Shoreline Community
Facilities District (CFD)
CITY COUNCIL PUBLIC HEARING
SEPTEMBER 6, 2022
Community Facilities District (CFD)
SHORELINE ENTITLEMENTS APPROVED
JUNE 21, 2022
COMMUNITY FACILITIES DISTRICT
PROPOSED TO FINANCE ONGOING
SERVICES AND CAPITAL IMPROVEMENTS
JULY 18 – DECLARE INTENT
SEPTEMBER 9 – PUBLIC HEARING AND
INTRODUCTION OF ORDINANCE TO FORM
CFD
What can the
CFD Cover?
Mello-Roos Community Facilities Act (1982)
• Enabling legislation for use of CFD
• CA Government Code Section 53311 and following
Ongoing Services
• Operations, maintenance and lighting of transportation facilities, water, sewer and storm drain facilities, sea walls and sea-level-rise facilities, parks, parkways, and open space.
• Salaries and benefits of personnel necessary or convenient to provide the Services • Reserves for repairs and replacements and for the future provision of Services Capital Improvements
• Transportation facilities
• Water, sewer, storm drain facilities
• Sea walls and sea-level-rise facilities
• Parks, parkways, and open space
Exact timing of a future CFD bond sale secured by special taxes revenues will be determined based upon the build-out of the project and the need for bond-financed facilities.
CFD Rates and Modeled Revenues
Recommended CFD Assessments on new development:
◦ Single-Family and Townhomes: Effective Tax Rate set at 1.70% of the estimated sales price ◦ Hotel and Apartments: ~$250,000/year
Modeled CFD Revenues:
◦ ~$770,832 for annual services
◦ $11.2M in bond proceeds for capital improvements
July 18: Initiation of CFD Formation
◦ Resolution of Intention to Establish CFD
◦ Resolution of Intention to Incur Bonded
Indebtedness of the CFD
September 6: CFD Formation Proceedings
◦ Public Hearing
◦ Resolution of Formation
◦ Resolution Declaring Necessity for Bonded
Indebtedness
◦ Resolution Calling Special Election
◦ Resolution Declaring Election Results
◦ Ordinance Levying Special Tax (first reading)
September 20: CFD Formation Proceedings
◦ Ordinance Levying Special Tax (adoption)
CFDFormation
Process
CFD Next Steps
Special Tax Levy
◦ Special taxes may be levied beginning in Fiscal Year 2023/24, but will only be levied to the extent there is a need for funds
Bond Issuance:
◦ Resolution Authorizing Issuance of Special Tax Bonds will be presented to Council at such time the City is ready to issue debt, timing will depend largely on how quickly the single family and townhome project progress to development