TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Tanner Benson, Accountant
SUBJECT:
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Fiscal Year 2024/25 Tax Rates for the Community Facilities Districts
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RECOMMENDATION
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Adopt the following Resolutions approving the Fiscal Year 2024/25 Tax Rates for the Community Facilities Districts:
Resolution No. 24-4749 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 2024/25;
Resolution No. 24-4750 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 2024/25;
Resolution No. 24-4751 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 2024/25;
Resolution No. 24-4752 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 2024/25;
Resolution No. 24-4753 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 2024/25;
Resolution No. 24-4754 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 2024/25;
Resolution No. 24-4755 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 2024/25;
Resolution No. 24-4756 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 2024/25;
Resolution No. 24-4757 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 2024/25;
Resolution No. 24-4758 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 2024/25;
Resolution No. 24-4759 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 2024/25;
Resolution No. 24-4760 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 2024/25; and
Resolution No. 24-4761 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 2024/25.
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PRIOR ACTION/VOTE
On June 20, 2023, the City Council adopted Resolution Nos. 23-4675 through 23-4687, determining and levying the Fiscal Year 2023/24 tax rates for the Community Facilities Districts. (Vote: 4-0-1)
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 eleven 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 twelfth district, formed in 2006, that had been dormant for ten years.
In 2012 and 2016, the City completed refunding all outstanding bonds for the eleven districts that previously issued bonds to take advantage of interest rates that were lower than when the districts were formed. On October 2, 2018, on behalf of the CFD, the City issued bonds for CFD 2005-5 Improvement Area B (Golden City) Special Tax Bonds Series 2018, an area contained within the twelfth district, 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 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 thirty 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 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 of Special Taxes adopted for each district in its formation proceedings. The tax rate applied on 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 on the property tax bill.
The table below reflects the total and average levy change per parcel and by district for FY 2024/25.
The total levy for all twelve districts for FY 2024/25 is $9,335,040.15.
FISCAL IMPACT
The special tax revenue and offsetting debt service and administration expenditure budgets for these districts are included in the Fiscal Year 2024/25 Operating Budget.
ATTACHMENTS
1. Resolution No. 24-4749 (Greer Ranch)
2. Resolution No. 24-4750 (The Oaks)
3. Resolution No. 24-4751 (Bluestone Communities/Murrieta Highlands)
4. Resolution No. 24-4752 (Murrieta Springs)
5. Resolution No. 24-4753 (Blackmore Ranch)
6. Resolution No. 24-4754 (Creekside Village)
7. Resolution No. 24-4755 (Bluestone Communities II/Mapleton)
8. Resolution No. 24-4756 (Bremerton)
9. Resolution No. 24-4757 (Murrieta Fields)
10. Resolution No. 24-4758 (Meadowlane/Amberwalk I & II)
11. Resolution No. 24-4759 (Springbrook)
12. Resolution No. 24-4760 IA A (Golden City)
13. Resolution No. 24-4761 IA B (Golden City)