Great Park Residents Pay Special Tax
Great Park Neighborhood residents may want to attend the City Council meeting tomorrow night, March 10th.
The Council is holding a public hearing to notify us that the City and the developer of the Great Park Neighborhoods, FivePoint, have agreed to the formation of a new special tax district within the Great Park Community Facilities District (CFD), Improvement Area No. 11. See City Council Supplemental Agenda Item 4.1.
The CFD is currently comprised of 10 Improvement Areas, which are special tax districts within the Great Park. The CFD is a funding mechanism for big dollar public benefit projects in the Great Park, without using city tax dollars. This is possible because the CFD was structured to levy annual special taxes against the homeowners within an Improvement Area. The special tax will remain an annual obligation for the property owner.
A map of the special tax districts and range in annual Mello-Roos for each area, along with a more comprehensive overview can be found in the Voice of OC article, The Great Park Tax: How Irvine Homeowners Are Paying For The City’s Big Dreams.
Tomorrow, the Council will designate a new Improvement Area No. 11, a planned but unbuilt 918 residential development in the Great Park. These future property owners will pay special taxes and incur bonded indebtedness not to exceed $1.55 million. Agenda Item 4.1 Staff Report
CFD Was Intended for Significant Public Benefit
The CFD was formed by the City and the developer in March 2013 to “levy special taxes and CFD bond proceeds to finance infrastructure benefiting the Great Park neighborhoods and the Orange County Great Park”, with the intent to finance infrastructure and public facilities representing significant public benefit.
When done, about 913 acres will be subject to the special taxes to be used for authorized purposes. To see the list of infrastructure and public facilities eligible for CFD financing see Exhibit A from the community facilities district report below.PastedGraphic-1
$30.5 Million in CFD Money for Facilities
The City determines the final nature, location, and costs of the facilities and improvements to be funded with bond proceeds or special taxes. Each improvement area is eligible to finance all or any portion of the facilities. In fiscal year 2018-2019 (as of 6/30/19) a total of $31,577,852 was funded 100% by bond proceeds on facilities. Some of the larger expenditures in that total are listed below:
- Street & Storm Drain – $5,382,840
- Great Park Improvements – $5,190,195
- Water Quality – $4,195,056
- Wildlife Corridor – $3,303,840
- Hike & Bike Trails – $3,740,864
$9.49 Million CFD Money for Services
The Great Park also receives money from the CFDs for services. In fiscal year 2018-2019, $9.49 million was transferred to the Great Park Fund for eligible costs related to the operations and maintenance of the Great Park:
- $2.69 million was for administrative costs – staffing associated with the Great Park
- $6.8 million for contract services – landscape, hardscape, facilities, and other maintenance and operations contracts.