Title
A Resolution approving an amendment to the Amended and Restated Service Plan for Banning Lewis Ranch Metropolitan Districts Nos. 1, 2, 3, 4, 5 and 7 to allow an unlimited maximum debt service mill levy in District No. 2
(Legislative)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning and Community Development
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request by the Banning Lewis Ranch Metropolitan District No. 2 ("District") for approval of a service plan amendment to allow an unlimited mill levy when the total principal amount of debt will exceed 3% (three percent) of the Assessor's market value of the property within the District. The City's Model Special District Service Plan and the District's current service plan require the Gallagher-adjusted debt service mill levy for residential metropolitan districts to not exceed 30.0 mills unless an exceedance is approved by a board consisting of homeowners owning property within the District -- and then only if the ratio of total debt to the County Assessor's market value is equal to or less than 3% (three percent) of the Assessor's market value of the property within the District. The Board of the District is now controlled by resident homeowners, and desires to refinance its remaining debt at a substantially lower interest rate, which is in turn tied to removing the current mill levy cap. The District board is willing to trade off some limited risk of an escalation of its mill levy in return for the more likely scenario of lower overall financing costs and the consequent opportunity to reduce their debt service mill levy from 30.0 to 23.0 mills.
The amendment has been prepared in the form of a stand-alone document inclusive of only the proposed changes. If the amendment is approved, the balance of the existing consolidated service plan would remain in force and effect.
Previous Council Action:
On September 13, 2005, City Council appr...
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