City Council - Regular Meeting

Hello, this is Special Districts Manager Anthony Miller with the City of Oxnard Public Works Department Special Districts Division presenting Fiscal Year 2026-27 Special Tax Levy for Community Facilities Districts numbers 1, 2, 3, 4, 5, 8, 9, and 2000-3. Recommendation. that the City Council acting as the legislative body for Community Facilities Districts CFDs number 1, 2, 3, 4, 5, 8, 9, and 2000-3 1. Adopt a resolution setting a special tax rate within CFD number 1, Westport at Mandalay Bay, for fiscal year 2026-27. 2. Adopt a resolution setting a special tax rate within CFD number 2, Westport at Mandalay Bay, for fiscal year 2026-27. Three, adopt a resolution setting a special tax rate within CFD number three, Seabridge at Mandalay Bay for fiscal year 2026-27. Four, adopt a resolution setting a special tax rate within CFD number four, Seabridge at Mandalay Bay for fiscal year 2026-27. Five, adopt a resolution setting a special tax rate within CFD number five, River Park for fiscal year 2026-27. Six, adopt a resolution setting a special tax rate within CFD number eight, Sakioka Farms Business Park for fiscal year 2026-27. Seven, adopt a resolution setting special tax rates within CFD number nine, North Shore at Mandalay Bay for fiscal year 2026-27. Eight, adopt a resolution setting a special tax rate within CFD number 2000-3, Oxnard Boulevard Highway 101 Interchange for fiscal year 2026-27. And nine, authorize the public works director or designee To execute an agreement for building of direct assessments with the ventura county auditor controller to provide the service of placement of direct assessments on the ventura county secure tax roll. This is a map of special districts within the city of oxnard. Background. Special districts is a division of the Public Works Department and manages a total of 50 special financing districts, which include eight community facilities districts, or CFDs, commonly known as Melrose districts. Through the development process, special financing districts, such as CFDs, were authorized to be used by the qualified electors, usually property owners and developers, to finance the installation of public improvements and or to provide funding for certain ongoing public services. A CFD can issue bonds to finance the construction of public improvements with a useful life of at least five years, such as public infrastructure, park, recreation, and open space facilities, school facilities, libraries, and childcare facilities. CFDs can also fund ongoing services such as police and fire protection, parks, parkways, open space maintenance, and flood and storm protection. Typically, the developer constructed the public improvements at the time the project was developed and the property owners pay for the cost of the construction, cost of certain public services, and or cost of maintaining the improvements through a special tax included on the annual property tax bill. Revenue from the special tax is used to make the annual debt service on the bonds, if applicable, and or to fund the specified public services and maintenance of public improvements. This is a table showing the special districts, what their purpose was, their resolution of an intention or information, and their rate and method of apportionment, the ordinance levying the special tax, and any modification initiative, if applicable. Discussion. The Melrose Community Facilities Act of 1982 allows the formation of CFDs to finance the construction of public infrastructure improvements by the issuance of bonds and or to fund certain public services and operation and maintenance of public improvements The qualified electors within the boundaries of the CFDs approved the Rate and Method of Apportionment, or RMA, at the time of the CFD's formation, and authorized the levy of a special tax on their properties as security for the repayment of bonds or to fund the services of the district. The RMA establishes the special tax formula, or rate of annual adjustment, if any, and how the special tax is apportioned to properties included in each CFD. The special tax cannot be levied on the property tax roll, nor can adjustments be made to the maximum and applied rates as previously authorized by the qualified electors, unless City Council authorizes such actions. Adoption of the resolution sets the maximum and applied special tax rates, approves the calculation of the rates, and approves setting the rates that are placed on the annual tax roll for each CFD. The applied special tax rate is the amount that is used to calculate the special tax actually levied on the property tax roll. It is the amount necessary to fund the services of each CFD, including administration and reserves for the upcoming fiscal year. Specific to CFD 3, pursuant to the voter-approved Measure H in 2018, the total amount of overhead costs of employees of the City of Oxnard that the CFD is allowed to fund is limited to $5,000 annually. This is factored into the calculation of the levy, and the remaining costs for staff overhead expenses are funded via non-CFT funds. The applied special tax rate cannot exceed the maximum special tax rate. And the applied rates listed within the staff report are anticipated rates to be applied within each district. Unless changed prior to their presentation to the full council, they will be reflected in the final tax roll prepared by NBS and incorporated by reference in the attached resolutions. Billing of Direct Assessments The County of Ventura requires annual approval of an agreement for billing of direct assessments for services related to the inclusion of the special taxes and assessments on the Ventura County property tax bills. In the absence of this arrangement, the City will have to directly bill property owners for special taxes and assessments. This agreement is applicable to all assessment districts, community facilities districts, and other special assessments administered by the City. Financial Impact Property owners pay the special tax as part of their annual property tax bill. The special tax, including annual adjustments where applicable, has been approved by the qualified electors through prior proceedings. Funds received for the benefit of each CFD are restricted and can only be used to fund the services and obligations of each district. For all districts except CFD 3, there is no general fund contribution related to these districts. The general fund is not liable for the bonds. The following table provides a summary of the proposed maximum and applied special tax rates for fiscal year 2026-27. Questions?