San Bernardino Municipal Code Art. IV Procedural Alternative III

Whenever the Mayor and City Council deem it necessary to form an improvement district within the city and to issue bonds which shall be special obligations of and be issued on behalf of such improvement district, for the acquisition, construction, improvement, completion, repair, management, reconstruction, administration, maintenance, operation, disposal or financing of any or all works, improvements and facilities referred to in this chapter, they shall, by resolution, so declare the intention to form an improvement district and to issue such bonds.

(Ord. 3589, passed 7-6-1976)

The resolution of intention shall state that the Mayor and City Council intend to form an improvement district of any portion of the city, which, in the opinion of the Mayor and City Council, will be benefitted by the acquisition and construction of certain improvements and to incur bonded indebtedness by the issuance of bonds on behalf of such improvement district.

(Ord. 3589, passed 7-6-1976)

The resolution of intention shall also state:

(A) The purposes for which the proposed bonds are to be issued which may include any or all of the purposes stated in this chapter;

(B) The estimated cost of the accomplishment of such purposes and the amount of bonds to be issued therefor, which may include incidental expenses, including, without limitation, engineering, appraisal, legal fees, bond counsel fees, financing consultant fees, land and rights-of-way acquisition, reserve funds and expenses of financing the district and expenses of all proceedings for the authorization, issuance and sale of the bonds or related thereto;

(C) That the bonds shall not be general obligations of the city, nor shall the credit of the city or the property or revenue of any public utility owned by the city be pledged for the payment thereof; and that the bonds shall be special obligations of and be issued on behalf of the improvement district; and whether ad valorem assessments for the payment of the interest on the bonds and the principal thereof shall be levied upon the taxable real property or upon land only in the improvement district; and

(D) The maximum interest rate which the bonds may bear, payable semi-annually, except that interest for the first year may be payable at the end of that year or at such time prior to the end of that year as may be determined in the resolution providing for the issuance of the bonds.

(Ord. 3589, passed 7-6-1976)

If, in the judgment of the Mayor and City Council, varying benefits will be derived by the different parcels of real property lying within the improvement district, the district may be divided into zones according to benefits.

(A) Number. The district may be divided into as many zones, up to the total number of parcels of real property in the district as may be deemed necessary, and each zone shall be composed of and include all the real property within the district which will be benefitted in like manner.

(B) Percentage.

(1) The Mayor and City Council shall also determine the percentage of the sum to be raised each year by the levy and collection of the special assessment taxes in the district for the payments on the principal and interest of the bonds, which will be raised from the real property or land only, as the case may be, in each zone.

(2) As an alternative, the Mayor and City Council may determine the percentage of assessed valuation of taxable real property or land only, as the case may be, within each zone which shall be used in computing the annual rate of ad valorem assessment within the district and to which the annual rate shall be applied.

(C) Resolution of intention. When the district is divided into such zones, the resolution of intention shall so state, giving the percentages to be raised from the real property or land only, as the case may be, in each zone.

(D) Designation. Each zone shall be designated by a different letter or number and shall be plainly shown on the map of the improvement district filed in the office of the City Clerk and referred to in the resolution of intention, either by separate boundaries, coloring or other convenient and graphic method, so that all persons interested may with accuracy ascertain within which zone any parcel of property is located.

(E) Plat. It shall be sufficient in all cases where the improvement district is to be divided into such zones according to benefits if the resolution of intention states that fact and refers to the map for the boundaries and all details concerning the zones.

(F) Changes in boundaries at hearing. At the hearing, the Mayor and City Council may eliminate, create or alter the boundaries of proposed zones in the manner provided for the alteration of the boundaries of the proposed district.

(G) Subsequent changes in boundaries. If the Mayor and City Council, from time to time, determine that the public interest will be served thereby, they may, from time to time, add property to a zone or transfer property from a zone of lesser benefit to a zone of greater benefit, in the manner provided for enlarging the improvement district.

(Ord. 3589, passed 7-6-1976)

The resolution of intention shall also state that such resolution, together with a general description of the proposed improvement and a map showing the exterior boundaries of the proposed improvement district with relation to the territory immediately contiguous thereto and to the proposed improvement, is on file with the City Clerk and is available for inspection by any person or persons interested. This map shall govern for all details as to the extent of the proposed improvement district.

(Ord. 3589, passed 7-6-1976)

The resolution of intention shall also state:

(A) The time and place for a hearing by the Mayor and City Council on the questions of the formation and extent of the proposed improvement district, the proposed improvement, the estimated cost and the amount of bonds to be issued; and

(B) That at the time and place specified in the resolution any person interested will be heard; and that any holder of title to taxable real property or land only, as the case may be, within the proposed improvement district may file with the City Clerk at any time prior to the time set for the hearing thereon written protest to the formation of the proposed improvement district.

(Ord. 3589, passed 7-6-1976)

Notice of the hearing shall be given by publishing a copy of the resolution of intention once at least ten days prior to the time fixed for the hearing in a newspaper of general circulation published in the city. Such notice shall also be given by posting a copy of the resolution of intention in three public places within the proposed improvement district at least 15 days before the time fixed for the hearing. Such notice shall also be given by mailing a copy of the resolution of intention at least 15 days before the time fixed for the hearing to each holder of title to taxable real property within the proposed improvement district as such ownership is shown on the last equalized county assessment roll. The City Clerk shall cause all the above notices to be given.

(Ord. 3589, passed 7-6-1976)

At the time and place fixed in the resolution of intention, the Mayor and City Council shall proceed with the hearing. At the hearing, any person interested may appear and present any matters material to the questions set forth in the resolution of intention. The Mayor and City Council shall hear and pass upon all written protests filed by the holders of title to taxable real property or land, as the case may be, within the proposed improvement district. Such protests must be in writing, must contain a description of the property in which each signer thereof is interested, sufficient to identify the same and, if the signers are not shown on the last equalized assessment roll as the owners of such property, must contain or be accompanied by written evidence that such signers are the owners of such property. The hearing may be continued, from time to time, by the Mayor and City Council.

(Ord. 3589, passed 7-6-1976)

The Mayor and City Council may change the purposes for which the proposed bonds are to be issued, the estimated cost or the amount of the bonds. The Mayor and City Council may also change the boundaries of the proposed improvement district, but not so as to include any territory which will not, in their judgment, be benefitted by the proposed improvement.

(Ord. 3589, passed 7-6-1976)

The purposes, estimated cost or amount of bonds to be issued or the boundaries of the proposed improvement district shall not be changed by the Mayor and City Council, except after adoption by the Mayor and City Council of a resolution declaring their intention to order changes and fixing a time and place for a hearing on the changes. The resolution shall be published, posted and mailed in the same manner as set forth in § 12.84.480 for the original resolution of intention. The resolution shall state the purposes, estimated cost and debt as originally proposed, and as changed if such is the case, and that the exterior boundaries as originally proposed, and as changed, if such is the case, are set forth on maps on file with the City Clerk and that the map showing the boundaries as changed shall govern for all details as to the extent of the proposed improvement district.

(Ord. 3589, passed 7-6-1976)

At the time and place fixed in the resolution of intention to make changes, the Mayor and City Council shall proceed with the hearing. At the hearing, any person interested may appear and present any matters material to the matters contained in the resolution. Written protests to the proposed changes may be filed with the City Clerk by the holder of title to taxable real property or land, as the case may be, within the proposed improvement district at any time up to the hour set for hearing on the proposed changes in the same manner as set forth in § 12.84.480 for the original resolution of intention. The hearing may be continued, from time to time, by the Mayor and City Council.

(Ord. 3589, passed 7-6-1976)

(A) If written protests are filed by the holders of title to one-half or more of the value of the taxable real property or taxable land, as the case may be, within the proposed improvement district, as shown by the last equalized assessment roll of the county, prior to the hearing on the resolution of intention or prior to the hearing on any proposed changes with respect thereto, and, if there remain on file protests representing one-half or more of the value of such taxable real property or taxable land, as the case may be, at the time the Mayor and City Council have concluded the hearing on the resolution of intention and any hearing on proposed changes with respect thereto, further proceedings shall not be taken, and the Mayor and City Council shall declare the proceedings abandoned unless the protests are overruled by an affirmative vote of four-fifths of the members of the City Council. If such protests do not remain on file at the conclusion of the hearing or hearings or if they are overruled by a four-fifths vote of the members of the City Council, the Mayor and City Council shall, by resolution, determine whether or not it is deemed necessary to form the improvement district and issue bonds which shall be special obligations of and be issued on behalf of the improvement district.

(B) If the Mayor and City Council determine that it is necessary to form the improvement district and issue bonds, the resolution shall also state, in accordance with the prior proceedings:

(1) The purposes for which the proposed bonds are to be issued;

(2) The estimated cost of the accomplishment of such purposes and the amount of the proposed bonds;

(3) That the exterior boundaries of the portion of the city which will be benefitted by the accomplishment of the purpose are set forth on a map on file with the City Clerk, which map shall govern for all details as to the extent of the improvement district; and

(4) That such portion of the city set forth on the map shall thereupon constitute and be known by the name designated in the resolution.

(Ord. 3589, passed 7-6-1976)

If the Mayor and City Council find and determine that the area proposed to constitute the improvement district will not be benefitted thereby, the Mayor and City Council shall, by resolution, disapprove the formation.

(Ord. 3589, passed 7-6-1976)

From and after the date the Mayor and City Council adopt the resolution forming the improvement district, the area named therein shall constitute the improvement district within the city bearing the name set forth in the resolution. The determinations made in the resolution forming the improvement district shall be final and conclusive. Any action or proceeding to attack, review, set aside, avoid the resolution or any of the proceedings, acts or determinations theretofore taken, done or made pursuant to this chapter shall not be maintained by any person unless such action or proceeding is commenced within 30 days of the adoption of such resolution. Thereafter, all persons are barred from such action or proceeding or any defense of invalidity of such resolution or of such proceedings, acts or determinations.

(Ord. 3589, passed 7-6-1976)

After the formation of the improvement district pursuant to this chapter, the Mayor and City Council may, by resolution, at such time or times as they deem proper, issue bonds on behalf of the improvement district, and thereafter all proceedings shall be limited and shall apply only to the improvement district, and assessments for the payment of the bonds and the interest thereon shall be levied upon the real property or land only, as determined in the resolution of intention, in the improvement district.

(Ord. 3589, passed 7-6-1976)

The Mayor and City Council may, by resolution, at such time or times as they deem proper, issue bonds which shall be special obligations of and be issued on behalf of the improvement district for the whole or any part of the total amount authorized, and may, from time to time, provide for the issuance of such amounts as the necessity thereof may appear until the full amount of such bonds authorized has been issued.

(Ord. 3589, passed 7-6-1976)

The full amount of the authorized bonds may be divided into two or more series and different dates fixed for the bonds of each series. The maximum term which the bonds of any series shall run before maturity shall not exceed 40 years from the date of the series.

(Ord. 3589, passed 7-6-1976)

The Mayor and City Council shall, by resolution, prescribe the form of the bonds and of the coupons attached thereto, the conversion and registration privileges carried by the bonds and fix the time when the whole or any part of the principal shall become due and payable.

(Ord. 3589, passed 7-6-1976)

The bonds shall bear interest at a rate or rates not to exceed the rate specified in the resolution of intention, payable semi-annually, except that interest for the first year may be payable at the end of that year or at such time prior to the end of that year as may be determined in the resolution providing for the issuance of the bonds.

(Ord. 3589, passed 7-6-1976)

The Mayor and City Council may provide for the call and redemption of bonds prior to maturity at such times and prices and upon such other terms as they may specify. A bond shall not be subject to call or redemption prior to maturity unless it contains a recital to that effect.

(Ord. 3589, passed 7-6-1976)

The denomination of the bonds shall be stated in the resolution providing for their issuance.

(Ord. 3589, passed 7-6-1976)

The principal and interest on the bonds shall be payable in lawful money of the United States at the office of the City Treasurer, or such other place or places as may be designated, or at either place or places at the option of the holder of the bond.

(Ord. 3589, passed 7-6-1976)

The bonds shall be dated, numbered consecutively, signed by the Mayor and City Treasurer, countersigned by the City Clerk, and the official seal of the city impressed, imprinted or reproduced thereon. The interest coupons of the bonds shall be signed by the Treasurer. All such signatures and counter-signatures may be printed, lithographed, or mechanically reproduced, except that one of the signatures or counter signatures to the bonds shall be manually affixed. Neither the Mayor, nor any members of the City Council, nor any other officer of the city executing the bonds, are liable personally thereon by reason of their issuance.

(Ord. 3589, passed 7-6-1976)

The bonds shall be special obligations of and be issued on behalf of the improvement district, and shall be designated in accordance with the prior proceedings. Each bond shall state, in substance, that the bond is not a general obligation of the city, nor is the credit of the city or the property or revenue of any public utility owned by the city pledged for its payment; and that the bond is a special obligation of and is issued on behalf of the improvement district; and that ad valorem assessments levied for the payment of the interest thereon and principal thereof shall be levied upon the taxable real property or land only, as the case may be, in the improvement district.

(Ord. 3589, passed 7-6-1976)

The proceeds from the sale of bonds, except for premium and accrued interest, if any, shall be paid into the City Treasury, placed to the credit of a Special Improvement Fund, Debt Service Fund and any Reserve Fund; all as provided in the resolution providing for the issuance of the bonds and expended only in connection with the purpose for which the indebtedness was created. When such purpose has been accomplished, any monies remaining in the Special Improvement Fund may be transferred to the Debt Service Fund to be used for the payment of principal of and interest on the bonds or to any Reserve Fund established therefor. Premium and accrued interest, if any, shall be paid into the Treasury and placed to the credit of the fund to be used for the payment of the principal of and interest on the bonds.

(Ord. 3589, passed 7-6-1976)

Interest on the bonds coming due before the proceeds of a tax levied at the next general tax levy after the sale of the bonds are available, and/or interest on any bonds coming due before the expiration of one year following completion of the acquisition and construction of the works and improvements for which the bonds were issued, may be paid from the proceeds of the sale of the bonds as may be provided in the resolution providing for the issuance of the bonds.

(Ord. 3589, passed 7-6-1976)

(A) At the time of making the general tax levy after the issuance of the bonds, as may be provided in the resolution providing for the issuance of the bonds, and annually thereafter until the bonds are paid or until there is a sum in the Treasury set apart for that purpose sufficient to meet all payments of principal and interest on the bonds as they become due, the Mayor and City Council shall cause an assessment to be levied upon all real property or land only, as the case may be, in the improvement district sufficient to pay the interest on the bonds and such part of the principal as will become due before the proceeds of such an assessment levied at the next general tax levy will be available and to provide a contingency reserve for delinquencies. Such assessment shall be levied and collected at the same time as other city taxes, and shall be used only for the payment of interest on and principal of the bonds. Assessments for the payment of such bonds shall constitute a lien on all of the taxable real property within the improvement district. Such liens shall be of the same force and effect as other liens for city taxes and their collection may be enforced by the same means as provided for the enforcement of liens for city taxes.

(B) Nothing in this article shall be deemed to prevent the Mayor and City Council from using any lawfully available funds of the city, including, without limitation, those which are attributable to the improvement district, for payment of such principal and interest, and to the extent that such funds are in the treasury set apart for that purpose, the assessment required by this article need not be levied. For purposes of this article, the phrase “funds of the City which are attributable to the district includes without limitation, grants from other governmental agencies to the City on” behalf of the improvement district or venues raised by operation of the facilities constructed under this chapter within the improvement district.

(Ord. 3589, passed 7-6-1976)

The annual assessment provided for in this article shall be computed on the basis of the formula set forth in the resolution of intention to form the district as originally adopted or as modified by subsequent change and modification or other proceedings conducted pursuant to this chapter or any other law, and shall be, without limitation, upon the rate or period thereof. If the assessed value of any parcel of property does not appear on the tax roll, an estimated assessed value of such parcel shall be made by the Director of Development Services in consultation with the County Assessor, and such estimate shall for purposes of such ad valorem assessment be considered the assessed value of such parcel.

(A) Supplemental advances and levies. The provisions of the Cal. Streets and Highways Code, §§ 8800 to 8809, inclusive, shall apply to assessments levied hereunder.

(B) Additional collection provision. The provisions of the Cal. Streets and Highways Code, §§ 8680 to 8688, inclusive, and §§ 8830 to 8837, inclusive, of the state shall apply to assessments levied hereunder.

(C) Charges. Should the Mayor and City Council determine to prescribe, revise and collect fees, tolls, rates, rentals and other charges (other than special assessments), including, but not necessarily limited to, service charges and standby or maximum charges for services or facilities furnished by the district, charges for the availability of the facilities of the district regardless of whether the facilities are used or not, the same shall be done by resolution. Such charges shall be payable on a uniform and equitable basis by the owner of the property to which the facilities of the district are available, including the owners of publicly owned property. Any delinquent charges and all penalties thereon when recorded as hereinafter provided shall constitute a lien on the real property to which the facilities of the district are available (except that no such lien shall be created against any publicly owned property), and such lien shall continue until the charge and all penalties thereon are fully paid or the property sold therefor. All remedies provided for collection of due and unpaid charges which are provided in the California Revenue Bond Law of 1941 (commencing with Cal. Gov’t Code, § 54300) may be exercised to enforce payment of such charges shall not be adopted until the Mayor and City Council have given notice of and held a hearing thereon substantially as provided in the Cal. Gov’t Code, § 54354.5, being part of the Revenue Bond Law of 1941.

(Ord. 3589, passed 7-6-1976; Ord. 3603, passed 9-20-1976; Ord. MC-1027, passed 9-9-1998)

(A) Should there be included in the district property used for residential purposes, including in said term single-family and multiple-unit residential property, regardless of the zoning applicable thereto, the same shall be exempt from the assessments levied hereunder, so long as such property is lawfully used for residential purposes, upon a finding by the Mayor and City Council that:

(1) Such property is lawfully used for residential purposes; and

(2) Such property has adequate off-street parking for the residential uses involved.

(B) Each year, at the time of levying the assessment as provided in this chapter, such findings shall be reviewed, to the end that such exempt property will no longer be exempt and will be assessed:

(1) When the use is changed from its exempt residential use; and/or

(2) When the property although still devoted to the same use no longer has adequate off-street parking.

(C) Should a particular parcel of real property have another use, in addition to the residential use, only the proportionate value thereof attributable to the residential use shall be exempt.

(Ord. 3589, passed 7-6-1976)