Alameda Municipal Code Div. V Procedures for Levying

After a community facilities district has been created and authorized to levy specified special taxes pursuant to Division II, Division III, or Division 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 Division II, Division III, or Division 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 Any such Code, after adoption, shall remain in effect until repealed by a later Code.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 subsection 3-70.15, subsection 3-70.16 or subsection 3-70.17, 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 subsection 3-70.32 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 subsection 3-70.49.

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 penalties 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 subsection 3-70.41.

(Ord. No. 2498 N.S. § 3-70.70)

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, 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.

(Ord. No. 2498 N.S. § 3-1652)

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 thirty (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 thirty (30) days after the entry of judgment.

(Ord. No. 2498 N.S. § 3-1653)

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 (5) years, the lot, parcel, or unit, or cause it to be sold or leased for a term exceeding five (5) 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 subsection 3-70.73. 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 purchased 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 paragraph 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 (2) 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 Sections 11004, 11003.2, and 11003.4, respectively, of the California Business and Professions Code.

c. If any disclosure required to be made by this subsection 3-70.73 is delivered after the execution of an agreement to purchase, the buyer shall have three (3) days after delivery in person or five (5) days after delivery by deposit in the mail, to terminate his or her agreement by delivery of written notice of that termination to the owner, subdivider, or agent. Any disclosure delivered 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 paragraph c.

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 subsection 3-70.73 shall be liable to the purchaser of a lot or unit which is subject to the provisions of this subsection 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 ($500.00) dollars. In an action to enforce such liability or fine, the prevailing party shall be awarded reasonable attorney's fees.

(Ord. No. 2498 N.S. § 3-1654)

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.

(Ord. No. 2498 N.S. § 3-1655)

Any charges collected pursuant to this Code may only be used for facilities and services authorized by this Code.

(Ord. No. N.S. 2498 § 3-1656)

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 shall 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 recording the document. The City Clerk may specify a charge for the preparation and recordation of this notice.

(Ord. No. 2498 N.S. § 3-1657)

Whenever the City Council deems it necessary for an existing or proposed community facilities 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.

(Ord. No. 2498 N.S. § 3-1661)

The amount of the proposed bonded indebtedness may include all 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 of 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 pursuant 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 (5) 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.

(Ord. No. 2498 N.S. § 3-1662)

The City Clerk shall publish a notice of the hearing in a newspaper of general circulation circulated within the district. The notice shall state:

a. The time and place of the hearing.

b. At that time and place any person interested, including all persons owning property in the district, will be beard upon the proposed debt issue.

(Ord. No. 2498 N.S. § 3-1663)

At the time and place fixed 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 subsection 3-70.27 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.

(Ord. No. 2498 N.S. § 3-1664)

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 (1) or more improvement areas. An area shall be known as "Improvement Area No. " of "Community Facilities District of the City of Alameda". 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.

(Ord. No. 2498 N.S. § 3-1665)

After the City Council has held the hearing pursuant to subsection 3-70.81d, 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 subsection 3-70.85.

d. The principal amount of debt to be incurred.

e. The maximum term the bonds to be issued, which term shall not exceed fifty (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.

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 proposition 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.

(Ord. No. 2498 N.S. § 3-1666)

The resolution provided for in subsection 3-70.86 shall constitute the notice of such special bond election and such resolution shall be published in a newspaper of general circulation circulating within the district.

(Ord. No. 2498 N.S. § 3-1667)

Except as otherwise provided in this Division VI, 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 Division IV, except that voting shall be conducted in the manner specified in subsection 3-70.37.

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 (1) ballot proposition as determined by the City Council.

If the area designated in the resolution adopted pursuant to subsection 3-70.86 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.

(Ord. No. 2498 N.S. § 3-1668)

If more than two-thirds (⅔) 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.

d. The appointment of one (1) or more banks 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.

f. 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 the 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.

(Ord. No. 2498 N.S. § 3-1669)

a. As a cumulative remedy, if bonds are outstanding, the City Council may, not later than four (4) 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.

(Ord. No. 2498 § 3-16610)

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.

b. The tax 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.

(Ord. No. 2498 N.S. § 3-16611)

At any time after the Tax Collector has been relieved of his or her duty to collect sums under subsection 3-70.91 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 limited 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 paragraph b. of subsection 3-70.90.

(Ord. No. 2498 N.S. § 3-16612)

The foreclosure action shall be brought in the name of the City, and may be brought within the time specified in subsection 3-70.90. 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.

(Ord. No. 2498 N.S. § 3-16613)

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 fixed by the court, together with interest, penalties, and other authorized charges and costs (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.

Property sold hereunder may not be sold for less than the amount of the judgment plus postjudgment interest and authorized costs without the consent of the owners of fifty-one (51%) percent by principal amount of the outstanding bonds.

(Ord. No. 2498 N.S. § 3-16614)

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.

(Ord. No. 2498 § 3-16615)

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.

(Ord. No. 2498 N.S. § 3-16616)

When the City Council fixes and levies special taxes and charges for the community facilities district it shall also fix and levy that amount of special taxes and charges within the community facilities district which 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 Division II, Division III or Division 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.

(Ord. No. 2498 N.S. § 3-16617)

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 or the validity of any contribution or reimbursement agreement described in subsection 3-70.8 or the validity of any contract referred to in the last sentence of subsection 3-70.6 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 thirty (30) days after the voters approve the issuance of the bonds or the special tax, or the contribution or reimbursement agreement or contract is approved and authorized for execution by the City Council, respectively, 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 thirty (30) days after entry of judgment.

(Ord. No. 2498 N.S. § 3-16618)

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 five (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.

(Ord. No. 2498 N.S. § 3-16619)

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.

(Ord. No. 2498 N.S. § 3-16620)

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 Division VI.

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.

(Ord. No. 2498 N.S. § 3-16621)

If the City Council determines to issue refunding bonds pursuant to this Division VI it shall adopt a resolution providing for their issuance. The 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.

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 (50) 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.

(Ord. No. 2498 N.S. § 3-16622)

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 Division VI.

(Ord. No. 2498 N.S. § 3-16623)

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 b. 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.

(Ord. No. 2498 N.S. § 3-16624)

Any savings achieved through the issuance of refunding bonds 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.

(Ord. No. 2498 N.S. § 3-16625)

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.

(Ord. No. 2498 N.S. § 3-16626)