HomeMy WebLinkAboutResolution - 2196 RESOLUTION NO. 2196
A RESOLUTION OF THE CITY COUNCIL FOR THE CITY
OF SAN JACINTO ACTING BY AND FOR COMMUNITY
FACILITIES DISTRICT NO. 21 TO REALLOCATE
DISTRIBUTION OF EMWD REFUNDS OF DOMESTIC
WATER SUPPLY SYSTEM FACILITIES FINANCIAL
PARTICIPATION CHARGES
RECITALS
Whereas, on February 12 , 1990, an agreement was made between
The City of San Jacinto COMMUNITY FACILITIES DISTRICT NO. 2 (CFD
No. 2) , EASTERN MUNICIPAL WATER DISTRICT (EMWD) and P. R.
EQUITIES, LMT. , relating to the financing and construction of
water services facilities (Agreement) . Said Agreement was
entitled:
JOINT FINANCING AND CONSTRUCTION AGREEMENT
AMONG COMMUNITY FACILITIES DISTRICT NO. 2 OF
THE CITY OF SAN JACINTO, EASTERN MUNICIPAL
WATER DISTRICT AND PEACOCK-RADAKER
CORPORATION; and
Whereas, pursuant to said Agreement, and the construction of
certain water service facilities by CFD No. 2 , EMWD agreed to
refund certain developer financial participation charges which
have been pre-paid, or in the future will be pre-paid, by
developers within the Rancho San Jacinto development (See
Paragraph 10.D. of said Agreement) ; and
a Whereas, pursuant to Paragraph 11 of the Agreement, at
City's and CFD No. 2 's request, such refund of EMWD charges
was/is to be made to CFD No. 2 for CFD No. 2 ' s intended purpose
of using the funds for early and partial retirement of bonded
indebtedness; and
Whereas, the documents for issuance of CFD No. 2 bonded
indebtedness, did not and do not rely upon, or contemplate or
address the partial early retirement of indebtedness by use of
EMWD refunds, and that such use as stated in the Agreement was
purely discretionary and voluntary by CFD No. 2 ; and
Whereas, in the last two years, the City has seen a dramatic
downturn in the economy resulting in the near halt of any
building or construction in the City and within Rancho San
Jacinto, in particular. Said lack of construction has resulted
in the receipt of less than anticipated special tax revenue and
has resulted in higher than anticipated per-capita costs to
homeowners in LLMD assessments and expenses for maintenance of
lighting and landscaping; and
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Whereas, a reallocation of the EMWD refunds will provide a
relief to the current homeowners and to the present and future
developers within CFD No. 2, and will provide an incentive to
encourage further development within CFD No. 2 .
NOW THEREFORE BE IT RESOLVED by the City Council for the
City of San Jacinto, acting by and for Community Facilities
District No. 2 , as follows:
Section 1. CFD No. 2 shall reallocate the
distribution of refunds received through
EMWD, which refunds constitute the "Credit
Toward Partial Payment of Applicable EMWD
Domestic Water Supply System Facilities
Financial Participation Charges" as such
credit is described in Paragraphs 10.D and 11
of the Agreement.
Section 2 . In lieu of allocating said funds to
partial retirement of bonded indebtedness,
said refunds shall be allocated as follows:
(a) The pro-rata share of such refund
applicable to each permitted and constructed
home within CFD No. 2 , for which refund has
been received by CFD No. 2 from EMWD, shall
be paid to the homeowners who shall be of
record at the time such payment is effected.
Payment shall be effected as a credit against
the CFD NO. 2 special tax due for the 1994-95
fiscal year and shall be reflected on the tax
bill for such real property as issued by the
County tax collector.
(b) For improvements not yet permitted
or constructed, the pro-rates share of any
such refund applicable to each improvement
permitted shall, after receipt by CFD No. 2
from EMWD, be paid to the builder/developer
who advanced such credited amount to EMWD at
the time of obtaining building permits and
whose name shall appear as applicant upon the
City's building permit for such improvements.
For purposes of refund, should there be any
dispute as to the identity of the
person/entity who advanced such fees, CFD No.
2 may rely upon the identity stated upon the
permit application as conclusive evidence of
the person/entity entitled to refund.
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Section 3 . The Mayor shall sign this resolution and
the city Clerk shall attest and certify to
the passage and adoption thereof.
MOVED, PASSED AND ADOPTED this 19th day of April, 1994 , by
the following vote:
AYES: Councilmembers Leahy, Solorio, Williams, Mayor Hafliger
NOES: None
ABSTAIN; None
ABSENT: Council Seat Vacant
H2—NR'Y "F'LIG R, �Xaybr
ATTEST:
DAVID ANDERSON, city Clerk
By: '
e uty City lerk
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