For City Council Meeting [July 25, 2017]
TO: Honorable Mayor and City Council
APPROVAL: Michael Story, City Administrator
FROM: Robb Steel, Assistant CA/Director of Development Services
Title
Request City Council to (1) Approve and Order the Execution of a Deposit and Reimbursement Agreement with Lytle Development Company; (2) Approve Professional Services Agreement for Financial Advisory Services by Fieldman, Rolapp and Associates, Inc. related to formation of a Community Facilities District within the Lytle Creek Specific Plan; (3) Authorize the Engagement of Aleshire & Wynder for Bond Counsel Services; (4) Approve Professional Services Agreement for Special Tax Consulting Services by Willdan, Inc.; and (5) Adopt Budget Resolution No. 7173 Increasing Revenues and Appropriating Expenditures in an Amount Not to Exceed $80,000.
(ACTION)
Body
BACKGROUND:
Law Establishing Community Facilities District
In 1982, the California Legislature enacted the Mello-Roos Community Facilities Act of 1982 (Government Code ?53311-53368.3) which allows cities to form community facilities districts ("CFD") within their boundaries to finance infrastructure and certain services.
A CFD has the power to levy special taxes on properties within its boundaries. The City Council has the discretion to set the rate of the special tax; provided that the tax is not an ad valorem property tax. A CFD can issue long-term tax-exempt bonds to fund public improvements, which are repaid through the levy of special taxes collected on the property tax bills of property owners residing within its boundaries. Services and improvements eligible for CFD financing include streets, sewer systems and other basic infrastructure, police protection, fire protection, ambulance services, schools, parks, libraries, museums and other cultural facilities. By law, the City is also entitled to recover formation expenses and administer the annual special taxes and bonded debt.
Development Agreement
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