HomeMy WebLinkAboutReso 11-15 Adopting Local Goals and Policies for the City of Dublin's Use of The Mello-Roos Community Facilities Act of 1982 RESOLUTION NO. 11 - 15
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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ADOPTING LOCAL GOALS AND POLICIES
FOR THE CITY OF DUBLIN'S USE OF
THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
WHEREAS, this City Council of the City of Dublin (the "City") intends to undertake legal
proceedings for establishment of a community facilities district (the "CFD"), the designation of an
improvement area and the identification of property for future annexation, all pursuant to the Mello-Roos
Community Facilities Act of 1982 (the "Act") and, subject to such proceedings and to thereafter obtaining
the approval of the qualified electors of the CFD as required by the Act, to undertake legal proceedings for
the authorization, issuance and sale, in one or more series, of special tax bonds or other debt obligations
of the City, acting on behalf of the CFD (the "Obligations"), to be secured by a pledge of proceeds of the
special tax to levied on taxable parcels within the CFD; and
WHEREAS, in connection with such intention and in compliance with the requirements of Sections
53312.7 and 53345.8 of the Act, this City Council wishes to adopt local goals and policies applicable to
the City's use of the Act; and
WHEREAS, a copy of the "Local Goals and Policies Concerning Use of the Mello-Roos
Community Facilities Act of 1982" (the "Local Goals and Policies") has been filed with the City Clerk of the
City (the "City Clerk") for consideration and adoption by this City Council, and a copy of the Local Goals
and Policies is attached hereto as Exhibit A and by this reference incorporated herein; and
WHEREAS, in compliance with the requirements of Sections 53312.7 and 53345.8 of the Act, this
City Council wishes to adopt the Local Goals and Policies.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby:
1) Determine that the Local Goals and Policies contain the matters required for compliance with
Sections 53312.7 and 53345.8 of the Act; and
2) Adopt the Local Goals and Policies in the form on file with the City Clerk, a copy of which is
attached hereto as Exhibit A.
PASSED, APPROVED AND ADOPTED this 20th day of January, 2015, by the following vote:
AYES: Councilmembers Biddle, Gupta, and Mayor Haubert
NOES: Councilmember Hart
ABSENT: None
ABSTAIN: None
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Mayor
ATTEST: "1 ,cAs„
City Clerk
Reso No. 11-15,Adopted 1-20-15, Item 8.1 Page 1 of 1
Exhibit A
City of Dublin
Local Goals and Policies Concerning
Use of Mello-Roos Community Facilities Act of 1982
The City Council (the "City Council") of the City of Dublin (the "City") has
considered and hereby adopts the following in compliance with Section 53312.7 and
53345.8 of the Mello-Roos Community Facilities Act of 1982 (the "Act").
A. General Policy Respecting Use of the Act.
As a matter of general policy, the City will utilize the Act for purposes of(1)acquiring
and constructing and providing financing for all or a prescribed portion of the cost and
expense of public capital improvements ("facilities") to be owned by the City and any other
local agency or public utility providing an essential governmental services to the City and its
inhabitants and (2) financing all or a prescribed portion of the estimated cost and expense
of maintaining and operating those facilities to be owned by the City to the extend permitted
by the Act. In general, it will be the policy of the City not to provide for services which are
not related to maintaining and operating the facilities which are financed, except where it
may be beneficial and in furtherance of policies of the City to encourage commercial or
residential development and to provide for such services on a consolidated and
coordinated basis.
It is expressly understood that the contents of these Local Goals and Policies
constitute a statement of policies and shall not be construed to constitute a statement of
legal requirements or limitations. The City shall look to the provisions of the Act or the
City's adopted municipal code for such legal requirements and limitations.
B. Priorities for Use of Act.
Reserving the right to make exceptions when circumstances warrant, the City
establishes the following priority for use of the Act:
1. Facilities which provide a community-wide benefit to all inhabitants of the
City;
2. Facilities needed to serve a community plan or specific plan area that is
currently deficient in off-site infrastructure needed to develop the area as
planned; that is: "backbone" infrastructure to support already-approved
community plan or specific plan areas;
3. Other facilities for which there is a clearly demonstrated public benefit but
which benefit is likely to be greater to specific sub-areas of the City rather
than community-wide;
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4. Other facilities permitted by the Act; and
5. The cost and expense of maintaining and operating any of the foregoing
facilities.
C. Required Credit Quality.
The City Council adopts the requirements of Section 53345.8 of the Act as sufficient
minimum standards for the credit quality of any bonds issued pursuant to the Act.
D. Disclosure to Property Purchasers.
The City Council finds that the statutory requirements of disclosure to property
purchasers contained in the Act, most notably, but not limited to, Sections 53328.3,
53328.5 (including the referenced sections of the California Streets and Highways Code),
53340.2 and 53341.5 adequately address this need, and no additional procedures need be
imposed by the City. The City Council reserves the right to require additional disclosure
procedures in any particular case.
E. Requirements for Special Tax Formulas.
Except in circumstances warranting a departure from the following, the proposed
rate and apportionment of the special tax (the "Special Tax Formula") for each community
facilities district("CFD")shall comply with the following criteria:
1. The Special Tax Formula shall be structured to produce sufficient annual
special tax revenue to pay: (a) annual debt service on special tax bonds
which have been issued, if any, (b) reasonable annual administrative
expenses of the City in the administration of the special taxes and the bonds,
if any, of the CFD and (c) the cost of any services and "pay as you go"
programs funded by the CFD special tax. The foregoing shall not be
construed to exclude other components which may be considered for
inclusion in the annual special tax revenue.
2. Where appropriate, consideration may be given to providing for a backup
special tax to protect against unforeseen contingencies, including but not
limited to unusual levels of delinquency in the payment of the special tax.
2. The Special Tax Formula may provide for an annual increase in the
maximum special tax for residential properties not to exceed two percent
(2%) annually and shall provide for prepayment and discharge of that portion
of the special tax obligation on any residential properties pertaining to debt
service on special tax bonds, if any, as distinguished from that portion of the
special tax obligation on such residential properties pertaining to services.
4. The total projected annual special tax revenues, less estimated annual
administrative expenses, should generally exceed the projected annual gross
debt service on outstanding special tax bonds, if any, by ten percent(10%).
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5. Absent circumstances warranting a departure from the following, all property
within the CFD not otherwise statutorily exempted or owned (or to be owned)
by a public entity and to be benefited should bear its reasonable share of the
special tax liability.
6. The rate and method of apportionment of the special tax shall be structured
to allocate and apportion the special taxes on the basis of reasonableness to
all categories and classes of property within the CFD not statutorily
exempted.
7. Absent circumstances warranting a departure from the following, the total
amount of projected ad valorem property tax and other direct and overlapping
debt for the proposed CFD (including estimated CFD charges, projected
benefit assessments, levies for authorized but unissued debt and any other
anticipated municipal charges which may be included on a property owner's
annual property tax bill), including the proposed maximum special tax, should
not exceed two percent (2%) of the estimated market value for any single
family home, condominium, town home or like residential unit.
F. Appraisal Standards.
The Appraisal Standards for Land Secured Financings (the "Standards") published
by the California Debt and Investment Advisory Commission, originally dated May 1994
and as amended July 2004, are adopted as the appraisal standards for the City.
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