For City Council Meeting [enter date here]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Matt Schneider, Community Development Director
Title
Request City Council Conduct a Public Hearing for Formation of Community Facilities District (CFD) 2019-02 and consider the adoption of the following actions:
1. Adopting Resolution No. 7584 calling for the of Formation of CFD 2019-02 (Exhibit A); and
2. Approve the Funding Agreement between the City of Rialto and HNK Associates, LLC (Exhibit B); and
3. Adopting Resolution No. 7585 calling for the CFD Special Election (Exhibit C); and
4. Conducting the CFD Special Election; and
5. Adopting Resolution No. 7586 Declaring the Results of the Election (Exhibit D); and
6. Adopting for first reading Ordinance No. 1631 entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RIALTO AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN" reading by title only and waiving further reading thereof (Exhibit E)
(ACTION)
Body
BACKGROUND
Mello-Roos Districts
Cities in California commonly use community facilities district financing as a method of financing infrastructure and services for new development. Commonly referred to as a "Mello-Roos District," this land-secured financing permits the City to issue bonds to pay for public facilities and service costs associated with development. Debt service on the bonds is paid from special taxes levied on real property within the CFD boundary. The bonds are issued on a tax-exempt basis at the federal and state level, providing low cost financing for a portion of the overall project costs, with some or all of this benefit passed along to the homebuyers.
City Council Policy
The Mello-Roos Act provides that prior to initiating the CFD proceedings, the City Council must adopt a statement of local goals and policies concerning the use of the Mello-Roos Act. On November 1, 2005, the City Council adopted a policy for new development and annexations, which requ...
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