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HomeMy WebLinkAboutItem 17 - Second Reading and adoption of O-1697 (Special Tax for CFD 2019-1, San Luis Ranch) Department Name: Finance Cost Center: 2001 For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director Prepared By: Esteban Cano-Gutierrez, Financial Analyst – Infrastructure Financing SUBJECT: SECOND READING OF ORDINANCE NO. 1697 (2021 SERIES) APPROVING THE LEVY OF THE SPECIAL TAX FOR THE SAN LUIS RANCH COMMUNITY FACILITIES DISTRICT. RECOMMENDATION Adopt Ordinance No. 1697 (2021 Series) entitled, “An Uncodified Ordinance of The City of San Luis Obispo, California, levying a Special Tax for the fiscal year 2021-2022 and following fiscal years solely within and relating to the City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch).” DISCUSSION Background On April 20, 2021, the City Council voted 4:0:1 to introduce Ordinance No. 1697 (2021 Series), levying a special tax for the San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch). The ordinance sets forth the special tax levy for fiscal year 2021-22 and all subsequent fiscal years and is solely applicable within the boundaries of the San Luis Ranch Community Facilities District. Policy Context The approved San Luis Ranch Specific Plan and related entitlements are consistent with the City’s adopted General Plan, and findings to that effect were made in both the original project approved in July 2017 as well as the amended project approval in August 2018. An evaluation of the project’s consistency with General Plan policies is discussed at length in Section 4.9 of the certified Final Environmental Impact Report. The Specific Plan requires that funding mechanisms be included to ensure that public infrastructure is coordinated with future development under the plan. The formation of a CFD was consistent with this requirement. A CFD, as enabled by the Community Facilities District Act of 1982, allows a local jurisdiction to levy a special tax within a specified area to pay for public services and/ or infrastructure needed within the area. Item 17 Packet Page 139 The City’s Financial Policies, under Section 9.E and F.1. outline the City’s administration of land-based financing and special tax district administration. Public Engagement The introduction of the Ordinance was part of a public hearing before the City Council and advertised on April 8, 2021. The Council Agenda of the meeting has been made public one week prior and the meetings is open to the public. The landowners of the properties subject to the tax have been notified and provided the necessary ballots to vote on the special tax district. The vote was reported on in public session during the April 20, 2021 meeting and the special tax approval passed. CONCURRENCE The Community Development Department concurs with the recommendations contained within this report. The landowners of the district approved the special tax levy by majority vote. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2020-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total There is no fiscal impact to the City related to the adoption of the Ordinance. The special tax will be levied on the land and property owners of the district and pay for the infrastructure and related bond indebtedness of the district. Item 17 Packet Page 140 ALTERNATIVES Do not conduct the second reading and adoption of the Ordinance. The City Council could choose not to adopt the proposed Ordinance, in which case the CFD process is not completed. That means the project will not move forward without the authorization to levy the special tax in the San Luis Ranch CFD to cover the bonded debt payments that will provide, among other things, funding for Prado Road Interchange. Attachments: a- Ordinance No. 1697 (2021 Series) Item 17 Packet Page 141 O 1697 ORDINANCE NO. 1697 2021 SERIES AN UNCODIFIED ORDINANCE OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, LEVYING A SPECIAL TAX FOR THE FISCAL YEAR 2021-2022 AND FOLLOWING FISCAL YEARS SOLELY WITHIN AND RELATING TO THE CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS RANCH) WHEREAS, the City Council of San Luis Obispo (the Council) conducted proceedings under and pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California), and all laws amendatory thereof or supplemental thereto to form its Community Facilities District No. 2019-1 San Luis Ranch and authorized a special tax to finance certain public facilities; and WHEREAS, the Council also authorized the issuance of debt to finance the facilities, and established the appropriations limit for the Community Facilities District, all as set forth in Resolution No. 10998 (2019 Series) and Resolution No. 10999 (2019 Series) adopted on April 2, 2019; and WHEREAS, the Council adopted Ordinance No. 1661 (2019 Series) on April 16, 2019, to approve the levy of a Special Tax in connection with San Luis Ranch Communities Facilities District and its approved Rate and Method of Apportionment; and WHEREAS, on March 16, 2021, the Council adopted its Resolution No. 11233 (2021 series) (the “Resolution of Consideration”) in which it determined to consider updating the Rate and Method of Apportionment due to substantial changes in the development; and WHEREAS, on April 20, 2021 the City Council adopted a Resolution Calling a Special Mailed-Ballot Election, related to change proceedings within the San Luis Ranch Community Facilities District; and WHEREAS, the landowners within the San Luis Ranch Community Facilities District have completed the ballots and return the results to the City Clerk with at least two-thirds approving the amendment; and WHEREAS, in connection with the ballot results, the City Council has therefore adopted a Resolution of Change on April 20, 2021 related to the San Luis Ranch Community Facilities District Rate and Method of Apportionment; and WHEREAS, the action does not constitute a “Project” under California Environmental Quality Act Guidelines Sec. 15378 and therefore they are not applicable. THEREFORE, IT BE ORDAINED by the City Council of the City of San Luis Obispo does as follows: Item 17 Packet Page 142 Resolution No. 1697 (2021 Series) Page 2 O 1697 SECTION 1. Pursuant to Government Code section 53340, Resolution No. 10998 (2019 Series), adopted by the City Council (the “City Council”) of the City of San Luis Obispo (the “City”) on April 2, 2019 (the “Resolution of Formation”), Resolution No. 11233 (2021 Series), adopted by the City Council on March 16, 2021 (the “Resolution of Consideration”) and Resolution No. 11239 (2021 Series) adopted by the City Council on April 20, 2021 (the “Resolution of Change” and, collectively with the Resolution of Formation and the Resolution of Consideration, the “Resolutions”), and in accordance with the Amended and Restated Rate and Method of Apportionment of Special Tax (the “RMA”) set forth in Exhibit A to the Resolution of Consideration, relating to the City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch) (the “Community Facilities District”), a special tax is hereby levied on the Community Facilities District for the 2021-2022 fiscal year and for all subsequent fiscal years in the amount of the maximum special tax authorized under the Resolutions and the RMA, provided that this amount may be adjusted annually, subject to the maximum authorized special tax under the Resolutions and the RMA. SECTION 2. The Finance Director of the City of San Luis Obispo or designee thereof (the “CFD Administrator”) or such other officer or staff member succeeding to the duties of the CFD Administrator with respect to the Community Facilities District, with the aid of the appropriate officers and agents of the City and without further action of the City Council, is authorized and directed (a) to determine each year the appropriate amount of the special tax (pursuant to and as provided in the Resolutions and the RMA), (b) to prepare the annual special tax roll in accordance with the Resolutions and the RMA and (c) to provide all necessary and appropriate information to the County of San Luis Obispo (the “County”) Tax Collector in proper form, and in proper time, necessary to effect the correct and timely billing and collection of the special tax on the secured property roll of the County; provided, that as provided in Section 53340 of the California Government Code, the Resolutions and the RMA, the City Council has reserved the right to utilize any other lawful means of billing, collecting, and enforcing the special tax, including direct billing, supplemental billing, and, when lawfully available, judicial foreclosure of the special tax lien. SECTION 3. The appropriate officers and agents of the City are authorized to make adjustments to the Special Tax roll prior to the final posting of each Special Tax to the County tax roll each fiscal year, as may be necessary to achieve a correct match of each Special Tax levy with the assessor’s parcel numbers finally utilized by the County in sending out property tax bills. SECTION 4. The City agrees that, in the event either Special Tax is collected on the secured tax roll of the County, the County may add its reasonable and agreed charges for collecting the related Special Tax from the amounts collected, prior to remitting the related Special Tax collections to the City. Item 17 Packet Page 143 Resolution No. 1697 (2021 Series) Page 3 O 1697 SECTION 5. Taxpayers who have requested changes or corrections of the Special Tax pursuant to Section 8 of the RMA and who are not satisfied with the decision of the CFD Administrator (whether the CFD Administrator disagrees with the taxpayer or concludes that the City is not authorized to consider the change requested), may appeal to the City Council. The appeal must be in writing and fully explain the grounds of appeal and must be based solely on the correction of mistakes in the levy based upon the status of the property, and no other appeals will be allowed. The CFD Administrator shall schedule the appeal for consideration within a reasonable time at a City Council meeting. SECTION 6. 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 by a court of competent jurisdiction, the balance of this ordinance, and the application of the special tax to the remaining parcels shall not be affected. SECTION 7. This ordinance shall take effect and be in force immediately as a tax measure; and before the expiration of twenty (20) days after its passage the same shall be published in summary, with the names of the members voting for and against the same, at least once in a newspaper of general circulation published and circulated in the Community Facilities District. Item 17 Packet Page 144 Resolution No. 1697 (2021 Series) Page 4 O 1697 SECTION 8. Ordinance No. 1661 (2019 Series) adopted by the City Council on April 16, 2019, is hereby superseded to the extent it is inconsistent with this ordinance. INTRODUCED on the 20th day of April 2021, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of _____ 2021, on the following vote: AYES: NOES: ABSENT: Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ____________________________. ____________________________________ Teresa Purrington City Clerk Item 17 Packet Page 145 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 17 Packet Page 146