City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Interim Finance Director |
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Date: |
September 2, 2025 |
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Subject: |
Formation of Community Facilities District No. 2025-1 (Indelicato Facilities and Services) |
Recommendation:
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Hold a Public Hearing to consider formation proceeding and election for City of Manteca Community Facilities District No. 2025-1 (Indelicato Facilities and Services); Adopt a Resolution to Form City of Manteca Community Facilities District No. 2025-1 (Indelicato Facilities and Services), and to authorize the levy of special taxes therein to finance the acquisition and construction of certain public facilities and services; Adopt a Resolution deeming it necessary to incur bonded indebtedness in and for the City of Manteca Community Facilities District No. 2025-1 (Villa Ticino West Facilities) in an amount not to exceed $7,000,000 to finance the acquisition and construction of certain facilities; Adopt a Resolution calling special election in and for the City of Manteca Community Facilities District No. 2025-1 (Indelicato Facilities and Services); Hold a landowner election; Adopt a Resolution declaring election results of City of Manteca Community Facilities District No. 2025-1 (Indelicato Facilities and Services); Waive the first reading by substitution of title and introduce an ordinance of the City Council of the City of Manteca levying special taxes within City of Manteca Community Facilities District No. 2025-1 (Indelicato Facilities and Services).
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Background:
On July 30, 2025, at the request of K. Hovnanian, as the developer of the Indelicato project, the Council took initial actions to form the City of Manteca Community Facilities District No. 2025-1 (Indelicato Facilities and Services). The project contains 40 acres adjacent to Airport Way and is anticipated to develop into 173 single family homes along with parks and trails. The CFD is being formed to finance the acquisition and construction of certain public facilities and ongoing public services related to the development. Formation of the CFD is consistent with the City’s goals and policies governing the use of community facilities districts.
Assuming the CFD is formed, the Council can later consider financing the public capital facilities and incidental expenses authorized for the CFD through the sale of bonded indebtedness in an amount not to exceed principal amount of $7,000,000. The bonds would be paid from special taxes levied on homes in the development. The formation will also provide for a portion of the special tax to be dedicated to providing public services to the homes in the development.
The City was directed by the first Resolution of Intention to prepare a CFD Report, which has been prepared and shows the facilities (public improvements) and services to be provided by the CFD. It shows the estimated costs of the various facilities and services along with the costs to issue the bonds and to administer the CFD.
At the public hearing the City Council will hear a presentation on the proposed CFD to fund the major infrastructure requirements and associated planning and design costs for the project.
The RESOLUTION OF FORMATION officially forms the CFD, authorizes the special taxes to be levied, and calls for the required property owner vote on the levy of taxes and the establishment of an appropriations limit for the CFD (under Article XIIIB of the Constitution). The Exhibit(s) to this resolution show the facilities and services to be financed and the formula by which the special taxes will be levied in the CFD. This Resolution also approves a form of Funding, Construction and Acquisition Agreement, as to form, between the City and the developer pursuant to which CFD bond proceeds can be used to finance the facilities authorized for the CFD.
The RESOLUTION TO INCUR BONDED INDEBTEDNESS makes the determination to issue bonds to be financed by the special taxes. The amount of $7,000,000 that is authorized is a “not to exceed” and may include amounts to cover improvements to be financed in later series of bonds. This resolution also calls for the required landowner vote on the issuance of bonds.
The RESOLUTION CALLING ELECTION sets the election for September 2, 2025 and provides the form of the special ballot to be used by the landowner-voter. Calling the election and actually having the election on the same night is allowed under CFD law due to the fact that all the landowners in the CFD have waived certain time requirements for proceeding to the election.
The RESOLUTION DECLARING ELECTION RESULTS confirms the outcome of the property owner election for the CFD. Attached to it is a copy of the official Canvass and Statement of Result of Election to be completed by the Clerk after the vote is announced. This resolution also directs the filing of the Notice of Special Tax Lien against the lands in the CFD to allow collection of the special tax on property in the CFD.
The ORDINANCE authorizes the levy of the special tax pursuant to the rate and method of apportionment of special tax for the CFD. Under the ordinance, the levy is made once by the adoption of this ordinance, and, in each year hereafter, the process of determining the special taxes and processing the collection is done administratively by the Finance Director, with the assistance of a special tax consultant, and no further Council action is needed.
Taking the above actions will conclude the formation process for the CFD. The approval of bond documentation, which provides for the issuance of the anticipated CFD bonds, will be the subject of a future meeting.
Fiscal Impact:
No impact to General Fund. If the CFD is formed, and special tax bonds are issued, the bonds would be payable solely from the special taxes levied on taxable property in the CFD. All costs of issuance of the proposed CFD bonds will come from bond proceeds, although certain fees are not contingent on the closing of bonds.
Documents Attached:
1. Attachment 1 - Resolution of Formation of CFD
2. Attachment 2 - Exhibit “B” to Resolution of Formation of CFD
3. Attachment 3 - Resolution to Incur Bonded Indebtedness for CFD
4. Attachment 4 - Resolution Calling Special Election for CFD
5. Attachment 5 - Resolution Declaring Results of Special Election for CFD
6. Attachment 6 - Ordinance Levying Special taxes within CFD
7. Attachment 7 - Form of Funding, Construction and Acquisition Agreement