TITLE
Recommendation to receive and file annual reports on Community Facilities District No. 2007-1 - Douglas Park Commercial Area (CFD No. 2007-1); Community Facilities District No. 2007-2 - Belmont Shore (CFD No. 2007-2); Community Facilities District No. 5 - Long Beach Towne Center (CFD No. 5); Community Facilities District No. 6 - Pike Public Improvements (CFD No. 6); and, Community Facilities District No. 2011-1 Douglas Park - North of Cover Street Area (CFD No. 2011-1), to comply with the Local Agency Special Tax Bond and Accountability Act. (Districts 2,3,5)
DISCUSSION
The Accountability Act was enacted by the California State Legislature through Senate Bill 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001. This requires the City to submit an annual report on Community Facilities District (CFD) project funds to the City Council for CFD Special Tax bonds issued after January 1, 2001. The Accountability Act also requires that the annual report contain a statement indicating the specific purposes of the Special Tax, a requirement that the proceeds of the Special Tax be applied only for those purposes, that the funds be separately held, and the amount of funds collected and expended. This annual report requirement applies to CFD No. 2007-1 (Attachment A), CFD 2007-2 (Attachment B), CFD No. 5 (Attachment C), CFD No. 6 (Attachment D), and CFD No. 2011-1 (Attachment E). The issued bond amounts include funds for construction and/or improvements due to costs related to issuing the bonds and amounts required to be held in reserve accounts. Interest earned on funds is generally included in balances, see attachments for details.
The CFD No. 2007-1 - Douglas Park Commercial Area A bonds, totaling $15.1 million were issued, of which $12.9 million funded the acquisition, construction of various public improvements including sewer, water, roadway, and traffic signalization systems, installation of street lights and construction of dry utilities and landscaping and irrigation improvements. CFD 2007-1 assesses Special Tax A for construction of infrastructure, debt service payments and District administration costs. As of September 30, 2017, the Special Tax A fund balance is $51,413.
The District also assesses Special Tax B for infrastructure maintenance within the District. Use of remaining funds is under review with District consultants and bond counsel to identify allowable purposes that advance improvements and/or pay down debt. The Special Tax B balance is $910,319.
The CFD No. 2007-2 - Belmont Shore 2009 bonds, totaling $3.7 million were issued, of which $3.2 million funded the acquisition of property for parking lot use, alleyway improvements and related costs, relocation of utilities, landscaping, signage, and other projects to provide public parking. As of September 30, 2017, there is a remaining balance of $686,801 for ongoing improvements in this area.
The CFD No. 5 - Long Beach Towne Center 2008 refunding bonds, totaling $14.6 million were issued, of which $826,219 funded certain sidewalk and/or drainage improvements. The City used $13.8 million of 2008 bond funds to pay off outstanding 2000 bonds previously issued for the District by the City, among other related bond costs and reserves. The project was completed and no balance remains.
The CFD No. 6 - Pike Public Improvement bonds, totaling $43 million were issued, of which $32.1 million funded the acquisition, construction and installation of the Pike parking structure and the Catalina Landing parking lot, and ancillary improvements, which included storm drains, metered on-street parking stalls, installation of underground utilities and related improvements. The project was completed and no balance remains.
The CFD No. 2011-1 - Douglas Park - North of Cover Street Area has not issued any bonds. Although no bonds have been issued for this District, an annual report is included to show the assessed funds collected to date, and related expenses. As of September 30, 2017, the balance is $212,625.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on November 27, 2017 and by Assistant Finance Director Lea Eriksen on November 20, 2017.
TIMING CONSIDERATIONS
City Council action is requested on December 12, 2017, as State law requires the reports to be filed by the end of the calendar year.
FISCAL IMPACT
There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER