City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 19, 2023 FROM: FINANCE DEPARTMENT WARDS: ALL
SUBJECT: ANNUAL LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABILITY REPORT FOR FISCAL YEAR 2022-2023 ISSUE:
Receive the Annual Local Agency Special Tax and Bond Accountability Report for Fiscal Year 2022-2023 to fulfill the annual reporting requirements of Senate Bill 165.
RECOMMENDATION:
That the City Council receive the Annual Local Agency Special Tax and Bond Accountability Report for Fiscal Year 2022-2023 to fulfill the annual reporting requirements of Senate Bill 165.
BACKGROUND:
The Local Agency Special Tax and Bond Accountability Act (the “Act”) was enacted through the adoption of California Senate Bill 165. Government Code 50075.1 and 53410 within the Act requires local agencies that have enacted special tax measures and/or local bond measures subject to voter approval to prepare and post an annual report. The report must outline the use of Special Tax revenue for Special Districts and the use of proceeds from local bond measures subject to voter approval.
The current service provider pertaining to the Special Districts is Webb Municipal Finance, LLC. The management of the Special Districts include:
Preparation of the annual Engineer’s Report, LMDs and SLAD Preparation of Special Tax and Assessment apportionments for SLAD, Library Services Parcel Tax, CSA, CFDs, LMDs, and Ads Recording and submitting levy data, maps and reports to the County Assessor’s Office Coordination with City staff in gathering data and preparing legislative and SEC mandated reporting Preparation of tax tables, rate and method of apportionments, boundary maps and sizing analysis for new district formations Liaison between City, developers, property owners, and the County Recorder’s Office On April 26, 2022, the City Council approved a second amendment to the Professional Consultant Services Agreement with Webb Municipal Finance LLC, extending the terms of the Agreement until March 31, 2024.
The table below illustrates the original amount approved by City Council on April 26, 2022, for costs associated with managing the Special Districts, as well as the actual anticipated fees for Fiscal Year 2023-2024. Most of these fees are passed on to the property owners within the Special Districts each year and are incorporated into the budgets during the annual levy process. Approximately $12,000 is paid from the General Fund through the professional services budget in Debt and Treasury.
FY 2023-2024
Number of Special Districts
Cost
Approved by Council
20 $142,748
Actual
18 $128,783
DISCUSSION:
Per Senate Bill 165, the report must include a) the amounts of funds collected and expended through special tax measurers; b) the status of any project required or authorized to be funded through special tax measures; c) the amount of funds collected and expended through voter approved bond issuances; and d) the status of any project required or authorized to be funded through voter approved bond issuances. The attached report fulfils the annual reporting requirements of the Act, which is applicable to each of the City’s Community Facility Districts as well as the Election of 2003 Fire Facilities General Obligation Bonds.
As required by Senate Bill 165, this annual report includes the taxes received in Fiscal Year 2022-2023 as well as the applicable bond principal, interest, and administrative expenses paid during this time period. The report also includes the total amount of bond proceeds expended as of June 30, 2023 and the status of each project.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority No. 5 High Performing Government Goal No. 5.3 – Enhance communication and collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making.
This item aligns with EACH of the five Cross-Cutting Threads as follows:
Community Trust – The preparation and approval of this annual report complies with Senate Bill 165, Local Agency Special Tax and Bond Accountability Act. This report provides transparency for community members to whom the special taxes are administered.
Equity – The Community Facilities Districts and GO Bonds detailed in this report share the cost of infrastructure and maintenance services among each property owner within that district. The bonds associated with the funding in each district is spread long-term across the generations of property owners that benefit from it.
Fiscal Responsibility – Special Taxes are collected annually to pay the costs associated with bonds that were issued within each district. These amounts are administered to property owners within each district, ensuring the cost of the service is borne by those that benefit directly from it.
Innovation – Utilizing Community Facilities Districts is an innovative way to plan and direct revenue to directly support each new development.
Sustainability & Resiliency – The formation of a Community Facilities District provides a transparent and equitable way to manage, administer, and report on specific infrastructure related to development within the City. The Annual Special Tax and Bond Accountability Report provides transparent reporting to members in the community who are part of the districts that were formed.
FISCAL IMPACT:
There is no fiscal impact associated with the review and approval of this report.
Prepared by: Meline Carranza, Debt & Treasury Manager
Approved by: Kristie Thomas, Assistant Chief Financial Officer/Finance Director Certified as to
availability of funds: Kristie Thomas, Assistant Chief Financial Officer/Finance Director Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/Treasurer Approved as to form: Phaedra Norton, City Attorney
Attachments: Special Tax and Bond Accountability Report for Fiscal Year 2022-2023 One of the legislative reports, per Senate Bill 165, is the Annual Local Agency Special Tax and Bond Accountability Report, Calculation assumes tax levies on all districts. Currently there are two districts that are not levied. One district does not have an existing bond issuance, and the Library Parcel Tax Ballot Measure expired in FY 2021-2022 with no current plans of reintroducing a new ballot.
Annual Local Agency Special Tax and Bond Accountability Report ● Page 2