07-14-2009 CC RPT 34 - Laserfiche WebLink

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• City Council Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JULY 14, 2009 FROM: CITY MANAGER - FINANCE ITEM NO: 34 WARDS: 2, 4, 5 & 6 SUBJECT: COMMUNITY FACILITIES DISTRICTS ("CFDS") - ADOPTION OF ORDINANCES SETTING SPECIAL TAXES FOR FISCAL YEAR 2009/10 - ORANGECREST 86-1, HIGHLANDER 90-1, TYLER MALL 90-2, SYCAMORE CANYON 92-1, ORANGECREST 2002-1, AND TYLER MALL 2004-1 ISSUE: The City's six (6) active CFDs require annual adoption of an ordinance to levy the special taxes collected to pay the related debt service expenses for each of the districts. The required ordinances are presented for adoption with this City Council report. RECOMMENDATION: That the City Council introduce and adopt the necessary Ordinances, to be effective immediately, levying special taxes to be collected during fiscal year 2009/10 to pay debt service, administrative, or other project related district costs associated with the following CFDs of the City of Riverside: A. Orangecrest CFD 86-1; B. Highlander CFD 90-1; C. Tyler Mall CFD 90-2; D. Sycamore Canyon Business Park CFD 92-1; E. Orangecrest CFD 2002-1; and F. Tyler Mall CFD 2004-1. BACKGROUND: Pursuant to applicable provisions of the Mello-Roos Community Facilities Act of 1982, special taxes for a CFD must be levied annually by ordinance. The City currently has six CFDs that require a levy of special taxes for fiscal year 2009/10. This is the first time that special taxes have been levied for the Tyler Mall CFD 2004-1. This CFD is related to the City's 2006 Certificates of Participation issuance used to finance public improvements associated with the recent expansion to the Galleria at Tyler. Under the agreement with the mall developer, the City credits debt service for certain incremental tax revenues related to the mall expansion and assesses the balance of the debt service to the mall property owners through the levy of a special tax under the CFD. Capitalized interest funded the debt service payments in the early years of the transaction. Now the annual debt service, less tax increment-related credits, is 34-1