FROM:
Finance
SUBJECT:
Title
Amendment to the Acquisition and Funding Agreement for CFD #111 (Monterado)
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2024-052, of the City Council of the City of Fontana which approves the amendment of the Acquisition and Funding Agreement related to the City of Fontana Community Facilities District No. 111 (Monterado) and authorizes designated members of the City Council or Authorized Officers of the City to execute and deliver such amendment for execution.
End
COUNCIL GOALS:
• Practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
On September 13, 2022, the City Council authorized the formation of Community Facilities District No. 111 (Monterado) and conducted a special election to levy taxes within the District. This project consists of 198 residential lots located on the west side of Citrus Avenue north of Duncan Canyon Road. Bond proceeds will be used to fund public infrastructure including sewer, storm drain, street improvements, landscaping, public facilities and park facilities. On April 23, 2024, the City Council, on behalf of the District approved the issuance of the 2024 Special Tax Bonds to fund such improvements, and on May 16, 2024, the 2024 Special Tax Bonds closed in the principal amount of $7,595,000.
In the period of time in which the District was formed and subsequently the 2024 Special Tax Bonds were issued, certain actual costs of the improvements exceeded estimates delineated in the original Acquisition and Funding Agreement. The amendment to the original Agreement facilitates funding of such increased costs.
The following document, in its materially correct form, is attached hereto:
- First Amendment to the Acquisition and Funding Agreement
FISCAL IMPACT:
There is no fiscal impact related to the amendment of the Acquisition and Funding Agreement. The legal costs attributable to the amendment are paid from legally available funds of the District.
MOTION:
Approve staff recommendation.