HomeMy WebLinkAboutReso 50-17 Adopting Amended and Restated Local Goals and Policies for Use of the Mello-Roos Community Facilities Act of 1982 RESOLUTION NO. 50 — 17
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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ADOPTING AMENDED AND RETATED LOCAL GOALS AND POLICIES FOR USE OF THE
MELLO-ROOS COMMUNITY FACILIITES ACT OF 1982
WHEREAS, this City Council (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; 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 amended and restated
local goals and policies applicable to the City's use of the Act; and
WHEREAS, a copy of the amended and restated "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 amended and restated 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 amended and restated Local Goals and Policies.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby:
1. Determine that the amended and restated Local Goals and Policies contain the matters
required for compliance with Sections 53312.7 and 53345.8 of the Act; and
2. Adopt the amended and restated 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 16th day of May 2017, by the following vote:
AYES: Councilmembers Biddle, Goel, Gupta, Hernandez and Mayor Haubert
NOES:
ABSENT:
ABSTAIN:
_/11-4-
Mayor
ATTEST:
;11-
City Clerk
Reso No. 50-17, Adopted 5/16/2017, Item No. 4.3 Page 1 of 1
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) providing
financing to fund public services (2) 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 (3) 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.
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;
4. Other facilities permitted by the Act;
5. The cost and expense of maintaining and operating any of the foregoing facilities;
and
6. The cost and expense of financing services designated for funding with the CFD
special tax.
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.
3. The Special Tax Formula may provide for an annual increase in the maximum
special tax for residential properties not to exceed two percent (4%) 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, plus the amount necessary for services, by ten
percent(10%).
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.
2713490.2