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HomeMy WebLinkAboutItem 4.11 - 2300 2nd reading Special Tax Levy 2015-1 Page 1 of 2 STAFF REPORT CITY COUNCIL DATE: November 20, 2018 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Amended and Restated Ordinance Levying a Special Tax Within and Relating to CFD 2015-1 Prepared by: Jay Baksa, Financial Analyst EXECUTIVE SUMMARY: On November 8, 2018, the City Council waived the reading and introduced an amended and restated Ordinance Levying a Special Tax, that clarified the mechanics of the levy within Community Facilities District (CFD) 2015-1 (Dublin Crossing). The City Council is now being asked to waive the second reading and adopt the Ordinance Levying a Special Tax within CFD 2015-1. STAFF RECOMMENDATION: Waive the reading and adopt An Amended and Restated Ordinance of the City Council of the City of Dublin Levying a Special Tax Within and Relating to the City of Dublin Community Facilities District No. 2015-1 (Dublin Crossing). FINANCIAL IMPACT: There is no financial impact on City funds. All costs will be covered by bond proceeds. DESCRIPTION: On June 2, 2015, as part of the actions taken in the formation of Community Facilities District (CFD) No. 2015-1, the City Council introduced an Ordinance levying special taxes within the CFD boundaries. Ordinance 3-15 (Attachment 1) was subsequently adopted on June 16, 2015. Upon review of Ordinance 3-15 for this second CFD bond issuance, the City’s bond counsel recommended modifications to the language in Section 3 in order to clarify the timing and amount of the levy. In particular, the Amended and Restated Ordinance (Attachment 2) modifies Section 3 regarding the levy of special taxes within Improvement Areas 2 - 5. First, it clarifies that the special tax shall be levied in accordance with the rate and method of apportionment of special tax (RMA) in each Page 2 of 2 Improvement Area, which may be modified occasionally. Second, the original Ordinance provided that the levies within Improvement Areas 2 - 5 can only begin the first day of the fiscal year following date of annexation of a parcel, which would be problematic if homes in the CFD are purchased mid-fiscal year. On November 8, 2018, the City Council, waived the first reading and introduced the amended and restated Ordinance Levying a Special Tax that clarified the mechanic s of the levy within CFD 2015-1. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Ordinance 3-15 2. An Amended and Restated Ordinance of the City of Dublin Levying a Special Tax Within and Relating to the City of Dublin Community Facilities District No, 2015-1 (Dublin Crossing) ORDINANCE NO. 3-15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN LEVYING A SPECIAL TAX WITHIN AND RELATING TO THE CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2015-1 (DUBLIN CROSSING) RECITALS WHEREAS, by legal proceedings taken by the City Council (the "City Council") of the City of Dublin (the "City") pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter in this ordinance, the "Act"), together with the voter approval received at a special election held on June 2, 2015, the City Council has been authorized to levy a special tax (the "Special Tax") upon all nonexempt property within the City of Dublin Community Facilities District No. 2015-1 (Dublin Crossing) ("CFD No. 2015-1"); and WHEREAS, as set forth in the resolution entitled, "Resolution of Formation of a Community Facilities District, Including Designation of Improvement Area No. 1 and Future Annexation Area; Conditional Authorization to Levy a Special Tax; and Conditional Establishment of Initial Appropriations Limit for Improvement Area No. 1" (the "Resolution of Formation"), the Special Tax is to be levied on the nonexempt property within each of five separate improvement areas of CFD No. 2015-1 in accordance with the applicable rate and method,,of apportionment of special tax each, an "RMA"), as follows: a the RMA for Improvement Area No. 1, attached to the Resolution of Formation as Exhibit B Exhibit B); and b. the RMA for Improvement Area No. 2, attached to the Resolution of Formation as Exhibit C Exhibit C); and c. the RMA for Improvement Area No. 3, attached to the Resolution of Formation as Exhibit D Exhibit D); and d. the RMA for Improvement Area No. 4, attached to the Resolution of Formation as Exhibit E Exhibit E); and e. the RMA for Improvement Area No. 5, attached to the Resolution of Formation as Exhibit F Exhibit F). WHEREAS, having received voter approval at the June 2 special election, the City Council now wishes by this ordinance to levy the special tax in accordance with the Resolution of Formation and the Act. NOW, THEREFORE, the Dublin City Council does ordain as follows: SECTION 1: LEVY OF SPECIAL TAX Pursuant to Sections 53328 and 53340 of the Act, and in accordance with the applicable RMA, as recited above, the Special Tax is hereby levied on all nonexempt parcels within CFD No. 2015-1. As of the date of adoption of the Resolution of Formation, all of the property within CFD No. 2015-1 has been designated as Improvement Area No. 1. Page 1 of 3 SECTION 2: LEVY OF SPECIAL TAX WITHIN IMPROVEMENT AREA NO. 1 Without limiting the generality of the foregoing Section 1, the Special Tax shall be levied on the nonexempt parcels within Improvement Area No. 1 in accordance with the terms and conditions of Exhibit B. The first Fiscal Year for which the Special Tax shall be levied within Improvement Area No. 1 shall be 2015-16 or such subsequent Fiscal Year as may be determined in accordance with Exhibit B. SECTION 3: LEVY OF SPECIAL TAX WITHIN IMPROVEMENT AREA NOS. 2 THROUGH 5, INCLUSIVE Without limiting the generality of the foregoing Section 1, the Special Tax shall be levied on the nonexempt parcels within each of Improvement Area Nos. 2 through 5, inclusive, in accordance with the corresponding RMA, as set forth in Exhibit C, Exhibit D, Exhibit E and Exhibit F, respectively. The first Fiscal Year for which the Special Tax shall be levied within each of Improvement Area Nos. 2 through 5, inclusive, shall be the Fiscal Year beginning on July 1 next following the occurrence of each of the following: a. a portion of the property which has been designated as "Future Annexation Area" on the recorded boundary map for CFD No. 2015-1 shall have been annexed to CFD No. 2015-1 in accordance with the Act and either (i) designated as a separate improvement area, separate and apart from any previously-established improvement area, (ii) annexed to Improvement Area No. 1, or (iii) annexed to a previously-established improvement area other than Improvement Area No. 1; and b. an annexation map shall have been recorded with the Alameda County Recorder in accordance with Section 3110.5 of the California Streets and Highways Code (the "S&H Code"); and c. for property annexed to Improvement Area No. 1 or another then-established improvement area, an amendment to the Notice of Special Tax Lien shall have been recorded with the Alameda County Recorder in accordance with Section 3117.5 of the S&H Code. provided that the first Fiscal Year for which the Special Tax shall be levied on the nonexempt parcels of any of Improvement Areas No. 2 through 5 may be a Fiscal Year subsequent to the Fiscal Year prescribed by the foregoing as shall be determined in accordance with the applicable RMA. SECTION 4: ANNUAL DETERMINATION OF SPECIAL TAX AMOUNTS The officer of the City designated as the "Administrator" (as said term is defined in each of Exhibits B through F, inclusive), with the aid of the appropriate officers, agents and consultants of the City, is authorized and directed to determine each Fiscal Year, without further action by the City Council, the amount of the Special Tax on each nonexempt parcel in accordance with the RMA applicable to each such nonexempt parcel and to provide all necessary and appropriate information to the Alameda County Auditor in proper form and in the proper time to effect the correct and timely billing and collection of the Special Tax in the same manner and at the same time as ordinary ad valorem property taxes levied by Alameda County (the "County") on each nonexempt parcel; provided that, as provided in the Resolution of Formation and Section 53340 of the Act, the City reserves the right to utilize any method of collecting the Special Tax which it shall, from time to time, determine to be in the best interests of the City, including but not limited to direct billing by the City to the property owners and supplemental billing. Page 2 of 3 SECTION 5: ADJUSTMENTS TO CORRECT COMPUTATIONAL ERRORS AUTHORIZED The Administrator, with the aid of the appropriate officers, agents and consultants of the City, are authorized to make adjustments to the amount of the Special Tax for any nonexempt parcel prior to the final posting of the annual Special Tax to the secured property tax roll of the County each Fiscal Year, as may be necessary to correct any computational error which has been timely discovered or to achieve a correct match between the Special Tax amount being levied and the assessor's parcel number finally utilized by the County in sending out property tax bills. SECTION 6: SEVERABILITY The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or circumstances. SECTION 7: POSTING OF ORDINANCE AND EFFECTIVE DATE The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. This Ordinance shall take effect and be enforced thirty (30) days following its adoption. PASSED, APPROVED AND ADOPTED this 16th day of June, 2015, by the following vote: AYES: Councilmembers Biddle, Gupta, Wehrenberg, and Mayor Haubert NOES: None ABSENT: Councilmember Hart ABSTAIN: None ayor ATTEST: dfrp lam. P Vr City Clerk Ord No. 3-15,Adopted 6-16-15, Item 4.13 Page 3 of 3 ORDINANCE NO. ___-18 AN AMENDED AND RESTATED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * * * LEVYING A SPECIAL TAX WITHIN AND RELATING TO THE CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2015-1 (DUBLIN CROSSING) RECITALS WHEREAS, by legal proceedings taken by the City Council (the “City Council”) of the City of Dublin (the “City”) pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereinafter, the “Act”), together with the voter approval received at a special election held on June 2, 2015, the City Council has been authorized to levy a special tax (the “Special Tax”) upon all nonexempt property within the City of Dublin Community Facilities District No. 2015-1 (Dublin Crossing) (“CFD No. 2015-1”); and WHEREAS, as set forth in the resolution entitled, "Resolution of Formation of a Community Facilities District, Including Designation of Improvement Area No. 1 and Future Annexation Area; Conditional Authorization to Levy a Special Tax; and Conditional Establishment of Initial Appropriations Limit for Improvement Area No. 1" (the "Resolution of Formation"), the Special Tax is to be levied on the nonexempt property within each of five separate improvement areas of CFD No. 2015-1 (each, an “Improvement Area”) in accordance with the applicable rate and method of apportionment of special tax, as initially attached to the Resolution of Formation as Exhibits B through F thereto, and as may be modified or amended from time-to-time (each, an "RMA"); and WHEREAS, pursuant to Ordinance No. 3-15, adopted by the City Council on June 16, 2015, the City Council has been levying the Special Tax within CFD No. 2015-1; and WHEREAS, the City Council wishes to amend and restate, in full, Ordinance No. 3-15 in order to clarify the timing and amount of the levy of the Special Tax within CFD No. 2015-1. NOW, THEREFORE, the City Council of the City of Dublin does ordain as follows: SECTION 1: LEVY OF SPECIAL TAX Pursuant to Sections 53328 and 53340 of the Act, and in accordance with the applicable RMA for each Improvement Area, the Special Tax is hereby levied on all nonexempt parcels within CFD No. 2015-1. As of the date of adoption of the Resolution of Formation, all of the property within CFD No. 2015-1 has been designated as Improvement Area No. 1. SECTION 2: LEVY OF SPECIAL TAX WITHIN IMPROVEMENT AREA NO. 1 Without limiting the generality of the foregoing Section 1, the Special Tax shall be levied on the on exempt parcels within Improvement Area No. 1 in accordance with the terms and conditions of the RMA for Improvement Area No. 1, in the form as set forth as an exhibit to the Resolution of Formation or as may be modified or amended from time-to-time. The first Fiscal Year for which the Special Tax shall be levied within Improvement Area No. 1 shall be 2015-16 or such 2 subsequent Fiscal Year as may be determined in accordance with the RMA for Improvement Area No. 1. SECTION 3: LEVY OF SPECIAL TAX WITHIN IMPROVEMENT AREA NOS. 2 THROUGH 5, INCLUSIVE Without limiting the generality of the foregoing Section 1, the Special Tax shall be levied on the nonexempt parcels within each of Improvement Areas Nos. 2 through 5, inclusive, in accordance with the corresponding RMA for such Improvement Area, in the form as set forth as an exhibit to the Resolution of Formation or as may be modified or amended from time-to-time. The Special Tax shall be levied on each nonexempt parcel within each of Improvement Areas No. 2 through 5, inclusive, from the date of the annexation of such parcel into such Improvement Area, or such later date as set forth in the unanimous approval form or other documents pursuant to which such parcel has annexed into CFD 2015-1. SECTION 4: ANNUAL DETERMINATION OF SPECIAL TAX AMOUNTS The officer of the City designated as the "Administrator" (as said term is defined in each RMA), with the aid of the appropriate officers, agents and consultants of the City, is authorized and directed to determine each Fiscal Year, without further action by the City Council, the amount of the Special Tax on each nonexempt parcel in accordance with the RMA applicable to each such nonexempt parcel and to provide all necessary and appropriate information to the Alameda County Auditor in proper form and in the proper time to effect the correct and timely billing and collection of the Special Tax in the same manner and at the same time as ordinary ad valorem property taxes levied by Alameda County (the "County") on each nonexempt parcel; provided that, as provided in the Resolution of Formation and Section 53340 of the Act, the City reserves the right to utilize any method of collecting the Special Tax which it shall, from time to time, determine to be in the best interests of the City, including but not limited to direct billing by the City to the property owners and supplemental billing. SECTION 5: ADJUSTMENTS TO CORRECT COMPUTATIONAL ERRORS AUTHORIZED The Administrator, with the aid of the appropriate officers, agents and consultants of the City, are authorized to make adjustments to the amount of the Special Tax for any nonexempt parcel prior to the final posting of the annual Special Tax to the secured property tax roll of the County each Fiscal Year, as may be necessary to correct any computational error which has been timely discovered or to achieve a correct match between the Special Tax amount being levied and the assessor's parcel number finally utilized by the County in sending out property tax bills. SECTION 6: SEVERABILITY The provisions of this Amended and Restated Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or circumstances. SECTION 7: POSTING OF ORDINANCE AND EFFECTIVE DATE The City Clerk of the City of Dublin shall cause this Amended and Restated Ordinance to be posted in at least 3 public places in the City of Dublin in accordance with Section 36933 of the 3 Government Code of the State of California. This Amended and Restated Ordinance shall take effect and be enforced within 30 days following its adoption, and upon the effectiveness of this Amended and Restated Ordinance, Ordinance 3-15 shall be no longer of any force or effect. If this Amended and Restated Ordinance does not become effective for any reason, Ordinance 3- 15 shall remain in full force and effect. PASSED, APPROVED AND ADOPTED this ___ day of _____, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________ Mayor ATTEST: ____________________________ City Clerk