MEETING DATE:
September 22, 2020
SUBJECT:
Title
RESOLUTION NO. 2020-8818 - AUTHORIZATION TO TAKE THE NECESSARY ACTIONS AND TO FORECLOSE ON DELINQUENT SPECIAL TAX LIENS
Body
Recommendation
Recommendation
ADOPT a resolution authorizing the City Manager and City Attorney to take the necessary actions and to foreclosure on property owners that are delinquent in the payment of Community Facilities District (CFD) special taxes.
Body
Board or Commission Action
Not applicable.
Relevant Council Strategic Themes
Good Governance
Relevant Department Goal
Not applicable
Executive Summary
Property owners in the City's CFD 88-1 (Paloma/Santa Fe Hills), CFD 99-01 (San Elijo Hills), and CFD 2002-01 (University Commons) are taxed annually via the County property tax bill for their share of the debt service on bonds that their respective CFD has issued. The City has covenanted to the bondholders of these CFDs that judicial foreclosure proceedings will be initiated against property owners that are delinquent in the payment of their CFD special tax if certain requirements are met. For FY 2019-20 there is one such property owner that has not paid their County property tax bill and meets the bonded CFD foreclosure requirements for delinquent CFD special tax.
To fulfill the City's covenant to the bondholders, attached is a resolution that, when approved and adopted by the City Council, will authorize the City Manager to 1) have the delinquent CFD special taxes removed from the County property tax roll and relieve the County Treasurer/Tax Collector of further duty to collect on said delinquencies as they relate to all CFDs presently in existence that have outstanding bonded indebtedness; and 2) order foreclosure action to foreclose on the properties with delinquent FY 2019-20 CFD special taxes. However, due to the COVID-19 pandemic and as permitted by the CFD bond covenants, foreclosure proceedings will be deferred until the state and local emergency regarding COVID...
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