HomeMy WebLinkAboutCC Reso 2022-32 RESOLUTION NO. 2022-32
RESOLUTION OF INTENTION TO FORM A COMMUNITY FACILITIES
DISTRICT AND LEVY A SPECIAL TAX IN THE CITY OF CATHEDRAL
CITY COMMUNITY FACILITIES DISTRICT NO. 2022-1 (CATHEDRAL
CITY PARK & RECREATION SERVICES), TO FUND PUBLIC
SERVICES AND FINANCE THE DEVELOPMENT OF CERTAIN PUBLIC
FACILITIES
WHEREAS, the City Council (the "Council") of the City of Cathedral City (the
"City") has previously adopted local goals and policies related to the formation of
community facilities districts under the Mello-Roos Community Facilities Act of 1982, as
amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311,
of the California Government Code (the "Act"); and
WHEREAS, the Desert Recreation District (the "District") currently provides park
and recreation services in the region surrounding the City, but not currently within the
City, and is considering submitting an application to the Riverside County Local Agency
Formation Commission ("LAFCO") to annex the territory within the City into the service
area of the District; and
WHEREAS, under Section 53316.2 of the Act, a community facilities district may
finance facilities to be owned or operated by a public agency other than the agency that
created the district, or services to be provided by a public agency other than the agency
that created the district, or any combination, pursuant to a joint community facilities
agreement or a joint exercise of powers agreement adopted pursuant to said section;
and
WHEREAS, the Council has determined that placing a local revenue measure on
the ballot and the successful approval of the measure would provide long-term funding
for park and recreation facilities and services to the territory within the City, whether
provided by the City or, assuming a successful LAFCO annexation process and
entrance into an agreement contemplated by Section 53316.2 of the Act, the District;
and
WHEREAS, the Council desires to proceed with the establishment of a
community facilities district and described herein for the purposes stated above and
herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. It is proposed to establish a community facilities district within the
City under the terms of the Act to finance costs of public facilities and fund public
services authorized by the Act.
Section 2. The name proposed for the community facilities district is "City of
Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park &
Recreation Services)" (the "CFD").
Section 3. The proposed boundaries of the CFD are shown on the Map of
Proposed Boundary of a proposed community facilities district to be known as City of
Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park &
Recreation Services), on file with the City Clerk, which the Council approves as the map
describing the extent of the territory included in the proposed CFD. The Council directs
the City Clerk to certify the adoption of this resolution on the face of the map, and to file
a copy of the map in the Office of the City Clerk in accordance with Section 3111 of the
California Streets and Highways Code and within 15 days of the date of adoption of this
resolution but in no event later than 15 days prior to the public hearing provided for
herein, transmit the map to the Riverside County Assessor-County Clerk-Recorder for
recording in the Book of Maps of Assessment and Community Facilities Districts in the
office of the County Recorder of the County of Riverside.
Section 4. Except to the extent that funds are otherwise available to the CFD
to pay for the Services and/or Facilities (each as defined below), including the principal
and interest as it becomes due on bonds issued by the City for the CFD to construct
and/or acquire the Facilities, a special tax ("Special Tax") sufficient to pay the costs
thereof, secured by recordation of a continuing lien against all non-exempt real property
in the CFD, will be levied annually within the CFD, and collected in the same manner as
ordinary ad valorem property taxes, or in such other manner as the Council or its
designee shall determine, including direct billing of the affected property owners. The
proposed rate and method of apportionment of the Special Tax among the parcels of
real property within the CFD, in sufficient detail to allow each landowner within the
proposed CFD to estimate the maximum amount such owner will have to pay, are
described in the Rate, Method of Apportionment and Manner of Collection of Special
Tax attached hereto as Exhibit A and hereby incorporated herein (the "Rate and
Method").
No portion of the Special Tax shall be levied in the CFD for Facilities after the
fiscal year identified in the Rate and Method, except that a portion of the Special Tax for
Facilities that was lawfully levied in or before the final tax year and that remains
delinquent may be collected in subsequent years. Under no circumstances shall the
portion of the Special Tax for Facilities levied against any parcel in the CFD for private
residential purposes be increased as a consequence of delinquency or default by the
owner of any other parcel or parcels within the CFD, in contravention of the Act,
including Section 53321(d) of the Act.
The Council hereby finds that the provisions of Sections 53313.6, 53313.7 and
53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools
financed by a community facilities district) are inapplicable to the proposed CFD.
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Section 5. The type of public facilities proposed to be financed by the CFD
and pursuant to the Act shall consist of those items listed as facilities on Exhibit B
hereto (the "Facilities") and the type of public services proposed to be funded by the
CFD and pursuant to the Act shall consist of those items listed as services on Exhibit B
hereto (the "Services"). The financing of the costs of Facilities may include, without
limitation, the payment of principal of and interest on bonds or other indebtedness
together with all direct, indirect periodic, and/or other related costs (including, without
limitation, costs of administering the CFD, levying the Special Tax and administering the
bonds, and establishing and replenishing reserve funds).
Section 6. Except as may otherwise be provided by law or by the Rate and
Method, the following shall be omitted from the levy of the Special Tax: (i) all lands
owned by any public entity, including the United States, the State of California and the
City, or any departments or political subdivisions thereof, and (ii) any other parcels
exempt from the levy of the Special Tax under applicable law. In the event that a
portion of the property within the CFD shall become for any reason exempt, wholly or in
part, from the levy of the Special Tax, the City will, on behalf of the CFD, increase the
levy to the extent necessary upon the remaining property within the CFD which is not
exempt in order to yield the required debt service payments and other annual expenses
of the CFD, if any, subject to the provisions of the Rate and Method. It is anticipated that
the Special Tax will be billed as a separate line item on the regular property tax bill.
However, the City reserves the right, under Section 53340 of the Act, to utilize any
method of collecting the Special Tax which it shall, from time to time, determine to be in
the best interests of the City, including, but not limited to, direct billing by the City to the
property owners and supplemental billing.
Section 7. The levy of the Special Tax shall be subject to the approval of the
qualified electors within the CFD at a special election. The qualified electors shall be
the registered voters within the proposed CFD.
Section 8. It is the intention of the Council, acting as the legislative body for
the CFD, to cause bonds of the City in one or more series to be issued for the CFD
pursuant to the Act to finance in whole or in part the construction and/or acquisition of
the Facilities. The bonds issued in these proceedings shall be callable in accordance
with the provisions of the Act, and shall be issued in such series and bear interest
payable semi-annually or in such other manner as the Council shall determine, at a rate
not to exceed the maximum rate of interest as may be authorized by applicable law at
the time of sale of such bonds, shall mature not to exceed 40 years from the date of the
issuance thereof and shall be as more specifically set forth in any resolution authorizing
the issuance of such bonds.
Section 9. It is the intention of the Council, acting as the legislative body for
the CFD, to establish an initial annual appropriations limit, as defined by subdivision (h)
of Section 8 of Article XIII B of the California Constitution, for the CFD of $39,000,000,
and to submit said appropriations limit to the qualified electors of the CFD. The
proposition establishing said annual appropriations limit shall become effective if
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approved by the qualified electors voting thereon and shall be adjusted in accordance
with the applicable provisions of the Act.
Section 10. The City Manager of the City, as the officer having charge and
control of the Facilities and Services in and for the CFD, or the designee of such official,
is hereby directed to cause and direct a study of said proposed CFD and the Facilities
and Services, and to cause to be prepared for filing at the public hearing the report
required by Section 53321.5 of the Act (the "CFD Report") presenting at least the
following:
(a) A brief description of the Facilities and Services by type which will
be required to adequately meet the needs of the CFD.
(b) An estimate of the fair and reasonable cost of the Facilities and
Services, including the cost of acquisition of lands, rights-of-way and easements,
any physical facilities required in conjunction therewith and incidental expenses
in connection therewith, including the costs of the proposed bond financing and
all other related costs as provided in Section 53345.3 of the Act.
The CFD Report shall be made a part of the record of the public hearing
specified below.
Section 11. The Council hereby sets August 3, 2022, at 5:00 p.m. in the
chambers of the City Council of the City of Cathedral City, 68700 Avenida Lalo
Guerrero, Cathedral City, California 92234, or as soon as possible thereafter, as the
time and place when and where the Council, as legislative body for the CFD, will
conduct a public hearing on the establishment of the CFD, and consider and finally
determine whether the public interest, convenience and necessity require the formation
of the CFD, and the levy of the Special Tax. At the hearing, testimony concerning the
CFD, the extent of the CFD, or the furnishing of the particular types of public facilities
and public services will be heard and protests will be considered from registered voters
residing within the CFD and persons owning real property within the CFD. Written
protests by the owners of a majority of the registered voters or land which would be
subject to special taxation within the proposed CFD will require the suspension of
proceedings for at least one year. Written protests must be filed with the City Clerk at or
before the time fixed for the hearing. If such protests are directed only against certain
elements of the proposed improvements or proposed Special Tax, and if such protests
constitute a majority protest, only those elements shall be deleted from the proceedings.
Section 12. The City Clerk is hereby directed to cause notice of the public
hearing, attached hereto as Exhibit C, to be given by one-time publication in a
newspaper published in the area of the CFD. The publication shall be completed at
least 7 days before the date of the public hearing referenced above. The notice shall be
substantially in the form specified in Section 53322 of the Act and attached hereto, with
the form summarizing the provisions hereof hereby specifically approved.
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Section 13. This Resolution shall take effect from and after its adoption.
PASSED, APPROVED AND ADOPTED this 22nd day of June, 2022, by the following
vote:
AYES: Councilmembers Ross and Gregory; Mayor Pro Tem Lamb and
Mayor Gutierrez
NOES: None
ABSENT: Councilmember Carnevale
ABSTAIN: None
rnesto Gutierrez, Mayor
ATTEST:
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
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EXHIBIT A
RATE, METHOD OF APPORTIONMENT AND MANNER OF COLLECTION OF
SPECIAL TAX
See attached.
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF CATHEDRAL CITY
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(CATHEDRAL CITY PARK&RECREATION SERVICES)
A Special Tax, as hereinafter defined, shall be levied on all Assessor's Parcels in the City of Cathedral City (the
"City") Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) and collected each
Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the City or its designee,through the
application of the Rate and Method of Apportionment as described below. All of the real property in CFD No.
2022-1, 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:
"Accessory Dwelling Unit" means a secondary residential unit of limited size, as defined in California
Government Code Section 65852.2 as that may be amended from time to time, that is accessory to a
single-unit dwelling.The ADU of Developed Property may be on the same Assessor's Parcel as the single-
unit dwelling or on a separate Assessor's Parcel. For purposes of clarification,where an ADU and primary
Unit are on the same Assessor's Parcel,the ADU located on such Assessor's Parcel is considered a separate
Unit from the primary Unit on such Assessor's Parcel for purposes of the Special Tax.Should an Assessor's
Parcel contain only an ADU,such Assessor's Parcel will be taxed as an ADU only.
"Acre" or "Acreage" means that acreage shown on the Assessor's Parcel Map or in the Assessor's Data
for each Assessor's Parcel. In the event that the Assessor's Parcel Map or Assessor's Data shows no
acreage,the Acreage for any Assessor's Parcel may be determined by the CFD Administrator based upon
the applicable Final Subdivision Map or parcel map,or by using available spatial data and GIS.
"Act" means the Mello-Roos Community Facilities Act of 1982,as amended, being Chapter 2.5, Division 2
of Title 5 of the Government Code of the State.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to
the administration of CFD No. 2022-1: the costs of any paying agents/fiscal agents/trustees related to
Bond payments (including the fees and expenses of its counsel), banking and management; the costs of
computing the Special Tax Requirement,the Special Taxes and of preparing the collection schedules for
the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County
Auditor's Office,Tax Collector's Office or Treasurer's Office;the costs of the City or designee in complying
with the disclosure requirements of the California Government Code (including the Act) and the federal
securities laws;costs of responding to public inquiries regarding the Special Taxes;the costs of the City or
designee related to an appeal of the Special Taxes or interpretation of the Rate and Method of
Apportionment;amounts needed to pay rebate to the federal government related to Bonds;and the costs
of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes
in the City.Administrative Expenses shall also include an allocable share of the salaries of City staff and an
allocable portion of City overhead costs relating to the foregoing, or costs of the City in any way related
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 1
to the establishment or administration of the City. Administrative Expenses shall also include amounts
estimated or advanced by the City or CFD No. 2022-1 for any other administrative purposes of CFD No.
2022-1.
"Agricultural Property" means all Assessor's Parcels devoted primarily to agricultural,timber,or livestock
uses and being used for the commercial production of agricultural,timber, or livestock products.Typical
County Use Codes include those starting with "A" including:A01, AO1R,A02, AO2R, A03,A04,A04R,A05,
A05R, A06, A06R, A07, A07R, A08, A08R, A09, A10, A1OR, All, A11R, A11R, Al2, Z12R, A13, A13R, A14,
A14R,A15,A15R,A16,A17,A18,A19,A20,A21R,A22,A23,A25M,A25MF,A25ML,A25M0,A25MR,A28,
A29, A30, AP115, AP999, APA01, APAO1R, APA02, APAO2R, APA03, APA04, APAO4R, APA06, APAO6R,
APA07, APAO7R, APA08, APAO8R, APA10, APA1OR, APA11, APA11R, APA12, APA12R, APA13, APA13R,
APA14R, APA15, APA15R, APA16, APA17, APA19, APA20, APA21R, APA22, APA25M, APA25MF, APA30,
APC27,APRX,APS01,APSO4, CTAO5R, CTA16.
"Assessor's Data" means the property characteristic data compiled and maintained by the County
Assessor for each Assessor's Parcel, including, but not limited to, Assessor's Parcel Number, Use Code,
Acreage, and Units.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's
Parcel Number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels
by Assessor's Parcel Number.
"Assessor's Parcel Number"or"APN" means,with respect to an Assessor's Parcel,that number assigned
to such Assessor's Parcel by the County for purposes of identification.
"Authorized Facilities" means the public facilities authorized to be financed, in whole or in part, by CFD
No. 2022-1, including by the proceeds of any CFD No. 2022-1 Bonds. The Special Tax to fund Authorized
Facilities may only be levied prior to the Transition Year.
"Authorized Services" means the services authorized to be funded, in whole or in part, by CFD No. 2022-
1.
"Bonds" means bonds or other debt (as defined in the Act), whether in one or more series, issued or
assumed by or on behalf of CFD No. 2022-1 under the Act. Bonds also includes any bonds issued to
refinance a previous bond issue.
"Building Square Footage" means the structural square footage of an Assessor's Parcel as shown in the
County Assessor's data or as otherwise known by the CFD Administrator.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the
Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
"CFD No. 2022-1" means City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City
Park& Recreation Services).
"City" means the City of Cathedral City.
"City Council" means the City Council of the City, acting as the legislative body of CFD No. 2022-1.
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 2
"County" means the County of Riverside.
"Debt Service" means for each Debt Year,the total amount of principal and interest due for any Bonds of
CFD No. 2022-12022-1.
"Debt Year" means each 12-month period designated as such, or by a similar term, in the Indenture for
each series of Bonds.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Taxable Public
Property,for which the County has assigned a Use Code indicating residential or non-residential use which
are not vacant.
"District" means Desert Recreation District.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"GIS" or "Geographic Information System" means a system designed to capture, store, manipulate,
analyze, manage, and present spatial or geographic data.
"Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to
which Bonds for CFD No. 2022-12022-1 are issued, as modified, amended, and/or supplemented from
time to time, and any instrument replacing or supplementing the same.
"Maximum Special Tax"means the Maximum Special Tax determined in accordance with Section C below,
that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property.
"Multi-family Residential Property" means all Assessor's Parcels of Developed Property that consist of
Units available for lease or rent in a multi-unit building or on a Parcel, including duplex,triplex,fourplex,
apartments, mobile home parks and RV parks. Typical County Use Codes include: 30, 33, 34, 41, 42, 43,
44,45,46, 100, 103, 104,CT25, MF, MS, MV, MX, MY, MAR04, CTR04.
"Non-residential Property" means all Assessor's Parcels of Developed Property used for non-residential
purposes such as commercial or industrial use. Possessory interest and golf course property are not
included in Non-residential Property.Typical County Use Codes include: 80, 115, 120, 122, 130, 131, 132,
140, 150, 151, 152, 153, 160, 161, 170, 172, 180, 182, 183, 191, 200, 201, 202, 210, 220, 221, 223, 230,
232, 250, 251, 305, 310, 320, 321, 322, 323, 350, 351, 352, 353, 361, 600, 602, 603, 611, 612, 614, 615,
620, 621,C01H,CO2,C06C, C07C,C07M, C08C, C12F,C19,CarWash,CT115, CT120, CT132, CT140, CT150,
CT160, CT170, CT180,CT191,CT200,CT210, CT320, CT321, CT353,CT360, CT361,CT80,OFF132.
"Outstanding Bonds" means all Bonds that are outstanding under and in accordance with the provisions
of the Indenture.
"Property Owner Association Property" means,for each Fiscal Year,any property within the boundaries
of CFD No. 2022-12022-1 that is owned by a property owner association, including any master or sub-
association, as of January 1 of the prior Fiscal Year.
"Proportionately" means for Developed Property that the ratio of the Special Tax levy to the Maximum
Special Tax is equal for all Assessors' Parcels of Developed Property within CFD No. 2022-12022-1. For
Taxable Contingent Property, "Proportionately" means that the ratio of the actual Special Tax levy to the
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 3
Maximum Special Tax is equal for all Assessor's Parcels of Taxable Contingent Property within CFD No.
2022-12022-1.
"Public Property"means property within the boundaries of CFD No.2022-1 owned by,irrevocably offered
or dedicated to, or for which an easement for purposes of public right-of-way has been granted to the
federal government, the State, the County, the City, the City, or any local government or other public
agency, provided that any property leased by a public agency to a private entity and subject to taxation
under Section 53340.1 of the Act shall be taxed and classified according to its use.
"Residential Condominium Property" means, in any Fiscal Year, all Assessor's Parcels of Developed
Property with one Unit with a single Assessor's Parcel Number that is a condominium pursuant the
definition in Civil Code Section 4125 or a townhouse. Typical County Use Codes include: 21, 27, CT21,
MA21.
"Single Family Residential Property" means all Assessor's Parcels of Developed Property with a
residential structure intended for a single dwelling unit.Typical County Use Codes include: 20, 28,60,61,
62,63, 64, 65, 67, MA20, CT20.
"Special Tax(es)"means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable
Property within CFD No. 2022-1 to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2022-1:
Before the Transition Year,to(1)pay Debt Service on all Outstanding Bonds which is due in such Fiscal
Year; (2) pay for Authorized Services; (3) pay Administrative Expenses; (4) provide any amount
required to establish or replenish a reserve fund in connection with any Bonds; (5) provide any
amount required to establish or replenish any operating reserve held by the City for Authorized
Services and/or Administrative Expenses; (6) provide an amount equal to reasonably anticipated
Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal
Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any
amounts described in clauses (4) or (5). The amounts referred to in clauses (1) through (6) of the
preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) interest
earnings on or surplus balances in funds and accounts for Bonds to the extent that such earnings or
balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the
collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available
to pay Debt Service on the Outstanding Bonds or other indebtedness as determined by the CFD
Administrator.
Beginning in the Transition Year,to (1) pay for Authorized Services; (2) pay Administrative Expenses;
(3) provide any amount required to establish or replenish any operating reserve held by the City for
Authorized Services and/or Administrative Expenses; (4) provide an amount equal to reasonably
anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the
previous Fiscal Year as determined by the CFD Administrator,as limited by the Act; less(5)a credit for
funds available, if any,to reduce the Special Tax levy.
"State" means the State of California.
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 4
"Tax Exempt Property"means all of the Assessor's Parcels within the boundaries of CFD No.2022-1 which
are exempt from the Special Tax pursuant to the Act or Section E below.
"Taxable Contingent Property" means any Assessor's Parcel that was previously classified and levied as
Taxable Property, but has changed ownership or use such that it would subsequently be classified as
Property Owner Association Property or Public Property, or other property, as Tax Exempt Property
pursuant to the provisions of Section E.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2022-1 which
are not exempt from the Special Tax pursuant to the Act or Section E below.
"Timeshare Property" means all Assessor's Parcels of Developed Property which include Units of
timeshare estates in a timeshare project pursuant to California Revenue and Taxation Code Section
2188.9.Typical County Use Codes include:TE,TED,TU,TUD.
"Transition Event" means the earlier of (i) Fiscal Year 2057/58 or (ii) the Fiscal Year when the CFD
Administrator determines that both of the following events have occurred(i)all Bonds secured by the levy
and collection of the Special Tax in CFD No. 2022-1 have been fully repaid and the City determines that
no additional Bonds are to be issued, (ii) all Administrative Expenses from prior Fiscal Years have been
paid or reimbursed to the City.
"Transition Year" means the first year in which the CFD Administrator determines that the Transition
Event occurred in the prior Fiscal Year.
"Trustee" means the trustee or fiscal agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed
Property, or Taxable Contingent Property.
"Unit" means an individual residential living space.The number of Units assigned to each Assessor's Parcel
may be determined by(i) referencing Assessor's Data,(ii)site surveys and physical unit counts,and/or(iii)
reviewing City building permit data. An Accessory Dwelling Unit shall not be considered a Unit for the
purposes of the Special Tax.
"Use Code" means that code assigned by the County for the purpose of identifying the primary activity
for which an Assessor's Parcel is being used.
"Welfare Exempt Property" means, in any Fiscal Year,all Parcels within the boundaries of CFD No. 2022-
01 that have been granted a welfare exemption by the County under subdivision (g)of Section 214 of the
Revenue and Taxation Code.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year,the CFD Administrator shall determine the valid Assessor's Parcel Numbers for all Taxable
Property within CFD No. 2022-1. If any Assessor's Parcel Numbers are no longer valid from the previous
Fiscal Year, the CFD Administrator shall determine the new Assessor's Parcel Number or Numbers that
are in effect for the current Fiscal Year. To the extent an Assessor's Parcel(s) of Taxable Property are
subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new
Assessor's Parcel(s) pursuant to Section C.
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 5
Each Fiscal Year,all Assessor's Parcels within CFD No. 2022-1 shall be classified as follows:
1. Each Assessor's Parcel shall be determined to be Taxable Property or Tax Exempt Property.
2. Each Assessor's Parcel of Taxable Property shall be further classified as Developed Property,Taxable
Contingent Property, or Undeveloped Property.Taxable Property shall be subject to Special Taxes in
accordance with the rate and method of apportionment determined pursuant to Sections C and D
below.
3. Each Assessor's Parcel of Developed Property and Taxable Contingent Property shall be further
classified as Single Family Residential Property, Accessory Dwelling Unit, Residential Condominium
Property, Multi-family Residential Property or Non-residential Property. For Single Family Residential
Property the Building Square Footage shall be determined. For Accessory Dwelling Units, Residential
Condominium Property and Multi-family Property,the number of Units shall be determined.
C. MAXIMUM SPECIAL TAX RATES
Notwithstanding the below, under no circumstances will the Special Tax levied in any Fiscal Year against
any Assessor's Parcel for which an occupancy permit for private residential use has been issued be
increased by more than ten percent above the amount that would have been levied in that Fiscal Year had
there never been any such delinquency or default by the owner(s) of any other Assessor's Parcel within
CFD No. 2022-1.
PRIOR TO THE TRANSITION EVENT
1. Developed Property
The Maximum Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1.
TABLE 1
MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023/24
Property Type Maximum Special Tax Per
Single Family Residential Property $0.15 Building Square Foot
Accessory Dwelling Unit 123.00 Unit
Residential Condominium Property 196.00 Unit
Multi-family Residential Property 172.00 Unit
Non-residential Property 734.00 Parcel
2. Taxable Contingent Property
Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel of Taxable Contingent Property shall be
assigned as shown in Table 1 according to the previous Taxable Property type and use.
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 6
AFTER THE TRANSITION EVENT
The Maximum Special Tax for each Assessor's Parcel that may be levied in any Fiscal Year after the
Transition Event is determined as,an amount equal to 100%of the Maximum Special Tax in the Fiscal Year
prior to the Transition Year, adjusted for any parcel that prepaid in part their Special Tax by adding an
amount equal to the Special Tax that would have been due in the Fiscal Year prior to the Transition Year
if such Parcel had not prepaid.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES
Commencing with Fiscal Year 2023/24 and for each following Fiscal Year, the CFD Administrator shall
determine the Special Tax Requirement,and shall levy the Special Tax until the amount of the Special Tax
equals the Special Tax Requirement.The Special Tax shall be levied each Fiscal Year as follows:
First:The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a
rate up to 100%of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has
been completed, the Special Tax shall be levied Proportionately on all Taxable Contingent Property at a
rate up to 100%of the Maximum Special Tax for Taxable Contingent Property.
E. EXEMPTIONS
No Special Tax shall be levied on Agricultural Property, Timeshare Property, Public Property and
Undeveloped Property. However, should an Assessor's Parcel no longer be classified as Public Property
or Undeveloped Property its tax-exempt status will be revoked. In the case of Public Property and
pursuant to Section 53317.3 of the Act, if property not otherwise exempt from the Special Tax levied
pursuant to this chapter is acquired by a public entity through a negotiated transaction, or by gift or
devise, the special tax shall, notwithstanding Section 53340, continue to be levied on the property
acquired and shall be enforceable against the public entity that acquired the property. However, the
public agency that acquires the property may prepay in part and satisfy the obligation to pay the tax
pursuant to Section I below.
Taxable Contingent Property shall be subject to the levy of the Special Tax, assigned to a Property Type
in accordance with the use of the property, and shall be taxed Proportionately as part of the second step
in Section D above, at up to 100%of the applicable Maximum Special Tax.
Prior to the Transition Event, any property that is granted a welfare exemption pursuant to Section
53340(c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code prior to
the first series of CFD No. 2022-1 Bonds shall be exempt from the Special Tax in each Fiscal Year it is
Welfare Exempt Property.Any property that is granted a welfare exemption pursuant to Section 53340(c)
under the Act under subdivision (g)of Section 214 of the Revenue and Taxation Code after the first series
of CFD No. 2022-1 Bonds have been issued shall not be considered Welfare Exempt Property for the
Special Taxes-Facilities and shall not be exempt from Special Tax- Facilities.
After the Transition Event,any property that is granted a welfare exemption pursuant to Section 53340(c)
under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code shall be exempt
from the Special Tax in each Fiscal Year it is Welfare Exempt Property.
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 7
F. APPEALS
Any property owner may file a written appeal of the Special Taxes with the CFD Administrator claiming
that the amount or application of the Special Taxes is not correct.The appeal must be filed not later than
one calendar year after having paid the Special Taxes that are disputed,and the appellant must be current
in all payments of Special Taxes. In addition,during the term of the appeal process,all Special Taxes levied
must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The CFD
Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary,
and advise the appellant of its determination.
If the property owner disagrees with the CFD Administrator's decision relative to the appeal, the owner
may then file a written appeal with the City Council whose subsequent decision shall be final and binding
on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City
Council requires the Special Taxes to be modified or changed in favor of the property owner, the CFD
Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash
refund cannot be made,then an adjustment shall be made to credit future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent
to filing any legal action by such owner.
G. INTERPRETATIONS
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of
Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes,
method of apportionment, classification of Parcels, or any definition used herein, as long as such
correction does not materially affect the levy and collection of Special Taxes. In addition, the
interpretation and application of any section of this document shall be at the City's discretion.
H. MANNER OF COLLECTION
The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes; provided, however, that the CFD Administrator may, at the sole discretion of the City,
directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner as
necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on
Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.
J. TERM
The Special Tax shall be levied and collected, as needed to fund the Special Tax Requirement, in
perpetuity. However, no portion of the Special Tax shall be levied for Authorized Facilities after Fiscal Year
2057/58,which shall be the last Fiscal Year in which the Transition Event may occur: provided, however,
that a Special Tax that was lawfully levied for Authorized Facilities in or before Fiscal year 2057/58 and
that remains delinquent may be collected in subsequent years.
City of Cathedral City June 14,2022
CFD No.2022-1(Cathedral City Park&Recreation Services) Page 8
EXHIBIT B
LIST OF AUTHORIZED FACILITIES AND SERVICES
The public facilities, public services and incidental costs authorized to be
financed by the special taxes levied in the CFD consist of the following:
Authorized Facilities. Authorized facilities consist of the purchase, construction,
expansion, improvement, relocation or rehabilitation of any real or other tangible
property with an estimated useful life of five years or longer undertaken by the City or
another public agency that is recreation-related, including community centers, parks,
parkways, open space, and including all direct or indirect costs and expenses related
thereto. Authorized facilities also include payment of any bonds, notes, lease payments,
indebtedness or other obligations for any authorized facility.
Authorized Services. Authorized services consist of (i) the operation,
maintenance, repair and provision of any other services with respect to any authorized
facility, including replacement and the funding of a reserve fund to pay for future repair
and/or replacement of any authorized facility; such authorized services include, but are
not limited to, all general or extraordinary activities deemed necessary or desirable by
the City to provide for the use or enjoyment of any and all authorized facilities, whether
provided by the City or any outside entity, including maintenance and operations
contingencies and reserves with respect thereto; and (ii) any City services which protect
public health, improve gang prevention efforts, and/or facilitate afterschool programs for
at-risk youth.
Incidental Costs. In addition, costs eligible to be financed by the CFD shall
include all costs and expenses incidental to the above and authorized by the Mello-
Roos Community Facilities Act of 1982 that are determined by the City to be associated
with the authorized facilities or the authorized services, the formation and ongoing
administration of the CFD, the election, bonding, or levy and collection of special taxes,
as well as all other costs incurred to carry out the authorized purposes of the CFD that
are permitted by the Act.
L
EXHIBIT C
(FORM OF)
NOTICE OF PUBLIC HEARING ON PROPOSED
CITY OF CATHEDRAL CITY
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(CATHEDRAL CITY PARK & RECREATION SERVICES)
RIVERSIDE COUNTY, CALIFORNIA
The City of Cathedral City is considering the formation of a community facilities
district (the "CFD") under the authority of the Mello-Roos Community Facilities Act of
1982, as amended, to fund certain public services and the acquisition and construction
of certain public facilities within the City of Cathedral City, and to incur bonded
indebtedness of the CFD. This Notice contains a brief summary of the proposal, but
you are referred to the Council's Resolution of Intention to Form a Community Facilities
District and Levy a Special Tax in the City of Cathedral City Community Facilities
District No. 2022-1 (Cathedral City Park & Recreation Services) to Fund Public Services
and Finance the Acquisition and Construction of Certain Public Facilities in and for Such
Community Facilities District (No. 2022- , adopted June 22, 2022) and its Resolution
of Intention to Incur Bonded Indebtedness in Amount Not to Exceed $39,000,000 to
Finance the Acquisition and Construction of Certain Public Facilities in and for the City
of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park &
Recreation Services) (No. 2022- , adopted June 22, 2022) for details of the
proposals.
The proposal is to subject the property within the CFD to a special tax which will
be used to pay for the authorized services and facilities proposed by the CFD, including
paying principal and interest on bonds used to acquire or construct facilities. The
proceeds of the bonds will be used to pay for the facilities and other expenses, all as set
forth in the resolutions referred to in the preceding paragraph. A map showing the land
proposed to be included in the CFD is on file with the City Clerk. As set forth below, the
Council will hold a public hearing on the establishment of the CFD, the services and the
facilities to be financed by the CFD, the levy of the special tax within the CFD and the
authority to issue up to $39,000000 in bonds to be repaid by a portion of the special tax.
Neither the City nor any person outside the CFD has any liability for the special tax or
the bonds. The security for the bonds will be limited to the property subject to the
special tax within the CFD. In order to confer the authority upon the City Council of the
City to levy the special tax and to issue the bonds, a public hearing must be held on the
proposals, then the Council will decide whether to form the CFD, and finally the qualified
electors within the CFD must approve the proposals by a two-thirds vote. The qualified
electors are, pursuant to law, the registered voters within the CFD.
This is the notice of the public hearing. The public hearing will be held during
the Council meeting on August 3, 2022, at 5:00 p.m. in the chambers of the City Council
of the City of Cathedral City, 68700 Avenida Lalo Guerrero, Cathedral City, California
92234, or as soon as possible thereafter. At the hearing, the testimony of all interested
persons or potential special taxpayers for or against the formation of the CFD, the
authorization to levy the special tax, and the authorization to issue the bonds will be
heard. If written protests against the proposed CFD are delivered to the City Clerk at or
before the time set for the hearing by either registered voters residing within, or the
owners of property within, the proposed CFD, they will be counted toward a possible
majority protest. Such protests by a majority of the registered voters residing within the
CFD or by the owners of a majority of the land area within CFD which is or will be
subject to the special tax, if not withdrawn prior to the close of the hearing so as to
reduce the value of the protests to less than a majority, will require the proposed CFD to
be eliminated from immediate consideration, and prevent its being included in a
subsequent proceedings for at least one year. If the Council, after the public hearing,
determines that a majority protest under Section 53324 of the California Government
Code was not made at the hearing, the Council may conduct an election by special
mailed ballot, or consolidated with a County-wide election, to levy a special tax within
the CFD and incur bonded indebtedness for the CFD.
Dated: June , 2022
City Clerk, City of Cathedral City
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CITY OF CATHEDRAL CITY
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STATE OF CALIFORNIA
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