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HEARING - Auditor-Controller, on behalf of the County’s Assessment and Community Facilities District Screening Committee, recommending the Board adopt and authorize the Chair to sign “Resolution 176-2025 to Amend the Special Tax Formula, Authorize the Financing of Services and Increase the Indebtedness Limit for Community Facilities District No. 2023-1 (East Ridge).”
FUNDING: Community Facilities District Special Taxes.
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DISCUSSION / BACKGROUND
The Board of Supervisors will recall that on July 25, 2023, with Legistar file 23-1054, the Board adopted Resolution No. 117-2023 (the “Resolution of Formation”), forming the “County of El Dorado Community Facilities District No. 2023-1 (East Ridge)” (the “CFD”) and designating an improvement area (“Improvement Area No. 1”) and future annexation area (“Future Annexation Area”) within the CFD pursuant to the Mello-Roos Community Facilities Act of 1982. The purpose of the CFD is to fund the construction of certain major infrastructure improvements, and to pay certain impact fees associated with the East Ridge development project.
At the same meeting, the Board held a public hearing and conducted a special election in which the sole landowner voted in favor the levy of a special tax within Improvement Area No. 1 of the CFD and the bonded indebtedness limit for Improvement Area No. 1. The CFD is authorized to issue total indebtedness in an amount not to exceed $150,000,000, initially allocated $105,000,000 to land in Improvement Area No. 1 of the CFD and $45,000,000 to land in the Future Annexation Area of the CFD.
The owners of all of the land within Improvement Area No. 1 and within the Future Annexation Area of the CFD have annexed certain portions of the land within Future Annexation Area into Improvement Area No. 1 of the CFD and requested the County to undertake proceedings to (i) amend the RMA for Improvement Area No. 1 in order to revise the maximum special tax rates, (ii) amend the List of Facilities for the CFD to include a services component, pursuant to the Act, and (iii) increase the increase the indebtedness limit of the CFD to $250,000,000.
On October 28, 2025, with Legistar file 25-1830, the Board adopted Resolution No. 160-2025 (the “Resolution of Consideration”) wherein the Board expressed its intent and consideration for (i) amendment of the Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 to revise the authorized maximum Special Tax rates, which amendment is set forth in Exhibit A attached to the Resolution; (ii) amendment of the List of Authorized Facilities for Improvement Area No. 1 to include public services, as set forth in in Exhibit B attached to the Resolution, and (iii) increase the increase the indebtedness limit of the CFD to $250,000,000, with $200,000,000 allocated to Improvement Area No. 1 and the remainder allocated to the Future Annexation Area.
The addition of services authorized to be financed by the CFD is primarily to facilitate an exit of the CFD property from the West Valley Village Zone of Benefit of County Service Area No. 9.
Today’s resolution seeks the Board to formally accept the amendments and conduct a required landowner election to implement the changes. Because the two landowners in the affected area (Valley View Improvement Company and Millrose Properties California) have voted in favor of the changes and submitted to the Board Secretary evidence thereof, the Board can also accept the signed ballots contained within the landowner Petitions and proceed to declare the results of the election, accomplished in the second resolution being considered. This will conclude the proceedings required to make the changes, other that the recording of a map and an Amended Notice of Special Tax Lien.
Approval of the Resolution is recommended and will accomplish the changes to the CFD which have been requested by the landowners.
ALTERNATIVES
The Board could vote not to approve the Resolution.
PRIOR BOARD ACTION
07/25/2023 Legistar file 23-1054 - Board adopted Resolution No. 117-2023 (the “Resolution of Formation”), Resolution No. 118-2023 (the "Resolution for Special Election"), Resolution No. 119-2023 (the "Resolution Declaring Results of Special Election"), Resolution No 121-2023 (the "Resolution to Incur Bonded Indebtedness"); and approved Ordinance 5179 ("Levy of Special Taxes within Community Facilities District No. 2023-1 [East Ridge]").
10/28/2025 Legistar File 25-1830 - Board adopted Resolution 160-2025 (the "Resolution of Consideration to Amend") and set this Hearing.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
None to the General Fund. Members of the Board of Supervisors should note that special tax bonds, if and when issued for the CFD, are expected to be issued in the future upon Board approval, and repayment is not an obligation of the County of El Dorado. The sole source of revenue to pay debt service on the Bonds comes from the special tax levied within the CFD.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Following Board approval:
1) Board Clerk’s Office will forward copies of the fully executed Resolution to the Auditor-Controller.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Joe Harn