CITY OF IMPERIAL COMMUNITY FACILITIES DISTRICT 2004-2

INITIATIVE PETITION

 

To Repeal All Mello-Roos Taxes in Community Facilities District No. 2004-2

 

NOTICE OF INTENTION TO CIRCULATE INITIATIVE PETITION

 

Notice is hereby given by the persons whose names appear hereon of their intention to circulate a petition within the City of Imperial Community Facilities District 2004-2 for the purpose of repealing all Mello-Roos special taxes within Community Facilities District No. 2004-2, effective upon full payment of outstanding obligations through Fiscal Year 2025–2026, and waiving penalties and interest on certain delinquencies. A statement of the reasons for the proposed action is as follows:

 

The CFD 2004-2 Mello-Roos special tax imposes continuing financial burdens on property owners. This initiative seeks to repeal such taxes once all outstanding bonded indebtedness is paid, ensuring fair treatment of current property owners by waiving penalties and interest not attributable to them. It is anticipated that assessments paid in fiscal year 2025-2026 will be sufficient to fully satisfy the bonds such that no additional assessments will need to be collected.

 

FULL TEXT OF THE MEASURE FOLLOWS

 

INITIATIVE MEASURE

To be submitted directly to the voters

 

AN INITIATIVE MEASURE TO REPEAL ALL MELLO-ROOS COMMUNITY FACILITIES DISTRICT TAXES WITHIN CITY OF IMPERIAL COMMUNITY FACILITIES DISTRICT NO. 2004-2 IMPROVEMENT AREA 1 UPON SATISFACTION OF OUTSTANDING OBLIGATIONS

SECTION 1. TITLE.

This measure shall be known and may be cited as the Imperial CFD 2004-2 Mello-Roos Tax Repeal and Redemption Act of 2026.

SECTION 2. FINDINGS AND PURPOSE.

The People of the City of Imperial within Community Facilities District 2004-2 Improvement Area 1 find and declare:

1. Community Facilities District No. 2004-2 (“CFD 2004-2”) was allegedly established under the Mello-Roos Community Facilities Act of 1982 to finance certain public facilities.

2. However, CFD 2004-2 has not financed the promised public facilities and has confirmed that it will not do so.

3. CFD 2004-2 has engaged in unlawful and discriminatory practices by perpetuating a secret agreement to refrain from assessing any tax on the single entity which allegedly approved the assessments and, instead, has imposed and continues to impose the assessments on those who did not approve the assessments.

4. CFD 2004-2 imposed penalties and interest on individuals not responsible for delinquencies, while exempting those who caused them.

5. CFD 2004-2 imposes special taxes on property owners within the district, creating a financial burden on residents and property owners which is currently planned to continue for the next 12 years.

6. It is the intent of this initiative to repeal all special taxes levied under CFD 2004-2. The current outstanding bond of CFD 2004-2 are projected to be less than all past due assessments for facilities in CFD 2004-2 through the current fiscal year 2025-2026. Therefore, this initiative is intended to instruct that all assessments levied through this current fiscal year be used to pay off all outstanding bonds and to repeal any assessment which exceeds that amount.

7. To ensure fairness to current property owners, CFD 2004-2 shall repeal all penalties and interest on delinquencies not originally caused by the current property owners.

SECTION 3. REPEAL OF SPECIAL TAXES.

(a) The City Council of the City of Imperial, acting as the legislative body of CFD 2004-2, shall cause to be applied all assessments for facilities in CFD 2004-2 to pay off all outstanding bonds for CFD 2004-2.

(b) Effective the earliest date of any fiscal year in which all outstanding bonded indebtedness of CFD 2004-2 could have been paid in full with the collection of outstanding principal assessments, all authority of the City of Imperial and CFD 2004-2 to levy or collect special taxes within CFD 2004-2 Improvement Area 1 shall be repealed and terminated.

(c) The City Council shall, upon certification that all obligations have been paid through Fiscal Year 2025–2026, adopt a resolution repealing the CFD 2004-2 special tax levy in its entirety.

SECTION 4. WAIVER OF PENALTIES AND INTEREST.

(a) All penalties, fees, and interest on delinquent CFD 2004-2 special taxes shall be retroactively be repealed and voided if the delinquency was not originally caused by the property owner of record.
(b) The City Council, acting as the legislative body of CFD 2004-2, shall establish a procedure for a property owner to demonstrate that a delinquency was attributable to a prior owner.

(c) To rectify prior improper practices, if in any fiscal year funds received by CFD 2004-2 for current assessments and for penalties, fees, or interest on delinquencies exceed its bonded indebtedness, CFD 2004-2 shall first pay, in full, its bonded indebtedness, then refund any remaining funds to those property owners who were owners of property at the beginning of such fiscal year in proportion to all revenue collected by CFD 2004-2 from or related to each property by the end of the same fiscal year.

 

SECTION 5. IMPLEMENTATION.

(a) The City Council, acting as the legislative body of CFD 2004-2, shall take all actions necessary to implement this measure, including but not limited to notifying the County of Imperial Tax Collector, bond trustees, and any other relevant parties.
(b) The provisions of this measure shall supersede any prior City and/or CFD 2004-2 resolution, ordinance, or act establishing or authorizing the levy of special taxes within CFD 2004-2.

SECTION 6. SEVERABILITY.

If any provision of this measure is held invalid, the remainder shall not be affected and shall remain in full force and effect.

SECTION 7. EFFECTIVE DATE.

This measure shall become effective immediately upon certification of the election results.

 

  

Signed by Proponent

Mrs. Lia Sanchez