Community Facilities District
Goals and Policies
Presented by
Ivan Holler, Assistant City Manager
Javier Carcamo, Director of Finance
October 3, 2023, City Council Meeting, Agenda Item No. 9 Received After Agenda Printed
Regular City Council Meeting 10-03-23
Item No. 9 - Staff Presentation
Community Facilities District
Goals and Policies
Background
The Mello-Roos Community Facilities Act
- Address funding limitations for public infrastructure - Objective: Community Facilities District (CFD) Formation to assist in the financing of public infrastructure and services needed to spur development
Community Facilities District
Goals and Policies
CFD Policy
- City required under the Mello-Roos Act to adopt Goals and Policies for the formation of CFDs
- The city’s CFD Goals and Policies were originally adopted in 2003 and amended in 2016
Policy Objective
- Provide uniform guidelines, criteria, and requirements for the formation of CFDs
- Establish Priorities for financing the Acquisition and Construction of Public Infrastructure and providing services
- Establish criteria for the issuance of bonds
Community Facilities District
Goals and Policies
Significant Proposed Changes
▪ Increase deposit from $10,000 to at least $50,000 to cover city costs associated with the CFD formation.
▪ Establish a maximum of two percent (2%) of the greater of the assessed value or appraised value of such property, which is increased from 1.8%. ▪ Allow annual escalators of the special tax by 2% per year for facilities, as determined by the City.
Community Facilities District
Goals and Policies
Significant Proposed Changes
• Special taxes for services may escalate in any manner determined by the City as necessary to cover annual estimated increases in the costs of providing such services;
• Include the Development Impact Fee as an eligible cost to be financed by the district;
• Include a list of eligible facilities and services that can be financed with CFD bonds;
Community Facilities District
Goals and Policies
Recommended Actions
Adopt a Resolution adopting an amended and restated Community Facilities District Goals and Policies.