Fontana Logo
File #: 21-1692    Version: 1 Name:
Type: Public Hearing Status: Agenda Ready
File created: 8/29/2022 In control: City Council Meeting
On agenda: 9/13/2022 Final action:
Title: Public Hearing on Formation of Community Facilities District No. 111 (Monterado)
Attachments: 1. Resolution of Formation - Reso. No. 2022-117, 2. Resolution To Incur Bonded Indebtedness - Reso. No. 2022-118, 3. Resolution Calling Special Election - Reso. No. 2022-119, 4. Resolution Declaring Results - Reso. No. 2022-120, 5. Ordinance Levying Special Taxes - Ord. No. 1904, 6. Resolution Authorizing Letter of Credit and Funding Agreement - Reso. No. 2022-121, 7. Notice of Special Tax Lien, 8. Consent and Waiver, 9. Letter of Credit Agreement, 10. Acquisition and Funding Agreement, 11. CFD Report
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
No records to display.

FROM:

Finance

 

SUBJECT:

Title

Public Hearing on Formation of Community Facilities District No. 111 (Monterado)

End

 

RECOMMENDATION:

Recommendation

 

 

End

 

COUNCIL GOALS:

                     Practice sound fiscal management by developing long-term funding and debt management plans.

 

DISCUSSION:

Lennar Homes of California, Inc. has initiated the process to form a Community Facilities District for the purpose of financing the acquisition of certain public facilities that are eligible under the City financing goals and policies, namely sewer, storm drain, street improvements, landscaping, and development impact fees.  The formation of the district will benefit the City by funding the infrastructure projects outside of the typical improvements that would be required for the project including a contribution for a project of community benefit.  CFD bond funding will allow for infrastructure to be built at one time reducing construction inconvenience for earlier residents and enhancing the overall community aesthetics.

The project consists of approximately 21.67 gross (11.55 net taxable) acres (198 residential lots), is located on the west side of Citrus Avenue north of Duncan Canyon Road.

 

On July 26, 2022, the City Council adopted a resolution of intent to establish Community Facilities District No. 111 (Monterado) and to incur bonded indebtedness of the district.

 

The proposed Rate and Method of Apportionment (RMA) includes rates to pay for bonded indebtedness and maintenance of street lighting, landscaping and parks.  Initial assigned residential rates are proposed as follows:

 

Land Use Class

 

    Residential Floor Area

 

  Bond Debt

 

    Maint

 

    Total

1

 

2,250 sf or Greater

 

$3,258

 

$366

 

$3,624

2

 

2,050 sf to less than 2,250 sf

 

$3,218

 

$366

 

$3,584

3

 

1,850 sf to less than 2,050 sf

 

$3,031

 

$366

 

$3,397

4

 

1,650 sf to less than 1,850 sf

 

$2,940

 

$366

 

$3,306

5

 

Less than 1,650 sf

 

$2,907

 

$366

 

$3,273

 

Sales prices for the homes have been estimated at $580,000 to $642,000.  The proposed rates have been established to provide a total tax rate of less than 1.95% of the home value per City Policy.

 

The proposed rates for bonded indebtedness will support $7.3 million of bonds, providing funds to finance $6.0 million of facilities and/or fees.  The proposed annual rate for maintenance of $366 will be sufficient to fund the annual maintenance costs for street lighting, landscaping and parks within and surrounding the area of the CFD.  The rate also includes the maintenance costs related to the water quality system required by the State of California.  The maximum annual tax rate for maintenance have been set at $510 per unit with a 2% escalator per City Policy.

 

This action will form the District, authorize the levy of the special tax and authorize bonded indebtedness. The recommended action complies with the City Council’s debt management objectives.

 

FISCAL IMPACT:

This District will provide annual funding for maintenance costs, administration and debt service costs once bonds are issued.

 

MOTION:

Approve staff recommendation.