FROM:
Finance
SUBJECT:
Title
Levy of a Special Tax in Community Facilities District No. 31 (Citrus Heights North) for Fiscal Year 2025-2026
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-056, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 31 (Citrus Heights North) for Fiscal Year 2025-2026.
End
COUNCIL GOALS:
• Practice sound fiscal management by fully funding liabilities and reserves.
• Practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
Community Facilities District No. 31 (Citrus Heights North) was established by Resolution No. 2005-59 on June 7, 2005, to finance public facilities and to pay the annual landscape and lighting maintenance costs for the district. On December 21, 2006, the District issued $26,815,000 in Special Tax Bonds, Series 2006, to finance the acquisition and construction of certain capital facilities (infrastructure). On July 11, 2018, the District issued $18.5 million in Special Tax Refunding Bonds to refinance the 2006 bonds; refinancing the bonds allowed the District to take advantage of interest rate savings and to finance the acquisition and construction of additional capital facilities.
Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Resolution No. 2005-59 approved and adopted by the City Council on June 7, 2005.
The special tax levied on each assessable parcel within the District is necessary to pay principal and interest on the outstanding bonded indebtedness and authorized administration expenses (Special Tax A); and the annual park, parkways, and open space maintenance costs of the District (Special Tax B).
The portion of the special tax rate necessary to pay the principal and interest on the outstanding bonded indebtedness and authorized incidental expenses is comprised of available cash balance, debt service payments, and administration costs (Exhibit A, Schedule 1).
The proposed Fiscal Year 2025-2026 special tax rates (Special Tax A and Special Tax B) are outlined in Exhibit A, Schedule 2. A comparison of the total special tax levy and rates (A and B) for Fiscal Year 2024-2025 and Fiscal Year 2025-2026 is outlined in Exhibit A, Schedule 3.
The proposed special tax rates for Fiscal Year 2025-2026 were developed according to the Rate and Method of Apportionment (Exhibit B). The rates for all categories are the same as the prior year.
The District was established after the adoption of Proposition 218 and complies with its requirements because the District and the special taxes were approved by the consent of the property owner at the time the District was formed.
FISCAL IMPACT:
The proposed Fiscal Year 2025-2026 special tax rates are the same as the prior year and will generate approximately $3.0 million; $2.6 million for debt service expenses and $480,225 for park, parkways and open space costs.
MOTION:
Approve staff recommendation.