City Council approves financial report, bond issuances
– The Paso Robles City Council on Tuesday night considered several discussion items involving long-range planning, financial reporting, and financing for the Olsen/South Chandler Ranch development.
LAFCO municipal service review and Sphere of Influence update
Council members reviewed the San Luis Obispo Local Agency Formation Commission’s draft update of the city’s Sphere of Influence and Municipal Service Review. The Sphere of Influence outlines where the city’s boundaries and service areas could expand over the next two decades and does not grant development rights, according to the staff report. The Municipal Service Review evaluates the city’s ability to provide services to current and potential future areas.
City staff had already reviewed the administrative draft, and the council previously adopted Resolution 24-073 in June to send preliminary priorities to LAFCO. The draft report is open for public comment from Nov. 10 through Dec. 10 before LAFCO holds a public hearing.
The council voted unanimously to direct staff to forward a recommendation on the public draft to LAFCO.
Annual Comprehensive Financial Report
The council also received the Annual Comprehensive Financial Report for the fiscal year ending June 30, 2025. State law requires cities to publish audited financial statements each year, according to the item’s staff report. The report follows generally accepted accounting standards and provides an overview of the city’s financial condition.
Earlier this year, the council approved a contract with Moss, Levy & Harzheim, a certified public accounting firm specializing in public-sector audits. The firm issued an unqualified opinion, finding the city’s financial statements free of material misstatements and reporting no deficiencies in accounting practices or internal controls. The report will be available online and in hard copy at several city offices.
The council voted unanimously to receive and file the report.
Special tax bonds for the Olsen/South Chandler Ranch project: Improvement Area No. 1
The council then considered authorizing the issuance of special tax bonds for Improvement Area No. 1 within the community facilities district created in 2022 to help finance public improvements for the Olsen/South Chandler Ranch project. The district was previously authorized for up to $21 million in bonded debt, according to the staff report. Improvement Area No. 1 has an appraised taxable value of about $53.7 million, and if the city issues no more than $13.42 million in bonds, the property value would remain at least four times the bond amount.
The bonds would be repaid through special taxes on properties within the district. The item included related agreements such as a fiscal agent agreement, a purchase contract with Stifel Nicolas & Co., a preliminary official statement, and a continuing disclosure certificate. State law required disclosure of good-faith estimates for bond interest costs, fees, net proceeds, and total debt service.
The council approved the item unanimously.
Special tax bonds for Improvement Area No. 2
A second bond item concerned Improvement Area No. 2 of the same community facilities district. In 2022, the council authorized up to $19 million in potential bonded debt for the area, which has an appraised taxable value of about $39.6 million, according to the staff report. If the city issues no more than $9.895 million in bonds, the property value would remain at least four times the bond amount. As with Improvement Area No. 1, repayment would come from special taxes on properties within the district.
The item also included approval of a fiscal agent agreement, purchase contract, preliminary official statement, and continuing disclosure certificate, along with state-required cost and debt service estimates.
The council approved the item unanimously.
Click here to view the full agenda.
Watch the full meeting on YouTube below:
