HomeMy WebLinkAboutCFD90-2 is Paid in Full - City staff is removing the current Tax Levy from the RollsFrom: Jason Simpson Sent: Thursday, November 21, 2024 9:31 AM To: City Council Cc: Barbara Leibold CC; Shannon Buckley; Forbath, Brian; Shane Spicer Subject: CFD90-2 is Paid in Full - City staff is removing the current Tax Levy from the Rolls Good morning, Mayor Manos and City Council Members - The City pulled the Community Facilities District (CFD) 90-2 (Tuscany Hills) tax levies from residents' property tax bills. The original CFD90-2 levy covered 1,021 parcels, assessed per Category V of the Rate and Method of Apportionment (RMA), specifying a 25-year maturity period starting from the issuance of building permits for the parcels. The bonds were paid off last month and there was sufficient funds to pay debt service. Initially, the bonds were issued at a 9.25% interest rate, later refunded at 4.50%, allowing for accelerated debt repayment (shorter duration). The rate and method of apportionment (RMA) indicated that the levy would extend through FY2031-32 for at least one remaining property owner. However, the last debt service payment was made about a month ago. The early payoff provides relief ahead of schedule. The table below shows the number of parcels with remaining years under the RMA that have benefited from the bond refunding and early redemptions. As such, the City has coordinated with the Riverside County Tax Collector, who will promptly remove the 90-2 levy from the tax roll and issue revised property tax bills to the 424 property owners. There were only 4 parcels that were paid, and those will be issued refunds. The City Council, as the Successor Agency to the Redevelopment Agency, is required by the County of Riverside to provide a certified Resolution to the County each year to confirm special
taxes for the property tax roll for CFD No. 90-2 (this year June 25, 2024). Since it is the original Ordinance that provides for the authorization of the levy and adjustments, no further action is required from the City Council/Successor Agency Board. Ordinance No. RDA 1 entitled "An Ordinance of the Governing Board of the Redevelopment Agency of the City of Lake Elsinore Levying Special Taxes Within the Redevelopment Agency of the City of Lake Elsinore Community Facilities District No. 90-2 (Tuscany Hills Public Improvements)", was adopted on December 11, 1990. Sincerely, Jason Simpson City Manager PH:951-674-3124 x204