Monterey County, California
The Fort Ord Reuse Authority (FORA) retained EPS to review the FORA Base Reuse Plan capital improvement program (CIP) and CIP funding sources. As part of the analysis, EPS examined the infrastructure cost burdens of new development in FORA member jurisdictions. This methodological approach addressed the dual goals of (1) ensuring that specific CIP projects and related contingencies were clearly delineated, fully transparent, and deemed appropriate; and (2) ensuring that resulting infrastructure cost burdens were consistent with generally accepted thresholds.
The purpose of the FORA CIP review was to ensure the available FORA revenue sources, including the Community Facilities District (CFD) Special Tax (one-time special tax or CFD Special Tax), could implement the Base Reuse Plan by completing required California Environmental Quality Act (CEQA) mitigation measures. The required CEQA mitigations were included as CIP project costs in the FORA CIP. At the time of the analysis, there was broad recognition that current Special Tax Rates set to offset the CIP costs, combined with the effects of the economic downturn, were major factors precluding the near-term re-initiation of development in FORA’s jurisdiction.
Using input from key project stakeholders, the CIP review was informed by a set of guiding principles. Based on these guiding principles and several uncertainties regarding the future transition or extension of FORA, EPS recommended a multiphased approach to resolve outstanding issues. The multiphased approach recommended an immediate adjustment to FORA CIP contingency costs and a corresponding reduction in the FORA Mello-Roos CFD special tax. Following the immediate actions, EPS recommended FORA initiate an ongoing evaluation of the CIP financing strategy accounting for resolution of key outstanding uncertainties, including the potential transition or extension of FORA.