HomeMy WebLinkAbout0009_1_CFD 2015-5 - SRREPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by: Jason Simpson, Director of Administrative Services
Date:June 14, 2016
Subject:Intention to Form Community Facilities District 2015-5 of the City of Lake
Elsinore (Trieste)
Recommendation
It is recommended that City Council:
1.Adopt the following: Resolution No. 2016-___, a Resolution of the City Council of the
City of Lake Elsinore declaring its intention to establish Community Facilities District 2015-5
of the City of Lake Elsinore (Trieste);
2.Adopt Resolution No. 2016-____, A Resolution of the City Council of the City of Lake
Elsinore declaring its intention to incur bonded indebtedness in an amount not to exceed
$2,700,000 with the proposed Community Facilities District 2015-5 of the City of Lake
Elsinore (Trieste).
Background
The developer, Far West Industries, a California corporation, property owner of residential tract
containing 75 proposed lots within the City (TR 25479) has requested that the City assist them in
forming a community facilities district (the “CFD”) to finance the costs of certain public
improvements through the levy of a special tax and the issuance of bonds in an amount not to
exceed $2,700,000.
The landowner has requested the City that the area described in Exhibit A of the Resolution of
Intention be the boundaries of the CFD and that a rate and method of apportionment of the
special taxes to be levied as described in Exhibit B.
CFD 2015-5 (Trieste)
June 14, 2016
Page 2
The Resolution of Intention is the first step in the process of forming the CFD. A public hearing
on the matter will take place on July 12, 2016, and at that time the Council will formally consider
approval to form the CFD and hold an election on the approval of the special taxes and the need
to incur bonded indebtedness within the CFD.
Fiscal Impact
The District will be required to annually levy special taxes on all of the taxable property within
the CFD in order to pay for the costs of facilities, debt service on bonds and administration of
the CFD. Any bonds issued by the District are NOT obligations of the City and will be
secured solely by the Special Taxes levied in the CFD.
Far West Industries has made a deposit to pay for the costs of forming the CFD. The
Resolution of Intention approves the form of a Reimbursement Agreement to reimburse the
developer for these costs if and when bonds are issued for CFD.
Exhibits
A: Resolution No.2016-___Resolution of Intention to form CFD 2015-5 and RMA
B:Resolution No. 2016-___ Resolution of Intention to incur bonded debt
C:Petition of Far West Industries
D:Form of Reimbursement Agreement