| ITEM #: 12. DATE: 05/23/2022 AI #:914 |
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COMMUNITY FACILITIES DISTRICT REPORT
| SUBJECT: |
| STAFF PRESENTER(S): | Jared Askelson, Deputy Finance Director |
SUMMARY
Staff will present and receive input from the District Board on the FY2023 budgets for the Community Facilities Districts.
Recommendation
This is an informational item that will allow staff to receive direction from the Board for preparation of the final budgets for the CFDs. Staff will be recommending to reduce the property tax levy amounts for the Cottonflower and Wildflower #1 districts from the amounts adopted in the FY2023 tentative budgets. (Jared Askelson, Deputy Finance Director)
FISCAL IMPACT
The recommendations will not change the budgeted expenditures for the CFDs from the amounts included in the tentative budgets, but will reduce the property tax levy amounts and use available operations and maintenance fund balance in the Cottonflower and Wildflower #1 districts. The reductions from the levy amounts included in the tentative budget will be $19,500 for Cottonflower and $3,900 for Wildflower #1.
BACKGROUND AND PREVIOUS ACTIONS
The Board will take action on the FY2023 tentative budget for the CFDs, setting the maximum expenditures for the upcoming fiscal year on May 23. The staff recommendations discussed on this item will change the CFD budgets that will be brought back for final adoption in June.
STAFF ANALYSIS
During the development of the FY2022 budgets, the property tax rates for the Cortina and Cottonflower CFDs were reduced to bring debt service fund balances in line with newly enacted state statutes. For FY2023, Cortina’s rate can be maintained equal to the prior year. Cottonflower, however would need to be increase its rate to generate a levy amount sufficient to pay anticipated expenditures. The tentative budget for Cottonflower includes the increased rate, however, staff is recommending the rate be reduced and operations and maintenance fund balance be used to supplement the amount necessary for anticipated expenditures. This recommendation would hold the property tax rate in Cottonflower equal to FY2022.
Wildflower #1 district will make the last currently scheduled debt service payment during FY2023. While $600,000 of voter authorization remains in the district, staff is recommending that no additional debt be issued, as nearly a third of that total would be used for administrative costs of issuing new debt. In addition, staff is recommending reducing the levy amount and supplementing expenditures from operations and maintenance fund balance, if necessary, to ensure no debt service fund balance remains at the end of the fiscal year.
Wildflower #1 district will make the last currently scheduled debt service payment during FY2023. While $600,000 of voter authorization remains in the district, staff is recommending that no additional debt be issued, as nearly a third of that total would be used for administrative costs of issuing new debt. In addition, staff is recommending reducing the levy amount and supplementing expenditures from operations and maintenance fund balance, if necessary, to ensure no debt service fund balance remains at the end of the fiscal year.