23-1311RESOLUTION NO. 23- 1311
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ACTING
AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO.
2023-2 (CIMARRON RIDGE) OF THE CITY OF MENIFEE DETERMINING THE
NECESSITY TO INCUR BONDED INDEBTEDNESS WITHIN IMPROVEMENT
AREA NOS. 1 AND 2 OF COMMUNITY FACILITIES DISTRICT NO. 2023-2
(CIMARRON RIDGE) OF THE CITY OF MENIFEE IN AN AMOUNT NOT TO
EXCEED $10,000,000 WITHIN IMPROVEMENT AREA NO. 1 AND $15,000,000
WITHIN IMPROVEMENT AREA NO. 2, AND CALLING ELECTIONS THEREIN
WHEREAS, on March 15, 2023, the City Council of the City of Menifee (the "City
Council") adopted Resolution No. 23-1296 stating its intention to form Community Facilities
District No. 2023-2 (Cimarron Ridge) of the City of Menifee ("Community Facilities District No.
2023-2" or the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as
amended (the "Act") and to form two improvement areas within proposed Community Facilities
District No. 2023-2 to be known as "Improvement Area No. 1 of Community Facilities District
No. 2023-2 (Cimarron Ridge) of the City of Menifee" ("Improvement Area No. 1") and
"Improvement Area No. 2 of Community Facilities District No. 2023-2 (Cimarron Ridge) of the
City of Menifee" ("Improvement Area No. 2" and together with Improvement Area No. 1, the
"Improvement Areas" and each individually an "Improvement Area"); and
WHEREAS, on March 15, 2023, the City Council also adopted Resolution No. 23-1297
stating its intention to incur bonded indebtedness in the amount of up to $10,000,000 within
proposed Improvement Area No. 1 and $15,000,000 within proposed Improvement Area No. 2
to finance (1) the purchase, construction, modification, expansion, improvement and/or
rehabilitation of public facilities identified in Attachment B to Resolution No. 23-1296, and (2) the
incidental expenses to be incurred in financing such public facilities and services and forming
and administering the District, as identified in Attachment B to Resolution No. 23-1296; and
WHEREAS, notice was published as required by law relative to the intention of the City
Council to form proposed Community Facilities District No. 2023-2, to designate the
Improvement Areas and to incur bonded indebtedness in the amount of up to $10,000,000
within the boundaries of proposed Improvement Area No. 1 and $15,000,000 within the
boundaries of proposed Improvement Area No. 2; and
WHEREAS, on April 19, 2023, this City Council conducted a noticed public hearing to
determine whether it should proceed with the formation of Community Facilities District No.
2023-2 and the designation of the Improvement Areas, issue bonds within the Improvement
Areas to pay for the facilities and incidental expenses described in Resolution No. 23-1296 and
authorize a rate and method of apportionment of a special tax for each of the Improvement
Areas to be levied within such Improvement Areas for the purposes described in Resolution No.
23-1296; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to
the formation of Community Facilities District No. 2023-2, the designation of the Improvement
Areas, the levy of a special tax and the issuance of bonds with respect to each Improvement
Area to pay for the cost of the proposed facilities and incidental expenses were heard and a full
and fair hearing was held; and
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Resolution Determining Necessity to Incur Bonded Indebtedness for CFD No. 2023-2
WHEREAS, the City Council subsequent to such hearing adopted Resolution No.
23-1310 establishing Community Facilities District No. 2023-2 (the "Resolution of
Formation"), designating the Improvement Areas and authorizing the financing of the public
facilities (the "Facilities") and the incidental expenses (the "Incidental Expenses") described in
Attachment A thereto; and
WHEREAS, the City Council desires to make the necessary findings to incur bonded
indebtedness within each of the Improvement Areas, to declare the purpose for said debt, and
to authorize the submittal of a proposition to issue bonded indebtedness to the voters of each of
the Improvement Areas, being the landowners therein, all as authorized and required by law;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee,
California:
Section 1. It is necessary to incur bonded indebtedness in one or more series in a maximum
aggregate principal amount not to exceed $10,000,000 within Improvement Area
No. 1 and $15,000,000 within Improvement Area No. 2.
Section 2. The indebtedness is to be incurred for the purpose of financing the costs of
purchasing, constructing, modifying, expanding, improving, and/or rehabilitating
the Facilities and financing the Incidental Expenses, as described in the
Resolution of Formation, and carrying out the powers and purposes of
Community Facilities District No. 2023-2, including, but not limited to, financing
the costs of selling the bonds, establishing and replenishing bond reserve funds
and paying remarketing, credit enhancement and liquidity facility fees and other
expenses of the type authorized by Section 53345.3 of the Act.
Section 3. The whole of the property within Improvement Area No. 1, other than property
exempted from the special tax pursuant to the provisions of the rate and method
of apportionment attached to Resolution No. 23-1296 as Attachment C, shall pay
for the bonded indebtedness issued by the District for Improvement Area No. 1
pursuant to the levy of the special tax for Improvement Area No. 1 authorized by
the Resolution of Formation.
The whole of the property within Improvement Area No. 2, other than property
exempted from the special tax pursuant to the provisions of the rate and method
of apportionment attached to Resolution No. 23-1296 as Attachment D, shall pay
for the bonded indebtedness issued by the District for Improvement Area No. 2
pursuant to the levy of the special tax for Improvement Area No. 2 authorized by
the Resolution of Formation.
Section 4. The maximum term of any series of bonds to be issued to finance Facilities shall
in no event exceed thirty-five (35) years from the date of issuance of the bonds,
or such longer term as is then permitted by law.
Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum
interest rate permitted by law, payable annually or semiannually, or in part
annually and in part semiannually, except the first interest payment may be for a
period of less than six months, with the actual rate or rates and times of payment
to be determined at the time or times of sale thereof.
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Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable
rate or fixed rate shall not exceed the maximum rate permitted by Section 53531
of the Act, or any other applicable provision of law limiting the maximum interest
rate on the bonds.
Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for
Improvement Area No. 1 on the proposition of incurring the bonded
indebtedness. The proposition relative to incurring bonded indebtedness in the
maximum aggregate principal amount of $10,000,000 shall be in the form of
Proposition A set forth in Attachment A hereto. In accordance with
Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with
the special election called on the proposition of levying a special tax within
Improvement Area No. 1 as described in the Resolution of Formation, which
proposition shall be in the form of Proposition B set forth in Attachment A, and on
the proposition of establishing an appropriations limit for the District, which
proposition shall be in the form of Proposition C set forth in Attachment A.
Pursuant to Section 53351 of the Act, a special election is hereby called for
Improvement Area No. 2 on the proposition of incurring the bonded indebtedness
therein. The proposition relative to incurring bonded indebtedness in the
maximum aggregate principal amount of $15,000,000 shall be in the form of
Proposition D set forth in Attachment B hereto. In accordance with Section
53351(h) and 53353.5 of the Act, the election shall be consolidated with the
special election called on the proposition of levying a special tax within
Improvement Area No. 2 as described in the Resolution of Formation, which
proposition shall be in the form of Proposition E set forth in Attachment B, and on
the proposition of establishing an appropriations limit for the District, which
proposition shall be in the form of Proposition F set forth in Attachment B.
Section 8. The date of the special elections for the Improvement Areas on the propositions
of incurring the bonded indebtedness, authorizing the levy of the special tax and
setting an appropriations limit shall be April 19, 2023, or such later date as is
consented to by the City Clerk, or any Acting City Clerk of the City (referred to
herein as the "City Clerk"); provided that, if the election for an Improvement Area
is to take place sooner than 90 days after April 19, 2023, then the unanimous
written consent of each qualified elector within such Improvement Area to such
election date must be obtained. The polls shall be open for said election
immediately following the public hearing on April 19, 2023. 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 the Resolution of Formation, and 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 elections
shall be distributed in person, or by mail with return postage prepaid, to the
qualified electors within each of the Improvement Areas. The City Clerk has
secured a certificate of the Registrar of Voters of the County of Riverside
certifying that there were no registered voters within the District as of the date of
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such certificate. Accordingly, since there were fewer than 12 registered voters
within the District for each of the 90 days preceding April 19, 2023, the qualified
electors shall be the landowners within each of the Improvement Areas and each
landowner, or the authorized representative thereof, shall have one vote for each
acre or portion thereof that such landowner owns within the respective
Improvement Areas, as provided in Section 53326 of the Act. The sole
landowner within Improvement Area No. 1 has executed and delivered a waiver
of certain election law requirements and consenting to the holding of the election
on April 19, 2023, which waiver is on file with the City Clerk. The sole landowner
within Improvement Area No. 2 has executed and delivered a waiver of certain
election law requirements and consenting to the holding of the election on April
19, 2023, which waiver is on file with the City Clerk.
Section 9. This Resolution shall be effective upon its adoption.
PASSED, APPROVED AND ADOPTED this the 19th day of April, 2023.
Bill Zimmerman, Mayor
Attest:
a
A. Kay Vinso , Acting City Clerk
as to form:
T. Melching, City Attorney
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ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2023-2
(CIMARRON RIDGE) OF THE CITY OF MENIFEE
IMPROVEMENT AREA NO.
SPECIAL TAX AND SPECIAL BOND ELECTION
April 19, 2023
PROPOSITION A: Shall Community Facilities District
No. 2023-2 (Cimarron Ridge) of the City of Menifee (the
"District") incur an indebtedness and issue bonds in the
maximum principal amount of $10,000,000 for
Improvement Area No. 1 therein (the "Improvement
Area") with interest at a rate or rates not to exceed the
maximum interest rate permitted by law, to finance the
Facilities and the Incidental Expenses described in
Resolution No. 23-1296 of the City Council of the City of
Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment for the Improvement Area as
provided in Resolution No. 23-1296 of the City Council of
the City of Menifee be levied to pay for the Facilities,
Incidental Expenses and other purposes described in
Resolution No. 23-1296, including the payment of the
principal of and interest on bonds issued by the District
for the Improvement Area to finance the Facilities and
Incidental Expenses?
YES
NO]
YES
061
PROPOSITION C: For each year commencing with
Fiscal Year 2023-2024, 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. 2023-2 be an amount equal to $7,500,000?
A-1
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ATTACHMENT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2023-2
(CIMARRON RIDGE) OF THE CITY OF MENIFEE
IMPROVEMENT AREA NO. 2
SPECIAL TAX AND SPECIAL BOND ELECTION
April 19, 2023
PROPOSITION D: Shall Community Facilities District
No. 2023-2 (Cimarron Ridge) of the City of Menifee (the
"District") incur an indebtedness and issue bonds in the
maximum principal amount of $15,000,000 for YES
Improvement Area No. 2 therein (the "Improvement
Area") with interest at a rate or rates not to exceed the NO_
maximum interest rate permitted by law, to finance the
Facilities and the Incidental Expenses described in
Resolution No. 23-1296 of the City Council of the City of
Menifee?
YES
PROPOSITION E: Shall a special tax with a rate and
method of apportionment for the Improvement Area as NO
provided in Resolution No. 23-1296 of the City Council of
the City of Menifee be levied to pay for the Facilities,
Incidental Expenses and other purposes described in
Resolution No. 23-1296, including the payment of the
principal of and interest on bonds issued by the District
for the Improvement Area to finance the Facilities and
Incidental Expenses?
PROPOSITION F: For each year commencing with
Fiscal Year 2023-2024, 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. 2023-2 be an amount equal to $7,500,000?
FOR
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF MENIFEE )
I, Kay Vinson, Acting City Clerk of the City of Menifee, do hereby certify that the foregoing City
Council Resolution No. 23-1311 was duly adopted by the City Council of the City of Menifee at a
meeting thereof held on the 19th Day of April 2023 by the following vote:
Ayes: Deines, Estrada, Karwin, Sobek, Zimmerman
Noes: None
Absent: None
Abstain: None
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A.�1 n� StsY�
Kay I sson�Acting City Clerk