FROM:
Finance
SUBJECT:
Title
Levy of a Special Tax in Community Facilities District No. 74B and 74M (Citrus/Summit) for Fiscal Year 2025-2026
End
RECOMMENDATION:
Recommendation
1. Adopt Resolution No. 2025-060, Authorizing the Levy of a Special Tax in Community Facilities District No. 74B (Citrus/Summit) for Fiscal Year 2025-2026.
2. Adopt Resolution No. 2025-061, Authorizing the Levy of a Special Tax in Community Facilities District No. 74M (Citrus/Summit) 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. 74B (Citrus/Summit) was established by Resolution No. 2016-002 on January 12, 2016, to finance public facilities for the district. On January 12, 2016 the District issued $4,045,000 in Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1738 approved and adopted by the City Council on January 26, 2016.
Community Facilities District No. 74M was established by Resolution No. 2014-053 on June 24, 2014 to finance the maintenance and operation of street lights, landscaping, parks, parkways, storm drains, and open space facilities. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1697 approved and adopted by the City Council on July 8, 2014.
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 special tax for CFD 74B is levied on each assessable parcel within the Districts is necessary to pay for the cost of providing public facilities and authorized administrative expenses (Facilities Special Tax). The proposed special tax rates for Fiscal Year 2025-2026 were developed according to the Rate and Method of Apportionment (Exhibit B). The proposed Fiscal Year 2025-2026 special tax rates are shown in Exhibit A, Schedule 2. The rate for CFD 74B is the same as the prior year.
The special tax for CFD 74M is levied on each assessable parcel within the Districts is necessary to pay for the cost of providing maintenance and operation of street lights, landscaping, parks, parkways, storm drains, and open space facilities. The proposed special tax rates for Fiscal Year 2025-2026 were developed according to the Rate and Method of Apportionment (Exhibit C). The proposed Fiscal Year 2024-2025 special tax rates are shown in Exhibit A, Schedule 2. The rate for CFD 74M is the same as the prior year.
The Districts were established after the adoption of Proposition 218 and comply 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 for CFD 74B are the same as the prior year and will generate approximately $367,297 for debt service expenses. The special tax rate for CFD 74M is the same as the prior year and will generate $84,645 for maintenance expenses.
MOTION:
Approve staff recommendation.