August 1, 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
Developer 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; 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.
Developer 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 Maximum Indebtedness
Not to exceed $9,500,000 and 40-year maturity
Public Hearing Date
August 1, 2023
5 Recommendation
Upon conclusion of the public hearings, it is recommended that the City Council:
Approve and adopt each resolution individually in the following order. An Order of Proceedings is provided for reference (Attachment 2).
RESOLUTION NO. 2023-XX – RESOLUTION OF FORMATION OF COMMUNITY FACILITIES DISTRICT RESOLUTION NO. 2023-XX – RESOLUTION DETERMINING NECESSITY TO INCUR BONDED INDEBTEDNESS RESOLUTION NO. 2023-XX – RESOLUTION CALLING SPECIAL ELECTION RESOLUTION NO. 2023-XX – RESOLUTION DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN RESOLUTION NO. 2023-XX – RESOLUTION APPROVING AN IMPROVEMENT AND REIMBURSEMENT AGREEMENT AND AUTHORIZING AND DIRECTING ACTIONS WITH RESPECT THERETO Introduce for first reading of title only and waive further reading of:
ORDINANCE NO. 2023-XX – AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FULLERTON LEVYING SPECIAL TAXES WITHIN THE CITY OF FULLERTON COMMUNITY FACILITIES DISTRICT NO. 3 (THE PINES AT SUNRISE VILLAGE) 6 August 1, 2023
Community Facilities District No. 3(The Pines at Sunrise Village)