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HomeMy WebLinkAboutFwd_ City Taxes Homeowners $885,115 after Bond Paid Off 2_From:Jason Simpson To:Joe Nelson Subject:Re: [External]Fwd: City Taxes Homeowners $885,115 after Bond Paid Off Date:Monday, November 25, 2024 6:38:51 PM Attachments:image002.jpg image001.jpg image003.jpg In short, that is correct. Jason Simpson On Nov 25, 2024, at 6:29 PM, Joe Nelson <jnelson@scng.com> wrote: Thank you very much for your response, Mr. Simpson! And so the City Council does not need to rescind or revoke the resolution it adopted in June? Mr. Sheridan said it was because a new tax wasn’t created, is that correct? Just want to make sure I’m understanding process correctly. Joe Nelson Investigative Reporter Southern California News Groups 951-533-9103 On Mon, Nov 25, 2024 at 5:55 PM Jason Simpson <jsimpson@lake-elsinore.org> wrote: Mr. Nelson, Thank you for the opportunity to comment. The City and its consultants made an error in enrolling the CFD 90-2 special taxes for Fiscal Year 2024-25 and have taken immediate corrective measures with the County to reverse the levy. The CFD 90-2 Series-A Bonds were set to mature on October 1, 2024, as stated in the 2023-2024 annual report. While the bond maturity was documented, this critical information was not fully reconciled during the tax levy process at the time of Council approval. The June 25, 2024, staff report and resolution approving the special tax levy were based on data available earlier in the year, prior to the bond maturity date. This was an administrative oversight during the reconciliation process. The County has sent revised tax bills to reflect the correction, and no CFD 90-2 levy is due. Twenty parcels in CFD 90-2 have paid (December 2024 and April 2025) tax bills and are fully settled for the tax year. The City will issue refunds to these taxpayers. Forty-six property owners have paid the 1st installment only. The County will apply overpayments to reduce the April 2025 installment paid by these taxpayers. The remaining 358 parcels have not been paid either installment, and the CFD 90-2 special tax has been zeroed out. These property owners will owe the lesser amount for the first installment due in December and again for the second installment due in April. The CFD 90-2 assessment has been removed from the tax bill and has not been paid by any mortgage company yet. Taxpayers can contact their mortgage company to confirm the adjustment to the lesser amount. The City is reviewing internal procedures and implementing new protocols to prevent future oversights. These are administrative actions and do not require City Council action. As an aside, the City Council does not meet tomorrow, November 26, 2024. As is the tradition in Lake Elsinore, the regularly scheduled City Council meeting was canceled due to the Thanksgiving holiday. The next regularly scheduled meeting is December 10, 2024. Sincerely, Jason Simpson City Manager PH:951-674-3124 x204 image001.jpg> image002.jpg> image003.jpg> From: Joe Nelson <jnelson@scng.com> Sent: Monday, November 25, 2024 2:55 PM To: Jason Simpson <jsimpson@Lake-Elsinore.org>; Shannon Buckley sbuckley@Lake-Elsinore.org> Subject: [External]Fwd: City Taxes Homeowners $885,115 after Bond Paid Off Message from external sender. Use Caution. Good afternoon, Mr. Simpson and Ms. Buckley! I am a reporter with the Southern California News Group, covering the Inland Empire region. I have already been in contact with Councilmember Sheridan on this, and he's been extremely helpful. However, given Mr. Kilroy's comments and concerns, I felt it appropriate to reach out to the both of you to weigh in on this, given that you were both involved in the planning and preparation of the June 25, 2024 staff report to the Successor Agency on the Mello-Roos special tax for the Tuscany Hills development (CFD 90-2). Attached are the documents Mr. Kilroy sent me, which clearly spell out that this tax had matured and paid off at the time you presented this item to the Council on June 25, and the Council approved the resolution. It begs the question: How did this happen, given city records showed this tax bond had matured and been paid? When did city staff and the Council first receive the 2023-2024 annual report? Was this an oversight? If so, why and/or how? How will the city work with mortgage companies that make payments for homeowners via escrow accounts? Deadline is noon Tuesday, Nov. 26. Thank you! Joe Nelson Investigative Reporter Southern California News Groups 951-533-9103 Forwarded message --------- From: Frank Suraci <fsuraci@scng.com> Date: Wed, Nov 20, 2024 at 10:55 AM Subject: Fwd: City Taxes Homeowners $885,115 after Bond Paid Off To: Joe Nelson <jnelson@scng.com> hmmmmm, this could be interesting. Forwarded message --------- From: Pat Kilroy Date: Wed, Nov 20, 2024 at 10:10 AM Subject: City Taxes Homeowners $885,115 after Bond Paid Off To: <fsuraci@scng.com> Good morning Mr. Suraci, One item on my County property tax bill shows a tax in the amount of 2,163 for "CFD 90-2 Lake Elsinore". State law requires all Community Facilities Districts (CFD), also known as Mello-Roos, to prepare an Annual Report. According to the most recent Annual Report, the CFD 90-2 Series-A Bond matured on October 1, 20024, which means it's been paid in full. Furthermore, this Annual Report has a "Debt Service Schedule" that shows no payments due after 10-1-2024. It appears to me that the City has illegally levied taxes on 424 homeowners in the amount of $885,115, with the average homeowner tax bill in the amount of $2,087. I emailed the City Clerk two weeks ago about this discrepancy, but I haven't received a response. I contacted my City Councilmember 11-days ago, who has been responsive, with absolutely no information. I'm a retired administrator from this City. I knew this bond was maturing and I was looking forward to NOT paying $2,000 every year. I don't think there's anything criminal occuring, but unless there's a damn good explanation, then there's gross negligence occurring. I'm contacting you to help me get answers. Nobody likes to pay taxes, especially if they're not lawfully levied by the government. Please see the relevant attachments. Thanks. Pat Pat Kilroy