The URL can be used to link to this page

Home My WebLink AboutG-1 Staff Report - Second Reading and Adoption of Ordinance 2017-04 relating to CFDORDINANCES/SPECIAL RESOLUTIONS G-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: STEPHAN E. HUNT, CHIEF OF POLICE/ACTING CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF FINANCE DATE: JULY 17, 2017 SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2017-04 LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2017-2018 WITHIN THE COMMUNITY FACILITIES DISTRICT SUMMARY: At the June 19, 2017 meeting, the City Council adopted resolutions necessary to form a Mello-Roos Community Facilities District (“CFD”) for the purpose of partially funding public safety services required by new development located within the City and also conducted a public hearing to consider formation of the CFD. Ordinance No. 2017-04, Levying Special Taxes to be Collected During Fiscal Year 2017-2018 Within the Community Facilities District, was also introduced for first reading. The proposed action conducts a second reading of the Ordinance, by title only, and adopts Ordinance No. 2017-04. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Read by title only, second reading, and adopt Ordinance No. 2017-04: AN ORDINANCE LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2017-2018 WITHIN THE COMMUNITY FACILITIES DISTRICT. DISCUSSION: At the June 19, 2017 meeting, the City Council adopted resolutions necessary to form a Mello-Roos Community Facilities District (“CFD”) for the purpose of partially funding public safety services required by new development located within the City and also conducted a public hearing to consider formation of the CFD. Ordinance No. 2017-04, Levying Special Taxes to be Collected During Fiscal Year 2017-2018 Within the Community Facilities District, was also introduced for first reading. If no further revisions to the Ordinance are desired, the City Council can move for the adoption of the Ordinance. APPROVED CITY COUNCIL 7/17/2017 Adoption of Ordinance No. 2017-04 July 17, 2017 Page 2 FISCAL IMPACT: The proposed CFD 2017-1 formation has a projected positive fiscal impact to the City, as the additional services needed from new development will be paid for by the development creating the impact on City services. Prepared by: Reviewed and Approved: Talika M. Johnson Louie F. Lacasella Director of Finance Management Analyst Reviewed and Approved: Stephan E. Hunt Chief of Police/Acting City Manager Attachment: 1) Ordinance No. 2017-04 45635.01433\29778352.1 -1- ORDINANCE NO. 2017-04 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES), COUNTY OF LOS ANGELES, STATE OF CALIFORNIA WHEREAS, on June 19, 2017, the City Council of the City of Azusa (the “City Council”) adopted a resolution entitled “Resolution of the City Council of the City of Azusa Establishing City of Azusa Community Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, State of California, and the Boundaries Thereof (the “Resolution of Formation”) which established City of Azusa Community Facilities District No. 2017-1 (Public Safety Services) (the “District”) pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), for the purpose of providing fire protection and suppression services and police protection services; and WHEREAS, notice was published as required by the Act relative to the intention of the City Council to form the District and to provide for the funding of the purposes thereof; and WHEREAS, the City Council has held a noticed public hearing as required by the Act relative to the determination to proceed with the formation of the District and the rate and method of apportionment of the special tax to be levied within the District to fund the fire protection and suppression services and police protection services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the levy of said special taxes were heard, substantial evidence was presented and considered by the City Council and a full and fair hearing was held; and WHEREAS, subsequent to said hearing the City Council adopted a resolution entitled “Resolution of the City Council of the City of Azusa Calling a Special Election and Submitting to the Voters of City of Azusa Community Facilities District No. 2017-1 (Public Safety Services) a Proposition with Respect to the Annual Levy of Special Taxes Within Said Community Facilities District to Pay the Costs of Certain Services to be Provided by the Community Facilities District and a Proposition with Respect to Establishing an Appropriations Limit for Said Community Facilities District” which resolution called an election within the District on the proposition of levying a special tax and establishing an appropriations limit within the District, respectively; and WHEREAS, an election was held within the District in which eligible landowner electors approved said propositions by more than the two-thirds vote required by the Act. THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Levy of Special Taxes. By the passage of this Ordinance, the City Council hereby authorizes and levies special taxes within the District pursuant to the California Government Code Sections 53328 and 53340, at the rates and in accordance with the method of 45635.01433\29778352.1 -2- apportionment set forth in Exhibit A to the Resolution of Formation (the “Rate and Method of Apportionment’). The special taxes are hereby levied commencing in fiscal year 2018-19 and in each fiscal year thereafter. SECTION 2. Determination of Future Levies. The City Manager or his or her designee is hereby authorized and directed each fiscal year to determine the special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Rate and Method of Apportionment. SECTION 3. Exempt Properties. Properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes, to the extent set forth in the Rate and Method of Apportionment. In no event shall the special taxes be levied on any parcel within the District in excess of the maximum tax specified in the Rate and Method of Apportionment. SECTION 4. Use of Special Taxes. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method of Apportionment, and in the Resolution of Formation including, but limited to, the payment of fire protection and suppression services and police protection services, the payment of the costs of the City in administering the district and the costs of collecting and administering the special tax. SECTION 5. Collection of Special Tax. The special taxes shall be collected from time to time as necessary to meet the financial obligations of the District on the secured real property tax roll in the same manner as ordinary ad valorem taxes are collected. The City Manager or his or her designee, pursuant to the Rate & Method of Apportionment, is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Los Angeles and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amount and at the times necessary to satisfy the financial obligations of the District in each fiscal year until the necessary services of the District are funded, and provision has been made for payment of all of the administrative costs of the District. Notwithstanding the foregoing and notwithstanding the Rate & Method of Apportionment, the City Manager or his or her designee may collect one or more installments of the special taxes by means of direct billing by the City of the property owners within the District, if, in the judgment of the City Manager, or his or her designee, such means of collection will reduce the administrative burden on the City or is otherwise appropriate under the circumstances. In such event the special taxes shall become delinquent if not paid when due as set forth in any such respective billing to the property owners. The special taxes shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. SECTION 6. Validity of Ordinance. If for any reason any portion of this ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the 45635.01433\29778352.1 -3- District by a Court of competent jurisdiction, the balance of this ordinance and the application of the special tax to the remaining parcels within the District shall not be affected. SECTION 7. Publication of Ordinance. This Ordinance shall be published and posted in the manner specified in the California Government Code, and shall become effective immediately upon its adoption. This ordinance shall be subject to referendum pursuant to the laws of the State of California. PASSED, APPROVED AND ADOPTED this 17th day of July, 2017. _____________________________ Joseph Romero Rocha Mayor ATTEST: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk 45635.01433\29778352.1 -4- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Ordinance No. 2017-04 was duly introduced and placed for its first reading at a regular meeting of the City Council on the 19th day of June, 2017, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 17th day of July, 2017, by the following vote of the Council: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: __________________________________ Best Best & Krieger, LLP City Attorney 45635.01433\29778352.1 A-1 EXHIBIT “A” PARCELS OF TAXABLE PROPERTY ASSESSOR’S PARCEL NOS. 8608-027-905 8608-027-906 8608-027-907 8608-027-908 8611-004-902 8611-004-903 8611-004-904 8611-004-905 8611-004-906 8611-004-907 8611-004-912 8611-004-913 8611-004-914 8611-003-921 8608-025-902 8608-025-907 8608-025-908 8608-025-909 8608-025-910