Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Riverside Unified approves CFD formation and Measure O bond issuance as board hears developer presentation
Summary
The board unanimously approved a resolution to form CFD No. 42 to finance developer fees for a nearby housing project, authorized issuance of $40 million in Measure O Series D bonds and approved a general‑obligation refunding to save taxpayers money; members discussed affordable‑unit treatment and schedule for hearings.
The Riverside Unified School District board voted unanimously Aug. 21 to advance a package of financing actions, including the intention to form Community Facilities District (CFD) No. 42, authorization to issue the next $40 million series of Measure O bonds and a refunding of existing general‑obligation debt.
Assistant Superintendent Williams and financial advisor Adam Bauer presented CFD No. 42, a developer‑requested financing vehicle for a Century Communities project located off the 91 Freeway near Van Buren. The proposal covers 141 single‑family units and eight affordable units; Bauer said the developer has requested the affordable units be excluded from the special tax under the statutory welfare exemption, and that the district would only levy the special tax on the traditional market units. Bauer described square‑footage tiers (approx. 1,317–1,607 sq. ft.) and estimated special tax ranges of about $2,050–$2,315 per unit.
Bauer explained that CFDs are commonly used to close state funding gaps for new development and outlined a schedule for public hearings and ordinance readings. The board approved the resolution of intention and set a public hearing schedule for late September and October.
Separately, the board approved issuing Series D of Measure O bonds (roughly $40 million) using conservative fiscal assumptions and projected tax rates well within district capacity. Bauer noted the district’s assessed value recently exceeded $40 billion and argued the measure remains affordable to taxpayers under the presented scenarios.
The board also approved a general‑obligation refunding of 2015 bonds to reduce interest costs; Bauer estimated about $416,000 in annual savings under current market projections and noted executing the refunding alongside a new‑money issuance can reduce transaction costs.
Several trustees asked questions about affordable‑unit treatment, potential burden shifting if affordable units are exempted, and whether the board could seek additional mitigation from developers. Trustees agreed staff should consider negotiating approaches that avoid imposing undue burdens on low‑income buyers while ensuring the district recovers mitigation for new students.
All three action items passed unanimously.
