TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Evan Crockett, Management Analyst - Finance
SUBJECT:
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Fiscal Year 2025/26 Tax Rates for the Community Facilities Districts
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RECOMMENDATION
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Adopt the Resolutions approving the Fiscal Year 2025/26 Tax Rates for the Community Facilities Districts:
Resolution No. 25-4848 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2000-1 (Greer Ranch) for Fiscal Year 2025/26;
Resolution No. 25-4849 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2000-2 (The Oaks) for Fiscal Year 2025/26;
Resolution No. 25-4850 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2001-1 (Bluestone Communities/Murrieta Highlands) for Fiscal Year 2025/26;
Resolution No. 25-4851 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2003-1 (Murrieta Springs) For Fiscal Year 2025/26;
Resolution No. 25-4852 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2003-2 (Blackmore Ranch) for Fiscal Year 2025/26;
Resolution No. 25-4853 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2003-3 (Creekside Village) for Fiscal Year 2025/26;
Resolution No. 25-4854 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2003-4 (Bluestone Communities II/Mapleton) for Fiscal Year 2025/26;
Resolution No. 25-4855 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2004-1 (Bremerton) for Fiscal Year 2025/26;
Resolution No. 25-4856 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2004-2 (Murrieta Fields) for Fiscal Year 2025/26;
Resolution No. 25-4857 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Taxes in Community Facilities District No. 2004-3 (Meadowlane/Amberwalk I & II) for Fiscal Year 2025/26;
Resolution No. 25-4858 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2005-1 (Springbrook) for Fiscal Year 2025/26;
Resolution No. 25-4859 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2005-5 IA A (Golden City) for Fiscal Year 2025/26; and
Resolution No. 25-4860 entitled: A Resolution of the City Council of the City of Murrieta, California, Determining and Levying the Special Tax in Community Facilities District No. 2005-5 IA B (Golden City) for Fiscal Year 2025/26.
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PRIOR ACTION/VOTE
On June 18, 2024, the City Council approved the levy for Fiscal Year 2024/25 for the districts contained herein.
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
From 2000 to 2005, the City of Murrieta (City) formed and issued bonds for thirteen Community Facilities Districts (CFD) to provide funding for improvements related to the development of residential subdivisions. Additionally, in Fiscal Year (FY) 2016/17, the City issued bonds for a fourteenth district CFD 2005-5 Improvement A, formed in 2006, that had been dormant for ten years.
In 2012 and 2016, the City completed refunding all outstanding bonds for the thirteen districts that previously issued bonds to take advantage of lower interest rates than when the districts were formed. On October 2, 2018, on behalf of the CFD, the City issued bonds for the fifteenth district for CFD 2005-5 Improvement Area B (Golden City) Special Tax Bonds Series 2018, for $11,505,000.
In June 2022, the City took advantage of historic low-interest rates to refund five CFDs that were previously refunded (2012 Reassessment District). This refunding reduced the annual levy for the property owners within the five (5) districts and changed the debt service schedule for one of the districts from annually increasing to a level debt service payment while maintaining the original pay-off dates for each district (2022 Local Agency Revenue Refunding).
Generally, bonds are issued for a period of 30 years, and the annual debt service payments and cost to administer the districts are the responsibility of the owners of property within each CFD. While the City facilitates the formation and administration of the districts, ultimately, the City of Murrieta has no financial responsibility for the repayment of the debt. The actual tax amount levied per property will vary per district and usually depends on the size of the home, the number of homes within the district, and the total cost of the facilities acquired by the bond proceeds.
The City contracts with Willdan Financial Services to administer the districts and determine the tax rates based on the Rate and Method of Apportionment adopted for each district. The tax rate applied to the property tax bill may not exceed the rate approved by the qualified electors in each district and should generate enough revenue to cover debt service payments and administrative costs. As required by the County of Riverside, the City Council adopts Resolutions each year to set the tax rates for each district and to approve the levy to be applied on the property tax bill.
The table below reflects the average levy change per parcel, by district, for FY 2025/26.
The total levy for all fifteen districts for FY 2025/26 is $9,324,295.
FISCAL IMPACT
The special tax revenue and offsetting debt service and administration expenditure budgets for these districts are included in the FY 2025/26 Operating Budget.
ATTACHMENTS
1. Resolution No. 25-4848
2. Resolution No. 25-4849
3. Resolution No. 25-4850
4. Resolution No. 25-4851
5. Resolution No. 25-4852
6. Resolution No. 25-4853
7. Resolution No. 25-4854
8. Resolution No. 25-4855
9. Resolution No. 25-4856
10. Resolution No. 25-4857
11. Resolution No. 25-4858
12. Resolution No. 25-4859
13. Resolution No. 25-4860