Chapter 3.15
FINANCING OF PUBLIC IMPROVEMENTS
Sections:
3.15.020 Construction and acquisition of master-planned facilities.
3.15.040 Bonds – Maturity date.
3.15.050 Bonds – Capitalized interest.
3.15.060 Market absorption study.
3.15.080 Bonds – Sale restricted.
3.15.090 Improvements by owner upon acquired property.
3.15.110 Easements and rights-of-way to be dedicated by owner.
3.15.010 District financing.
The district may form assessment districts pursuant to the Municipal Improvement Act of 1913 and issue bonds pursuant to the Improvement Bond Act of 1915 for financing regional master-planned water and sewer system facilities for development projects. The district may undertake this financing at the request of a developer or owner in furtherance of the district’s obligation to extend its water and sewer system facilities by providing service to development approved by the county of Riverside or any city where the water and sewer system facilities will be owned and operated by the district. The district will not finance through proceedings pursuant to the Mello-Roos Community Facilities Act of 1982.1 (Res. 2743 § 1, 2011; Res. 2008 § 1, 1997)
3.15.020 Construction and acquisition of master-planned facilities.
The district will only finance the construction and acquisition of regional master-planned facilities. The construction of in-tract local distribution and collection facilities will not be financed. The district will not finance any other facilities other than those which will be owned and operated by the district. (Res. 2008 § 2, 1997)
3.15.030 Bonds – Amount.
The district will determine the amount of bonds to be issued and which facilities will be financed based on the following criteria:
A. The total annual amount of taxes and assessments on all property in the assessment district shall not exceed two percent of the assessed value of any parcel, and the annual amount of the assessment installment to be collected to pay debt service on the bonds of the district’s assessment district shall not exceed one-half of one percent of such assessed value.
B. The value of all parcels, determined based on a discounted cash basis appraisal by a state-certified real estate appraiser, within the assessment district must be three times the amount of the total obligation of the property for the payment of principal and interest of bonds. (Res. 2008 § 3, 1997)
3.15.040 Bonds – Maturity date.
The final maturity date of the bonds issued for an assessment district shall not be more than 25 years from the second day of September following the issuance of the bonds. (Res. 2008 § 4, 1997)
3.15.050 Bonds – Capitalized interest.
Capitalized interest on the bonds will be funded only for the minimum period required based on the date of the delivery of the bonds in relation to the first date upon which assessments can be collected. (Res. 2008 § 5, 1997)
3.15.060 Market absorption study.
The district will select and employ the assessment engineer, appraiser and a consultant to prepare a market absorption study, if necessary, and other necessary consultants, as determined by district, with funds to be advanced by the property owner or developer. The amounts advanced by the owner or developer will be reimbursed from bond proceeds; provided, however, that if the assessment district improvements are to be constructed by the property owner or developer and acquired by the district with bond proceeds pursuant to an acquisition agreement between the district and such owner or developer, such amounts shall be included in the amount to be paid by the district to the owner or developer for the acquisition of such improvements. (Res. 2008 § 6, 1997)
3.15.070 Counsel.
The district will select and employ bond counsel, and select the underwriter to underwrite the bonds. The district may also select and employ disclosure counsel. (Res. 2008 § 7, 1997)
3.15.080 Bonds – Sale restricted.
If the district will construct the proposed improvements which are to be financed with proceeds of the sale of bonds for the assessment district, the district will not sell bonds for an assessment district more than three months in advance of the date of the first scheduled draw of funds from the assessment district improvement fund for payment of construction-related expenses. If the proposed improvements will be constructed by the property owner or developer and acquired by the district with the proceeds of the sale of such bonds, pursuant to such an acquisition agreement, the district will not sell bonds for the assessment district more than three months in advance of the date when the owner or developer will complete the construction of the improvements, as determined by the district. If development of the land within an assessment district will be phased, the separate phases of the development will be included in separate benefit zones and the district will sell bonds for the construction or acquisition of improvements within each such zone when the development of the land within each zone occurs. (Res. 2008 § 8, 1997)
3.15.090 Improvements by owner upon acquired property.
On a case-by-case basis, the district may allow construction by property owners or developers for acquisition by the district with the proceeds of the bonds for the assessment district. The property owner or developer shall obtain competitive bids for the construction of the improvements and shall require its contractor(s) to pay prevailing wages pursuant to the California Labor Code. The acquisition price to be paid shall include the cost of design and construction only, and shall not include any of the owner’s or developer’s overhead. (Res. 2008 § 9, 1997)
3.15.100 Acquisition price.
The acquisition price to be paid for public improvements to be acquired will be determined by the district, and that determination shall be final and binding on the property owner or developer. (Res. 2008 § 10, 1997)
3.15.110 Easements and rights-of-way to be dedicated by owner.
The district will not acquire easements and rights-of-way upon and across the owner’s property with bond proceeds, and they shall be dedicated by the owner or developer. (Res. 2008 § 11, 1997)
Code reviser’s note: Section 1 of Resolution 2743 provides: “The policies set forth in Resolution 2008 are hereby modified to permit the issuance of bonds for any purpose under the Act by the District for and on behalf of the community facilities districts formed by MCWD.”