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HomeMy WebLinkAboutPOWERPOINT PRESENTATION - CFD 2014-1Creation of Community Facilities district 2014-1 Creation of Community Facilities District 2014-1 continued: March 1, 2004 the City's Mellos-Roos Goals & Policies were adopted and staff were authorized to form Community Facility Districts (CFD) to develop the former Marine Corps Air Station know as Tustin Legacy. As of today, the City has formed four CFDs, 2004-1, 2006-1, 2007-1 and 2013-1 in the Tustin Legacy area that fund infrastructure and/or services. Creation of Community Facilities District 2014-1 continued: Map of Proposed Boundaries of CFD 2014-1 SbNTS dN� Tusn CFD 2014.1 •1 IRVIN A L 0 C N' A WEBB A S S O C I A T E S LEGEND i CFD BOUNDARY W. 0. I4-0049 Creation of Community Facilities District 2014--1 continued: Reasons for the establishment of CFD 2014-1 The City's Development Disposition Agreement ("DDA") dated March 4, 2014 provides for the establishment of a CFD to provide for the funding of certain facilities and services for a pro .ect comprised of 375 single-famil detache units, a focal park, and other neighbor ood amenities. Levy of special taxes that will cover backbone facilities and infrastructure and school district facilities (Special Tax A) and services (Special Tax B) such as maintenance of streets, sidewalks, parks and public safety. Creation of Community Facilities District 2014-1 continued: Special Tax A and Special Tax B are based on the newly constructed dwellings' square footage and combined, do not exceed 2% of assessed value. The Special Tax B is necessary because the City only receives 3% of the I% basic property tax levy within Tustin Legacy compared to an average of 10.5% collected citywide. Creation of Community Facilities District 2014-1 continued: Tables listed in the Rate and Method of Apportionment of Special Tax TABLE 1 DEVELOPED PROPERTY MAXIMUM SPECIAL TAX RATES Land Use Description DU/Acre Residential Floor Assigned Special Maximum Class Area Tax A Special Tax B 1 Single Family Residential Property DU > 3,530 s.f. $3,120 $1,522 2 Single Family Residential Property DU 3,210 — 3,529 s.f. $2,920 $1,425 3 Single Family Residential Property DU 2,890 — 3,209 s.f. $2,680 $1,314 4 Single Family Residential Property DU 2,570 — 2,889 s.f. $2,375 $1,164 5 Single Family Residential Property DU 2,250 — 2,569 s.f. $2,095 $1,020 6 Single Family Residential Property DU <=2,250 s.f. $1,745 $860 7 Single Family Residential Property Acre N/A $29,596 $14,475 8 Single Family Residential Property Acre N/A $29,596 $14,475 Creation of Community Facilities District 2014-1 continued: The special tax levy commences Fiscal Year 2014-15 and each subsequent following fiscal year the tax shall be increased by 2%. The future bond indebtedness includes the financing of construction of school district facilities for Tustin Unified School District (TUSD). Should TUSD decide to form its own CFD and not participate in CFD 2014-1 , the total debt incurred would be less and Special Tax A rates would be adjusted accordingly. Creation of Community Facilities District 2014-1 continued: Staff requests that City Council accept and ratify the Petition to Create a Community Facilities District per the written request signed by two members of the City Council. Adopt Resolution No. 14-34 a Resolution of the City Council of the City of Tustin, California of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes. Adopt Resolution No. 14-35 a Resolution of the City Council of the City of Tustin, California, of Intention to Incur Bonded Indebtedness within the Community Facilities District No. 2014-1. The Public Hearing to adopt the CFD will be held on dune 17 due to a minimum 30 day requirement in the Mello -Roos Statue.