TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Ivan Holler, Assistant City Manager
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT: Community Facilities District Workshop
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RECOMMENDATION
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Receive and file.
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PRIOR ACTION/VOTE
On January 21, 2003, the City Council adopted the Land Secured Financing Policy for Special Assessment and Mello-Roos Community Facilities District Financing (Vote: 5-0)1.
On April 5, 2016, the City Council adopted Resolution No. 16-3536, amending the Land Secured Financing Policy (Vote 5-0)2.
On October 3, 2023, the City Council considered an Amendment to the Community Facilities District Goals and Policies (CFD) and directed staff to present the recommendations in a workshop (Vote 3-2)3.
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
On October 3, 2023, City staff delivered a report to the City Council to amend the Community Facilities District Goals and Policies. The City Council directed staff to bring the item back to a workshop for further discussion. Community Facility Districts are governed by the Mello-Roos Community Facilities Act of 1982, commencing with Section 53311 of the Government Code.
Community Facilities Districts
Community Facility Districts (CFDs) are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks.
A simplified example of CFD implementation is as follows:
* A developer submits a petition to form the CFD to the City or Special District (water districts frequently form CFDs for water infrastructure) to start formation proceedings.
* In the City's case, staff presents the petition to the City Council for approval.
* The District is formed by a vote of the property owners, which is...
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