City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0548
REQUEST FOR CITY COUNCIL ACTION
DATE: 07/06/2022
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Resolutions levying special taxes to be collected during Fiscal Year 2023 for several bonded Community Facilities Districts.
EXECUTIVE SUMMARY:
The City Council will consider adopting recommended resolutions which will allow the City to levy and collect Fiscal Year 2023 special taxes for several bonded Community Facilities Districts.
RECOMMENDED ACTION:
That the City Council:
a. Adopt Resolution No. 2022-073, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bond of Community Facilities District No. 2000-1 (Eagle Glen II), 2020 Special Tax Refunding Bond, and the administrative expenses with respect to the bond.
b. Adopt Resolution No. 2022-074, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bond of Community Facilities District No. 2001-2 (Cresta-Grande), 2020 Special Tax Refunding Bond (Improvement Area No. 1), and the administrative expenses with respect to the bond. c. Adopt Resolution No. 2022-075, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bond of Community Facilities District No. 2001-2 (Cresta-Grande), 2020 Special Tax Refunding Bond (Improvement Area No. 2), and the administrative expenses with respect to the bond. d. Adopt Resolution No. 2022-076, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bonds of Community Facilities District No. 2002-1 (Dos Lagos), 2017 Special Tax Refunding Bonds, and the administrative City of Corona Page 1 of 4 Printed on 6/29/2022
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File #: 22-0548
District No. 2002-1 (Dos Lagos), 2017 Special Tax Refunding Bonds, and the administrative expenses with respect to the bonds.
e. Adopt Resolution No. 2022-077, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bonds of Community Facilities District No. 2002-1 (Dos Lagos), Improvement Area 1, 2017 Special Tax Refunding Bonds, and the administrative expenses with respect to the bonds.
f. Adopt Resolution No. 2022-078, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bonds of Community Facilities District No. 2002-4 (Corona Crossings), 2017 Special Tax Refunding Bonds, and the administrative expenses with respect to the bonds.
g. Adopt Resolution No. 2022-079, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bond of Community Facilities District No. 2003-2 (Highlands Collection) 2020 Special Tax Refunding Bond, and the administrative expenses with respect to the bond.
h. Adopt Resolution No. 2022-080, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bond of Community Facilities District No. 2004-1 (Buchanan Street) 2020 Special Tax Refunding Bond, and the administrative expenses with respect to the bond.
i. Adopt Resolution No. 2022-081, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bonds of Community Facilities District No. 2016-2 (Terrassa), 2018 Special Tax Bonds, Special Tax A, and the administrative expenses with respect to the bonds.
j. Adopt Resolution No. 2022-082, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bonds of Community Facilities District No. 2017-2 (Valencia/Seville), 2018 Special Tax Bonds, Special Tax A, and the administrative expenses with respect to the bonds.
k. Adopt Resolution No. 2022-083, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bonds of Community Facilities District No. 2018-1 (Bedford) Improvement Area No. 1, 2018 Special Tax Bonds and 2020 Special Tax Bonds, Special Tax A, and the administrative expenses with respect to the bonds. l. Adopt Resolution No. 2022-097, levying special taxes to be collected during Fiscal Year 2023 for the payment of administrative expenses incurred in connection with the levy and collection of special taxes, the establishment of the reserve fund, and the collection and accumulation of funds for the acquisition or construction of certain public facilities within Community Facilities City of Corona Page 2 of 4 Printed on 6/29/2022
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File #: 22-0548
District No. 2018-1 (Bedford) Improvement Area No. 2, Special Tax A. m. Adopt Resolution No. 2022-084, levying special taxes to be collected during Fiscal Year 2023 for the payment of the principal and interest on the outstanding bonds of Community Facilities District No. 2018-2 (Sierra Bella), 2022 Special Tax Bonds, Series A, Special Tax A, and the administrative expenses with respect to the bonds.
BACKGROUND & HISTORY:
Pursuant to the Mello-Roos Community Facilities Act of 1982, the Community Facilities Districts (the “Districts”) listed under the Recommended Action section were formed to finance the construction and acquisition of public improvements and facilities within the Districts.
ANALYSIS:
The City has covenanted for the benefit of the owners of the bonds to fix and levy the amount of special taxes within the Districts required for the payment of the principal and interest on the bonds becoming due and payable during the ensuing year. Any necessary replenishment or expenditure of the Reserve Funds and any amount estimated to be sufficient to pay administrative expenses during the year are also included in the levy. The special taxes levied will not exceed the authorized amounts as provided in the Rate and Method of Apportionments (the “RMA”) for the Districts.
A summary of Fiscal Year 2023 estimated special tax levies for the Districts is presented in Exhibit 1.
The Assigned Tax rates in the RMA, which were set at the District’s formation, are the maximum allowable assessment rates for each property category in the Districts. Each District’s number represents the year and order it was established. Through the years, the City was able to find refinancing opportunities for almost all of the Districts, which allowed for the tax rates to be reduced and the savings passed on to the property owners. Therefore, most of these Districts are being levied at much less than 100% of the Assigned Tax Rates. The newer Districts will continue to be levied at the full Assigned Tax rate until they are fully developed and there are sufficient reserves available to cover any potential delinquencies.
FINANCIAL IMPACT:
The special tax revenues and related debt service and administration expenditures are included in the Districts’ Fiscal Year 2023 budgets. Expenditures in Fiscal Year 2023 are being recovered in full.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely sets the special taxes to be levied and collected within the Districts for Fiscal Year 2023, and there is no possibility that adopting the resolution will City of Corona Page 3 of 4 Printed on 6/29/2022
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File #: 22-0548
have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: LIEN-CHI CANTUBA, ACCOUNTING SUPERVISOR
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
Attachments:
1. Exhibit 1 - Summary of Estimated Special Tax Levies
2. Exhibit 2 - Boundary Map for Resolution No. 2022-073
3. Exhibit 3 - Resolution No. 2022-073
4. Exhibit 4 - Boundary Map for Resolution No. 2022-074
5. Exhibit 5 - Resolution No. 2022-074
6. Exhibit 6 - Boundary Map for Resolution No. 2022-075
7. Exhibit 7 - Resolution No. 2022-075
8. Exhibit 8 - Boundary Map for Resolution No. 2022-076
9. Exhibit 9 - Resolution No. 2022-076
10.Exhibit 10 - Boundary Map for Resolution No. 2022-077
11.Exhibit 11 - Resolution No. 2022-077
12.Exhibit 12 - Boundary Map for Resolution No. 2022-078
13.Exhibit 13 - Resolution No. 2022-078
14.Exhibit 14 - Boundary Map for Resolution No. 2022-079
15.Exhibit 15 - Resolution No. 2022-079
16.Exhibit 16 - Boundary Map for Resolution No. 2022-080
17.Exhibit 17 - Resolution No. 2022-080
18.Exhibit 18 - Boundary Map for Resolution No. 2022-081
19.Exhibit 19 - Resolution No. 2022-081
20.Exhibit 20 - Boundary Map for Resolution No. 2022-082
21.Exhibit 21 - Resolution No. 2022-082
22.Exhibit 22 - Boundary Map for Resolution No. 2022-083
23.Exhibit 23 - Resolution No. 2022-083
24.Exhibit 24 - Boundary Map for Resolution No. 2022-097
25.Exhibit 25 - Resolution No. 2022-097
26.Exhibit 26 - Boundary Map for Resolution No. 2022-084
27.Exhibit 27 - Resolution No. 2022-084
City of Corona Page 4 of 4 Printed on 6/29/2022
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