FROM:
Finance
SUBJECT:
Title
Levy of a Special Tax in Community Facilities District No. 111 (Monterado) for Fiscal Year 2025-2026
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-076, Authorizing the Levy of Special Tax in Community Facilities District No. 111 (Monterado) 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 111 (Monterado) was established by Resolution No. 2022-117 on September 13, 2022, to finance public facilities and to pay annual landscape and lighting costs for the district. The District will issue a maximum (not to exceed) of $7,300,000 in Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.
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 cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1904 approved and adopted by the City Council on September 27, 2022.
The special tax levied on each assessable parcel within the District is necessary to pay for the cost of providing public facilities and authorized administrative expenses (Facilities Special Tax A); and the annual landscape and lighting maintenance costs of the District (Services 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 shown in Exhibit A, Schedule 2.
A comparison of the total special tax levy and rates (Special Tax A and Special Tax 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) and are the same as 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 $668,919; $596,451 for public facility expenses and $72,468 for landscape and lighting maintenance costs.
MOTION:
Approve staff recommendation.