21-1095RESOLUTION NO. 21-1095
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MENIFEE ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 2021-2 OF THE CITY OF MENIFEE (SUMAC RIDGE),
AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN,
CALLING AN ELECTION AND APPROVING AND
AUTHORIZING CERTAIN ACTIONS RELATED THERETO
WHEREAS, the City Council (the "City Council") of the City of Menifee (the "City") has
heretofore adopted Resolution No. 21-1066 stating its intention to form Community Facilities
District No. 2021-2 of the City of Menifee (Sumac Ridge) ("Community Facilities District
No. 2021-2" or the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as
amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the
State of California (the "Act"); and
WHEREAS, a copy of Resolution No. 21-1066 setting forth a description of the proposed
boundaries of Community Facilities District No. 2021-2, the facilities and incidental expenses to
be financed by the District and the rate and method of apportionment of the special tax
proposed to be levied within the District is on file with the City Clerk; and
WHEREAS, notice was published and mailed to all landowners of the land proposed to
be included within the District as required by law relative to the intention of this City Council to
form proposed Community Facilities District No. 2021-2 and to levy a special tax (the "Special
Tax") and to incur bonded indebtedness in the amount of up to $15,000,000 therein to finance
the facilities and incidental expenses described in Resolution No. 21-1066; and
WHEREAS, on November 3, 2021, this City Council conducted a noticed public hearing
as required by law relative to the proposed formation of Community Facilities District No. 2021-
2, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District;
and
WHEREAS, at the November 3, 2021 public hearing there was filed with this City
Council a report containing a description of the facilities necessary to meet the needs of the
District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act
(the "Engineer's Report"); and
WHEREAS, at the November 3, 2021 public hearing all persons desiring to be heard on
all matters pertaining to the formation of Community Facilities District No. 2021-2, the levy of the
Special Tax and the issuance of bonded indebtedness were heard and full and fair hearings
were held; and
WHEREAS, following the public hearing, this City Council has determined to authorize
the formation of the District to finance the types of facilities (the "Facilities") and the incidental
expenses (the "Incidental Expenses") set forth in Attachment A hereto, which are described in
more detail in the Engineer's Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the
matters before it, and the proposed Special Tax to be levied within the District was not
precluded by a majority protest of the type described in Section 53324 of the Act, and this City
Council at the conclusion of the hearing was fully advised as to all matters relating to the
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WHEREAS, this City Council has determined, based on a Certificate of Registrar of
Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters
have been residing in the proposed boundaries of Community Facilities District No. 2021-2 for
each of the 90 days prior to November 3, 2021 and that the qualified electors in Community
Facilities District No. 2021-2 are the landowners within the District; and
WHEREAS, on the basis of all of the foregoing, this City Council has determined to
proceed with the establishment of Community Facilities District No. 2021-2 and to call an
election therein to authorize (i) the levy of the Special Tax pursuant to the rate and method of
apportionment of the special tax, as set forth in Attachment C to Resolution No. 21-1066 (the
"Rate and Method"), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses,
and (iii) the establishment of an appropriations limit for Community Facilities District No. 2021-2;
and
WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the
District desires to enter into an Acquisition, Construction and Funding Agreement (the
"Agreement") with Meritage Homes of California, Inc., a California corporation (the "Developer")
and the form of the Agreement is on file with the City Clerk; and
WHEREAS, in connection with the proposed formation of the District, the City proposes
to enter into Joint Community Facilities Agreements (each a "JFCA" and together, the "JCFAs")
with Eastern Municipal Water District (the "Water District"), the Menifee Union School District
(the "School District") and the Developer, relating to certain facilities proposed to be financed by
the District and owned and operated by the Water District and the School District and the forms
of the JCFAs are on file with the City Clerk.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. A community facilities district to be designated "Community Facilities District
No. 2021-2 of the City of Menifee (Sumac Ridge)" is hereby established pursuant to the Act.
The City Council hereby finds and determines that all prior proceedings taken with respect to
the establishment of the District were valid and in conformity with the requirements of law,
including the Act. This finding is made in accordance with the provisions of Section 53325.1(b)
of the Act.
Section 3. The boundaries of Community Facilities District No. 2021-2 are established as
shown on the map designated "Community Facilities District No. 2021-2 (Sumac Ridge) City of
Menifee, County of Riverside, State of California", which map is on file in the office of the City
Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code
in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor -
County Clerk -Recorder's office of the County of Riverside in Book No. 87, Page No. 66 on
September 22, 2021 as Instrument No. 2021-0565134.
Section 4. The types of Facilities and Incidental Expenses authorized to be provided for
Community Facilities District No. 2021-2 are those set forth in Attachment A attached hereto.
The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the
Engineer's Report, which estimates may change as the Facilities are designed and bid for
construction and acquisition, as applicable.
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The City is authorized by the Act to contribute revenue to, or to construct or acquire the
Facilities, all in accordance with the Act. The City Council finds and determines that the
proposed Facilities are necessary to meet the increased demand that will be placed upon local
agencies and public infrastructure as a result of new development within the District and that the
Facilities to be financed, including those to be financed pursuant the JCFAs to be entered into
with the Water District and the School District, benefit residents of the City and the future
residents of the District.
Section 5. Except where funds are otherwise available, it is the intention of this City Council,
subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the
rates set forth in the Rate and Method on all non-exempt property within the District sufficient to
pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds
proposed to be issued to finance the Facilities and Incidental Expenses, including the
establishment and replenishment of reserve funds, any remarketing, credit enhancement and
liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act;
and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already
incurred, Incidental Expenses in connection with the creation of the District, the issuance of
bonds, the levying and collecting of the Special Tax, the completion and inspection of the
Facilities and the annual administration of the bonds and the District. The Rate and Method is
described in detail in Attachment C to Resolution No. 21-1066 and incorporated herein by this
reference, and the City Council hereby finds that the Rate and Method contains sufficient detail
to allow each landowner within the District to estimate the maximum amount that may be levied
against each parcel. As described in greater detail in the Engineer's Report, which is
incorporated by reference herein, the Special Tax is based on the expected demand that each
parcel of real property within Community Facilities District No. 2021-2 will place on the Facilities
and on the benefit that each parcel will derive from the right to access the Facilities and,
accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each
assessor's parcel in accordance with the Rate and Method provided, however, that the Special
Tax shall not be levied after Fiscal Year 2061-62. The Special Tax is apportioned to each
parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is
not on or based upon the ownership of real property or the assessed value of real property.
If Special Taxes of the District are levied against any parcel used for private residential
purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be
calculated and established not later than the date on which the parcel is first subject to the
Special Tax because of its use for private residential purposes and shall not be increased over
time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied
after Fiscal Year 2061-62, and (iii) under no circumstances will the Special Tax levied against
any such parcel used for private residential uses be increased as a consequence of delinquency
or default by the owner or owners of any other parcel or parcels within the District by more than
ten percent above the amount that would have been levied in that fiscal year had there never
been any such delinquencies or defaults.
The City Manager of the City of Menifee, or his or her designee, will be responsible for
preparing annually, or authorizing a designee to prepare, a current roll of special tax levy
obligations by assessor's parcel number and will be responsible for estimating future special tax
levies pursuant to Section 53340.2 of the Act.
Section 6. In the event that a portion of the property within Community Facilities District
No. 2021-2 shall become for any reason exempt, wholly or partially, from the levy of the Special
Tax specified in the Rate and Method, or in the event of delinquencies in the payment of Special
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Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2021-2,
increase the levy to the extent necessary and permitted by law and these proceedings upon the
remaining property within Community Facilities District No. 2021-2 which is not exempt or
delinquent in order to yield the required debt service payments on any outstanding bonds of the
District, or to prevent the District from defaulting on any of its other obligations or liabilities;
provided, however, under no circumstances will the Special Tax levied against any parcel used
for private residential uses be increased as a consequence of delinquency or default by the
owner or owners of any other parcel or parcels within the District by more than ten percent
above the amount that would have been levied in that fiscal year had there never been any such
delinquencies or defaults. The amount of the Special Tax will be set in accordance with the
Rate and Method. The obligation to pay Special Taxes may be prepaid only as set forth in
Section G of the Rate and Method.
Section 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the
Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall
attach to all non-exempt 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 Special Tax by the District ceases.
Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines
that the land within Community Facilities District No.2021-2, if any, devoted primarily to
agricultural, timber or livestock uses and being used for the commercial production of
agricultural, timber or livestock products is contiguous to other land within Community Facilities
District No. 2021-2 and will be benefited by the Facilities proposed to be provided within
Community Facilities District No. 2021-2.
Section 9. It is hereby further determined that there is no ad valorem property tax currently
being levied on property within proposed Community Facilities District No. 2021-2 for the
exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred
to finance the construction of capital facilities which provide the same services to the territory of
Community Facilities District No. 2021-2 as are proposed to be provided by the Facilities to be
financed by Community Facilities District No. 2021-2.
Section 10. Written protests against the establishment of the District have not been filed by
one-half or more of the registered voters within the boundaries of the District or by the property
owners of one-half (1/2) or more of the area of land within the District. The City Council hereby
finds that the proposed Special Tax has not been precluded by a majority protest pursuant to
Section 53324 of the Act.
Section 11. An election is hereby called for Community Facilities District No. 2021-2 on the
propositions of levying the Special Tax on the property within Community Facilities District
No. 2021-2 and establishing an appropriations limit for the District pursuant to Section 53325.7
of the Act and shall be consolidated with the election on the proposition of incurring bonded
indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the
propositions to be placed on the ballot is attached hereto as Attachment B.
Section 12. The date of the election for Community Facilities District No. 2021-2 on the
propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and
establishing an appropriations limit for the District shall be November 3, 2021, or such later date
as is consented to by the City Clerk or Deputy City Clerk (referred to herein as the "City Clerk")
of the City of Menifee; provided that, if the election is to take place sooner than 90 days after
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November 3, 2021, then the unanimous written consent of each qualified elector within the
District to such election date must be obtained. The polls shall be open for said election
immediately following the close of the public hearing on November 3, 2021. The election shall
be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be
conducted in accordance with the provisions of law regulating elections of the City of Menifee
insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is
authorized to conduct the election following the adoption of this resolution, and all ballots shall
be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day;
provided the election shall be closed at such earlier time as all qualified electors have voted as
provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for
the special election shall be distributed in person, or by mail with return postage prepaid, to the
qualified electors within Community Facilities District No. 2021-2. The City Clerk has secured a
certificate from the Registrar of Voters of the County of Riverside certifying that there were no
registered voters within the District as of September 8, 2021. Accordingly, since there were
fewer than 12 registered voters within the District for each of the 90 days preceding November
3, 2021, the qualified electors shall be the landowners within the District and each landowner, or
the authorized representative thereof, shall have one vote for each acre or portion thereof that
such landowner owns within Community Facilities District No.2021-2, as provided in
Section 53326 of the Act. The sole landowner within the District has executed and delivered a
waiver of certain election law requirements and consenting to the holding of the election on
November 3, 2021, which waiver is on file with the City Clerk.
Section 13. The preparation of the Engineer's Report is hereby ratified. The Engineer's
Report, as submitted, is hereby approved and was made a part of the record of the public
hearing regarding the formation of Community Facilities District No. 2021-2. The Engineer's
Report is ordered to be kept on file with the transcript of these proceedings and open for public
inspection.
Section 14. The form of the Agreement on file with the City Clerk is approved as to form, and
each of the City Manager, Deputy City Manager, and their written designees, is authorized to
execute the Agreement in substantially the form on file with the City Clerk, together with such
changes as are approved by the officer executing the same, with the approval of such changes
to be conclusively evidenced by the execution and delivery thereof. Notwithstanding City Policy
No. FN-09, the City Council hereby waives the requirement for the approval of the Agreement
prior to the adoption of the resolution of intention to establish the District. The City Council
hereby finds that such waiver is reasonable given that the projects as listed in the Agreement
are expected to provide public benefits to the future residents in the District.
Section 15. The forms of the JCFAs on file with the City Clerk are approved as to form, and
each of the City Manager, Deputy City Manager, and their written designees, is authorized to
execute the JCFAs in substantially the forms on file with the City Clerk, together with such
changes as are approved by the officer executing the same, with the approval of such changes
to be conclusively evidenced by the execution and delivery thereof.
Section 16. This Resolution shall be effective upon its adoption
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PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting
held on this 3rd day of November 2021.
ATTEST:
(-)S�
ah A. Manta rin , City Cleric
APPROVED AS TO FORM:
(�Z/ ---
J ey . Melchinn"'Itorney
0
APPROVED:
e
Bill Zimm rMayor
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ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2021-2
The proposed types of public facilities and expenses to be financed by the District
include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement
of (i) drainage, library, park, roadway, traffic, administration and general government facilities,
animal shelter facilities, fire and safety, and other public facilities of the City, including the
foregoing public facilities which are included in the City's fee programs with respect to such
facilities and authorized to be financed under the Mello -Roos Community Facilities Act of 1982,
as amended (the "City Facilities"); (ii) water and sewer facilities including the acquisition of
capacity in the sewer system and/or water system of Eastern Municipal Water District which are
included in Eastern Municipal Water District's water and sewer capacity and connection fee
programs (the "Water District Facilities"), and (iii) interim and permanent school facilities of
Menifee Union School District, including classrooms, multi -purpose facilities, administration and
auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and
improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and
utility lines, furniture, equipment and technology, including technology upgrades and mobile
devices and infrastructure therefore, with a useful life of at least five (5) years at such school
facilities, including such school facilities of Menifee Union School District which are included in
Menifee Union School District's school fee program (the "School Facilities" and together, with
the City Facilities and the Water Facilities, the "Facilities"), and all appurtenances and
appurtenant work in connection with the foregoing Facilities, including the cost of engineering,
planning, designing, materials testing, coordination, construction staking, construction
management and supervision for such Facilities, and to finance the incidental expenses to be
incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
C. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the
Rate and Method of Apportionment of Special Taxes for the District.
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ATTACHMENT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2021-2
OF THE CITY OF MENIFEE (SUMAC RIDGE)
SPECIAL TAX AND SPECIAL BOND ELECTION
November 3, 2021
PROPOSITION A: Shall Community Facilities District
No. 2021-2 of the City of Menifee (Sumac Ridge) (the
"District") incur an indebtedness and issue bonds in the
maximum principal amount of $15,000,000, with interest YES
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the NO_
Incidental Expenses described in Resolution No.21-
1066 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution YES
No. 21-1066 of the City Council of the City of Menifee be
levied to pay for the Facilities, Incidental Expenses and NO
other purposes described in Resolution No.21-1066
including the payment of the principal of and interest on
bonds issued to finance the Facilities and Incidental
Expenses?
PROPOSITION C: For each year commencing with
Fiscal Year 2021-22, shall the appropriations limit, as YES
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities NO_
District No. 2021-2 be an amount equal to $3,000,000?
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF MENIFEE )
I, Sarah A. Manwaring, City Clerk of the City of Menifee, do hereby certify that the foregoing
Resolution No. 21-1095 was duly adopted by the City Council of the City of Menifee at a
meeting thereof held on the 3d day of November 2021 by the following vote:
Ayes:
Deines, Liesemeyer, Sobek, Zimmerman
Noes:
None
Absent:
Karwin
Abstain:
None
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A