City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JULY 28, 2026 FROM: FINANCE DEPARTMENT WARD: 4
SUBJECT: RESOLUTION AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS, SERIES 2026A FOR COMMUNITY FACILITIES DISTRICT NO. 2021-3 (BRIDLE RIDGE) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $5,000,000 AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH ISSUES:
Adopt a Resolution authorizing the issuance of the Community Facilities District 2021-3 (Bridle Ridge), Special Tax Bonds, Series 2026A (Tax Exempt) in an aggregate principal amount not to exceed $5,000,000 approving the financing team and authorizing the execution and delivery of associated documents.
RECOMMENDATIONS:
That the City Council:
Adopt a Resolution authorizing the issuance of the Community Facilities District No. 2021-3 (Bridle Ridge) Special Tax Bonds, Series 2026A (Tax Exempt) in an aggregate principal amount not to exceed $5,000,000; Approve the financing team, as identified herein, for this transaction and authorize the City Treasurer or any duly authorized designee, to pay the costs of such firms in connection with this financing from CFD 2021-3 Series 2026A bond proceeds; Authorize the City Manager and Chief Financial Officer, or designees to execute all documents related to the issuance of the Special Tax Bonds for Community Facilities District No. 2021-3 (Bridle Ridge) and the ability to make minor changes to these documents as required to carry out the financing; and With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record supplemental appropriations in the CFD 2021-3 Bridle Ridge Fund related to the issuance of the Community Facilities District No. 2021-3 (Bridle Ridge) Special Tax Bonds, Series 2026A (Tax Exempt).
BACKGROUND:
On March 22, 2022, the City Council adopted Resolution No. 23835 (the "Resolution of Intention"), outlining plans to establish the Community Facilities District No. 2021-3 (Bridle Ridge) and authorized a special tax on taxable properties within its boundaries. On the same date, it also adopted Resolution No. 23836, declaring its intent to incur bonded indebtedness up to $7,000,000 to fund the design, construction, and acquisition of public facilities serving CFD 2021-3.
Following a public hearing held on April 26, 2022, the City Council adopted Resolution Nos. 23847 and 23848 (collectively referred to as the "Resolution of Formation"). This action: (i) officially established the District; (ii) approved the levy of a special tax (the "Special Tax") within the District; (iii) confirmed the need to incur bonded indebtedness up to $7,000,000; and (iv) called for an election within the District to vote on incurring bonded indebtedness, levying the Special Tax, and setting an appropriations limit.
The Resolution of Formation stipulated that Special Taxes would be imposed on all taxable parcels within CFD 2021-3. These taxes are intended to cover the principal and interest on any bonds issued and sold by the District to finance City and Western Municipal Water District Facilities. Additionally, the taxes will fund the design, construction, and acquisition of the facilities, as well as the annual administrative costs incurred by the City and the District in calculating, apportioning, levying, and collecting the Special Taxes and servicing the bond debt.
DISCUSSION:
Financing Team
The Financing Team for this transaction comprises of City Staff from the Finance Department, and City Attorney’s Office. External Financing partners include: Fieldman Rolapp & Associates, Inc. serving as Municipal Advisor, Stradling, Yocca, Carlson & Rauth acting as Bond and Disclosure Counsel, and Raymond James as Underwriter. These roles were assigned based on a competitive request for proposal process. The total issuance costs will be covered using proceeds from bond financing.
An appraisal dated May 26, 2026, conducted by Stephen G. White, MAI (Attachment 3 Appendix D), evaluated certain land and existing improvements within the District to estimate their market value. The report assessed the "as-is" market value of properties within the District subject to the Special Tax, based on planned development comprising 103 detached single-family homes. The appraisal concluded that as of the “Date of Value,” May 12, 2026, the minimum market value of all taxable parcels in the District was $78,580,000. Should investors require an updated valuation due to the time elapsed between the appraisal and bond sale, a Supplemental Appraisal Report can be prepared to reflect a new date of value.
Good Faith Estimates
On October 9, 2017, Senate Bill 450 (SB 450) added Section 5852.1 to the California Government Code. SB 450 requires, prior to issuance of bonds, a public agency disclose in a public meeting good faith financing estimates provided by an Underwriter, Municipal Advisor or private lender. These estimates include: a) the True Interest Cost of the bonds; b) the total finance charge of the bonds equal to the sum of all fees and charges paid to third parties; c) the amount of estimated bond proceeds minus the total finance charge of the bonds, and any reserves funded from proceeds of the bonds; and d) the total payment amount. The total payment amount should be calculated to the final maturity of the bonds. The attached Resolution of Issuance (Attachment 6) Appendix A contains the details of the Good Faith Estimate, prepared by Municipal Advisor, Fieldman Rolapp and Associates, Inc., in consultation with Underwriter Raymond James. The table below provides the estimated total finance charges associated with the bond issuance, based on estimated fees.
CITY OF RIVERSIDE
CFD No. 2021-3 (Bridle Ridge)
2026A Special Tax Bonds
$4,090,000*
Projected Cost of Issuance
The following table is an estimate of the costs associated with the Bonds Services
Interested Party
Payable at Closing
Issuer Staff/Administrative
City of Riverside
15,000.00
Bond Counsel/Disclosure Counsel
Stradling Yocca Carlson & Rauth
85,000.00
Municipal Advisor
Fieldman, Rolapp & Associates, Inc.
41,000.00
Special Tax Consultant
Webb Municipal Finance, LLC
30,000.00
Fiscal Agent & Counsel
U.S. Bank, Dorsey & Whitney
6,500.00
Appraisal
Steve White
17,500.00
Printer
Bondlink
4,000.00
Contingency
NA
10,000.00
Total Cost of Issuance
$260,000.00
*Preliminary, subject to change.
Updated as of:
6/15/2026
FISCAL IMPACT:
There is no direct fiscal impact to the City of Riverside. The cost of financing, staff administration, and the debt service on the bonds will be paid through Special Tax revenue levied on CFD 2021-3 (Bridle Ridge). Bond proceeds received from issuance and the related expenditures are outlined in the table below.
Fund
Program
Account
Amount
CFD 2021-3 Bridle Ridge
Revenue
Special Taxes
0000764-361651
$8,000
Bond & Financing Proceeds
0000764-382040
$4,090,000
Bond Premiums
0000764-382060
$107,160
Total Revenue
$4,205,160
Expenditures
Annual Bond Expense
2390340-447010
$8,000
Misc. Bond Expense
2390340-447000
$3,903,634
Bond Cost of Issuance
2390340-481018
$260,000
Underwriter’s Discount
2390340-481018
$33,526
Total Expenditures
$4,205,160
Prepared by: Meline Carranza, Debt and Treasury Manager Approved by: Sergio Aguilar, Deputy Finance Director
Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Edward Enriquez, Interim City Manager/Chief Financial Officer/City Treasurer
Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachments:
Bond Indenture
Bond Purchase Agreement
Preliminary Official Statement
Appraisal Report: Appendix D of the attachment
Continuing Disclosure Certificate: Appendix F of the attachment Resolution of Issuance
Presentation
CFD 2021-3 (Bridle Ridge) Debt Issuance ● Page 2