FROM:
Finance
SUBJECT:
Title
Levy of a Special Tax in Community Facilities District No. 11 (Heritage West End) for Fiscal Year 2025-2026
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-053, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 11 (Heritage West End) 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. 11 was established by Resolution No. 98-110 on December 1, 1998. On January 28, 1999, the District issued $15.5 million in Special Tax Refunding Bonds, 1999 Series A, to prepay a portion of the special tax levied on the property within the District by the Community Facilities District No. 2 and to refund certain indebtedness secured by such special tax, namely the City of Fontana Community Facilities District No. 2 (Village of Heritage) Sub-Subordinate Special Tax Refunding Bonds, 1998 Series C. The bonds were refunded in 2021 to take advantage of interest rate savings.
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 Ordinance No. 1271 approved and adopted by the City Council on December 15, 1998.
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 (Exhibit A, Schedule 1).
A comparison of the special tax levy and rates for Fiscal Year 2024-2025 and Fiscal Year 2025-2026 is outlined in Exhibit A, Schedule 2. Fiscal Year 2025-2026 rates have decreased by 3% over the prior year for residential parcels and 2% on non-residential parcels.
The proposed special tax rates for Fiscal Year 2025-2026 were developed according to the Rate and Method of Apportionment (Exhibit B).
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 2% lower on non-residential parcels and 3% lower on residential parcels. The proposed levy will generate approximately $543,294 for debt service expenses.
MOTION:
Approve staff recommendation.