HomeMy WebLinkAboutF-1 Staff Report - Second Reading Ordinance No. 2023-06 CFD 2005-1 AnnexationSECOND READING ORDINANCES
F-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TALIKA JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES
DATE: NOVEMBER 20, 2023
SUBJECT: SECOND READING OF ORDINANCE 2023-06, AUTHORIZING THE LEVY
OF SPECIAL TAXES IN A COMMUNITY FACILITIES DISTRICT,
INCLUDING CERTAIN ANNEXATION TERRITORY IDENTIFIED AS
ANNEXATION NO 1, INTO IMPROVEMENT AREA NO. 3 OF THE
COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE)
BACKGROUND:
On November 6, 2023, the City Council held an election The City Council previously formed the
Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa (the “CFD”), all
pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”). In connection
therewith, the City Council called an election of the landowners within the territory of the CFD
regarding the levy of special taxes therein. The landowners approved the formation of the CFD
and levy of special taxes with over a two-thirds majority vote of the voters voting.
The City Council received a written petition from Rosedale Land Partners II LLC, a Delaware
limited liability company (the “Developer”), the owner of certain real property within the City,
requesting that such property be annexed to the CFD in newly-designated Improvement Area No.
3 (“Improvement Area No. 3”) in order that such property may receive the benefit of services
that will be financed by the annual levy of special taxes on said property for the purpose of
financing police protection, fire protection and suppression services, maintenance of park,
parkways and open space, and any other services permitted to be financed pursuant to the Act
(the “Services”); and agreeing to the annual levy of special taxes on said property sufficient to
pay the costs of such Services and costs incidental thereto.
On November 6, 2023, after holding an election, the City Council adopted a resolution
designating and annexing territory to Improvement Area No. 3 of the CFD pursuant to Section
53339.2 of the California Government Code, determining that the public convenience and
necessity require that certain property to be annexed to Improvement Area No. 3 of the CFD and
containing all of the quire that certain property to be annexed to Improvement Area No. 3 of the
CFD and containing all of the matters prescribed by Section 53339.3 of said Code.
Approved
City Council
November 20, 2023
Second Reading Ordinance 2023-06 Levying Taxes in IA3 of the CFD No. 2005-1 (Rosedale)
November 20, 2023
Page 2
RECOMMENDATION:
Staff recommends the City Council take the following action:
1) Conduct a second reading, read by title only and adopt Ordinance No. 2023-06,
authorizing the Levy of Special Taxes in a Community Facilities District, including
Certain Annexation Territory identified as Annexation No 1, into Improvement Area No.
3 of the Community Facilities District No. 2005-1 (Rosedale).
ANALYSIS:
On November 6, 2023, the City Council held a public hearing regarding the annexation of
territory into Improvement Area No. 3 of the CFD and adopted Resolution No. 2023-C64 (the
“Resolution Calling Election”), consenting the scheduling of the elections for the annexation of
territory into Improvement Area No. 3 of the CFD with respect to the annual levy of special
taxes to pay for the Services.
The City Clerk and the Developer held the election on November 6, 2023. The County of Los
Angeles Registrar of Voters certified there were no registered voters within the boundaries of the
CFD. Following the adoption of the Resolution Calling Election, the City Clerk conducted the
election and declared the election results.
Following the election, the City Council adopted Resolution No. 2023-C65 (the “Resolution
Declaring Results”) within the CFD, which declared the results of the election.
The results were in favor of annexing territory within Improvement Area No. 3 of the CFD,
therefore, the City Council waived the full reading of the Ordinance Levying Special Taxes (the
“Ordinance”), which authorizes the levy of special taxes within the CFD in full and called for the
first reading of such Ordinance by title only.
The recommended action conducts a second reading, read by title only and adoption of
Ordinance No. 2023-06, authorizing the Levy of Special Taxes in a Community Facilities
District, including Certain Annexation Territory identified as Annexation No. 1, into
Improvement Area No. 3 of the Community Facilities District No. 2005-1 (Rosedale).
FISCAL IMPACT:
The annexation of the property to the CFD will allow for the levy of special taxes on the
property. If levied at the maximum authorized rate, for FY 2024/25 the gross special tax amount
for Improvement Area No. 3 will be $18,768 and in accordance with the Rate & Method of
Apportionment (i.e. Special Tax Formula), this amount will increase two-percent (2%) annually
until such time as it is determined that the levy of such special taxes is not required to fund
services. The tax revenues offset the cost the City pays for services such as police protection, fire
protection and suppression services, maintenance of park, parkways and open space, and any
other allowable services.
Second Reading Ordinance 2023-06 Levying Taxes in IA3 of the CFD No. 2005-1 (Rosedale)
November 20, 2023
Page 3
Prepared By: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1) Ordinance No. 2023-06
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ORDINANCE NO. 2023-06
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AZUSA, CALIFORNIA, AUTHORIZING THE LEVY OF
SPECIAL TAXES IN A COMMUNITY FACILITIES
DISTRICT, INCLUDING CERTAIN ANNEXATION
TERRITORY IDENTIFIED AS ANNEXATION NO 1, INTO
IMPROVEMENT AREA NO. 3 OF THE COMMUNITY
FACILITIES DISTRICT NO. 2005-1 (ROSEDALE)
WHEREAS, the City Council (the “City Council”) of the City of Azusa (the
“City”) has established Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa,
County of Los Angeles, State of California (the “District”) and designated Improvement Area No.
1 and Improvement Area No. 2 therein for the purpose of levying, among other things, special
taxes on parcels of taxable property therein for the purpose of providing certain services, which
are necessary to meet increased demands placed upon the City as a result of the development of
said real property; and
WHEREAS the City has conducted proceedings to designate Improvement Area
No. 3 of the District (“Improvement Area No. 3”) and to annex territory into Improvement Area
No. 3 of the District; and
WHEREAS, following an election of the qualified electors in the territory
proposed for annexation (the “Annexation Territory”) into Improvement Area No. 3, the City
Council, on November 6, 2023, adopted a Resolution which declared the results of the special
election and determined that the territory proposed to be annexed is added to and part of
Improvement Area No. 3 of the District; and
WHEREAS, the rate and method of apportionment of special tax for Improvement
Area No. 3 of the District (the “Rate and Method”) is set forth in Exhibit “B” to the City Council
Resolution No. 2023-C55, which was adopted on September 18, 2023 (the “Resolution”).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. By the passage of this Ordinance, the City Council hereby
authorizes and levies the special tax within Improvement Area No. 3 of the District pursuant to
Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of
the California Government Code, commonly known as the “Mello-Roos Community Facilities Act
of 1982,” (the “Act”), at the rate and in accordance with the Rate and Method, which Rate and
Method is by this reference incorporated herein. The special tax for Improvement Area No. 3 is
hereby levied commencing in Fiscal Year 2024-25, and in each fiscal year thereafter to pay for the
services for the District and the costs of administering the District.
Attachment 1
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SECTION 3. The City Manager of the City or designee or employee or consultant
of the City is hereby authorized and directed each fiscal year to determine the specific special tax
to be levied for the next ensuing fiscal year for each parcel of real property within Improvement
Area No. 3 of the District in the manner and as provided in the Rate and Method.
SECTION 4. Exemptions from the levy of the special tax shall be as provided in
the Rate and Method and the applicable provisions of the Act. In no event shall the special tax be
levied on any parcel within Improvement Area No. 3 of the District in excess of the maximum
special tax specified in the Rate and Method.
SECTION 5. All of the collections of the special tax shall be used as provided in
the Act and in the Resolution, including, but not limited to, the payment of the costs of the services,
the payment of the costs of the City in administering the District, and the costs of collecting and
administering the special tax.
SECTION 6. The special tax shall be collected in the same manner and at the same
time as ordinary ad valorem taxes are collected and 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; provided, however, that the District may collect Special Taxes at a different time
or in a different manner if necessary to meet its financial obligations. The City Manager of the
City, or his or her designee, is hereby authorized and directed to provide all necessary information
to the auditor/tax collector of the County of Los Angeles in order to effect proper billing and
collection of the special tax for Improvement Area No. 3, so that the special tax shall be included
on the secured property tax roll of the County of Los Angeles for Fiscal Year 2024-25 and for each
fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated
by the City.
SECTION 7. If for any reason any portion of this Ordinance is found to be invalid,
or if the special tax for Improvement Area No. 3 is found inapplicable to any particular parcel
within Improvement Area No. 3 of the District by a court of competent jurisdiction, the balance of
this Ordinance and the application of the special tax to the remaining parcels within Improvement
Area No. 3 of the District shall not be affected.
SECTION 8. This Ordinance shall be effective thirty (30) days after its adoption.
Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance, or a summary
of it, to be published in a newspaper of general circulation in the City.
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The foregoing ordinance was introduced and the title thereof read at the regular
meeting of the City Council the 6th day of November, 2023 and by unanimous vote of the City
Council members present, further reading was waived.
PASSED, APPROVED AND ADOPTED this ___ day of November, 2023, by
the following vote:
By:
Robert Gonzales, Mayor
Jeffrey Lawrence Cornejo Jr., City Clerk