Report Prepared by: Venus Rodriguez, Finance Officer
Title
SUBJECT: Amendments to Land Secured Financing Policies
REPORT IN BRIEF
Consider adopting Amendments to the City's Land Secured Financing Policies.
RECOMMENDATION
City Council - Adopt a motion adopting Resolution 2018-68, a Resolution of the City Council of the City of Merced, California, adopting Land Secured Financing Policies.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or
2. Deny; or
3. Refer back to staff for reconsideration.
AUTHORITY
Government Code Section 53311.
CITY COUNCIL PRIORITIES
As provided for in the 2018-19 Adopted Budget.
DISCUSSION
The Mello-Roos Community Facilities Act of 1982 (beginning with Government Code Section 53311)(the "Act") is the statutory framework that provides the authority and describes the methodology that local agencies may use to form Community Facilities Districts (CFDs) and levy special taxes within the boundaries of those CFDs. Under the Act, CFDs may be used to fund the provision of certain authorized public services or maintenance, and to finance the purchase, construction, expansion, improvement or rehabilitation of public facilities. CFDs may issue bonds secured by special taxes as a financing instrument. The Act requires that, prior to initiating any proceedings to establish a CFD, a local agency must consider and adopt local goals and policies concerning the use of the Act. This is also true for land secured debt issued for assessments districts formed pursuant to the Municipal Improvement Acts of 1911 and 1913.
In recognition of the need to adopt policies and procedures for land based financings, the City Council was provided education through a study session on "Basic Municipal Financing Concepts" in 2002. Based on the discussion during the study session Fieldman, Rolapp & Associates prepared the Land Secured Financing Policies that were adopted and approved by the City Council on September 16, 2002.
Due to change in develop...
Click here for full text