WEST PATTERSON FINANCING AUTHORITY
AGENDA REPORT
TO: Chair McCord and Members of the West Patterson Financing Authority FROM: Ken Irwin, Executive Director
BY: Mike Willett, Public Works Director
MEETING DATE: October 4, 2022
ITEM NO: 8.1
SUBJECT: Approve Resolution No. 2022-70 a Resolution of Intention to Establish Community Facilities District, and approve Resolution No. 2022-71, a Resolution of Intention to Incur Bonded Indebtedness for a Community Facilities District (the “Resolutions of Intention”).
RECOMMENDATION
Motion to Approve Resolution No. 2022-70 a Resolution of Intention to Establish Community Facilities District, and Motion to Approve Resolution No. 2022-71, a Resolution of Intention to Incur Bonded Indebtedness for a Community Facilities District (the “Resolutions of Intention”).
BACKGROUND
The attached Resolutions of Intention for the West Patterson Financing Authority (“WPFA” or the “Authority”) will initiate the first step in establishing CFD 2022-2, which is required in order to facilitate residential development within the area known as Baldwin Ranch North project. The finalization of establishing CFD 2022-2 is subject to approval proceedings following a proposed public hearing on November 15, 2022.
The City of Patterson (“City”) is party to a development agreement relating to The Baldwin Ranch North (the “Development Agreement”) approved by Ordinance No. 859 adopted by the City Council on January 18, 2022. The Development Agreement requires, among other matters, that developers and participating landowners within The Baldwin Ranch North cooperate in the formation of a community facilities district or similar district for the purpose of financing public facilities and infrastructure totaling $17.5 million.
The territory of the proposed CFD 2022-2 is initially comprised of certain parcels within The Baldwin Ranch North project in which the participating landowners are in various stages of residential development.
If the Resolutions of Intention are adopted, a public hearing on the establishment of CFD 2022-2 will be set to take place at the November 15, 2022, City Council/WPFA Board meeting.
The Resolutions of Intention are only the first step in establishing CFD 2022-2, therefore they will not finally determine that the district will be formed. In addition, the Resolutions expressly require that the participating landowners in CFD 2022-2 must finalize and execute an Operating Memorandum with the City in order for formation proceedings to proceed on November 15, 2022. Once the public hearing date for forming CFD 2022-2 is set, the following actions must take place to conclude the formation:
· Convene a public hearing to determine if interested parties wish to protest the formation of CFD 2022-2;
· Approve the Rate and Method of Apportionment of Special Tax and authorized facilities, subject to landowner vote;
· Call special election of property owners, which is expected to also be held on November 15, 2022 (based on a waiver by the participating property owners of an otherwise required 90 days before the election could be held);
· Hold the special election and declare the results; and · Authorize recording the special tax lien on the taxable property.
ANALYSIS
The formation of CFD 2022-2 will ensure that developers and landowners within The Baldwin Ranch North project meet their obligations to construct certain public infrastructure, as provided in the Development Agreement. City staff is processing final subdivision maps within The Baldwin Ranch North Development Plan. Participation in CFD 2022-2, or a similar financing district, will be required in order for these projects to proceed.
Resolution of Intention to Establish CFD 2022-2
Eligible Facilities that may be Financed by CFD 2022-2
A description of facilities that are eligible to be financed by CFD 2022-2 is attached to the Resolution as Exhibit B. Eligible facilities include wastewater, water, roadway and storm basin improvements.
Rate and Method of Apportionment of Special Tax
The Rate and Method of Apportionment of Special Tax (“RMA”) is attached to the Resolution as Exhibit A. The RMA establishes the Maximum Special Tax that can be levied on each parcel subject to the CFD 2022-2 special tax. For CFD 2022-2, the Maximum Special Tax is based on the proposed land use densities for each plan area within The Baldwin Ranch North area.
Public Hearing for Formation
The Resolution establishes a date for a public hearing and future proceedings regarding the proposed formation of CFD 2022-2. The public hearing date is currently proposed for November 15, 2022.
Resolution to Incur Bonded Indebtedness
This Resolution establishes some of the initial criteria for issuing bonds in connection with CFD 2022-2. The Resolution establishes maximum bonded indebtedness at $17.5 million. The $17.5 million maximum indebtedness accounts for inflation and bond issuance costs to ensure that the $17.5 million in financing for public infrastructure, as provided in the Development Agreement, is realized over time. Bonds would be issued in phases, as development proceeds. The first bond issuance could occur as early as 2023-24, and future bonds would continue to be issued in phases thereafter.
FISCAL IMPACT
Formation of CFD 2022-2 will have no impact to the Authority or to the City’s general fund. The participating landowners have been invoiced for the costs to form CFD 2022-2. Once formed, CFD 2022-2 will ensure that properties within The Baldwin Ranch North will be in a position to finance the public infrastructure and facilities necessary to serve those project areas.
ATTACHMENTS
(1) Resolution No. 2022-70 of Intention to Establish a Community Facilities District and Future Annexation Area
Exhibit A: Rate and Method of Apportionment of Special Tax Exhibit B: Description of Facilities Eligible to be Financed by the CFD Exhibit C: Notice of Public Hearing for CFD 2022-2
(2) Resolution No. 2022-71 of Intention to Incur Bonded Indebtedness for a Community Facilities District
(3) Boundary Map