Mello-Roos/Development Mitigation

Mello-Roos Community Facilities District Formation

KeyAnalytics assists public agency clients through the entire Community Facilities Districts formation lifecycle from initial developer contact through recordation of Special Tax Lien. No matter if we are working with another Independent Register Municipal Advisor (IRMA) or utilizing our in-house advisor’s, the KeyAnalytics team prides itself on supporting and adding value to any team. Our services include:

  • Developing Budgets,

  • Preparing Special Tax Analyses, and

  • Drafting Rate and Methods of Apportionment

Additionally, KeyAnalytics is dedicated to taking the time necessary to educate and empower Board members and staff during the process.

Mello-Roos Community Facilities District Administration

KeyAnalytics specializes in the ongoing administration of Community Facilities Districts. We currently provide administration services to public agencies throughout California. At KeyAnalytics we believe establishing and faithfully executing a thoughtful process is the key to success in any endeavor, and the effective management of a CFD program is no exception.

Whether a program has a single CFD or over two (2) dozen, managing it is fraught with countless economic, regulatory and political risks. Following an established process will keep public agencies from losing critically needed funding, falling out of compliance or finding themselves in an unwinnable political situation. KeyAnalytics provides all the services of a typical consultant, however, our process includes the following expanded services:

  • A comprehensive Initial Program Audit – Our team will conduct a detailed review of parcel classifications, historical special tax levies, mitigation agreement terms and conditions, and bond covenants. At the end of the audit we provide clients with a summary of each CFD including an updated special tax revenue stream and a summary of authorized uses for current and future revenue. This information is shared with the agency and theirMunicipal Advisor to assist them in ongoing capital planning.

  • Annual Program Review – Each year our team updates the special tax revenue streams to reflect recent changes, including the formation of additional CFDs, changes in development status, the sale of new debt and the collection of additional special taxes. This information is shared with the agency and their Municipal Advisor to assist them in ongoing capital planning.

  • Pre-Board Approval Annual Levy Reviews – Prior to submitting the special tax levy to the Board, our staff meets with agency staff and reviews the status of each CFD, the proposed special tax budget and the methodology for apportioning the special tax.

  • Monthly Account Activity Tracking with Quarterly Expenditure Reviews – Our staff uploads/enters all CFD account activity on a monthly basis into our KeyStone reporting/tracking platform. The agency staff has online access to the KeyStone reporting/tracking platform and all receive quarterly summaries via email.

  • Funding Integration and Strategic Cash Flow Planning Support – At the request of the agency and/or their Municipal Advisor, our staff will assist in the preparation of revenue and funding scenarios. Our staff will also assist, when requested, in identifying opportunities to integrate CFD funding into the agency’s overall capital funding program.

School District Developer Fee Studies

School districts are authorized to collect impact fees on new residential and commercial/industrial development pursuant to California law. The preparation of developer fee studies in accordance with statute is required in order for districts to collect these fees. These studies utilize local district data, including new residential development, historical statistical information, and school construction costs to determine the dollar amount that can be justified for collection by the school district.

On behalf of our clients KeyAnalytics prepares:

  • School Fee Justification Studies (Level 1 Fees) - The study considers the ability of the school district to accommodate the impact within current facilities and identifies the cost associated with meeting the increased facilities needs. The Study makes the necessary findings set forth in Government Code Section 66001 et al., and in accordance with Government Code Section 65995 et al., to support the collection of statutory school fees as allowed by the State of California.

  • School Facility Needs Analysis (Level 2 and 3) - For eligible school districts, a School Facilities Needs Analysis may allows school districts the ability to collect Alternative Fees by quantifying the impacts of new residential development on school district facilities for the next five-year period. In accordance with Government Code Sections 65995.5. 65995.6, and 65995.7 and Education Code 17620, the Analysis reviews the eligibility of the school district, calculates a “true cost” in compliance with Section 66000 of the Government Code,

In addition to preparing the reports KeyAnalytics will present the report, summarizing the findings to the Board, and support legal counsel and staff in responding to any questions received.