CITY OF IMPERIAL COMMUNITY FACILITIES DISTRICT 2004-2

INITIATIVE PETITION

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

 

The City Attorney of the City of Imperial has prepared the following title and summary of the chief purpose and points of the proposed initiative:

Ballot Initiative 1: Cessation of Community Facilities District No. 2004-2 Improvement Area 1 Special Taxes Upon Full Payment of Outstanding Bond Indebtedness

 

Summary of the Proposed Initiative:  Proponents within the City of Imperial Community Facilities District No. 2004-2 Improvement Area 1 (“Improvement Area 1”) have proposed an initiative to repeal all special taxes assessed within Improvement Area 1, upon the complete satisfaction of the outstanding bonded indebtedness associated with Improvement Area 1. The initiative includes several sections.  Section 1 of the initiative is the title.  Section 2 of the initiative contains several findings and the proponents’ stated purpose for the initiative. Section 3 of the initiative would seek to require the legislative body of the City of Imperial Community Facilities District No. 2004-2 to pay the outstanding bonded indebtedness and, upon full payment of the outstanding bonded indebtedness, to adopt a resolution repealing the special tax levy in its entirety.   Section 4 of initiative would seek to require the legislative body of the City of Imperial Community Facilities District No. 2004-2 to retroactively waive already accrued penalties and interest on delinquent special tax payments.  Section 5 of the initiative would seek to require the legislative body of the City of Imperial Community Facilities District No. 2004-2 to take all steps necessary to ensure that the collection of the special tax ceases upon full payment of the outstanding bonded indebtedness.  Section 6 of the initiative includes severability provision, which means that if any provision of the initiative is held to be invalid, the remaining provisions of the initiative shall remain in full force and effect, if the initiative is adopted by the voters. Section 7 of the initiative states that, if the initiative is adopted by the voters, the initiative shall become effective upon certification of the election results.   

 

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.

  

 

SIGNATURES OF REGISTERED VOTERS

To the City Council of the City of Imperial, acting as the legislative body of Community Facilities District No. 2004‑2:

We, the undersigned registered voters of the City of Imperial residing within Community Facilities District No. 2004‑2 Improvement Area 1, hereby petition for the adoption of the attached initiative measure, or for its submission to the voters at an election.

 

 

Signature:_______________________________ Printed Name:__________________________ Residence Address (Street Only):_____________________________

 

                                                                                                                                            City____________________ State: ______  Zip Code: ___________

DECLARATION OF CIRCULATOR

(Must appear on the same sheet as the signatures)

I, ________________________________________________________, declare:

1. I am 18 years of age or older.

2. I am a citizen of the United States.

3. I personally circulated this petition section and witnessed each signature.

4. All signatures were made in my presence.

5. To the best of my knowledge and belief, each signature is the genuine signature of the person whose name it purports to be.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on ____________________________, 2026, at _____________________________________________________________, California. (City where signed)

Signature of Circulator: ________________________________________________

Printed Name of Circulator: _____________________________________________

Residence Address: _____________________________________________________