Debt Management

It is the mission of the Debt Management Division to effectively manage all of the City, Redevelopment Agency, and Temecula Public Financing Authority debt obligations by investing available funds responsibly, evaluating refinancing opportunities to save the City money and lower taxes on its citizens, and to provide outstanding customer service to all property owners, developers, and consultants while ensuring that all requirements are met for all debt obligations administered by the City and its legal authorities.

Mello-Roos Community Facility District


A Mello-Roos Community Facility District (District) is an area where a special property tax on real estate, in addition to the normal property tax, is imposed on those real property owners within the District boundaries. These Districts seek public financing through the sale of tax exempt bonds for the purpose of financing public improvements and services. These services may include streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas. The tax paid is used to make the payments of principal and interest on the bonds.

The Temecula Public Financing Authority is the Authority over six Community Facilities Districts (CFD) including:
  • Harveston CFD 01-02
  • Harveston II CFD 03-06
  • Wolf Creek CFD 03-03
  • Crowne Hill CFD 03-01
  • Roripaugh Ranch CFD 03-02
  • Roripaugh Ranch Phase 2 CFD 16-01
These debt issuances are not obligations of the City of Temecula, but rather obligations of the individual property owners within the individual district boundaries. 

Assessment District


An Assessment District is a unit of territory for the assessment of property for taxation. It is a district specially benefited by a local public improvement with the consequence that a special or local assessment is made against the property in the district to finance the improvement. When a city or other local government agency embarks on a public works project, such as a new road or a sewer system upgrade, it may form an assessment district to raise the funds needed to cover the expense. Thus an assessment district is a specially designated area encompassing properties that stand to benefit from a particular improvement.

The City of Temecula administers one Assessment district:  AD 03-04 (John Warner Road)

Special District Official Statements: 



City Debt Obligations


The City has two Lease Financing arrangements, which are not actual debt of the City but rather obligations of the City to make lease payments to the Temecula Public Financing Authority in consideration for use and possession of the Civic Center facility. This lease financings were conducted through a private placement with Compass Bank and therefore do not contain bond documents like the other agency debt listed above. 

2018 Lease Financing Arrangements:  In August 2018, the City entered into a Lease Agreement with Compass Bank to generate $6,500,000 to be used to renovate the Margarita Recreation Center and Pool facility.  The term of the Lease ends September 1, 2033.

In August 2018, the City also amended the 2011 Lease Agreement to take advantage of lower interest rates and save an estimated $400,000 over the remaining term of the Lease.  The interest rate was reduced from 3.75% to 3.42% and the maturity date of 12/31/2031 remained unchanged.

2011 Lease Financing: In December 2011, the City refinanced the 2001 and 2008 Certificates of Participation in the amount of $26,835,000 to finance a portion of the Civic Center project. 

Redevelopment Agency Debt Obligations


The former Redevelopment Agency issued five series of bonds to fund various public infrastructure and housing projects.  In 2017, the Successor Agency to the Temecula Redevelopment Agency (SARDA) refinanced and consolidated the outstanding bonds into two series of bonds.  The refinance and consolidation of the debt will generate annual savings of approximately $570,000 in debt service payments.  All redevelopment debt is paid using property tax increment receipts.

Property Tax Assessment


Parks & Lighting Special Tax


The City of Temecula’s residents passed Measure C in March of 1997 and authorized the Temecula Community Services District (TCSD) to assess and collect the Parks and Lighting Special Tax. All property owners pay this tax.

The Special Tax rates for Measure C are as follows: 
Per Single Residential Dwelling Unit $74.44
Per Multi-Family Residential Dwelling Unit $55.83
Per Acre of Vacant Property in a Residential Zone $148.88
Per Acre of Vacant Property in a Non-Residential Zone $297.76
Per Acre of Non-Residential Improved Property $446.64
Per Acre of Golf Course Property $148.88
Per Acre of Agricultural Property $37.22

Rates & Charges


For the Temecula Community Services District (TCSD Levels B, C, D and R) Engineer's Report, Click here.
  • Service Level B Residential Street Lights - Pays a portion of the utility costs to operate the residential street lighting throughout the City. All single family residential parcels pay $25.68 per year, while condominium properties pay $12.84.
  • Service Level C Perimeter/Slope Landscape Maintenance - Funding mechanism for specific landscaped zones maintained by the City. Rates vary based on each zone.
  • Service Level D Trash and Recycling Services - Replaces a monthly or quarterly tax bill by placing the charges on your annual tax bill for trash and recycling services provided by CR&R. For FY18-19 the charge for this service is $281.52.
  • Service Level R Dirt Road Maintenance - Used to fund dirt road maintenance in the Liefer Road area of the City to ensure emergency vehicle access and continued public right-of-way access. All developed single family residential pay $115.26 per year, while undeveloped pay $57.62.

Disclosures


For all Disclosure reports and releases... please
see Electronic Municipal Market Access (EMMA)