FROM:
Finance
SUBJECT:
Title
Public Hearing, Election, and Resolutions on Formation of Community Facilities District No. 116M (Tract Map No. 20511)
End
RECOMMENDATION:
Recommendation
Immediately after conducting a Public Hearing on the formation of the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California (the “District” or “Community Facilities District No. 116M”), staff recommends the City Council take the following actions in the following order:
1. Adopt Resolution No. 2024-117, Establishing the City of Fontana Community Facilities District No.116M and the Boundaries thereof (the “Resolution of Formation”).
2. Adopt Resolution No. 2024-118, Calling a Special Election and Submitting to the Voters of Community Facilities District No. 116M a Proposition Regarding the Annual Levy of Special Taxes within Community Facilities District No. 116M to Pay the Costs of Certain Services to be Provided by Community Facilities District No. 116M and a Proposition Establishing an Appropriations Limit for Community Facilities District No. 116M (the “Resolution Calling the Election”).
3. Conduct the Special Election.
4. Adopt Resolution No. 2024-119, Declaring the Results of the Special Election for Community Facilities District No. 116M on the Propositions with Respect to (i) the Annual Levy of Special Taxes to Pay the Costs of Certain Services to be provided by Community Facilities District No. 116M and (ii) the Establishment of an Appropriations Limit (the “Resolution Declaring Election Results”).
5. Conduct First Reading (Read title only, and waive further reading) of Ordinance No. 1958, Authorizing the Levy of a Special Tax within Community Facilities District No. 116M (the “Ordinance”).
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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 Mello-Roos Community Facilities Act of 1982 provides for the establishment of community facilities districts as an alternate method of financing certain essential public capital facilities and services, especially in the developing areas of the State of California. Once duly established by the City, a community facilities district is a separate legal entity with defined boundaries, for which the City Council acts on its behalf as its legislative body. Subject to approval by a two-thirds vote of the qualified electors in compliance with the provisions of the Act, the City Council, as the legislative body of the community facilities district, may levy a special tax to pay for ongoing public services, among other actions.
The landowner, D.R. Horton Los Angeles Holding Company, Inc. (the “Developer”), has submitted a petition to the City to form Community Facilities District No. 116M for the purposes of funding certain public services. The landowner’s property to be included in the District consists of approximately 10.7 gross acres of mixed used residential property and will include 47 single family detached homes and 80 attached residential units for a total of 127 units. The attached units will be constructed in 16 buildings each containing five units per building. The development is generally located south of Sierra Lakes Parkway, east of Lytle Creek Road, and west of Maloof Avenue in the City.
The Community Facilities District Report (which is included with the agenda documents) contains a brief description of the services to be funded by the District by type, an estimate of the costs of providing those services, and the incidental expenses to be incurred therewith.
On September 10, 2024, the City Council approved a resolution of intention (the “Resolution of Intention) declaring its intention to establish Community Facilities District No. 116M (the “District”), which also set a public hearing on the establishment of the District for October 22, 2024. The purpose for establishing the District is to provide funding for the maintenance of parks, parkways, street lighting and open space within and surrounding the area of the District, the costs associated with the determination of the amount of a collection of taxes, the payment of taxes and costs otherwise incurred in order to carry out the authorized purposes of the District.
Pursuant to the requirements of the Resolution of Intention and Government Code Section 53322, the City Clerk published a notice of the public hearing in a newspaper of general circulation in the City at least seven (7) days before the date of the public hearing. Additionally, the City Clerk’s designee gave notice of the public hearing by mail to the sole landowner within the District’s boundaries, as prescribed by Section 53322.4 of the California Government Code, at least fifteen (15) days before the public hearing. The boundary map of the District was recorded with the County on September 24, 2024.
At this meeting, the City Council will first open and conduct the public hearing on the formation of Community Facilities District No. 116M. Immediately thereafter, and in order to form the District, the City Council will need to take the following actions in the following order:
1. Adopt the Resolution of Formation which specifies that special taxes will be levied on all parcels of taxable property in the proposed District to finance the public services described therein. The rate and method of apportionment of the proposed special taxes that may be levied for these purposes are set forth as an exhibit to the Resolution of Formation.
2. Adopt the Resolution Calling the Election which authorizes conducting the special election for the District this evening with respect to the annual levy of special taxes to pay the costs of the authorized public services, and with respect to establishing an annual appropriations limit for the District.
3. Conduct the Special Election. The City Clerk will act as the election official for the special election. The City Clerk and the landowner have consented to the holding of the special election this evening October 22, 2024. The County Registrar of Voters has certified that there are no registered voters within the boundaries of the District, and thus, the vote is by the landowner. The City Clerk will announce the results of the canvass of ballots and the special election.
4. Adopt the Resolution Declaring Election Results which declares the results of the special election.
5. Conduct a first reading of the Ordinance. If the results of the special election are in favor of the levy of special taxes within the District, the City Council may call the first reading of the Ordinance, authorizing the levy of special taxes within the District.
FISCAL IMPACT:
This action will establish the District, which will levy each property within its boundaries using special tax formulas outlined in the Rate and Method of Apportionment of Special Tax. The District’s Fiscal Year 2025-26 maximum special tax has been established at $737 per unit for taxable residential property and $8,217 per acre of taxable non-residential property, in the event non-residential property is subsequently developed. The maximum special tax is subject to a 2% increase per year, effective July 1, 2026. All costs for establishing the District have been paid by the Developer with ongoing yearly maintenance services costs paid by the property owners subject to the special tax.
MOTION:
After conducting the public hearing, Approve the Resolution of Formation, Resolution Calling Election, Resolution Declaring Results of Election, and give first reading to Ordinance upon staff recommendation.