CITY OF SIMI VALLEY
MEMORANDUM
Dec
ember 12, 2022
TO: Cit
y Council
FR
OM: Department of Administrative Services
SUBJ
ECT: RECEIPT OF THE COMMUNITY FACILITIES DISTRICT NO. 2004 -1 (TOWN CENTER PROJECT) ANNUAL ACCOUNTABILITY REPORT
STAFF RECOMMENDATION
It is recommended that the City Council, acting in its capacity as the legislative body of Community Facilities District No. 2004 -1 (District), receive and file the attached Annual Accountability Report (Attachment A, page 4) as required by Government Code Section 50075.3, for the period of November 1, 2021, through October 31, 2022.
BACKGROUND AND OVERVIEW
In February 2005, the District issued $8.8 million in Series 2005 Special Tax Bonds to finance public facilities serving the Simi Valley Town Center, pursuant to the Mello-Roos Community Facilities Act of 1982. The City of Simi Valley, pursuant to the provisions of the Local Agency Special Tax and Bond Accountability Act, is required to file an Annual Accountability Report with the City Council by January of each year. The attached Annual Account ability Report provides t he information required by Government Code Section 50075, et seq. for t he reporting period of November 1, 2021, through October 31, 2022.
FINDINGS AND ALTERNATIVES
The Local Agency Special Tax and Bond Accountability Act adopted by voters in 2001 and codified in Government Code Section 50075, et seq. requires that any local special tax and/or bond measure subject to voter approval on or after January 1, 2001, which would provide for the imposition of a special tax by a local agency, is subject to the filing of an Accountability Report annually. The report shall contain the amount of funds collected and expended as well as the status of any project required or authorized to be funded in the District.
The Annual Accountability Report prepared by David Taussig & Associates, Inc., the special tax consultant and administrator for the District, contains the amount of funds collected and ex pended, as well as the status of the projects authorized by the bond documents. The total beginning balance from bond proceeds and prepayments on November 1, 2021 , was $ 752,525.43, and the total ending balance as of October 31, 2022, was $756,644.78.
AGENDA I
TEM NO.
Consent (2)
2 The formation of the District provided an alternative method for financing the acquisition and construction of certain public facilities related to the Simi Valley Town Center. All costs related to the District are costs of the District, not the City or i ts General Fund. As a result, all costs related to administering the District and paying debt service on the bonds are the responsibility of the property owners within the District. The bonded indebtedness of the District is both secured and repaid through the annual levy and collection of special taxes from all properties subject to the tax within the District.
Aside from the Annual Accountability Report, which is filed with the City Council by January of each year, other reporting requirements related to the District are outlined below:
• The City of Simi Valley, pursuant to the provisions of the Continuing Disclosure Agreement (Disclosure Agreement) dated January 1, 2005, is required to provide an Annual Report. This reporting is provided through the D isclosure Agreement between the City of Simi Valley and The Bank of New York Mellon Trust Company, N.A. (the dissemination agent). The Fiscal Year 2020-21 report was provided on January 28, 2022.
• An Annual Administration Report for Fiscal Year 202 2-23, provided by David Taussig & Associates, Inc., the special tax consultant and administrator for the District, dated November 28, 2022.
• Government Code Section 53340 of the Mello- Roos Community Facilities Act of 1982 requires City Council approval of the “Annual Levy of Special Tax” report authorizing the levy of special taxes each year prior to the County’s deadline of the first Friday in July. The Fiscal Year 2022-23 annual levy for the District was approved by the City Council on June 13, 2022.
• In accordance with Government Code Section 53359.5, any Community Facilities District (CFD) issuing debt on or after January 1, 1993, must report certain fiscal information to the California Debt and Investment Advisory Commission (CDIAC) on an annual basis by O ctober 30 of each year. This report for the District was submitted to the Municipal Securities Rulemaking Board’s (MSRB) Electronic Municipal Market Access System (EMMA) on October 27, 2022.
The City Council has authorized the formation of the District, the bonded indebtedness, the levy of a special tax within the boundaries of the District, and the specific taxes levied per parcel for Fiscal Year 2021-22. The attached Annual Accountability Report, prepared in accordance with Government Code 50075.3, is hereby submitted for the City Council’s review.
3 The following alternatives are available to the City Council:
1. R
eceive and file the attached Annual Accountability Report (Attachment A) as required by Government Code Section 50075.3, for the period of November 1, 2021 through October 31, 2022;
2. P
rovide staff with other direction.
S
taff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I
move to receive and file the Annual Accountability Report for Simi Valley Community Facilities District No. 2004-1.
SUMMARY
T
here are various annual reporting requirements with different reporting dates related to the City of Simi Valley Community Facilities District No. 2004 -1 (Town Center Proj ect).
David Taussig & Associates, Inc., the District’s special tax consultant, has provided the attached Annual Accountability Report for November 1, 2021, through October 31, 2022, indicating the funds collected and expended, as well as the status of the projects authorized by the bond documents. The Annual Accountability Report is provided to meet the District’s reporting requirements under Government Code Section 50075.3. ___
_________________________________
Carolyn Johnson
Administrative Services District
INDEX Page
A
ttachment A – Annual Accountability Report .................................. 4 C
ITY OF SIMI VALLEY
COMMUNITY FACILITIES DISTRICT NO. 2004-1
(TOWN CENTER PROJECT)
2005 SPECIAL TAX BONDS
SPECIAL TAX AND BOND ACCOUNTABILITY REPORT
The purpose of this report is to comply with the provisions of the Local Agency Special Tax and Bond Accountability Act (the "Accountability Act"). According to Senate Bill ("SB") 165, any local special tax measure that is subject to voter approval on or after January 1, 2001 that would provide for the imposition of a special tax by a local agency shall require the chief fiscal officer of the levying local agency to file an annual Special Tax and Bond Accountability Report ("Accountability Report") with its governing body no later than January 1, 2002, and at least once a year thereafter, meeting the requirements of the Accountability Act. The Accountability Report shall contain a description of the following:
The amount of funds collected and expended.
The status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1 and Article 1.5, Section 53410.
In compliance with the required Accountability Report the following is submitted:
The City of Simi Valley (the "City") issued $8,800,000 in Community Facilities District No. 2004-1 Special Tax Bonds (the "Bonds") in February 2005. The Bonds were issued to finance the construction, purchase, modification, expansion, improvement or rehabilitation of water, sanitary sewer, storm sewer, landscaping, air quality, street, retaining walls, earthwork, traffic signalization and lighting facilities, both onsite and offsite, and all appurtenances and appurtenant work in connection with the foregoing facilities, together with all land or interests in land required for the construction of such facilities; and to finance the incidental expenses to be incurred, including the cost of engineering, planning and designing the facilities. Onsite improvements include improvements generally located on or about A Street and B Street in the City, as well as retention improvements. Offsite improvements are generally located on or about 1st Street and Erringer Street in the City.
Separate accounts have been established with a third-party trustee to administer the receipt and subsequent disbursement of the bond proceeds as the City accepted completed improvements. A summary sheet showing the deposit of bond proceeds as well as all subsequent disbursements made during the reporting period (November 1, 2021 through October 31, 2022) is attached as a part of this report.
As of October 31, 2022, all of the onsite and offsite work has been substantially completed. On November 17, 2008, the City Council formally accepted Community Facilities District No. 2004-1 public improvements, except for the reinforced concrete box culvert (RCB) which remains under private ownership.
Community Facilities District No. 2004-1 special taxes were levied in fiscal year 2021-2022 in the amount of $570,375.54. These special taxes were used to pay debt service on the Bonds and administrative expenses of Community Facilities District No. 2004-1. 4 ATTACHMENT A
11/15/2022
Bond Proceeds Funds Accrued Funds Expended
(Deposited Previously Previously Ending Balance (11/01/21 through (11/01/21 through Ending Balance Fund on 2/17/05) Accrued Expended as of 10/31/21 10/31/22) 10/31/22) as of 10/31/22 Project Account $7,109,213.38 $357,616.36 ($7,466,829.74) $0.00 $0.00 $0.00 $0.00 Cost of Issuance Account $407,027.50 $1,383.18 ($408,410.68) $0.00 $0.00 $0.00 $0.00 Special Tax Fund $0.00 $7,268,708.85 ($7,268,708.23) $0.62 $538,121.66 ($537,932.50) $189.78 Capitalized Interest Subaccount $439,894.77 $293,532.17 ($733,426.94) $0.00 $0.00 $0.00 $0.00 Reserve Account $803,864.35 $121,231.19 ($221,882.55) $703,212.99 $3,672.28 $0.00 $706,885.27 Interest Account $0.00 $6,933,927.79 ($6,933,927.79) $0.00 $297,932.50 ($297,932.50) $0.00 Principal Account $0.00 $1,585,017.79 ($1,585,017.79) $0.00 $240,000.00 ($240,000.00) $0.00 Administrative Expense Account $40,000.00 $9,000.01 $0.00 $49,000.01 $256.20 $0.00 $49,256.21 Redemption Account $0.00 $2,228,430.79 ($2,228,303.36) $127.43 $0.65 $0.00 $128.08 Rebate Account $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Surplus Fund $0.00 $772.61 ($588.23) $184.38 $1.06 $0.00 $185.44 Grand Total $8,800,000.00 $18,799,620.74 ($26,847,095.31) $752,525.43 $1,079,984.35 ($1,075,865.00) $756,644.78
CITY OF SIMI VALLEY
COMMUNITY FACILITIES DISTRICT NO. 2004-1 (TOWN CENTER PROJECT) SB165 FUND SUMMARY
5