Council authorizes up to $15 million in special-tax bonds for Ranch CFD Improvement Area 3

Rancho Cordova — The City Council adopted a resolution Sept. 3 authorizing the issuance of special-tax bonds for Improvement Area Number 3 of the Ranch Community Facilities District (CFD) 2021-1 in an amount not to exceed $15 million. Michelle Mengeff, the city finance manager, briefed the council on the financing item and said the bonds would be special-tax bonds secured solely by special taxes collected within the CFD boundaries for Improvement Area 3. She noted a typographical error in the resolution included in the meeting packet (it referenced Improvement Area Number 2), and said the correct references to Improvement Area Number 3 were made elsewhere in the financing documents. "The correct reference was made throughout the documents, so it is just typographical," Mengeff said during her presentation and asked council to adopt the corrected resolution. No public comment was received on the item. The council moved to adopt the resolution authorizing the sale of bonds and approving related documents, including the fiscal agent agreement and the preliminary official statement. A roll-call vote recorded Council Member David Sander, Council Member Joe Little, Council Member Linda Budge, Vice Mayor Gary Gatewood and Mayor Pulapati voting in favor. There were no no votes or abstentions. Mengeff and staff said these bonds are secured by special taxes levied within the CFD and do not constitute a general obligation of the city; the resolution authorizes use of proceeds to finance infrastructure and impact fees tied to the Ranch project and approves related procedural documents for sale. City staff will finalize bond sale documents and proceed with the sale process consistent with the resolution and fiscal agent agreement approved by the council.