Camarillo City Council
AGENDA REPORT
Date: June 26, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Mark Uribe, Finance Director
Subject: Resolution of the West Camarillo Community Facilities District No. 1 Authorizing the Levy of a Special Tax for Fiscal Year 2024-25
BACKGROUND
In 1990, the City formed the West Camarillo Community Facilities District No. 1 (CFD) to provide for the financing to construct sewer, drainage and bridge facilities to western Camarillo if and when such area developed. In September 1990, the CFD sold $14.5 million in bonds for sewer improvements (the “1990 Bonds”). In March 1999, the CFD refunded its 1990 Bonds and issued refunding and new money bonds (the “1999 Bonds”) to pay for a portion of the drainage improvements. Nine annexations have been certified since the CFD was formed.
As part of the CFD formation proceedings, Ordinance 711 was adopted, which authorized the annual levy of special tax in order to pay back the bonds issued in order to construct sewer drainage and bridge facilities. Initially, bonds were issued only to finance the construction sewer improvements. The Sewer bonds were retired in September of 2012.
In 2004 the CFD issued an additional $8.2 million in bonds to primarily fund the construction of the remaining authorized drainage improvements. In May of 2017, the CFD took actions to refund the outstanding 2004 bonds through the issuance of its 2017 Special Tax Refunding Bonds. The refunding transaction allowed the CFD to (i) shorten the term of the outstanding bonds by two years, (ii) reduce the required debt service coverage and (iii) amend the Rate and Method of Apportionment to eliminate bonding capacity for additional facilities.
As a result, a significant number of properties which were having to disclose a potential future special tax will no longer have to do so and all remaining properties in the CFD have (i) realized a significant reduction in their amount of special tax that must be disclosed to potential buyers, (ii) experienced a reduction in the amount of the actual tax
Resolution of the CFD #1 - Levy of Special Tax for FY 24/25 June 26, 2024
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levied against their property, and (iii) will realize a shorter tax term than what was previously scheduled.
Furthermore, in March of last year, the bondholder agreed to further reduce the interest rate applicable to the outstanding 2017 Refunding Bonds and this action further reduced the amount of bond interest to be paid through 2032.
The taxes currently being levied in CFD No. 1 are solely for the repayment of the outstanding 2017 Special Tax Refunding Bonds.
It is customary at this time to adopt the resolution authorizing the 2023-24 annual levy of the special taxes. Upon adoption, the special taxes will be levied and placed on the County tax rolls for collection.
DISCUSSION
The special taxes currently being levied in the District are solely for the repayment of the outstanding 2017 Special Tax Refunding Bonds along with any projected administrative expenses incurred during the next fiscal year. Each year, City Council adopts a resolution authorizing the annual levy of the special taxes for the upcoming fiscal year. Upon adoption, the allocation of annual special taxes will be sent to the County of Ventura and then levied and placed on the Ventura County Secured property tax roll for collection.
FISCAL IMPACT
There is no budget impact as a result of this action. The Camarillo Community Facilities District No. 1 Mello-Roos Bonds are a non-City obligation. The property assessments within the district and debt service costs do not impact the City’s budget.
RECOMMENDATION
Approval adopts a Resolution of the West Camarillo Community Facilities District No. 1 authorizing the levy of a special tax for fiscal year 2024-25.
ATTACHMENTS
1. Resolution
2. Spread of Annual Special Taxes for Fiscal Year 2024/25 REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None