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City Council
April 26, 2022
Community Facilities District No. 2015-2
(Pomelo) Special Tax Bonds Series 2022A
(Tax Exempt) and Series 2022B (Taxable)
Finance Department
RiversideCA.gov
2 1. CFD 2015-2 (Pomelo) formed December 28, 2020
a) Incur Bonded Indebtedness NTE $7,000,000
b) Levy Special Tax A Upon Develo ped Properties for Debt Service c) Levy Special Tax B Upon Developed Properties for Services
2. Levied Special Taxes Starting FY 2021
3. Request for Bond Sale from Developer
4. 108 Parcels – Almost all developed and conveyed to owners
BACKGROUND
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3 • Special Tax Bonds Secured by Special Tax Revenue
levied on the CFD 2015-2 (Pomelo)
• Principal Not To Exceed $6 Million
• 30 Year Maturity
• Special Reserve Funded with Special Tax Revenue To
Minimize Default Risk
• Reimburse Developer for Fees and Water, Sewer, Storm
Drain, Landscaping/Street Lighting Facilities
• Appraised Value of Property - $43M
PROPOSED TRANSACTION
RiversideCA.gov
4 GOOD FAITH ESTIMATES
• Total Finance Charge - $247,000
• Aggregate Principal - $5,125,000
• Estimated True Interest Cost of Bonds – 3.69%
• Amount of Estimated Bond Proceeds - $4,725,000
• Total Payment Amount to Final Maturity - $8,991,000
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5 This item contributes to Strategic Priority No. 5 – High Performing Government and Goal No. 5.3. - Enhance
communication and collaboration with community
members, to improve transparency, build public trust,
and encourage shared decision-making.
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
6 Cross-Cutting Threads:
a) Community Trust - The formation of a Community Facilities District provides a transparent and equitable way to finance, administer, and report on specific infrastructure and services related to new development.
b) Equity - CFD 2015-2 (Pomelo) shares the cost of infrastructure and maintenance services among each property owner and spreads the cost long-term across the generations of property owners that benefit from it.
c) Fiscal Responsibility - Payment of the Community Facilities District financing is paid over the term of 30 years through Special Tax, ensuring the cost of the service is borne by those that benefit directly from it.
d) Innovation – Utilizing Community Facilities Districts is an innovative way to plan and direct revenue to directly support each new development.
e) Sustainability & Resiliency - Adding a Services Special Tax B offsets the cost to maintain the financed facilities well into the future.
STRATEGIC PLAN ALIGNMENT
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7 1. Conduct a Public Hearing to consider the issuance of the Community Facilities District No. 2015-2 (Pomelo) Special Tax Bonds, Series 2022A (Tax Exempt) and 2022B (Federally Taxable) in an aggregate principal amount not to exceed $6,000,000;
2. Adopt a Resolution authorizing the issuance of the Community Facilities District No. 2015-2 (Pomelo) Special Tax Bonds, Series 2022A (Tax Exempt) and 2022B (Federally Taxable) in an aggregate principal amount not to exceed $6,000,000;
3. Approve the financing team and authorize the City Treasurer or any duly authorized designee, to pay the cost of such firms in connection with this financing from bond proceeds; and
4. Authorize the City Manager and the Chief Financial Officer or any authorized designees to execute all documents related to the issuance of the Special Tax Bonds and the ability to make minor and non-substantive changes to these documents as required to carry out the financing.
RECOMMENDATIONS
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