BACKGROUND:
The City has been working with the Desert Recreation District (DRD) on efforts to bring park and recreation services to the City since 2018. The COVID-19 pandemic put initial efforts on hold in early 2020; however, in recent months work on that project has resumed. Polling was completed in early 2022 and results presented to this City Council in May. According to the poll results, there appeared to be a chance for a successful election.
On June 22, 2022, this Council adopted two resolutions to begin the process of the CFD Formation:
•Resolution of Intention to Form a Community Facilities District and Levy a Special Tax in the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services), to Fund Public Services and Finance the Development of Certain Public Facilities
•Resolution of Intention to Incur Bonded Indebtedness in an Amount Not to Exceed $39,000,000 in and for the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) to Finance the Development of Certain Public Facilities
Those resolutions set August 3, 2022, as the date of the Public Hearing with respect to the formation of and necessity to incur bonded indebtedness in and for the proposed Community Facilities District.
DISCUSSION:
The process to form a CFD includes the following steps:
1. City Council Meeting (June 22, 2022) -Council adopted a Resolution Intention to Form CFD and a Resolution of Intention to Incur Bonded Indebtedness.
2. Record Boundary Map (confirmation of recordation was received on 7-7-22), Publish Notice of Public Hearing (published on 07-14-2022 in both English and Spanish)
3. City Council Meeting (August 3, 2022)
•Hold Public Hearing.
•Adopt a Resolution to Form the City of Cathedral City Community Facilities District No 2022-01 (Cathedral City Park & Recreation Services) and Levy a Special Tax within the CFD to Fund Public Services and Finance the Development of Certain Public Facilities.
•Adopt Resolution of Necessity to Incur Bonded Indebtedness in the maximum aggregate principal amount of $39,000,000 for the CFD for the purpose of financing the costs of all or a portion of the facilities defined in the Resolution of Formation (the “Facilities”), including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities.
•Adopt a Resolution Calling a Special Election for the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services).
•Adopt a Resolution requesting the Board of Supervisory of the County of Riverside to Consolidate a Special Municipal Election for the City of Cathedral City Community Facilities District No. 2022-1 (Cathedral City Park & Recreation Services) being held on Tuesday, November 8, 2022, with the Statewide General Election to be Held on the Same Date Pursuant to the California Elections Code Section 10403.
4. Election - November 8, 2022.
5. City Council Meeting (December 14, 2022) - Certify Election Results, Adopt Ordinance to Levy Special Tax.
Staff recommends that the City Council adopt the resolutions to form the CFD, determine necessity to incur bonded indebtedness, call for an election for the CFD and consolidate the CFD election with the statewide general election.
FISCAL IMPACT:
Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property is shown in Table 1.
TABLE 1
MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023/24 Property Type Maximum Special Tax Per Single Family Residential Property $0.15 Building Square Foot Accessory Dwelling Unit 123.00 Unit
Residential Condominium Property 196.00 Unit
Multi-family Residential Property 172.00 Unit
Non-residential Property 734.00 Parcel
EXEMPTIONS
No Special Tax shall be levied on Agricultural Property, Timeshare Property, Public Property and Undeveloped Property.
Depending upon interest rates at the time of bond issuance, it is anticipated the special taxes collected would support a bond issue in the amount of $38-$39 million dollars.
Annual revenue generated to support services and debt service is approximately $4.6 million dollars.