Chapter 14.27

COMMUNITY FACILITIES DISTRICT FINANCING PROCEDURE

Sections:

• 14.27.050 Incorporation of the Mello-Roos Community Facilities Act of 1982.

• 14.27.080 Refunding bonds, use of savings.

• 14.27.090 Extraterritorial jurisdiction.

• 14.27.100 Goals and policies.

• 14.27.110 Lease of facilities.

• 14.27.130 Conflict of law.

• 14.27.140 Services existing prior to formation of district.

• 14.27.160 Special tax levy; election.

• 14.27.170 Resolution of consideration.

The purpose and intent of this chapter is to establish a procedure for financing certain public capital facilities and services through the establishment of community facilities districts, the levy of special taxes within such districts and the issuance of bonds secured by such special taxes. (Ords. 25375, 25376.)

Proceedings for the formation of a community facilities district or districts for the purposes set forth in Section 14.27.080 may be conducted pursuant to this chapter whether or not provided in any state law.

(Ords. 25375, 25376.)

• A. This chapter is not, in any way, exclusive.

• B. The procedures provided in this chapter are alternative to any other procedure provided in this Code or under state law.

• C. The resolution of intention in any proceedings under any state law or other provision of the Municipal Code may provide that such provisions are supplemented by this chapter.

• (Ords. 25375, 25376.)

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§ 14.27.100

This chapter is to be liberally construed. (Ords. 25375, 25376.)

• A. The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311, of Part 1 of Division 2 of Title 5 of the Government Code, as amended from time to time), is incorporated in and made a part of this chapter.

• B. Except as otherwise provided by this chapter, the mode and manner for making improvements, for levying and collecting special taxes and for issuing bonds shall be as prescribed in the Mello-Roos Community Facilities Act of 1982.

(Ords. 25375, 25376.)

• C. Maintenance or servicing of any lakes, streams, rivers, creeks, channels or other bodies of water and the streambeds, riverbeds, creekbeds, channelbeds or lakebeds.

• D. Maintenance of any landscaping, hardscaping, lighting or signage within or adjacent to public rights of way or easements.

• (Ords. 25375, 25376.)

The hearing on the formation of a community facilities district as required by subdivision (e) of Section 53321, and subdivision (f) of Section 53339.3 of the Government Code shall be held not less than ten nor more than sixty days after the adoption of the resolution of intention to establish the district, and may be continued from time to time without further notice, but shall be completed within one year of the original hearing date. (Ords. 25375, 25376, 26066.)

• A. A community facilities district special tax, whether approved by vote of the landowners or the registered voters of the district, may finance the services specified in the MelloRoos Community Facilities Act of 1982 or in the following subsections A., B. and C. of this Section 14.27.060, notwithstanding the fact that such services supplant services which were already available within the territory when the district was created.

• B. Maintenance or servicing of any street, highway, road, alley, lane, boulevard, pedestrian mall, parkway, bike path, trail or other way dedicated to or used for public use and all appurtenances including, but not limited to, medians, street signs, street lights, traffic signals, soundwalls, drains, tunnels, sewers, conduits, culverts, and channels for drainage purposes, with necessary outlets, cesspools, manholes, catch basins, flush tanks, septic tanks, disposal plants, connection sewers, ditches, drains, conduits, channels, and appurtenances.

Any savings achieved through the issuance of refunding bonds may be used by the city in any manner that it determines to be in the interests of the district and consistent with the purposes for which the special tax was imposed. (Ords. 25375, 25376.)

Community facilities districts may be created pursuant to this chapter within the territorial jurisdiction of the city, or upon compliance with the procedures set forth in Sections 5115 through 5118 of Chapter 2 of Part 3 of Division 7 of the Streets and Highways Code, may extend beyond the territorial limits of the city. (Ords. 25375, 25376.)

The provisions of Section 53312.7 of the Government Code, concerning the adoption of local goals and policies, shall be permissive and not man-

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§ 14.27.100

datory in connection with any proceedings taken, special tax levied or bonds issued pursuant to this chapter.

(Ords. 25375, 25376.)

Notwithstanding Section 53313.5 of the Government Code, the city may lease out facilities financed under this chapter, if the council determines that it is in the best interest of the city to do so. (Ords. 25375, 25376.)

Any proceedings taken, special tax levied or bonds issued pursuant to this chapter shall not be held invalid for failure to comply with the provisions of this chapter provided such failure is not a constitutional defect. (Ords. 25375, 25376.)

In the event of any conflict between the provisions of this chapter or other provisions of the Municipal Code and the provisions of the MelloRoos Community Facilities Act of 1982, this chapter shall govern.

(Ords. 25375, 25376.)

Notwithstanding Section 53313 of the Government Code, a tax imposed under this chapter may finance any facilities or services authorized in this chapter which were provided in the territory of the community facilities district before the district was created. The tax under this chapter may finance facilities and services which are in addition to existing services, or which supplant existing services, or both.

(Ords. 25375, 25376.)

Notwithstanding Section 53325.6 of the Government Code, land devoted primarily to agricultural, timber or livestock uses and used for the

commercial production of agricultural, timber or livestock products may be included in a community facilities district without regard to whether the land will be benefited by any of the public facilities and services proposed to be financed by the district. (Ords. 25375, 25376.)

The city council shall submit the levy of any special taxes to the qualified electors of the proposed community facilities district subject to the levy, or to the qualified electors of the territory to be annexed by the community facilities district subject to the levy in the next general election or in a special election to be held, notwithstanding any other requirement, including any requirement that elections be held on specified dates, contained in the elections code, at least thirty days, but no more than ninety days following the adoption of the resolution of formation.

(Ord. 26066.)

In addition to the types of changes set forth in subdivision (a) of Section 53331 of the California Government Code, either, or both of the following changes may also be considered by the city council in a resolution of consideration:

• A. That the annual appropriations limit should be increased, or

• B. That the maximum amount of bonded indebtedness should be increased.

• (Ord. 26066.)

• A. The City shall establish a separate fund for each community facilities maintenance district bearing a distinctive identifying name and number.

• B. The moneys deposited in, and accrued to, each fund, and all payments therefrom, shall be exclusively for services authorized to be funded within the respective community facilities maintenance district.

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§ 14.28.050

• C. A surplus or deficit in a community facilities maintenance district fund at the end of each fiscal year shall be carried over to the following fiscal year.

• D. Upon dissolution of a community facilities maintenance district, any amount remaining in a community facilities maintenance district fund may be expended for the services authorized to be funded within the community facilities maintenance district to be dissolved until exhausted, or may be refunded to the record owners of land within the community facilities maintenance district proportionate to the most recent annual special tax levy, at the discretion of the City Council. An amount remaining that is the lesser of one thousand dollars or five percent of the community facilities maintenance district's annual budget may be transferred to the general fund and appropriated to fund services authorized to be funded within the community facilities maintenance district to be dissolved.

• (Ord. 29905.)