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Comments made by sean_sd

Mello-Roos Law Allows Vote Of One To Decide On New Taxes

Hi Sdnewsreader,

thanks for your explaination about the usage on the collected mello roos.

For the costs of improvements and services outside of original bonds, how this part is administered?

In CFD #6 IAA case, seems to me the portion allocated for Improvement Area Surplus Account and Lease Revenue Bond Account etc. is large, almost comparative to original bonds.

do you know normally if the costs have explicit terms for maxium cap, or the residents can participate in approving the funds? i see it could be posibilly an open ended fund if without proper terms.

They can simply move all of the annually collected mello roos to these funds without paying original bond principles, and at the end of 25 years, they say we still owe $18,000,000 bond principle, and they need to extend another 20 years.

June 20, 2013 at 3:53 p.m. ( | suggest removal )

Mello-Roos Law Allows Vote Of One To Decide On New Taxes

Hi Joanne, Thanks for your investigation.

I agree with Earl_Lee that we would like to know in what kind of situtation CFD could be extended. Info from CFD about is murky and misleading.

I did some study on PUSD CFD #6 IAA.

seems mello roos is not only used for paying the issued bonds which has clear maximum amount, it also pays for some accounts which I consider as an open ended fund. you may think in 25 years, you can pay off the original bond, but actually every year, there are quite certain amount is allocated for other purpose than paying off original bond.

i.e CFD #6 IAA original intention is to pay off $18,000,000 bond issued in 2002.

but from CFD #6 IAA annual report, page 11/12 of

a large portion of annual mello roos collected is not only used to pay for interests and principles of the 2002 bond. it also pays for Improvement Area Surplus Account, Lease Revenue Bond Account etc.

Here is open statement for CFD #6 IAA

Community Facilities District No. 6, Improvement Area A was established pursuant to the Mello-Roos Community Facilities Act of 1982. Qualified electors authorized the district in 2002 along with the issuance of up to $18,000,000.00 in bonded indebtedness. Bonds were issued to pay for certain public facilities and/or services that benefit the district. A special tax is levied on properties in the district to pay the interest and principal on the bonds as well as administrative expenses.

So original principle is $18,000,000. after 8 years, the unpaid principle is $17,790,000. only $210,000 is paid down to principles. (annual mello roos collected for CFD #6 IAA is about $1,400,000).

check page 10 of the annual report for unpaid principle by 2010.

June 19, 2013 at 8:20 a.m. ( | suggest removal )