AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 7/17/2019
TO: Honorable Mayor and City Council Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council consideration of Resolution No. 2019-050 levying special taxes to be collected during Fiscal Year 2019-20 for Community Facilities District No. 89-1 (Foothill Ranch), Improvement Area No. 1, Special Tax Refunding Bond 2014 Series A.
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RECOMMENDED ACTION:
Recommended action
That the City Council adopt Resolution No. 2019-050 levying special taxes to be collected during Fiscal Year 2019-20 for the payment of the principal and interest on the outstanding bonds (the “Bonds”) of Community Facilities District No. 89-1 (Foothill Ranch), Improvement Area No. 1, Special Tax Refunding Bond 2014 Series A and the administrative expenses with respect to the Bonds.
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ANALYSIS:
The City has covenanted for the benefit of the owners of the Bonds to fix and levy the amount of special taxes within Community Facilities District No. 89-1, Improvement Area No. 1, Special Tax Refunding Bond 2014 Series A (the “District”) required for the payment of the principal and interest on the Bonds of the District becoming due and payable during the ensuing year. Any necessary replenishment or expenditure of the Reserve Fund and an amount estimated to be sufficient to pay administrative expenses during the year are also included in the levy. The special taxes levied will not exceed the authorized amounts as provided in the Rate and Method of Apportionment for the District.
A summary of the special tax levy for the District is shown below:
|
CFD Issue |
Final Bond Year |
No. of Parcels |
FY 2019-20 Total Levy |
Percentage of Assigned Tax |
Average Change per Parcel |
|
CFD 89-1 IA1 |
2020 |
1,289 |
$223,325 |
11.29% |
$(601) |
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
This item supports the City’s Strategic Plan Goal 6: Improve Communications with Our Community; Objective a: Commit to transparency in all City actions. The recommended action will help achieve these goals by providing concise, forthright information regarding the annual special taxes that will be levied on each subject parcel within the District.
FISCAL IMPACT:
The special tax revenues and related debt service expenditures are included in the District’s Fiscal Year 2019-20 debt service budget.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the action is not subject to CEQA. This action merely sets the special taxes to be levied and collected within the District for Fiscal Year 2019-20, and there is no possibility that adopting the resolution will have a significant effect on the environment.
PREPARED BY: LIEN-CHI CANTUBA, FINANCIAL ANALYST III
REVIEWED BY: KIM SITTON, FINANCE MANAGER III
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
REVIEWED BY: MICHELE NISSEN, ASSISTANT CITY MANAGER
SUBMITTED BY: MITCHELL LANSDELL, ACTING CITY MANAGER
Attachments:
1. District Map
2. Resolution No. 2019-050