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Table of Contents
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The Use of M ello-Roos Financing in the City of Davis: 1990 to the - - PowerPoint PPT Presentation
The Use of M ello-Roos Financing in the City of Davis: 1990 to the - - PowerPoint PPT Presentation
The Use of M ello-Roos Financing in the City of Davis: 1990 to the Present A presentation to the Davis City Council November 5, 2014 Table of Contents } Community Facilities Districts Formed by the City Since 1990 } Policy Goals Behind
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N HA | A D V ISO RS
- Strategy. Innovation. Solutions.
Community Facilities Districts Formed by the City Since 1990
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CFDs Formed Since 1990
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} CFDs Formed to Implement the M ajor Projects Financing
Plan (M PFP)
} CFD No. 1990-1 (East Davis) } CFD No. 1990-2 (East Davis/ M ace Ranch) } CFD No. 1990-3 (North Central Davis) } CFD No. 1990-4 (South Davis) } CFD No. 1990-5 (West Davis)
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CFDs Formed Since 1990
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} CFDs Formed to Accommodate Developers
} CFD No. 1991-2 (East Davis – M ace Ranch Area) } CFD No. 2007-2 (East Davis M ace Ranch Area II)
} Non-Residential
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N HA | A D V ISO RS
- Strategy. Innovation. Solutions.
Policy Goals Behind Historical CFD Formations
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The M ajor Projects Financing Plan (M PFP)
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} M PFP intended to fund long-term capital needs for the
City
} M PFP did not fund specific improvements required for
new development
} M PFP allocated long-term capital costs between
development impact fees and CFD bond financing
} 5 different CFDs were formed because the M PFP
allocated capital costs differently among different parts of the City
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The M ace Ranch Developer’s CFD
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} CFD 1991-2 was formed to fund backbone infrastructure
needs for the development of M ace Ranch
} CFD 2007-2 was formed to restructure the 1991-2 special
tax structure for undeveloped non-residential parcels in M ace Ranch
} No other developer CFDs have been formed by the City
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N HA | A D V ISO RS
- Strategy. Innovation. Solutions.
Debt Issued by Davis CFDs
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M PFP CFD Bond Issues
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Y ear Par Value Final M aturity Purpose 1990 7,070,000 9/ 1/ 15 Fund infrastructure 1995 7,195,000 9/ 1/ 15 Refund 1990 Bonds 1999 9,785,000 9/ 1/ 29 Fund infrastructure 2003 5,355,000 9/ 1/ 15 Refund 1995 Bonds 2009 9,750,000 9/ 1/ 29 Refund 1999 Bonds
All M PFP CFD Bond Issues comprise all M PFP CFD’s on a pooled basis
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M ace Ranch Developer Bond Issues
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Y ear Par Value Final M aturity Purpose 1992 20,000,000 9/ 1/ 25 Fund infrastructure 1992 9,500,000 9/ 1/ 25 Fund infrastructure 1997 31,220,000 9/ 1/ 25 Refund both 1992 bond issues 2007 14,115,000 9/ 1/ 25 Refund developed portion of 1997 bonds 2007 5,510,000 9/ 1/ 37 Refund undeveloped portion of 1997 bonds
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N HA | A D V ISO RS
- Strategy. Innovation. Solutions.
Changes M ade to CFDs Since Formation and Original Issuance of Bonds
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Changes to the M PFP CFD Program
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} Reduction in Authorized Bonding
} $44 million in bonds originally authorized } $16.855 actually issued (refundings do not count towards
authorization limit)
} Council terminated remaining authorized bonds with 1999
bond issue infrastructure funding } Elimination of 2% Inflator
} Council terminated 2% inflator with 1999 bond issue for
infrastructure funding
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Changes to the M ace Ranch CFD Program
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} 10% Reduction in M aximum Tax for Residential Parcels
}
Negotiated with developer and authorized by Council as part of the 1997 refunding bond issue } Elimination of 2% Inflator
}
Negotiated with developer and authorized by Council as part of the 1997 refunding bond issue } Simplification of Tax Structure for Non-Residential Parcels
}
Requested by developer and authorized by Council as part of the 1997 refunding bond issue } Conversion of Remaining Undeveloped Property Debt to
Variable Rate
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Requested by developer and authorized by Council as part of the 2007 refunding bond issues
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N HA | A D V ISO RS
- Strategy. Innovation. Solutions.
Current Tax Levies for CFDs in Davis
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Overlapping CFD Tax Rates For Single Family Homes in the City of Davis
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}
Percentage of max tax being levied varies for the M PFP CFDs because of the need to balance the actual amount paid by each CFD with the original allocation of M PFP costs by CFD. Consequently, areas that developed earlier pay less now than areas that developed later.
CFD 1990-1 (East Davis Area) 80% CFD 1990-2 (East Davis - M ace Ranch Area) 20% CFD 1990-3 (North Central Davis Area) 80% CFD 1990-4 (South Davis Area) 40% CFD 1990-5 (West Davis Area) 40% CFD 1991-2 (M ace Ranch Developer CFD) 65%
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Overlapping CFD Tax Rates For Single Family Homes in the City of Davis
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}
Tax rates for M ace Ranch Developer CFD and DJUSD #2 are averages
Area of City CFD East Davis M ace Ranch North Central Davis South Davis West Davis M PFP CFDs 461.56 122.10 268.70 236.74 43.62 M ace Ranch Developer CFD
- 556.83
- DJUSD M easure C
327.04 327.04 327.04 327.04 327.04 DJUSD M easure E 204.00 204.00 204.00 204.00 204.00 DJUSD CFD #1 189.74 189.74 189.74 189.74 189.74 DJUSD CFD #2 667.47 667.47 667.47 667.47 667.47 County Library CFD 99.10 99.10 99.10 99.10 99.10 Total annual special taxes levied 1,948.91 2,166.28 1,756.05 1,724.09 1,530.97 City CFDs as a % of total 23.7% 31.3% 15.3% 13.7% 2.8%
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Policy Questions to Consider for the Cannery CFD Should the Council Want to Proceed
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} Should the taxes in the Cannery be at the same level as
- ther CFD taxes in Davis?
} Should there be a 2% inflator for taxes at the Cannery?
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Next Steps Should the Council Want To Proceed
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