financing
plan approved by the City, or the proposed facilities are otherwise deemed to be appropriate for financing by
a CFD and are consistent with approved land use plans for the property, the City shall consider entering into
a joint financing agreement or joint powers authority in order to finance these facilities. A joint agreement
with the public agency that will own and operate any such facility must be entered into prior to the resolution
of formation relating to the formation of any CFD_ unless otherwise permitted under the Act.
The City will consider on a case -by -case basis CFDs established for the provisions of services eligible to
be funded under the Act. Eligible services are as specified in the Act.
IV. PRIORITIES FOR CFD FINANCING. Priority for CFD financing shall be given to public
facilities which: (a) are necessary for development to proceed in an orderly fashion, or (b) are otherwise
coordinated to correspond to the phasing of the related private development project. If appropriate, the City
shall prepare a public facilities financing plan as a part of the specific plan or other land use document that
identifies the public facilities required to serve a project, and the type of financing to be utilized for each
facility. The City will attempt to schedule construction of CFD financed facilities in a manner such that
private development will not occur ahead of the installation of public infrastructure necessary to support that
development.
V. CREDIT QUALITY REQUIREMENTS FOR CFD BOND ISSUES. CFD bond issues should have
at least a three and one -half to one property value to public lien ratio after calculating the value of the
financed public improvements to be installed. Property value may be based on either an appraisal or on
assessed values as indicated on the County Assessor's tax roll. The appraiser shall be selected by the City,
and the appraisal shall be based on standards promulgated by the State of California and otherwise determined
applicable by City staff and consultants. The appraisal should be dated within six months of the date the
bonds are issued. The public lien amount shall include the bond issue currently being sold plus any public
indebtedness secured by a fixed lien on real property currently existing against the properties to be taxed.
A reserve fund equal to the lesser of (I) ten percent of the original proceeds of the bond issue, (ii) the
maximum annual debt service on the bonds, or (iii) one hundred twenty-five percent of the average annual
debt service on the bonds shall be required for all bond issues for CFDs where less than fifty percent of the
buildable acreage has been developed. A smaller reserve fund may be required by the City for bond issues
in CFDs where over fifty percent of the buildable acreage has been developed.
Less than a three and one -half to one property value to public lien ratio, excessive tax delinquencies, or
projects of poor economic viability may cause the City to disallow the sale of bonds or require credit
enhancement prior to bond sale, but not limited to a letter of credit or escrow deposit. The City may consider
exceptions to the above policies for bond issues that do not represent an unusual credit risk, either due to
credit enhancement or other reasons specified by the Cite, or which otherwise provide extraordinary public
benefits, to the extent permitted by and subject to any applicable requirements of the Act.
If the City requires letters of credit or other security, the credit enhancement shall be issued by an
institution, in a form and upon terms and conditions satisfactory to the City. Any security required to be
provided by the applicant may be discharged b\ the City upon the opinion of a qualified appraiser, retained
by the City, that a value -to -lien ratio of three and one -half to one has been attained or based upon other
criteria (such as diversity in ownership) specified by the City
As an alternative to providing other security. the applicant may request that a portion of the bond proceeds
2
be placed in escrow with a corporate trust agent in an amount sufficient to assure a value -to -lien ratio of at
least three and one -half to one on the outstanding bonds. The proceeds shall be released from the escrow at
such times and such amounts as may be necessary to assure a value -to -lien ratio of at least three and one -half
to one on the aggregate outstanding bonds and other indebtedness secured by real property liens as required.
VI. DISCLOSURE REQUIREMENTS.
A. Disclosure Requirements for Developers. Developers who are selling lots or parcels that are within
a CFD shall provide disclosure notice to prospective purchasers that complies with all of the requirements
of Section 53341.5 of the Government Code. The disclosure notice must be provided to prospective
purchasers of property at or prior to the time the contract or deposit receipt for the purchase of property is
executed. Developers shall keep an executed copy of each disclosure document as evidence that disclosure
has been provided to all purchasers of property within a CFD
B. Disclosure Requirements for the Resale of Lots. The Finance Director of the City (or his designee)
shall provide a notice of special taxes to sellers of property (other than developers) which will enable them
to comply with their notice requirements under Section 1102.6 of the Civil Code. This notice shall be
provided by the Finance Director of the City (or his designee) within five working days of receiving a written
request for the notice. A reasonable fee may be charged for providing the notice, not to exceed any maximum
fee specified in the Act.
C. Compliance With Federal Securities Laws. The City shall use all reasonable means to ensure
compliance with applicable federal securities laws in connection with the issuance of debt and the provision
of annual information regarding any CFD established by the City with respect to which bonds have been
issued, including requiring any developer in a CFD who is materia 1 to the bond issue to transmit appropriate
information to the City or its designee for disclosure to bond investors.
VII. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES. Special tax
formulas for CFDs shall provide for minimum special tax levels which satisfy the following expenses of a
CFD: (a) 110 percent gross debt service coverage for all CFD bonded indebtedness, (b) all administrative
expenses of the City related to the CFD, and (c) amounts equal to the differences between expected earnings
on any escrow fund and the interest payments due on bonds of the CFD. Additionally, the special tax formula
may provide for the following: (a) any amounts required to establish or replenish any reserve fund
established in association with the indebtedness of the CFD, (b) the accumulation of funds reasonably
required for future debt service, (c) amounts equal to projected delinquencies of special tax payments, (d) the
costs of remarketing, credit enhancement and liquidity facility fees, (e) the cost of acquisition, construction,
furnishing or equipping of facilities, (f) lease payments for existing or future facilities, (g) costs associated
with the release of funds from an escrow account, and (h) any other costs or payments permitted by the Act.
The special tax formula shall be reasonable in allocating public facilities' costs to parcels within the CFD.
Exemptions from the special tax may be given to parcels which are publicly owned, are held by a property
owners' association, are used for a public purpose such as open space or wetlands, are affected by public
utility easements making impractical their utilization for other than the purposes set forth in the easements,
or have insufficient value to support bonded indebtedness
The total projected property tax levels for any CFD shall not exceed any maximum specified in the Act.
The annual increase, if any, in the maximum special tax for any parcel shall not exceed any maximum
specified in the Act. In general, the City may allow a two percent (2 %) annual increase in maximum special
tax levies on nonresidential parcels In any event, the increase in the special tax levied on any parcel as a
3
consequence of delinquency or default by the owner of any other parcel shall not exceed any maximum
specified in the Act. Special taxes may be subject to prepayment in whole or in part.
Special taxes will only be levied on an entire County Assessor's parcel, and any allocation of special tax
liability of a County Assessor's parcel to leasehold or possessory interest in the fee ownership of such County
Assessor's parcel shall be the responsibility of the fee owner of such parcel and the City shall have no
responsibility therefore and has no interest therein. Failure of the owner of any County Assessor's parcel to
pay or cause to be paid any special taxes in full when due, shall subject the entire parcel to foreclosure in
accordance with the Act.
The City may retain a special tax consultant to prepare a report which: (a) recommends a special tax for
the proposed CFD, and (b) evaluates the special tax proposed to determine its ability to adequately fund
identified public facilities, City and CFD administrative costs, services (if applicable) and other related
expenditures. Such analysis shall also address the resulting aggregate tax burden of all proposed special taxes
plus existing special taxes, ad valorem taxes and assessments on the properties within the CFD.
VIII. APPRAISALS. 'The definitions, standards and assumptions to be used for appraisals shall be
determined by City staff on a case -by -case basis, with input from City consultants and CFD proponents, and
by reference to relevant materials and information promulgated by the State of California. In any event, the
value -to -lien ratio shall be determined based upon assessed values as indicated on the County Assessor's tax
roll or an appraisal of the land within the proposed CFD by an independent MAI appraiser. Any appraisal
shall be coordinated by and under the direction of the City All costs associated with the preparation of the
appraisal report shall be paid by the entity requesting the establishment of the CFD through the advance
deposit mechanism.
IX. TERMS AND CONDITIONS OF BONDS. All terms and conditions of any CFD bonded
indebtedness shall be approved by the City. The City will control, manage and invest, or cause to be
controlled, managed and invested, all CFD bond proceeds. Each bond issue shall be structured to not
negatively impact the bonding capacity or credit rating of the City, through the special taxes, credit
enhancements, foreclosure covenant. and reserve funds
All statements and material related to the sale of bonds shall emphasize and state that neither the faith,
credit nor the taxing power of the City is pledged to the security or repayment of the bonds. The sole source
of pledged revenues to repay CFD bonds shall be special taxes, bond proceeds and reserve funds held under
the bond document, and the proceeds of foreclosure proceedings and additional security instruments provided
at the time of bond issuance
X. CFD COST DEPOSITS AND REIMBURSEMENTS. All City and consultant costs incurred in the
evaluation of CFD applications and the establishment of CFDs will be paid by the entity requesting the
establishment of the CFD by advance deposit increments The City, shall not incur any non - reimbursable
expenses for processing and administering CFDs Expenses not chargeable to the CFD shall be directly borne
by the applicant.
Each petition for formation of a CFD shall be accompanied by an initial deposit in the amount determined
by the City to fund initial staff and consultant costs associated with CFD review and implementation. Such
costs shall be the responsibility of the entity whether the CFD is formed or not, or bonds are sold or not. If
additional funds'are needed to off -set costs and expenses incurred by the City, the City shall make written
demand upon the applicant for such funds. If the applicant fails to make any deposit of additional funds for
the proceedings, the City may suspend all proceedings until receipt of such additional deposit.
4
The City shall not accrue or pay any interest on any portion of the deposit refunded to the applicant or the
costs and expenses reimbursed to the applicant Neither the City nor the CFD shall be required to reimburse
the applicant or property owner from any funds other than the proceeds of bonds issued by the CFD.
XI. USE OF CONSULTANTS. The City shall select all consultants necessary for the formation of the
CFD and the issuance of bonds, including the underwriter(s), bond counsel, financial advisor, appraiser and
the special tax consultant, after reasonable consultation with the proponent of the CFD. Prior consent of any
such proponent or any land owner within a CFD shall not be required in the determination by the City of the
consulting and financing team.
XII. EXCEPTIONS TO THESE POLICIES. The City may find in limited instances that a waiver of
any of the above stated policies is reasonable given identified City benefits to be derived from such waiver.
Such waivers only will be granted by action of the City Council of the City.
CAWPD0MCC.REP\G0ALS. W P
MOORPARK
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) ss.
CITY OF MOORPARK )
I, Lillian E. Hare,
do hereby certify
Resolution No. 97-
City of Moorpark a
FEBRUARY
following vote:
City Clerk of the City of Moorpark, California,
under penalty of perjury that the foregoing
1279 was adopted by the City Council of the
t a meeting held on the 19th day of
1997, and tha` the same was adopted by the
AYES: COUNCILMEMBERS EVANS, PEREZ, TEASLEY, WOZNIAK AND MAYOR HUNTE
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
WITNESS my hand and the official seal of said City this 21st
day of FEBRUARY_ 199.
�'�z -" "'�" vt't-o' "
Gillian E. Hare, CMC
�ity Clerk
PATRICK HUNTER BERNARDO M. PEREZ CHRISTOPHER EVANS DEBBIE RODGERS TEASLEY JOHN E. WOZNIAK
Mayor Mayor Pro Tern Councilmember Councilmember Councilmember