FROM:
Finance
SUBJECT:
Title
Resolution of Intention to Form Community Facilities District No. 115M (TM 19156)
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2024-106, declaring the intention of the City Council of the City of Fontana to form the City of Fontana Community Facilities District No. 115M.
End
COUNCIL GOALS:
• Practice sound fiscal management by fully funding liabilities and reserves.
• Practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
The development of TM 19156 is actively proceeding. As part of the conditions of approval, the developer is to establish the community facilities district to pay for certain public services as described in the Resolution.
The boundaries of the proposed community facilities district, Community Facilities District No. 115M (the “District”), include approximately 215 acres of non-residential property to include six (6) industrial commerce center buildings totaling approximately 3.43 million square feet. The development is generally located at south of Jurupa Ave and east of Alder Ave in the City. The property is owned by IDIL West Valley Logistics Center, LP.
Due to the passage of Proposition 218 in November of 1996, alternate financing plans other than a traditional Lighting and Landscape Assessment District have been developed to ensure continuous financing of these maintenance obligations. The City Attorney’s office, staff, and the developer believe that the establishment of a community facilities district which provides services and maintenance is the best protection to the City to have these obligations funded by the future residents who will receive the benefits.
The establishment of the District would provide for the funding of annual maintenance and certain services through the levy of a separate special tax on taxable parcels within the boundaries of the District.
The District’s 2025-26 maximum special tax has been established at $2,992.52 per acre of taxable property and allows for a 2% increase per year.
Attached is the Resolution stating the City Council’s intention to proceed with the formation of the District (the “Resolution of Intention”), which includes the boundary map and the Rate and Method of Apportionment as exhibits thereto. Also attached is a proposed calendar of events from Best Best & Krieger LLP. Additionally, the property owner will waive all time limits and other requirements of the California Elections Code in order for the special election to be held on October 22, 2024, after the public hearing.
FISCAL IMPACT:
This action is the first in an approval process which spans two City Council meetings to establish the District for this project and to provide for the levy of the special tax. All costs of establishing the District are paid by the developer, the current property owner, with ongoing annual maintenance service costs paid by the property owners.
MOTION:
Approve the Resolution of Intention upon staff recommendation.