HomeMy WebLinkAboutNS-2033 - Providing for the City of Santa Ana Special Tax Financing Law Including General Provisions and Definitions ...JHHW:CFA:peh
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ORDINANCE NO. N$-2033
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
ANA PROVIDING FOR THE CITY OF SANTA ANA SPECIAL TAX
FINANCING LAW INCLUDING GENERAL PROVISIONS AND
DEFINITIONS, POWERS AND PROCEDURES TO ISSUE SPECIAL
TAX BONDS FOR THE PURPOSE OF PROVIDING FINANCING FOR
SPECIFIED PURPOSES, AND CERTAIN OTHER SUPPLEMENTAL
PROVISIONS
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
Section 1. Recitals. The City Council of the City of Santa Aha does hereby find,
determine and declare that:
(a) the City of Santa Ana (the "City") is a municipal corporation and
charter city duly organi{ed and existing under a charter pursuant to which the
City has the right and power to make and enforce all laws and regulations in
respect to municipal affairs and certain other matters in accordance with and as
more particularly provided in Sections 3, 5 and 7 of Article XI of the Constitution
of the State of California and Section 200 of Article II of the Charter of the City
(the "Charter'); and
(b) the City Council of the City acting under and pursuant to the powers
reserved to the City under Sections 3, 5 a~d 7 of Article XI of the Constitution of
the State of California and Section 200 of Article II of the Charter, finds that the
public interest and necessity reqni~e the establishment by this procedural
ordinance of a procedure for the authorization of the levy of special taxes and the
issuance of special tax bonds by the City for the purpose of providing financing or
· refinancing for certain purposes as specified heroin.
Section 2. That the Santa Aha Munie/val Code is hereby amended by adding a
chapter thereto, to be numbered 20, which said chapter roads as ~ollows:
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CHAPTER 20
CITY OF SANTA ANA SPECIAL TAX FINANCING IMPROVEMENT
CODE
ARTICLE I
GENERAL PROVISIONS
Section 20-1. Short title.
This ordinance shall be known and may be cited as the "City of Santa Ana Special
Tax Financing Improvement Code", and shall be referred to herein as the "Code".
Section 20-2. Municipal and State affairs; authority conferred by Code;
applicability of laws.
This Code is adopted pursuant to Section 200 of Article II of the Charter of the
City of Santa Ana. In proceedings had pursuant to this Cede which are a municipal
affair, any general laws referred to in this Code are deemed a part of this Code.
In the event that any proceeding had pursuant to this Code shall be adjudged a
state affair, it is declared to be the intention that the proceedings were had pursuant to
any applicable general law or laws.
This Code provides an alternative method of financing certain public and private
capital facilities and municipal services. The prowswns of this Code shall not affect or
limit any other provisions of law authorizing or providing for the furnishing of facilities or
services, or the raising of revenue for these purposes. The City may use the provisions of
this Code instead of or in conjunction with any other method of financing part or all of
the cost of providing the authorized kinds of public and private capital facilities and
municipal services.
Section 20-3. Conflicting provisions; severability.
Any provision in this Code which conflicts with any general law or act shall
prevail over the other such provision in connection with any proceedings taken pursuant
to this Code.
In the event any portion of this Code shall be declared illegal, unenforceable, or
unconstitutional, such provision shall be deemed severable from the rest of the provisions
of this Code.
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Section 20-4. Actions or determinations; proceedings.
The City Council may take any actions or make an~' determinations which it
determines are necessary or convenient to c~rry out the purposes of this Code and which
are not otherwise prohibited by law.
Section 20-5. Establishment of a community facilities district to finance certain
services.
A community facilities district may be estabhshed under this Code to finance any
one or more municipal services within an area including, but not limited to, the following:
(a) Police protection services, inclUding, but not limited to, criminal justice
services. Criminal justice services shall not be limited to providing services for
jails, detention facilities, and juvenile halls.
(b) Fire protection and suppression services, and ambulance and
paramedic services.
(c) Recreation program services, library services and the operation and
maintenance of parks, parkways, open space, and museums and cultural facilities.
(d) Flood and storm protection services, including, but not limited to, the
operation and maintenance of storm drainage systems.
(e) Maintenance of sanitary sewer system facilities and storm drainage
facilities of the City including, but not limited to, sanitary sewer mains, laterals,
manholes, pump stations, and appurtenances of the City to convey, treat, and
dispose of sewage, and all storm drainage lines, mains, inlets, channels and all
appurtenances of the system of the City designed to convey storm waters by
cleaning, repairing and removal of debris, rubbish and other sol~d waste.
(f) Any other municipal service which the City is authorized by law to
provide.
For purposes of this Code, municipal services that may be financed include the
performance by employees of functions, operations, maintenance and repair activities.
Section 20-6. Other financing powers of a community facilities district.
A community facilities district may also finance the purchase, construction,
expansion, improvement or rehabilitation of any real or other tangible property with an
estimated useful life of three years or longer or may finance planning and design work
which is directly related to the purchase, construction, expansion or rehabilitation of any
real or tangible property. The facilities need not be physically located within the district.
A district may finance the purchase of facilities whose construction ha~s been completed
before or after the adoption of the resolution of formation if the facility is or was
constructed pursuant to plans approved by the City. and the facility is inspected by the
City ~nd found to be in compliance with applicable City building codes and standards.
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For example, a community fa<~,,~i~s district may finance facilities, including, but not
limited to, the following:
(a) Local park, recreation, parkway, and open-space facilities.
(b) Elementary and secondary school sites and structures.
(c) Libraries.
(d) The district may also finance the construction or undergrounding of
natural gas pipeline facilities, telephone lines, facilities for the transmission or
distribution of electrical energy, and cable television lines. The district may enter
into an agreement with a public utility to utilize those facilities to provide a
particular service and for the conveyance of those facilities to the public utility.
Any reimbursement by the public utility made to the district shall be utilized to
reduce or minimize the special tax levied within the district or improvement area,
or to construct or acqmre additional facilities within the district or improvement
area. as specified in the resolution of formation.
(e) The district may also pay in full all amounts necessary to eliminate any
fixed special assessment lines or to repay or defease any indebtedness secured by
any tax, fee. charge, or assessment levied within the area of a community facilities
district or may pay debt service on that indebtedness.
(f) Improvements to or the rehabilitation of real property related to fuce
suppression and/or asbestos removal.
(g) Any other facilities, public or private, which the City is authorized by
law to contribute revenue to, or construct, own or operate.
Section 20-7. School facilities financed by a community facilities district; cost
sharing by State Allocation Board; ownership transferred to state; savings.
(a) All or any part of the cost of any school facilities financed by a
community facilities district may be shared by the State Allocation Board
pursuant to Section 17718.5 of the California Education Code.
(b) If the State Allocation Board shares in any part of the cost of the school
facilities, the ownership of those facilities and the real property upon which the
facilities are located shall be transferred to the State of California. A copy of the
deed by which the title is transferred shall be recorded in the office of the county
recorded of the county in which the property is located. In addition, the
community facilities district shall take one or more of the following actions:
(1) Reduce the amount of bonds authorized to be issued by the
community facilities district.
(2) Reduce the amount of any special tax which is levied within the
community facilities district.
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(3) Reduce the amount of outstanding bonds or provide for the
defeasance of outstanding bonds.
(4) Shorten the period of time during which a special tax is levied
within the community facilities district.
(c) The amount of savings achieved pursuant to the actions taken in
accordance with subdivision (b) shall be in an amount equal to the amount of costs
shared by the State Allocation Board pursuant to Section 17718.5 of the California
Education Code.
(d) The City Council hereby finds and declares that this Section 20-7 is
intended to be in furtherance and not in derogation of education and school
financing, and thus an appropriate part of this Code despite the fact that
education is a state affair.
Section 20-8. Transfer of funds; use of money; interest.
The City Council may from time to time transfer money~ to a community facilities
district or to a zone within a community facilities district, for the benefit of the district or
zone, from any funds available to the City. The City Council also may appropriate any of
the City's available moneys to a revolving fund to be used for the acquisition of real or
personal property, engineering or other services, or the construction of structures or
improvements needed in whole or in part to provide one or more of the facilities or
services of a community facilities district.
The district may reimburse the City for any amount transferred or appropriated
pursuant to this Section 20-8, together with interest at the rate per annum, as
determined by the City Council. ~'
Section 20-9. Advances of funds or work in-kind; acceptance by legislative
body; use; repayment; agreement; conditions.
(a) At any time either before or after the formation of a comm~ity
facilities district, the City Council may accept advances of* funds or work in-kind
from any source, including, but not limited to, private persons or priyate entities
and may provide for the use of those funds or that work in-kind for any
authorized purpose, including, but not limited to, paying any cost incurred by the
City in creating a community facilities district. The City Council may enter into
an agreement with the person or entity advancing the funds or work in-kind to
repay all or a portion of the funds advanced, or to reimburse the person or entity
for the value, or cost, whichever is less, of the work in-kind, as determined by the
City Council, with or without interest, under all of the following conditions:
(1)
The proposal to repay the ~unds or the value or cost of the work
in-kind, whichever is less,/s included in the resolution of intention
or the resolution of formation to establish the district, or in the
resolution of consideration to alter the t~vpes of public facilities and
services provided within an established district.
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(2)
Any proposed special tax or change in a special tax is approved by
the qualified electors of the district pursuant to this Code. Any
agreement may specify that ff the qualified electors of the district
do not approve the proposed special tax or change in a special t~ux,
the local agency shall return any funds which have not been
committed for any authorized purpose by the time of the election to
the person or entity advancing the funds.
(3)
Any work in-kind accepted pursuant to this section shall have
been performed or constructed pursuant to plans approved by the
City, and the work-in-kind shall be inspected by the City and
found to be in compliance with applicable City building codes and
standards.
(b) Any such agreement shall not constitute a debt or liability of the City.
Section 20-10. Liberal construction of Code; error, irregularity, neglect or
omission.
This Code shall be liberally construed in order to effectuate its purposes. No
error, irregularity, informality, and no neglect or omission of any officer, in any procedure
taken under this Code. which does not directly affect {he jurisdiction of the City Council
to order the installation of the facility or the provision of service, or the levy of special
taxes, shall void or invalidate such proceeding or any levy for the costs of a facility or
service.
Section 20-11. Failure to receive notice, reSOlution, order, or other matter not
affecting proceedings.
The failure of any person to receive a notice, resolution, order, or other matter
shall not affect in any way whatsoever the validity of any proceedings taken under this'
Code, or prevent the legislative body from proceeding with any hearing so noticed.
Section 20-12. Application of Code; municipal officials;, powers and duties.
This Code applies insofar as the City has the power to install or eontribute
revenue for any of the facilities or provide or contribute revenue for any of the services
authorized under this Code. The officers of the City who have similar powers and duties
as the municipal officers referred to in this Code shall have the powers and duties given
by this Code to the municipal officials. Where no similar officer exists, the City Manager
of the City shall appoint a person or designate an officer to perform the duties under this
Code.
The City may initiate proceedings pursuant to Section 20-18 to include territory
proposed for annexation to the City within a community facilities district if a petition or
resolution of application for the annexation of the territory to the City has been accepted
for filing and a certificate of filing has been issued by the executive officer of the City
formation commission at the time the proceedings to create the district are initiated.
Those'' proceedings may be completed only if the annexation of the territory to the City is
completed.
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Section 20-13. Joint community facilities agreement or Joint exercise of powers
agreement.
(a) The City Council may enter into a Joint community facilities agreement
with any other local agency pursuant to this Section or into a joint exercise of
powers agreement pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title I of the California Government Code to exercise any power
authorized by this ordinance if the City Council adopts a resolution declaring that
such a joint agreement would be beneficial to the residents of the City or the
district.
Co) Notwithstanding Chapter 5 (commencing with Section 6500) of Division
7 of Title 1 of the California Government Code, a contracting party may use the
proceeds of any special tax or charge levied pursuant to this Code or of any bonds
or other indebtedness issued pursuant to this ordinance to provide facilities or
services which that contracting party is otherwise authorized by law to provide,
even though another contracting party does not have the power to provide those
facilities or services.
(c) The agreement entered into pursuant to this Section 20-13 may provide
for the division of responsibility to provide any of the facilities or services among
the entities entering into the agreement. The agreement shall provide for the
allocation and distribution of the proceeds of any special tax levy among the
parties to the agreement.
Section 20-14. Definitions.
Unless the context otherwise requires, the definitions contained in this article
shall govern the construction of this Code.
(a) "Clerk" means the City Clerk of the City.
Co) "Community facilities district~ or "district" means a district established
pursuant to this Code for the sole purpose of financing facilities and/or services.
(c) "Cost" means the expense of constructing or purchasing the facility and
of related land, right of way, easements, incloding incidental expenses, and the
cost of providing authorized services, including incidental expenses.
(d) "Debt" means any binding obligation to repay a sum of money,
including obligations in the form of bonds~ certificates of participation, long-term
leases, loans from government agencies, or loans from banks, other financial
institutions, private businesses or individuals.
(e) 'Incidental expense" includes all of the following:
(1)
The cost of planning and designing facilities to be financed
pursuant to this Code, including the cost of environmental
evaluations of those facilities.
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(2)
The costs associated with the creation of the district, issuance of
bonds, determination of the amount of taxes, collection of taxes,
payment of taxes, or costs otherwise incurred in order to carry out
the authorized purposes of the di?trict.
(3)
Any other expenses incidental t~ ~he management, administration,
completion, and inspection of the construction and/or acquisition of
the facilities.
(t) "Landowner" or "owner" or "owner of land" means any person shown as
the owner of land on the last equalized assessment roll or otherwise known to be
the owner of the land by the City Clerk. Notwithstanding the foregoing,
"landowner' or "owner" or 'owner of land" means, with respect to any land which
is the subject of a condemnation action, the person entitled to possession of the
land. The City Council has no obligation to obtain other information as to the
ownership of the land, and its determination of ownership shall be final and
conclusive for the purposes of this Code. The City or any other public agency is
not a landowner or owner of land for purposes of this Code, unless the land owned
by the City or any public agency or any leasehold therein would be subject to a
special tax levied pursuant to this Code; as provided in Sections 20-15 or 20-16.
(g) "Legislative body" means the legislative body or governing board of any
local agency, and with respect to the City, shall mean the City Council.
(h) "Local agency" means any city or county, whether general law or
chartered, special district, school district, joint powers entity created pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1, or any other
municipal corporation, district, or political subdivision of the state.
(i) "Rate" means a single rate of tax or a schedule of rates.
Section 20-15. Special tax; property acquired by public entity through
negotiated transaction or by gift or devise; voluntary application of special tax.
If property not othervase exempt from a special tax levied pursuant to this Code is
acquired by a public entity through a negotiated transaction, or by gift or devise, the
special tax shall, notwithstanding Section20-54 continue to be levied on the property
acquired and shall be enforceable against the public entity that acquired the property.
Notwithstanding any other provision of this Code, any public agency other than a
city, county or school district may subject property owned by it to the levy of special
taxes, if it shall certify to the City Council: (a) its agreement to do so, (b) that it intends
to dispose of such property by transfer to a non-governmental agency at some time in the
future, and (c) that it agrees to cooperate in the sale of the property if necessary to obtain
funds to pay any special taxes levied upon such property.
Section 20-16. Special tax; special assessment on property acquired by public
entit.y through eminent domain.
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If property subject to a special tax levied pursuant to this Code is acquired
by the City or any public entity or entities through eminent domain proceedings,
the obligation to pay the special tax shall be treated, pursuant to Section 1265.250
of the California Code of Civil Procedure, as if it were a sp~cial annual
assessment. For this purpose, the present value of the obligation to pay a special
tax to pay the principal and interest on any indebtedness incurred by the district
prior to the date of apportionment detei-ii~ined pursuant to Section 5082 of the
California Revenue and Taxation Code shall be treated the same as a fixed lien
special assessment.
Section 20-17. Lease or possessory interest by exempt person or entity to
nonexempt person or entity; lease provisions; collection.
{a) If a public agency owning property, including property held in
trust for any beneficiary, which is exempt from a special tax pursuant to
Section 20-54 grants a leasehold or other possessory interest in the
property to a nonexempt person or entity, the special tax shaH,
notwithstanding Section 20-54, be Series on the leasehold or possessory
interest and shall be payable by the owner of the leasehold or possessory
interest.
(b) When entering into a lease or other written contract creating a
possessory interest that may be subject to taxation, pursuant to subdivision
(a), the public agency shall include, or cause to be included, in the contract
a statement that the property interest may be subject to special taxation
pursuant to this chapter, and that the party n whom the possessory interest
is vested may be subject to the payment of special taxes levied on the
interest. Failure to comply with the requirements of this section shall not,
however, invalidate the contract.
(c) If the special tax on any possessory interest levied pursuant to
subdivision (a) is unpaid when due, the tax collector may use those
collection procedures which are available for the collection of assessments
on the unsecured roll.
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ARTICLE H
PROCEEDINGS TO CREATE A COMMUNITY FACILITIES DISTRICT
Section 20-18, Institution of proceeding; request; petition; fee
Proceedings for the establishment of a community facilities district may be
instituted by the City Council on its own initiative or shall be instituted by the City
Council when any of the following occurs:
(a) A petition requesting the institution of the proceedings signed by the
requisite number of registered voters, as specified in subdivision (d) of Section 2-
3, is filed with the City Clerk. The petition may consist of any number of separate
instruments, each of which shall comply with all of the requirements of the
petition, except as to the number of signatures.
(b) A petition requesting the institution of the proceedings signed by
landowners owning the requisite portion of the area of the proposed district, as
specified in subdivision (d) of Section 20-19, is filed with the City Clerk.
The petitions filed pursuant to subdivisions (a) and (b) shall be accompanied by
the payment of a fee in an amount which the Finance Director determines is sufficient to
compensate the City for all costs incurred in conducting proceedings to create a district
pursuant to this Code, and shall not be considered received until such payment has been
made to the City.
Section 20-19. Petition; contents; findings as to requisite number of signers.
A petition requesting the institution of proceedings for the establishment of a
community facilities district shall do all of the following:
(a) Request the City Council to institute proceedings to establish a
community facilities district pursuant to this Code.
(b) Describe the boundaries of the territory which is proposed for inclusion
in the district. ~'
(c) Generally state the type or types of facilities and/or services to be
financed by the district.
(d) Be signed by not less than 10 percent of the registered voters residing
within the territory proposed to be included within the district or by owners of not
.. less than 10 percent of the area of land proposed to be included within the district.
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If the City Council finds that the petition is signed by the requisite n~mber of
registered voters residing within the territory proposed to be included within the district
or by the requisite number of owners of land proposed to be included within the district,
that finding shall be final and conclusive.
Section 20-20. Resolution of intention to establish district; time f~r adoption.
Within six months after a petition requesting the institution of proceedings for the
establishment of a community facilities district is filed with the City Clerk, it shall adopt
a resolution of intention to establish a community facilities district in the form specified
in Section 20-21.
Section 20-21. Resolution of intention to establish district; contents.
Proceedings for the establishment of a community facilities district shall be
instituted by the adoption of a resolution of intention to establish the district which shall
do all of the following:
(a) State that a community facilities district is 15reposed to be established
under the terms of this Code and describe the boundaries of the territory proposed
for inclusion in the district, which may be accomplished by reference to a map on
file in the office of the City Clerk, showing the proposed community facilities
district.
(b) State the name proposed for the distxict in substantially the following
form: "Community Facilities District No. __ of the City of Santa Aha~.
(c) Generally state the type or types of facilities and/or services proposed
to be financed by the district pursuant to this Code. If the purchase of completed
facilities or the incurring of incidental expenses is proposed, the resolution may
identify those facilities or expenses.
(d) State that, except where funds are otherwise available, a special tax
sufficient to pay for all facilities and/or services, secured by recordation of a
continuing lien against all nonexempt real property in the district, will be annually
levied within the area of the district. The resolution shall specify the rate and
method of apportionment and manner of collection of the special tax in sufficient
detail to allow each landowner or resident within the proposed district to estimate
the maximum amount that he or she will have to pay.
(e) Fix a time and place for a public hearing on the establishment of the
district which shall not be less than 10 or more than 60 days after the adoption of
the resolution and direct the giving of notice as provided in Section 20-23 and, if
desired, 20-24 hereof.
(f) Direct the preparation and filing of the report under Section 20-22
hereof. '
(g) Contain a description o(' !~ proposed voting procedure.
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Section 20-22. Reports and estimate of costs by responsible officers; part of
hearing record.
At the time of the adoption of the resolution of intention to establish a community
facilities district, the City Council shall direct the Finance Director or another
appropriate officer to frle or caused to be prepared and filed at or before the time of the
hearing, a report with the City Clerk containing a brief description of the facilities and
services proposed to be financed by type and an estimate of the cost of providing those
facilities and services, together with an estimate of the costs of any bond issuance and
the City's administration of the district. If the purCliasc of completed facilities or the
payment of incidental expenses is proposed, the report shall contain an estimate of the
cost of those facilities or incidental expenses. The report shall be made a part of the
record of the hearing on the resolution of intention to establish the district.
Section 20-23. Required notice of hearing.
(a) The City Clerk shall publish a notice of the hearing once .in a
newspaper of general circulation circulated in the proposed district. Publication
shall be complete at least seven days prior to the date of the hearing.
(b) The notice shall contain all of the following information:
(1) The text of the resolution of intention to establish the district.
(2) The time and place of the hearing on the establishment of the
district.
(3)
A statement that at the hearing the testimony of all interested
persons or taxpayers for or against the establishment of the
district, the extent of the district, or the furnishing of specified
types of facilities and/or services will be heard. The notice shall
also describe, in summary, the effect of protests made by registered
voters or landowners against the establishment of the district, the
extent of the district, the furnishing of a specified type of facilities
or services, or a specified special tax; as provided in Section 2-10.
(4) A description of the proposed vothug procedure.
Section 20-24. Optional notice of hearing.
The City Council may also direct the City Clerk to give notice of the hearing by
first-class mail to~ each registered voter and to each landowner within the proposed
district. This notice shall be mailed at least 10 days before the hearing and shall contain
the same information as is required to be contained in the notice published pursuant to
Section 20-23, except that the entire text of the resolution of intention may be omitted if
the date, number and fact of its adoption are shown and the proposed facilities and/or
services are briefly described and the proposed amounts and method of apportionment of
the special tax are shown.
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Section 20-25. Protests; interested persons or taxpayer.
At the hearing, protests against the establishment of the district, the extent of the
district, or the furnishing of specified types of facilities or services within the district may
be made orally or in writing by any interested persons or taxpayers. Any protests
pertaining to the regularity or sufficiency o~ the proceedings shall be in writing and shall
clearly set forth the alleged irregularities and defects. To be counted under Section 20-
26 any written protest shall be filed with the City Clerk on or before the time fixed for the
hearing. The City Council may waive any irregularities in the form or content of any
written protest and at the hearing may correct minor defects in the proceedings. Written
protests may be withdrawn in writing at any time before the conclusion of the hearing.
Section 20-26. Written protest; further proceedings to create district; elimination
of special tax or types of facilities or services from resol~ttion of formation.
If 50 percent or more of the registered voters, or six registered voters, whichever is
more, residing within the territory proposed to be included in the district, or the owners
of one-half or more of the area of the land in the territory proposed to be included in the
district and not exempt from the special tax, file written protests against the
establishment of the district, and protests are not withdrawn so as to reduce the value of
the protests to less than a m~jority, no further proceedings to create the specified
community facilities district or to levy the specified special tax shall be taken for a period
of six months from the date of the decision of the City Council.
If the m~jority protests are only against the furnishing of a specified type or types
of facilities or services within the proposed district, or ~against levying a specified special
tax, those types of facilities or services or the specified special tax shall be eliminated
from the resolution of formation.
Section 20-27. Hearing;, continuances; time limitation; exception; modification of
resolution of intention; determination to abandon or proceed with establishment
of district.
The hearing may be continued from time to time without further notice under
Section 20-23 or 20-24, but shall be completed within six months of the original hearing
date. The City Council may modify the resolution of intention by eliminating proposed
facilities or services, or by changing the rate or method of apportionment of the proposed
special tax so as to reduce the maximum special tax to be levied on all or a portion of the
property within the proposed district, or by removing territory from the proposed district.
At the conclusion of the hearing, the City Council may abandon the proposed
establishment of the community facilities district or may, after passing upon all protests,
determine to proceed with establishing the d~trict, except as provided in Section 20-26
hereof.
Section 20-28. Adoption of resolution of formation establishing district; contents;
finding concerning validity and conformity of prior proceedings.
If the City Council determines to establish the district, it shall adopt a resolution
of formation establishing the district. The resolution of formation shall incorporate by
reference all of the information required to be included in the resolution of intention to
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establish the chstrict specified in Section 20-21. If a special tax is propoazd to be levied
in the district to pay for any facilities and/or services and the special tax has not been
eliminated by majority protest pursuant to Soction 20-26, the resolution shall state that
fact and all of the following:
(1)
Determine whether all proceedings were valid and in conformity with
the requirements of this Code, which finding shall be final and
conclusive.
(2) State that the proposed special tax to be levied within the district has
not been precluded by majority protest pursuant to Section 20-26.
(3) Identify any facilities and/or services, as may be changed under
Section 20-26 or 20-27 hereof, proposed to be funded with the
proceeds of the special tax.
(4) Set forth the proposed rate and method of apportionment of the
special tax.
(5)
Set forth the name, address, and telephone r,mber of the office,
department, or bureau of the City which will be responsible for
preparing annually a current roll of special tax levy obligations by
assessoFs parcel number and which will be responsible for estimating
future special tax levies pursuant to Section 20-25.
(6)
State that upon recordation of a notice of special tax lien pursuant to
Section 3114.5 of the California Streets and Highways Code, a
continuing lien to secure each levy of the special tax shall attach to all
nonexempt real property in the district and this lien shall continue in
force and effect until the special tax obligation is prepaid and
permanently satisfied and the lien canceled in accordance with law or
until collection of the tax by the City Council ceases.
(7)
Set forth the county of recordation and the book and page in the Book
of Maps of Assessments and Community Facilities Districts in the
county recorder's office where the boundary map of the proposed
community facilities district has been recorded pursuant to Sections
3111 and 3113 of the California Streets and Highways Code.
(8) Provide for the conduct of the election required under Section 20-33
hereof.
(9) At the option of the City Council, provide for the establishment of or
change in the appropriations limit under Section 20-32 hereof.
Section 20-29. Special tnlx; basis for apportionment.
A tax imposed pursuant to tiffs Code is a special tax and not a special assessment,
and {here is no requirement that the tax be apportioned on the basis of benefit to any
property. However, a special tax levied pursuant to this Code may be on or based on
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benefit received by parcels of real property, the cost of providing facilities and/or services
available to each parcel, or any other reasonable basis as determined byShe City Council.
A special tax apportioned on any of these bases shall not be construed to be on or based
upon the ownership of real property.
Section 20-30. Noncontiguous areas; alteration of boundaries.
(a) A community facilities district may include areas of territory that are
not contiguous.
(b) In establishing the boundaries of the district, the City Council may
alter the exterior boundaries of the district to include less territory than that
described in the recorded boundary map but it may not include any territory not
described in that map.
Section 20-31. Boundaries of district; inclusion of lands devoted to agricultural,
timber or livestock uses.
Land devoted primarily to agricultural, timber, ~r livestock uses and being used
for the commercial production of agricultural, timber'S'or livestock products may be
included in a community facilities distric~ only if such land is contiguous to other land
which is included within the described exterior boundaries of the community facilities
district, and only if the legislative body finds that the land will be benefited by any of the
types of public facilities and services proposed to be provided within the district. The
land may, however, be included in the community facilities district, if the owner requests
its inclusion.
Section 20-32. Establishment or changing appropriations limit; election on
propositions, adjustment.
The City Council may submit a proposition to establish or change the
appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the
California Constitution, of a community facilities district to the qualified electors of a
proposed or established district. The proposition establishing or changing the
appropriations limit shall become effective if approved by the qualified electors voting on
the proposition and shall be adjusted for changes in the cost of living and changes in
populations, as defined by subdivisions (b) and (c) of Section, 7901, except that the
change in population maybe estimated by the legislative body in the absence of an
estimate by the State of California Department of Finance, and in accordance with
Section I of Article XIII B of the California Constitution. For purposes of adjusting for
changes in population, the population of the district shall be deemed to be at least one
person during each calendar year.
Section 20-33. Special tax levy; election; voter qualifications; ballots.
(a) By resolution," ~ity Council shah submit the levy of any special
taxes to the qualified ele¢ ~'s i' the proposed cOmmunity facilities district in the
next general election or in ~ ~;,c¢ial election to be held, notwithstanding any other
~eqnirement, including ~ :~y rc~lttirement that elections be held on specified dates,
contained in the Califor¢,ia E!ections Code, at least 5 days, but not more than 180
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268
days, following the adoption of the resolution of formation. The legislative body
shall provide the resolution of formation~ a certified map of sufficient scale and
clarity to show the boundaries of the district, and a sufficient description to allow
the election official to determine the boundaries of the district to the official
conducting the election after the adoption of the resolution of formation, if
requested by the offficial conducting the election. Assessor's parcel numbers for
the land witi~in the district shall be included if it is a landowner election or the
district does not conform to an existing district's boundaries, if requested by the
official conducting the election. If the election is to beheld less than 125 days
following the adoption o£ the resolution of formation and the election official is
other than the City Clerk. the concurrence of the election official conducting the
election shall be required, However, any time limit sPec/fled by this section or
requirement Pertaining to the conduct of the election may be waived with the
unanimous consent of the qualified electors ~qf the proposed district and the
concurrence of the election official conducting the election. In the event of such
unanimous waiver, the election official shall be the City Clerk.
(b) Except as otherwise provided in subdivision (c), if at least 12 persons,
who need not necessarily be the same 12 persons, have been registered to vote
within the territory of the proposed community facilities district for each of the 90
days preceding the date of the protest hearing, the vote shall be by the registered
voters of the proposed district, with each voter having one vote. Otherwme, the
vote shall be by the landowners of the proposed district and each landowner who
is the owner of record at the close of the protest hearing, or the authorized
representative thereof, shall have one vote for each acre or portion of an acre of
land that he or she owns within the proposed community facilities district. The
number of votes to be voted by a particular landowner shall be specified on the
ballot provided to that landowner.
(c) If the proposed special tax will not be apportioned in any tax year on
any portion of property in the district in residential use in that tax year, as
determined by the legislative body, the legislative body may provide that the vote
shall be by the landowners of the proposed district whose property would be
subject to the tax if it were levied at the time of the election. Each of these
landowners shah have one vote for each acre, or portion thereof, that the
landowner owns within the proposed district which would be subject to the
proposed tax if it were levied at the time of the election.
(d) Ballots for the special election authorized by subdivision (a) may be
distributed to qualified electors by mail with return postage prepaid or by personal
service by the election official. The election official may provide a certificate of the
proper mailing or delivery of ballots, which c~rtificate shall constitute conclusive
proof of mailing or delivery in the absence of fraud. The voted ballots shall be
returned to the election officer conducting the election not later than the time
specified in the resolution calling the election. However, if all the qualified voters
have voted, the election shall be closed.
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Section 20--34. Elections; law governing.
(a) Except as otherwise provided in this Code, the provisions of law
regulating elections of the City, insofar as they may be applicable, shall govern all
elections conducted pursuant to this Code. Except as provided in subdivision (b),
there shall be prepared and included in the ballot material provided to each voter
an impartial analysis, and arguments and rebuttals, if any.
(b) Analysis and arguments may be waived with the unanimous consent of
all the qualified electors.
Section 20-35. Ballot Materials.
(a) If the election is to be conducted by mail or hand delivered ballot, the
election official conducting the election shall pr6vide ballots and election materials
pursuant to subdivision (d) of Section 20-33 and Section 20-34, together with all
supplies and instructions necessary for the use and return of the ballot.
(b) The identification envelope for return of ballots used in landowner
elections shall contain the following:
(1) The name of the landowner.
(2) The address of the landowner.
(3)
A declaration, under penalty of perjury, stating that the voter is
the owner of record or the authorized representative of the
landowner entitled to vote and is the person whose name appears
on the identification envelope.
(4) The date of signing and place of execution of the declaration
described in clause 3 above.
(5) The printed name and signature of the voter.
(6) The address of the voter.
(7) A notice that the envelope contains an official ballot and is to be
opened only by the election official.
Section 20-36. Special tax levy; effect of vo~ter approval or disapproval.
(a) After the canvass of returns of any election pursuant to Section 20-33,
the City Council may levy any o,.-cial tax as specified in the resolution of
formation adopted pursuant to Sc~;uo~ 20-28 within the territory of the distxict, if
two-thirds of the votes cast upo:~ ti~e question of levying the tax are in favor of
levying that tax.
(b) After the canva.~' ? returns of any election conducted pursuant to
Section 20-33, the City Cou~cl~ shall take no further action with respect to levying
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the specified special tax within the COmm~mity facilities district for six months
from the date of the election, if the question of levying that specified special tax
fails to receive approval by two-thirds of the votes cast upon the question.
Section 20-37. Application of California Streets and Highway Code with respect
to special taxes; filings. '
(a) Upon a determination by the City Council that the requisite two-thirds
of votes cast in an election held pursuant to Section 20-33 are in favor of levying
the special tax, the City Clerk shall record or cause to be recorded the notice of
special tax lien provided for in Section 3114.5 of the California Streets and
Highways Code, whereupon the lien of the special tax shall attach as provided in
Section 3115.5 of the California Streets and Highways Code. The notice of special
tax lien shall be recorded in the office of the county recorder in each county in
which any portion of the district is located.
(b) Division 4.5 (commencing with Section 3100) of the California Streets
and Highways Code applies with respect to any special tax levied pursuant to this
Code. This Code is a ~principal act" as that term is defined in Section 3100 of the
California Streets and Highways Code.
Section 20-38. Special tax; levy and apportionment.
Upon approval of a special tax pursuant to Section 20-36(a), the special tax may
be levied only at the rate and may be apportioned only in the manner specified in the
resolution of formation, except as provided in Article III, and except that the legislative
body may levy the special tax at a rate lower than that specified in the resolution of
formation. In addition, the special tax may be levied only so long as it is needed to pay
the principal and interest on debt incurred in order to construct facilities under authority
of this Code, or so long as it is needed to pay the costs and incidental expenses of
services or of the construction of facilities authorized by this Code.
When the City Council determines that the special tax shall cease to be levied, the
City Council shall direct the City Clerk to record a Notice of Cessation of Special Tax
which shall state that the obligation to pay the special tax has ceased and that the lien
imposed by the Notice of Special Tax Lien is extingui~shed. The Notice of Cessation of
Special Tax shall identify the book and page of the Book of Maps of Assessment and
Community Facilities Districts wherein the map of the boundaries of the district is
recorded, and wherein the Notice of Special Tax Lien is recorded.
271
ARTICLE IH
CHANGES IN OF AUTHORIZED FACILITIES, SERVICES AND
SPECIAL TAXES
Section 20-39. Types of facilities and services provided.
Except as otherwise provided in this article, the City Council may, at any time,
after conducting a public hearing, eliminate one or more of the types of facilities and
services specified in the resolution of formation to establish the existing district but may
not finance any types of facilities and services that were not specified in the resolution of
formation.
Section 20-40. Resolution of consideration; change in facilities, services and
The City Council shall not adopt a resolution of consideration to reduce the rate of
any special tax or terminate the levy of any special tax if the proceeds of that tax are
being utilized to retire any debt incurred pursuant to this Code unless the City Council
determines that the reduction or termination of that tax would not interfere with the
timely retirement of that debt. Otherwise, the City Council may adopt a resolution of
consideration when:
(a) If the City Council determines that the public convenience and
necessity require any change in the types of authorized facilities or services which
should be financed by an established community facilities district, that the rate or
method of apportionment of a special tax should be changed, or that a new special
tax should be proposed, the City Council may adopt a resolution of consideration
to alter the types of facilities or services to be financed'by the district, to levy a
new special tax or special taxes, or, except as provided in subdivision (b), to alter
the rate or method of apportionment of the special tax; or
(b) If a petition signed by 50 percent or more of the registered voters
residing in the district, or by the owners of 50 percent or more of the territory
within the district, is filed with the City Clerk requesting that proceedings be
commenced to change the types of facilities or services financed by thi district or
that the rate or method of apportionment of an existing special tax be changed, or
that a new special tax be levied, the City Council shall within 90 days thereafter
adopt a resolution of consideration in the form specified in Section20-4~to make
those changes within the community facilities district. Any petition filed by
landowners shall be accompanied by the payment of such fee as the Finance
Director determines is sufficient to compensate the City for all costs incurred in
conducting proceedings pursuant to this article.
Section 20-41. Resolution of consideration; form.
The resoluti n of msideration shall contain of the following:
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272 :
(a) State tt~e name of the existing district and refer to the resolution of
formation for further particulars.
(b) Generally describe the territory included in the district or make
reference to the recorded boundary map thereof.
(c) Specify the changes in facilities and/or services which the district is
authorized to finance.
(d) Specify any new special taxes which would be levied to pay for new or
existing facilities and services and any proposed alteration to the rate or method
of apportionment of an existing special tax.
(e) Fix a time and place for a hearing upon the resolution of consideration
which shall not be less than 10 or more than 60 days after the adoption of the
resolution of consideration.
Section 20-42. Notice of hearing,
The City Clerk shall give or cause to be given notice of the hearing in the same
manner, containing the same information, as applicable, and within the same time as
provided for the giving of notice of a hearing on a resolution of intention to establish a
community facilities district under Section 20-23 hereof.
Section 20-43. Protests; elimination from resolutiqp; continuation, hearing.
The provisions of Sections 20-25 through 20-38 shall apply to the proceedings for
changes.
Section 20-44. Dissolution of districts.
The legislative body may, by Code, dissolve any existing district which it has
created upon making all of the following determinations:
(a) That the district is not obligated to pay any outstanding debt; and
(b) that the district has no authorization to levy any special tax.
Upon dissolving a district, the City Council shall cause an addendum to be
recorded to the Notice of Special Tax Lien recorded pursuant to Section 3114.5 of the
California Streets and Highways Code which shall state that the community facilities
district and all associated liens, if any, have been dissolved.
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ARTICLE IV
AHNEXATION OF TERRITORY
Section 20-45. Authorization.
The City Council may annex territory to an existing community facihties district
as provided in this article. The annexed territory need not be contiguous to territory
included in the existing community facilities district.
Section 20-46. Adoption of resolution of intention.
If the City Council determines that public convenience and necessity require that
territory be added to an existing community facilities district, or if one or more of the
voters residing within certain territory or landowners ~equest the City Council to include
territory within the district, the City Council may ad~t a resolution of intention to annex
the territory.
Section 20-47. Resolution of intention; contents.
The resolution of intention to annex the territory shall do all of the following:
(a) State the name of the existing community facilities district.
(b) Generally describe the territory included in the existing district and the
territory proposed to be annexed.
(c) Specify the types of facilities and/or services provided pursuant to this
Code in the existing district and the types of facilities and/or services to be
provided in the territory proposed to be annexed; and include a plan for sharing
facilities and providing services that will be provided in common within the
existing district and the territory proposed to be annexed.
(d) Specify any special taxes which would be levied within the territory
proposed to be annexed to pay for facilities and/or services provided pursuant to
this Code within that territory. A special tax proposed to pay for services to be
supplied within the territory proposed to be annexed shall be equal to any special
tax levied to pay for the same services in the existing district, except that a higher
or lower tax may be levied within the territory proposed to be annexed to the
extent that the actual cost of providing the services in that territory is higher or
lower than the cost of providing those serviceh in the existing district. A special
tax proposed to pay for facilities financed with bonds secured by the existing
community facilities district shall be the same as the tax levied in the existing
district for that purpose, except that a higher special tax may be levied for that
purpose within the territory proposed to be annexed to compensate for the interest
and principal previously paid by the existing community facilities district, less any
depreciation allocable to the facility as determined by the City Council in its sole
discretion.
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274
(e) Specify any alteration in the special tax rate levied within the existing
community facilities district as a result of the proposed annexation. The
maximum tax rate in the existing community facilities district may not be
increased as a result of proceedings pursuant to this article.
(l~ Fix a time and place for a hearing upon the resolution which shah not
be less than 10 nor more than 60 days after the adoption by the City Council of
the resolution of intention to annex territory pursuant to Section 20-47.
Section 20-48. Notice of hearing.
The City Clerk shall give notice of the hearing in the same manner and within the
same time as provided for the giving of notice of a hearing on a resolution of intention to
establish a community facilities district, as required by Section 20-47.
The notice shall do all of the following:
(a) Contain the text of the resolution adopted pursuant to Section 20-47.
(b) State the time and place for the hearing.
(c) State that at the hearing the testimony of all interested persons for or
against the annexation of territory to the community facilities district or the
levying of special taxes within the territory proposed to be annexed will be heard.
Section 20-49. Protests.
At the hearing, protests against the proposals described in the resolution of
intention may be made orally by any interested person. Any protests pertaining to the
regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth
the irregularities or defects to which objection is made. All written protests shall be filed
with the City Clerk prior to the time fhxed for the hearing. The City Council may waive
any ~rregularities in the form or content of any written protest and at the hearing may
correct minor defects in the proceedings. Written protests may be withdrawn in writing
at any time before the conclusion of the hearing.
Section 20-50. Abandonment of proposal; required number of written protests.
If 50 percent or more of the registered voters, or six registered voters, whichever is
more, residing within the existing community facilities district, or if 50 percent or more of
the registered voters or six registered voters, whichever is more. residing within the
territory proposed for annexation, or if the owners of one-half or more of the area of land
in the territory proposed to be annexed, file written protests against the proposed
addition of territory to the existing community facilities district, and protests are not
withdrawn so as to reduce the protests to less than a majority, no further proceedings
shall be undertaken for a period of six months from the date of decision of the City
Cotmcil on the issues discussed at the hearing.
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'275
Section 20-51. Continuance and duration of hearing; abandonment of
proceedings; submission of special tax question to electors.
The hearing may be continued from time to time, but shall be completed within six
months. At the conclusion of the hearing, the legislative body may abandon the
proceedings or may, after passing upon all protests, submit the question of levying a
special tax within the area proposed to be annexed to the existing community facilities
district to the qualified electors of the area proposed to be annexed, in the manner
specified for elections in Article H.
Section 20-52. Addition of territory with full legal effect; special tax levy.
After the canvass of returns of any election conducted in accordance with Section
20-51, the City Council shall determine that the area proposed to be annexed is added to
and part of the existing community facilities district with full legal effect, and the City
Council may levy any special tax within the annexed territory, as specified in the
resolution of intention to annex adopted pursuant to Section 20-46, if two-thirds of the
votes cast on the proposition are in favor of le~rying the special tax.
Section 20-53. Failure to receive approval of two-thirds of voters; prohibition of
further action.
After the canvass of returns of any election conducted in accordance with Section
20-51, the City Council shall take no further action on annexing the territory proposed to
be annexed to the community facilities district for a period of six months from the date of
the election if less than two-thirds of the votes cast on the proposition are in favor of
levying the special tax.
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276
ARTICLE IV
PROCEDURES FOR LEVYING
Section 20-54. Ordinance; tax rate and apportionment; exemption of
governmental properties and entities from special tax; use of tax proceeds; tax
collection, penalties, etc.
After a community facilities district has been created and authorized to levy
specified special taxes pursuant to Article II, Article III, or Article IV, the City Council
may, by Code, levy the special taxes at the rate and apportion them in the manner
specified in the resolution of formation or consideration, as applicable, adopted pursuant
to Article II, Article III, or Article IV. Any such Code, after adoption, shall remain in
effect until repealed by a later Code. The City Council may, by resolution, clarify any
aspect of the levy of the special tax as provided by the Code.
Properties or entities of the state, federal, or other local governments shall, except
as otherwise provided in Section 20-15, 20-16 or 20-17, be exempt from the special tax.
No other properties or entities are exempt from the special tax unless the properties or
entities are expressly exempted in the resolution of formation to establish a district
adopted pursuant to Section 20-28 or in a resolution of consideration to levy a new
special tax or special taxes or to alter the rate or method of apportionment of an existing
special tax as provided in Section 20-41.
The proceeds of any special tax may only be used to pay, in whole or part, the cost
of providing facilities, services and incidental expenses of the City or the district
pursuant to this Code. The special tax shall be collected in the same manner as ordinary
ad valorem property taxes are collected and shall be subject to the same penalities and
the same procedures, sale, and lien priority in case of delinquency as is provided for ad
valorem taxes, unless another procedure has been authorized in the resolution of
formation establishing the district and adopted by the City Council. The tax collector
may collect the special tax at intervals as specified in the resolution of formation,
including intervals different from the intervals at which the ordinary ad valorem property
taxes are collected. The tax collector may deduct the reasonable administrative costs
incurred in collecting the special tax.
All special taxes levied by a community facilities district shall be secured by the
lien imposed pursuant to Section 3115.5 of the California Streets and Highways Code.
This lien shall be a continuing lien and shall secure each levy of special taxes. The lien of
the special tax shall continue in force and effect until the special tax obligation is
prepaid, permanently satisfied, and canceled, or until the special tax ceases to be levied
by the City Council in the manner provided in Section 20-37.
Section 20-55. Designation of Office for Special Tax Computation.
The City Council shall designate an office, department, or bureau of the City
which shall be responsible for annually preparing the current roll of special tax levy
obligations by assessor's parcel number on nonexempt property within the district and
which will be responsible for estimating future special tax levies. The designated office,
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-g77
department, or bureau shall establish procedures to promptly respond to inquiries
concerning current and future estimated tax liability. Neither the designated office,
department, or bureau, nor the City Council, shall be liable if any estimate of future tax
liability is inaccurate.
Section 20-56. Actions or proceedings to attack, review, set aside, void, or annual
levy of special tax or increase in special tax; time for commencement; time for
perfection of appeal from final judgment.
Any action or proceeding to attack, review, set aside, void, or annul the levy of a
special tax or an increase in a special tax pursuant to this Code, or bonded~ indebtedness
authorized to be incurred pursuant to this Code shall be commenced within 30 days after
the special tax or the bonded indebtedness, as applicable, is approved by the voters. Any
appeal from a final judgment in that action or proceeding shall be perfected within 30
days after the entry of judgment.
Section 20-57. Disclosure of the Special Tax.
(a) If a lot, parcel, or unit of a subdivision is subject to a special tax levied
pursuant to this Code for which a public report is not required pursuant to Article
2 (commencing with Section 11010) of Chapter 1 of Part 2 of Division 4 of the
California Business and Professions Code, the subdivider, his or her agent, or
representative, shall not sell, or lease for a term exceeding five years, the lot,
parcel, or unit, or cause it to be sold or leased for a term exceeding five years,
until the prospective purchaser or lessee of the lot, parcel, or unit has been
furnished with and has signed a written notice as provided in this section. The
notice shall contain the heading "NOTICE OF SPECIAL TAX' in type no smaller
than 8-point type, and shall state the following in clear and simple language:
(1) That the property being purchag~d is or will be subject to a special
tax.
(2) The maximum annual amount of the special tax, and the number of
years for which it will be levied.
(3) The types of facilities or services to be paid for with the proceeds of
the special tax.
(b) "Subdivision~, as used in subdivision (a), means improved or
unimproved land that is divided or proposed to be divided for the purpose of sale,
lease, or financing, whether immediate or future, into two or more lots, parcels, or
units for residential use and includes a condominium project, as defined by Section
1350, a community apartment project, a stock cooperative, and a limited-equity
housing cooperative, as defined in Sectiong 11004, 11003.2, and 11003.4,
respectively, of the California Business and P; v~e'~ ,~ions Code.
(c) If any disclosure required to be made by this section is delivered after
the execution of an agreement to purchase, the b:~yer shall have three days after
delivery in person or five days after delivery by ~eposit in the mail, to terminate
his or her agreement by delivery of written no,icc f that termination to the owner,
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275
subdivider, or agent. Any disclosure delivei-ed after the execution of an agreement
to purchase shall contain a statement describing the buyer's right, method and
time to rescind as prescribed by this subdivision.
(d) The failure of the buyer or lessee to sign the notice shall not invalidate
any grant, conveyance, lease, or encumbrance.
(e) Any person or entity who willfully violates the provisions of this section
shall be liable to the purchaser of a lot or unit which is subject to the provisions of
this section for actual damages, and in addition thereto, shall be guilty of a public
offense punishable by a fine in an amount not to exceed five hundred dollars
($500). In an action to enforce such liability or fine, the prevailing party shall be
awarded reasonable attorney's fees.
Section 20-58. Manner of fixing and collecting charges.
For any community facilities district or zone thereof, the City Council may fix and
collect charges in the same manner as for miscellaneous extended services in county
service areas.
Section 20-59. Use of charges for authorized facilities and services.
Any charges collected pursuant to this Code may only be used for facilities and
services authorized by this Code. ~
Section 20-60. Notice of Cancellation of Special Tax.
In the event that the special tax is permanently satisfied as to a particular parcel
of land, the City Clerk shall prepare and record in the office of the county recorder of the
county in which the parcel of land is located, and the county recorder shall accept for
recordation, a Notice of Cancellation of Special Tax Authorization as to that parcel. The
Notice of Cancellation of Special Tax Authorization shall identify with particularity the
special tax being canceled, shall contain the legal description and assessor's parcel
number of the particular parcel of land subject to the tax, and shah contain the name of
the owner of record of the parcel. The City Clerk shall mail the original Notice of
Cancellation of Special Tax Authorization to the owner of the property after recerding the
doc~ment. The City Clerk may specify a charge for the preparation and recordation of
this notice.
ARTICLE V
BONDS
Section 20-61. Resolution to incur bonded indebtedness.
Whenever the City Council deems it necessary for an existing or proposed
community facihties district to incur bonded indebtedness, it shall, by resolution, set
forth all of the following:
(a) A declaration of the necessity for the indebtedness.
(b) The purpose for which the proposed debt is to be incurred.
(c) The amount of the proposed debt.
(d) The time and place for a hearing by the City Council on the proposed
debt issue.
Section 20-62. Inclusion of certain costs and estimated costs in proposed bonded
indebtedness.
The amount of the proposed bonded indebtedness may include ail costs and
estimated costs incidental to, or connected with, the accomplishment of the purpose for
which the proposed debt is to be incurred, including, but not limited to, the estimated
costs of construction or acquisition o£ buildings, or both; acquisition of land, rights-of-
way, water, sewer, or other capacity or connection fees; lease payments for school
facilities that are relocated, satisfaction of contractual obligations issued pursuent to this
Code, architectural engineering, inspection, legal, fiscal, and financial consultant fees;
environmental review and monitoring costs; bond and other reserve funds; discount fees;
interest on any bonds of the district due and payable prior to the expiration of one year
from the date of completion of all of the facilities, not to exceed five years; election costs;
administrative expenses of the City in administering the district or the levy and collection
of the special taxes; and all costs of issuance of the bonds, including, but not limited to,
fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for
letters of credit, and other credit enhancements costs, and printing costs.
Section 20-63. Notice of hearing on resolution.
The City Clerk shall publish a notice of the hearing in a newspaper of general
circulation circulated within the district. The notice shah state:
(a) The time and place of the hearing.
(b) At that time and place any p~rson interested, including all persons
owning property in the district, will be heard upon the proposed debt issue.
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Section 20-64. Hearing.
At the time and place flied for the hearing on the resolution declaring the
necessity for incurring the bonded indebtedness or at any time and place to which the
hearing is adjourned, the City Council shall proceed with the hearing. Said hearing may
be consolidated With the hearing referred to in Section 20-23 on the formation of the
district.
At the hearing any person interested, including persons owning property within
the district, may appear and present any matters material to the questions set forth in
the resolution declaring the necessity for incurring the bonded indebtedness.
Section 20-65.
proceedings.
Improvement area; resolution designating; application of
For purpose of' financing of, or contributing to the financing of, specified facilities,
the City Council may by resolution designate a portion or portions of the district as one
or more improvement areas. An area shall be known as "Improvement Area No. "of
"Community Facilities District of the City of Santa Ana~. After the designation of an
improvement area, all proceedings for purposes of a bond election and for the purpose of
levying special taxes for payment of the bonds shall apply only to the improvement area
for those specified facilities.
Section 20-66. Resolution; bonded indebtedness.
After the City Council has held the hearing pursuant to Section 20-61(d), if it
deems it necessary to incur the bonded indebtedness, it shall by resolution state all of the
following:
(a) That it deems it necessary to incur the bonded indebtedness.
(b) The purpose for which the bonded indebtedness will be incurred.
(c) Either of the following in accordance with its previous determination:
(1) That the whole of the district will pay for the bonded
indebtedness.
(2)
That a portion of the district will pay for the bonded
indebtedness, which portion shall be described in the resolution
of the City Council made pursuant to Section 20-65.
(d) The principal amount of debt to be incurred.
(e) The maximum term the bonds to be issued, which term shall not exceed
50 years.
(f) The maximum annual rate of interest to be paid, payable annually or
"semiannually, or in part annually and in part semiannually, or in such other
manner as shall be provided by the City Council.
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(g) That the proposition will be submitted to the voters.
(h) The date of the special community facilities district election (which may
be consolidated with a general or special district election, including an election to
levy a special tax) at which time the preposition'shall be submitted to the voters.
(i) If the election is not conducted by mail or hand-delivered ballot, the
hours between which the polls shall be open.
(j) If the election is conducted by mail or hand-delivered ballot, the hour
when the ballots are required to be received in the office of the election officer
conducting the election, and that if all qualified electors have voted, the election
shall be closed.
Section 20-67. Resolution to incur bonded indebtedness; notice of election;
publication.
The resolution provided for in Section 20-66 shall constitute the notice of such
special bond election and such resolution shall be published ih a newspaper of general
circulation circulating within the district.
Section 20-68. Elections pursuant to this article; laws and rules applicable.
Except as otherwise provided in this article, the provisions of the California
Elections Code relating to the qualifications of electors, the manner of voting, the duties
of election officers, the canvassing of returns, and all other particulars in respect to the
management of elections insofar as they may be applicable shall govern all elections
pursuant to this article, except that voting shall be conducted in the manner specified in
Section 20-33 of this Code.
Propositions relating to the levy of a special tax, incurring of bonded indebtedness,
or to establish or change an appropriations limit, or any combination thereof, under this
Code, may be combined into one ballot proposition as determined by the City Council
If the area designated in the resolution adopted pursuant to Section 20-66 does
not include the entire community facilities district, a separate ballot shall be prepared for
the vote upon the proposition to authorize bonds and to levy a special tax for payment of
such bonds and only the voters entitled thereto shall be given such ballots.
Section 20-69. Resolution relating to fori.., execution and issuance of bonds.
If more than two-thirds of the votes cast at the election are in favor of incurring
the indebtedness, the legislative body may, by resOlution, at the time or times it deems
proper, provide for the following:
(a) The form of the bonds.
(b) The execution of the bonds.
(c) The issuance of any part of the bonds.
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(d) The appointment of one or more hanks or trust companies within or
without the state having the necessary trust powers as trustee, fiscal agent,
paying agent; or bond registrar,
(e) The execution of a fiscal agent agreement, trust agreement or
indenture securing the bonds.
(9 The pledge or assignment of any revenues of the community facilities
district to the repayment of the bonds.
(g) The investment of any bond proceeds and other revenues, including
special tax revenues, by the trustee or fiscal agent in any securities or obligations
described in the resolution, fiscal agent agreement, indenture, trust agreement, or
other instrument providing for the issuance of the bonds.
(h) The date or dates to be borne by the bonds and the time or times of
maturity of the bonds and the place or places and time or times that the bonds
shall be payable.
(i) The interest, fixed or variable, to be borne by tl~e bonds.
~j) The denominations, form, and registration privileges of the bonds.
(k) Any other terms and conditions determined to be necessary by the
City Council.
Section 20-70. Action to foreclose liens; cumulative remedy; resolution to
diligently pursue foreclosure action.
(a) As a cumulative remedy, if bonds are outstanding, the City Council
may, not later than four years after the due date of the last installment of
principal thereof, order that any delinquent special taxes levied in whole or in part
for payment of the bonds, together with any penalties, interest, and costs, be
collected by an action brought in the superior court to foreclose the lien of special
tax.
(b) The City Council may covenant for the benefit of bondowners to
commence and diligently pursue to completion any foreclosure action regarding
delinquent installments of any amount levied as a special tax for the payment of
interest or principal of any bonds that are issued.
Section 20-71. Credits for delinquent taxes.
(a) When any foreclosure actions are ordered, the tax collector shall be
credited upon the current tax roll with the amount charged on account of the
delinquent special taxes to be sued on, including applicable penalties, interest, and
costs, and the tax collector shall be relieved of further duty in regard thereto. Any
amounts not the subject of a foreclosure action shall remain collectible by the tax
collector.
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Co) The t~x collector may charge the actual cost incurred in removing
these sums from the tax roll. This charge shall be added to the costs to be
recovered in the foreclosure action.
Section 20-72. Delinquent taxes, procedures.
At any time after the tax collector has been z-elieved of hJ. sor.herdut-y t~ oollec~c
sums under Section 20-71 and before judgment in a foreclosure action, the City Council
shall dismiss the action upon payment of all of the following:
(a) The amount of any delinquent special taxes together with any
penalties, interest, and costs accrued thereon to date of complete payment
hereunder.
(b) Costs of suit, including, but not !~mlted to, litigation guarantees
provided by title companies with respect to all claims of ownership or interest in
the subject property.
(c) Attorneys' fees authorized by the local agency.
(d) The tax collector's costs authorized by subdivision (b) of Section 20-
71.
Section 20-73. Foreclosures.
The foreclosure action shall be brought in the name Of the City, and may be
brought within the time specified in Section 20-70. The complaint may be brief and need
only include the following allegations:
(a) That on a stated date, a certain sum of special taxes, levied against
the subject property (describing it) pursuant to this Code, became delinquent.
(b) On that date, bonds issued pursuant to this Code, payable in whole
or in part by the subject special taxes, were outstanding (if applicable).
(c) That the City Council has ordered the foreclosure.
Section 20-74. Judgments.
Any judgment shall decree the amount of the continuing lien against each parcel
to be foreclosed, and shall order the parcel to be sold on execution as in other cases of the
sale of the real property by process of the court. The judgment amount shall include
reasonable attorneys' fees to be flied by the court, together with interest, penalties, and
other authorized charges and cos~ (all calculated up to date of judgment). The
foreclosure action shall be governed and regulated by the provisions of this Code, and
also where not in conflict with this Code, by other provisions of law generally applicable
to foreclosure actions.
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Property sold hereunder moy not be sold for less than the amount of the judgment
plus postjudgment interest and authorized costs without the consent of the owners of 51
percent by principal amount of the outstanding bonds.
Section 20-75. Errors.
No special tax installment, interest or penalties thereon, or deed shall be held
invalid for any error in computation if the error is found to be comparatively negligible, or
is found to be in favor of the owner of the real property affected thereby.
Section 20-76. Signatures on bonds or coupons; place bonds are payable.
The bonds shall be signed by the Mayor and countersigned by the City Clerk. All
signatures on the bonds may be printed, lithographed, or engraved. If any officer whose
signature appears on the bonds ceases to be that officer before the delivery of the bonds,
his or her signature is as effective as if he or she had remained in office. All bonds shall
be payable at the office of the City Treasurer or at the office of any agent designated by
the City.
Section 20-77. Special tax or charge for outstanding bonded debt.
When the City Council fixes and levies special taxes and charges for the
community facilities district it shall also fL~ and levy that amount of special taxes and
charges within the community facilities district wkich is required for the payment of the
principal of and interest on any outstanding bonded debt of the community facilities
district, including any necessary replenishment or expenditure of bond reserve funds or
accumulation of funds for future bond payments. The special tax or charge shall be
levied and collected by the same officers and at the same time and in the same manner
that all other special taxes and charges are levied and collected for the community
facilities district or in any other manner specified by the City Council. The special taxes
and charges shall not exceed the authority granted by article II, article IH or article IV
hereof. All of the collections for payment of principal and interest on bonds shall be paid
into the community facilities district bond or similar fund and reserve or other fund for
the particular community facilities district and shall be used solely for the payment of the
principal of and interest on the outstanding bonds of the community facilities district.
Section 20-78. Action to determine validity of bonds or special tax levy.
An action to determine the validity of bonds issued pursuant to this Code or the
validity of any special taxes levied pursuant to this Code may be brought pursuant to
Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the California Code of
Civil Procedure but shall, notwithstanding the time limits specified in Section 860 of the
California Code of Civil Procedure. be commenced within 30 days after the voters approve
the issuance of the bonds or the special tax if the action is brought by an interested
person pursuant to Section 863 of the California Code of Civil Procedures. Any appeal
from a judgment in that action or proceeding shall be commenced within 30 days after
entry of judgment.
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Section 20-79. Sale of bonds.
The City may sell the bonds so authorized at public or private sale, at the times
and in the manner the City Council deems appropriate. However, all bonds sold at public
sale shall be sold on sealed proposals after advertising for bids by publication of notice of
sale, not less than 5 days prior to the date of sale, in a newspaper of general circulation
circulating in the City. If no bids are received or the bids received are not satisfactory as
to price or responsibility of the bidders, the City Council or its designee may reject all
bids received, if any, and either readvertise or sell the bonds at private sale.
Section 20-80. Force, value and use of bonds; exemption from state taxation.
Any bonds issued by a district organized under the provisions of this Code are
hereby given the same force, value and use as bonds issued by any municipality and shall
be exempt from all taxation within the State.
Section 20-81. Refunding bonds; resolution.
The City Council may, by resolution, authorize the issuance of new bonds to
refund any or all of the district bonds outstanding or improvement area bonds
outstanding that have been issued pursuant to this article.
The City Council may issue refunding bonds without repeating any of the
procedures required for the approval of the original bond issue, if the City Council
determines that the total net interest cost to maturity on the refunding bonds plus the
principal amount of the refunding bonds does not exceed the total net interest cost to
maturity on the bonds to be refunded plus the principal amount of the bonds to be
refunded. Subject to such limitations, the principal amount of the refunding bonds may
be more than, less than, or the same as the principal amount of the bonds to be refunded.
The total authorized amount of the bonded indebtedness of a district or an
improvement area therein, as approved by the qualified voters thereof, shall not be
reduced by the principal amount of any refunding bonds issued to refund any or all
outstanding bonds of the district or improvement area.
Section 20-82. Refunding bonds; resolution for issuance.
If the City Council determines to issue refunding bonds pursuant to this article it
shall adopt a resolution providing for their issuance. T~he resolution shall:
(a) Describe the bonds being refunded and state the date on which it is
anticipated that the refunding will occur.
(b) Fix the date of the refunding bonds.
(c) Designate the denomination or denominations of the refunding bonds.
(d) Fix the minimum rate or rates of interest to be paid on the refunding
~ bonds.
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(e) Fix the maturity dates of the refunding bonds, which may exceed the
latest maturity date of the bonds being refunded, provided that the latest maturity
date of the refunding bond shall not be in excess of fifty years from the date of
issuance of the bonds to be refunded.
(f) Designate the place or places of payment of principal and interest on
the refunding bonds and on the bonds to be refunded.
(g) Describe the form of the refunding bonds.
Section 20-83. Sale of Refunding bonds.
The City Council may sell the refunding bonds at public or private sale. The
proceeds of any sale of refunding bonds for cash shall be applied only as permitted by
this article.
Section 20-84. Amount of proceeds and investments in funding fund.
The proceeds of the refunding bonds and the earnings thereon shall be in an
amount sufficient to meet either the requirements of paragraph (a)' or paragraph Co) at
the time of issuance of the refunding bonds, as certified by a certified public accountant
licensed to practice in this state.
(a) The proceeds (including any amounts in any reserve fund established
for the bonds to be refunded not needed for purposes of the refunding bonds) and
investments, together with any interest or other gain to be derived from any such
investment, shall be in an amount sufficient to pay the principal, interest, and
redemption premiums, if any, on the refunded bonds as they become due or at
designated dates prior to maturity and the costs of issuance of the refunding
bonds,
(b) The proceeds (including any amounts in any reserve fund established
for the bonds to be refunded not needed for purposes of the refunding bonds) and
investments, together with any interest or other gain to be derived from any such
investment, shall be in an amount sufficient to pay the principal, interest, and
redemption premiums, if any, on the refunding bonds prior to the maturity of the
bonds to be refunded or prior to a designated date or dates before the maturity of
the bonds to be refunded, the principal and any redemption premiums due on the
refunded bonds at maturity or upon that designated date or dates, and the costs of
issuance of the refunding bonds.
Section 20-85. Refunding bonds; use of savings; reduction of tax levy.
Any savings achieved through the issuance of refunding bends shall be used to
reduce the special taxes which were levied to retire the bonds being refunded. At the
time the City Council makes a determination to issue the refunding bonds, it shall
determine and cause to be made any reductions in the annual tax in the district, which
reduction shall be made on a pro rata basis.
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Section 20-86. Callable bonds.
Any bonds issued may be made callable in the document providing their terms.
When bonds are made callable a statement to that effect shall be set forth on the face of
the bonds. Callable bonds may be redeemed on any interest payment date prior to their
fixed maturity in the amounts, manner and prices prescribed in the document providing
their terms.
Section 3. The validity of this Code shall not be contested in any action or
proceeding or defense unless such action or proceeding or defense shall have been
brought or raised within thirty (30) days from the date of the approval of this Ordinance
by the City Council. Unless an action or proceeding is commenced or such defense raised
within said period, this Code shall be held valid and in every respect legal and
incontestable.
ADOPTED this 20thday of November ,1989.
ATTEST:
JanJ~ce C. G<uy~rf//
Clerk of the Coun~fl/
COUNCILMEMBERS:
Young
Acosta
Griset
May
McGuigan
Norton
Pulido
Aye
Aye
AVe
Aye
APPROVED AS TO FORM:
~r~°e°yper
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