FROM:
Finance
SUBJECT:
Title
Public Hearing on Formation of Community Facilities District No. 113 (The Gardens Phase Two)
End
RECOMMENDATION:
Recommendation
1. Adopt Resolution No. 2024-022, of the City Council of the City of Fontana of formation of the City of Fontana Community Facilities District No. 113 (The Gardens Phase Two), authorizing the levy of a special tax within the community facilities district and establishing an appropriations limit for the community facilities district.
2. Adopt Resolution No. 2024-023, of the City Council of the City of Fontana deeming it necessary to incur bonded indebtedness within the City of Fontana Community Facilities District No. 113 (The Gardens Phase Two).
3. Adopt Resolution No. 2024-024, of the City Council of the City of Fontana calling special election for City of Fontana Community Facilities District No. 113 (The Gardens Phase Two).
4. Adopt Resolution No. 2024-025, of the City Council of the City of Fontana declaring results of special election and directing the recording of notice of special tax lien.
5. Read by title only and waive further reading of and introduce Ordinance No. 1952 levying special taxes within the City of Fontana Community Facilities District No. 113 (The Gardens Phase Two); and that the reading of the title constitutes the first reading thereof.
6. Adopt Resolution No. 2024-026, of the City Council of the City of Fontana authorizing the execution and delivery of Joint Community Facilities Agreements.
7. Adopt Resolution No. 2024-027, of the City Council of the City of Fontana authorizing the execution and delivery of a Letter of Credit Agreement and an Acquisition and Funding Agreement.
End
COUNCIL GOALS:
• Practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
North Fontana Investment Company, LLC and Richmond American Homes of Maryland, Inc. have initiated the process to form a Community Facilities District for the purpose of financing the acquisition of certain public facilities that are eligible under the City financing goals and policies, namely sewer, storm drain, street improvements, landscaping, and development impact fees. The formation of the district will benefit the City by funding the infrastructure projects outside of the typical improvements that would be required for the project including a contribution for a project of community benefit. CFD bond funding will allow for infrastructure to be built at one time, reducing construction inconvenience for earlier residents and enhancing the overall community aesthetics.
The project consists of approximately 36.37 gross (25.27 net taxable acres) (388 residential lots), is located on the west side of Sierra Avenue north of Casa Grande Avenue.
The proposed Rate and Method of Apportionment (RMA) includes rates to pay for bonded indebtedness and maintenance of street lighting, landscaping and parks. Initial assigned residential rates are proposed as follows:
|
Land Use Class |
|
Planning Area |
Residential Floor Area |
|
Bond Debt |
|
Maint |
|
Total |
|
1 |
|
1 |
2,100 sf or Greater |
|
$4,137 |
|
$550 |
|
$4,687 |
|
2 |
|
1 |
1,950 to less than 2,100 sf |
|
$3,956 |
|
$550 |
|
$4,506 |
|
3 |
|
1 |
1,800 to less than 1,950 sf |
|
$3,775 |
|
$550 |
|
$4,325 |
|
4 |
|
1 |
1,650 to less than 1,800 sf |
|
$3,554 |
|
$550 |
|
$4,104 |
|
5 |
|
1 |
Less than 1,650 sf |
|
$3,344 |
|
$550 |
|
$3,894 |
|
6 |
|
2 |
2,100 sf or greater |
|
$3,946 |
|
$550 |
|
$4,496 |
|
7 |
|
2 |
1,950 to less than 2,100 sf |
|
$3,759 |
|
$550 |
|
$4,309 |
|
8 |
|
2 |
1,800 to less than 1,950 sf |
|
$3,572 |
|
$550 |
|
$4,122 |
|
9 |
|
2 |
1,650 to less than 1,800 sf |
|
$3,385 |
|
$550 |
|
$3,935 |
|
10 |
|
2 |
Less than 1,650 sf |
|
$3,198 |
|
$550 |
|
$3,748 |
|
11 |
|
3 & 4 |
2,225 sf or Greater |
|
$4,604 |
|
$550 |
|
$5,154 |
|
12 |
|
3 & 4 |
2,075 to less than 2,225 sf |
|
$4,259 |
|
$550 |
|
$4,809 |
|
13 |
|
3 & 4 |
1,925 to less than 2,075 sf |
|
$3,914 |
|
$550 |
|
$4,464 |
|
14 |
|
3 & 4 |
1,775 to less than 1,925 sf |
|
$3,699 |
|
$550 |
|
$4,249 |
|
15 |
|
3 & 4 |
Less than 1,775 sf |
|
$3,549 |
|
$550 |
|
$4,099 |
Sales prices for the homes have been estimated at $478,400 to $613,600. The proposed rates have been established to provide a total tax rate of less than 1.95% of the home value per City Policy.
The proposed rates for bonded indebtedness will support $17.6 million of bonds, providing funds to finance $14.8 million of facilities and/or fees. The proposed annual rates for maintenance of $550 for all planning areas will be sufficient to fund the annual maintenance costs for street lighting, landscaping and parks within and surrounding the area of the CFD. The rate also includes the maintenance costs related to the water quality system required by the State of California. The maximum annual tax rate for maintenance has been set at $770 per unit for planning areas with a 2% escalator per City Policy.
This action will form the District, authorize the levy of the special tax and authorize bonded indebtedness. The recommended action complies with the City Council’s debt management objectives.
FISCAL IMPACT:
This District will provide annual funding for maintenance costs, administration and debt service costs once bonds are issued.
MOTION:
Approve staff recommendation.