Page 88 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 6. Long-term Debt (Continued)

c. Non-Commitment Debt

2016 Community Facilities District 7 Improvement Area 1 Special Tax Bonds
Community Facilities District No. 7 (“District”) of the City of Moreno Valley issued bonds in
the amount of $3,265,000 in September 2016 to reimburse the site developer for the cost
of certain site improvements. The Bonds are special limited obligations of the District and
are payable solely from revenues derived from certain annual Special Taxes to be levied
on and collected from the owners of the taxable land within the District.

The Special Taxes are to be levied according to the rates and method of apportionment
approved by the City Council, the legislative body of the District, and the qualified electors
within the District. Except for the Special Taxes, no other taxes are pledged to the payment
of the Bonds. The City is in no way liable for repayment but is acting as an agent for
the property owners in collecting the assessments and forwarding the collections
to bondholders. These bonds consist of both serial and term bonds that mature on
September 1, 2047 and bear interest rates ranging from 1.00% to 3.25%. The bonds will
be repaid from a special tax assessment levied on the parcels and are subject to optional
redemption beginning in September 2026. This debt is not the responsibility of the City but
the City acts as the administrator for the collection of the special tax and the transfer of
special tax funds to the trustee for the payment of debt service. The outstanding balance
at June 30, 2025 was $2,715,000.
2021 Community Facilities District No. 5 Special Tax Refunding Bonds

The Community Facilities District No. 5 of the City of Moreno Valley 2007 Special Tax Bonds
were issued to finance various public improvements needed to develop property located
within the Community Facilities District No. 5 (“District”). The original issue amount was
$4,795,000. The Bonds are special limited obligations of the District and are payable solely
from revenues derived from certain annual Special Taxes to be levied on and collected from
the owners of the taxable land within the District and from certain other funds pledged
under the Escrow Agreement dated December 1, 2021 by and between the City for and on
behalf of the District and Wilmington Trust, as fiscal agent.

The Special Taxes are to be levied according to the rates and method of apportionment
approved by the City Council, the legislative body of the District, and the qualified electors
within the District. Except for the Special Taxes, no other taxes are pledged to the payment
of the Bonds. The City is in no way liable for repayment but is acting as an agent for
the property owners in collecting the assessments and forwarding the collections to
bondholders. Interest rates range from 3.00% to 4.00%. The outstanding balance at
June 30, 2025 was $4,180,000.

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