Chapter 3.44
SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 88-3
Sections:
3.44.010 Authorization for levy of special tax.
3.44.020 Determination of tax rate.
3.44.030 Exemptions.
3.44.040 Use of tax.
3.44.050 Collection – Penalties.
3.44.060 Cumulative remedy.
3.44.070 Rate and method of apportionment for proposed Community Facilities District No. 88-3 (West Lake Elsinore).
3.44.010 Authorization for levy of special tax.
By the passage of Ordinance No. 907, the City Council authorizes the levy of a special tax pursuant to the rate and method of apportionment set forth in LEMC 3.44.070. [Ord. 907 § 2, 1990. Code 1987 § 3.36.010].
3.44.020 Determination of tax rate.
The City Council is hereby further authorized each year by resolution to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed that set forth in LEMC 3.44.070, but the special tax may be levied at a lower rate. [Ord. 907 § 3, 1990. Code 1987 § 3.36.020].
3.44.030 Exemptions.
Properties or entities of the State, Federal or other local governments shall, except as provided in Sections 53317.3, 53317.5, and 53340.1 of the Act, be exempt from the above-referenced and approved special tax. [Ord. 907 § 4, 1990. Code 1987 § 3.36.030].
3.44.040 Use of tax.
All of the collections of the special tax shall be used as provided for in the Act and the resolution of formation adopted on December 26, 1989. The special tax shall be levied only so long as needed for its purpose as described in said resolution. [Ord. 907 § 5, 1990. Code 1987 § 3.36.040].
3.44.050 Collection – Penalties.
The above-authorized special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes, as such procedure may be modified by law or by the City Council from time to time. [Ord. 907 § 6, 1990. Code 1987 § 3.36.050].
3.44.060 Cumulative remedy.
As a cumulative remedy, if any amount levied pursuant hereto as a special tax for payment of bond interest or principal together with any penalties and other charges accruing under this chapter are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal, order that the same be collected by an action brought in the superior court to foreclose any lien therefor. [Ord. 907 § 7, 1990. Code 1987 § 3.36.060].
3.44.070 Rate and method of apportionment for proposed Community Facilities District No. 88-3 (West Lake Elsinore).
A special tax (the “special tax”) shall be levied on and collected from each parcel in Special Tax Area A and Special Tax Area B of Community Facilities District No. 88-3 in each fiscal year, commencing July 1, 1990, in an amount determined by the City Council of the City of Lake Elsinore through the application of the appropriate special tax for “developed property” and “undeveloped property” as described below. All of the property in CFD No. 88-3, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. Definitions. The terms hereinafter set forth have the following meanings:
“Act” means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
“Approved undeveloped property” means all taxable property in CFD No. 88-3 as of July 1st of any year not classified as developed property, for which a final tract map has been recorded as of March 1st of the previous fiscal year.
“Assigned special tax” means the special tax for each land use class, as determined by reference to Tables I and II in subsection (C) of this section.
“Base maximum special tax” means an amount equal to $0.19 per square foot of assessor’s parcel applicable to each parcel of developed, approved undeveloped and raw undeveloped property within Special Tax Area A in fiscal year 1990 – 1991, and an amount equal to $0.05 per square foot of assessor’s parcel applicable to each parcel of developed, approved undeveloped and raw undeveloped property within Special Tax Area B in fiscal year 1990 – 1991.
“City” means the City of Lake Elsinore.
“Council” means the City Council of the City of Lake Elsinore.
“Developed property” means all taxable property in CFD No. 88-3 as of July 1st of any year for which a foundation building permit has been issued as of March 1st of the previous fiscal year.
“Facilities” means any improvements or facilities designated by the Council with an estimated useful life of five years or longer which are eligible for financing under the provisions of the Act.
“Fiscal year” means the period starting July 1st and ending the following June 30th.
“Land use class” means any of the categories listed in Table I or II in subsection (C) of this section to which a parcel is assigned consistent with the provisions hereof.
“Maximum assigned special tax” for approved undeveloped property and raw undeveloped property in fiscal year 1990 – 1991 means an amount equal to $9,207 per acre in Special Tax Area A and $2,353 per acre in Special Tax Area B.
“Maximum special tax” means the maximum special tax, determined in accordance with subsection (C) of this section, that can be levied by the Council in any fiscal year for each class of developed property and for approved and raw undeveloped property, as applicable.
“Raw undeveloped property” means all taxable property in CFD No. 88-3 not classified as developed property or approved undeveloped property.
“Special tax” means the special tax for each land use class, determined in accordance with subsection (C) of this section, that can be levied by the Council in any fiscal year.
“Special tax requirement” means the amount, to be determined annually by the Council, necessary to pay the authorized costs and expenses of CFD No. 88-3 including those necessary to administer the bonds, collect and administer the special taxes, and administer CFD No. 88-3 (which total administrative amount shall be separately stated by the Council in each levy), to pay current debt service on the bonds, to accumulate funds for future debt service (but only in years in which no revenues are collected from undeveloped property), to pay amounts delinquent on the bonds (or to become delinquent based upon past special tax delinquencies), to replenish the reserve fund to its proper level (including payments to be made from the reserve fund based upon past special tax delinquencies), to compensate for anticipated special tax delinquencies (based upon past delinquency experience), to pay directly for facilities or to accumulate funds for that purpose, and to pay for all authorized services.
“Taxable property” means all of the assessor’s parcels within the boundaries of CFD No. 88-3 which are not exempt from the special tax pursuant to law or subsection (E) of this section.
B. Assignment to Land Use Categories. On July 1st of each year, all taxable property within CFD No. 88-3 shall be categorized either as developed property, approved undeveloped property or raw undeveloped property, and shall be subject to tax in accordance with the rate and method of apportionment determined pursuant to subsections (C) and (D) of this section.
For purposes of determining the applicable maximum special tax pursuant to subsection (C) of this section and depending on its location in Special Tax Area A or B, developed property shall be assigned to one of the classes designated in Table I or II in subsection (C) of this section. Single-family detached residential developed property shall be assigned to Classes 1 through 4 based on the square footage of the dwelling unit, exclusive of garages or other structures not used as living space, to be constructed on an assessor’s parcel as set forth in the original building permit issued for such property. Attached residential developed property shall be assigned to Class 5.
Commercial/industrial developed properties shall be assigned to Class 6. The square footage of a commercial/industrial building shall be computed from the gross square footage for the building(s) as reflected in the building plans upon which the building permit(s) for such parcel was issued. The acreage of a commercial/industrial parcel shall be determined by reference to the then-current assessor’s parcel map and, if appropriate, to the most current parcel map or other subdivision tract map recorded with the Office of the Recorder for Riverside County.
C. Maximum Special Tax Rate.
1. Developed Property. The maximum special tax for an assessor’s parcel classified as developed property in Classes 1 through 6 shall be the greater of (a) the amount derived by multiplying the square footage of such assessor’s parcel times the base maximum special tax or (b) the assigned special tax determined by reference to Table I or II. For purposes of this subsection (C), the acreage or square footage of an assessor’s parcel shall be determined by reference to the then-current assessor’s parcel map and, if appropriate, to the most current parcel map or other subdivision tract map recorded with the Office of the Recorder for Riverside County.
Notwithstanding the above, for attached residential developed property, a portion of the acreage in a recorded tract map shall be taxed as undeveloped property if building permits for one or more, but not all, of the units in the approved condominium or site plan for that map have been issued. The acreage in a recorded tract map to be taxed as undeveloped property shall equal the proportion of the associated condominium or site plan’s approved units for which building permits have not been issued, multiplied by the total acreage within that tract map.
Notwithstanding subsection (E) of this section, for purposes of computing the base maximum special tax for each dwelling unit located on parcels of attached residential developed property that are owned by a homeowners’ or property owners’ association, the square footage of the entire assessor’s parcel shall be included to determine the base maximum special tax.
In making the computations set forth in this subsection (C)(1) and in determining the maximum special tax which may be levied in any fiscal year, on July 1, 1991, and on each July 1st thereafter, the base maximum special tax and the assigned special tax for each class set forth in Tables I and II shall be increased by an amount equal to two percent of the amount in effect for the previous fiscal year.
|
Land Use Class |
Description |
Density or Square Footage |
Assigned Special Tax (Fiscal Year 1990 – 1991) |
|
1 |
Single-Family Detached |
2,800 or more |
$1,969 per unit |
|
2 |
Single-Family Detached |
2,300 – 2,799 SF |
$1,688 per unit |
|
3 |
Single-Family Detached |
1,700 – 2,299 SF |
$1,406 per unit |
|
4 |
Single-Family Detached |
Less than 1,700 SF |
$1,126 per unit |
|
5 |
Attached Homes |
Not Applicable |
$901.00 per unit |
|
6 |
Commercial/Industrial |
Not Applicable |
$8,277 per acre |
The maximum special tax may exceed the assigned special tax for some assessor’s parcels within each class if the base maximum special tax alternative is used ($0.19 per square foot of assessor’s parcel). The base maximum special tax would be applied under the fourth step of subsection (D) of this section to lots larger than a certain size for each class of single-family detached property. Single-family detached lots, larger than the following minimum sizes, would be taxed at the base maximum special tax:
|
Class 1: 10,363 square feet |
Class 3: 7,400 square feet |
|
Class 2: 8,884 square feet |
Class 4: 5,926 square feet |
The base maximum special tax would also apply to Class 5 if units are built at densities less than 9.18 units per acre and to all Class 6 parcels.
|
Land Use Class |
Description |
Density or Square Footage |
Assigned Special Tax (Fiscal Year 1990 – 1991) |
|
1 |
Single-Family Detached |
2,800 or more |
$1,969 per unit |
|
2 |
Single-Family Detached |
2,300 – 2,799 SF |
$1,688 per unit |
|
3 |
Single-Family Detached |
1,700 – 2,299 SF |
$1,406 per unit |
|
4 |
Single-Family Detached |
Less than 1,700 SF |
$1,126 per unit |
|
5 |
Attached Homes |
Not Applicable |
$901.00 per unit |
|
6 |
Commercial/Industrial |
Not Applicable |
$2,178 per acre |
The maximum special tax may exceed the assigned special tax for some assessor’s parcels within each class if the base maximum special tax alternative is used ($0.05 per square foot of assessor’s parcel). The base maximum special tax would be applied under the fourth step of subsection (D) of this section to lots larger than a certain size for each class of single-family detached property. Single-family detached lots, larger than the following minimum sizes, would be taxed at the base maximum special tax:
|
Class 1: 39,380 square feet |
Class 3: 28,120 square feet |
|
Class 2: 33,760 square feet |
Class 4: 22,520 square feet |
The base maximum special tax would also apply to Class 5 if units are built at densities less than 2.41 units per acre and to all Class 6 parcels.
2. Undeveloped Property. The maximum special tax for an assessor’s parcel classified as raw undeveloped property or approved undeveloped property shall be the greater of (a) the amount derived by multiplying the square footage of such assessor’s parcel by the base maximum special tax (as applicable for each Special Tax Area) or (b) the maximum assigned special tax rate.
The assigned special tax for approved undeveloped property shall be $990.00 per lot in both Special Tax Area A and Special Tax Area B except for recorded lots over 20,000 square feet, for which the assigned special tax shall be $2,157 per acre. The maximum assigned special tax for approved undeveloped property and raw undeveloped property shall be $9,207 per acre in Special Tax Area A and $2,353 per acre in Special Tax Area B.
In making the computation set forth in this subsection (C)(2) and in determining the assigned special tax for approved undeveloped property and the maximum assigned special tax on raw and approved undeveloped property which may be levied in any fiscal year, on July 1, 1991, and on any July 1st thereafter, the assigned special tax for approved undeveloped property and the maximum assigned special tax for raw and approved undeveloped property shall be increased by an amount equal to two percent of the amount in effect for the previous fiscal year.
D. Method of Apportionment of the Special Tax to Developed Property and Undeveloped Property. Starting in fiscal year 1990 – 1991 and for each following fiscal year, the Council shall determine the amount of money to be collected from taxable property in CFD No. 88-3 in the fiscal year (the special tax requirement).
The Council shall levy the special tax as follows until the amount of the levy equals the special tax requirement:
First: The special tax shall be levied on each parcel of developed property, exclusive of property exempt from special taxes pursuant to subsection (E) of this section, in equal percentages (up to 100 percent) of the assigned special tax rate for each class of developed property for such fiscal year determined by reference to Tables I and II;
Second: If additional moneys are needed after the first step has been completed, the special tax shall be levied on each parcel of approved undeveloped property, exclusive of undeveloped property exempted by law or by the provisions of subsection (E) of this section, in equal percentages (up to 100 percent) of the assigned special tax;
Third: If additional moneys are needed after the first two steps have been completed, then the special tax shall be levied on each parcel of raw undeveloped property in equal percentages (up to 100 percent) of the maximum assigned special tax for raw undeveloped property, exclusive of undeveloped property exempted by law or by the provisions of subsection (E) of this section, up to, for Special Tax Area A, 91.47 percent of the special tax requirement (i.e., net of revenues collected in the first and second steps above) and, for Special Tax Area B, 8.53 percent of the special tax requirement (i.e., net of revenues collected in the first and second steps above);
Fourth: If additional moneys are needed after the first three steps have been completed, the special tax shall be levied on each parcel of approved undeveloped property, exclusive of undeveloped property exempted by law or by the provisions of subsection (E) of this section, in equal percentages (up to 100 percent) of the maximum assigned special tax for approved undeveloped property;
Fifth: If additional moneys are needed after the first four steps have been completed, then the levy of the special tax on each parcel of developed property whose maximum special tax is determined through the application of the base maximum special tax rate shall be increased in equal percentages from the assigned special tax rate up to the maximum special tax rate for each such parcel for such fiscal year;
Sixth: If additional moneys are needed after the first five steps have been completed, then the special tax shall be levied proportionately on each parcel of developed or undeveloped property owned by a homeowners’ association which has not been exempted from the special tax pursuant to subsection (E) of this section, up to the maximum special tax for undeveloped property; and
Seventh: If additional moneys are needed after the first six steps have been completed, then the special tax shall be levied proportionately on each parcel of Developed or undeveloped property conveyed or irrevocably offered to a public agency which has not been exempted from the special tax pursuant to subsection (E) of this section, up to the maximum special tax for undeveloped property.
E. Exemptions.
1. Special Tax Area A. A special tax shall not be imposed on up to 156.50 acres of undeveloped property conveyed or irrevocably offered to a public agency or conveyed to a homeowners’ association. The acres exceeding such total of 156.50 acres shall be taxed consistent with developed or undeveloped property to the extent set forth in steps six and seven of subsection (D) of this section. Under no circumstances shall the Council impose a special tax on land which is a public right-of-way or which is an unmanned utility property utilized for the provision of services to the public or a property encumbered with public or utility easements making impractical its utilization for other than the purposes set forth in the easement.
2. Special Tax Area B. A special tax shall not be imposed on up to 486 acres of undeveloped property conveyed or irrevocably offered to a public agency or conveyed to a homeowners’ association. The acres exceeding such total of 486 acres shall be taxed consistent with developed or undeveloped property to the extent set forth in steps six and seven of subsection (D) of this section. Under no circumstances shall the Council impose a special tax on land which is public right-of-way or which is an unmanned utility property utilized for the provision of services to the public or a property encumbered with public or utility easements making impractical its utilization for other than the purposes set forth in the easement.
F. Review/Appeal Committee. The Council shall establish as part of the proceedings and administration of CFD No. 88-3 a special three-member Review/Appeal Committee. Any landowner or resident who feels that the amount of the special tax, as to their parcel, is in error may file a notice with the Review/Appeal Committee appealing the amount of the special tax levied on such parcel. The Review/Appeal Committee shall interpret this rate and method of apportionment of the special tax and make determinations relative to the annual administration of the special tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons.
G. Manner of Collection. The special taxes for CFD No. 88-3 will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 88-3 may collect special taxes at a different time or in a different manner if necessary to meet its financial obligations. In the event of a delinquency, CFD No. 88-3 will pursue foreclosure in a timely manner.
[Ord. 907 Exh. A, 1990. Code 1987 Ch. 3.36, Exh. A].