June 20, 2023
Community Facilities District No. 3(The Pines at Sunrise Village)
What is a Community Facilities District (CFD)?
Special district authorized by the Mello-Roos Community Facilities Act of 1982 (the “Act”).
Tool to finance the purchase, construction, expansion or rehabilitation of property, including public facilities and infrastructure improvements.
Allocates Developer costs for specified public facilities and infrastructure to future property owners through annual special tax rather than one-time up-front payment as part of home purchase price. 2 CFD Process
Property Owner (“Applicant”) submits a Petition to create a CFD Step 1 – Initiation (June 20, 2023): City Council considers Resolutions of Intention to form the CFD and allow the CFD to incur indebtedness, setting a date to consider formation (no more than 90 days from Petition); Step 2 – Formation (August 1, 2023): City Council holds a public hearing including an election on the approval of special taxes and on the need to incur bonded indebtedness within the CFD; Step 3 – Bond Issuance: If Developer desires to initiate bond financing, City Council considers bond issuance. 3 Other Considerations
Neither Step 1 nor Step 2 obligate the City to issue bonds.
Applicant funds formation efforts / no cost to City.
Any bonds issued are not obligations of the City and secured solely by the special taxes levied in CFD No. 3.
If cost of Developer-constructed facilities exceeds financing supported by CFD, developer is responsible for additional amount. 4 CFD No. 3 (The Pines at Sunrise Village)
Boundary
Eligible Facilities
City Facilities: Rehabilitation of streets, park improvements, sewer improvements School District Facilities
Maximum Indebtedness
Not to exceed $9,500,000 and 40-year maturity
Public Hearing Date
August 1, 2023
5 Recommendation
It is recommended that the City Council approve and adopt the following resolutions:
RESOLUTION 2023-XX – RESOLUTION OF INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT – CITY OF FULLERTON COMMUNITY FACILITIES DISTRICT NO. 3 (THE PINES AT SUNRISE VILLAGE) (the “Resolution of Intention”) RESOLUTION 2023-XX – RESOLUTION OF INTENTION TO INCUR BONDED INDEBTEDNESS – CITY OF FULLERTON COMMUNITY FACILITIES DISTRICT NO. 3 (THE PINES AT SUNRISE VILLAGE) (the “Resolution to Incur Bonded Indebtedness” and together with the Resolution of Intention, the “Resolutions”) 6 June 20, 2023
Community Facilities District No. 3(The Pines at Sunrise Village)