FROM:
Finance
SUBJECT:
Title
Levy of a Special Tax in Community Facilities District No. 22 (Sierra Hills South) for Fiscal Year 2025-2026
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-055, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 22 (Sierra Hills South) for Fiscal Year 2025-2026.
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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. 22 (Sierra Hills South) was established by Resolution No. 2003-38 on April 15, 2003. On August 26, 2004, the District issued $37,365,000 in Special Tax Bonds to refund CFD #90-3 (Empire Center) Special Tax Bonds which were used to finance the construction, installation and acquisition of certain major capital facilities (infrastructure) to serve properties located within the District. On May 29, 2014, the District issued $31 million in Special Tax Refunding Bonds to refinance the 2004 bonds.
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 1426, approved and adopted by the City Council on August 6, 2003.
The special tax levied on each assessable parcel within the District is necessary to pay the principal and interest on the outstanding bonded indebtedness and authorized administrative 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.
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 the prior year.
The City’s special taxes for this District have been reviewed in light of the passage of Proposition 218. The recommended actions comply with the provisions of this proposition.
FISCAL IMPACT:
The proposed Fiscal Year 2025-2026 special tax rates are the same as the prior year and will generate approximately $2.7 million for debt service expenses.
MOTION:
Approve staff recommendation.