FROM:
Finance
SUBJECT:
Title
Request to Continue the Public Hearing, Election, and Resolutions on Formation of the City of Fontana Community Facilities District No. 115M (Parcel Map No. 19156)
End
RECOMMENDATION:
Recommendation
Staff recommends that the City Council open and continue the public hearing on the formation of the City of Fontana Community Facilities District No. 115M, County of San Bernardino, State of California (“CFD No. 115M”), to the December 10, 2024 City Council meeting.
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:
Following the adoption of the resolution of intention to establish CFD No. 115M on September 10, 2024, the landowner, IDIL West Valley Logistics Center, LP (the “Developer”), notified the City that two of the taxable parcels included within the boundaries of CFD No. 115M needed to be removed as taxable property. The parcels in question were in fact detention basins and therefore the acreage of such parcels should be exempt and not be subject to the special tax.
This change requires the City’s special tax consultant to recalculate the special tax rates, draft an amended and restated rate and method of apportionment, and to draft a report required by Government Code, section 53325 regarding changes to the special tax presented to the City Council at the September 10, 2024 meeting. This change also requires the City’s legal counsel to revise and modify several legal documents to reflect the requested change from the Developer.
Government Code, section 53325 authorizes the City to continue a duly noticed public hearing from time to time for a period of 30 days, except that if the legislative body finds that the complexity of the proposed community facilities district requires additional time, the hearing may be continued from time to time for a period not to exceed six months.
Here, CFD No. 115M is being formed to levy a special tax on non-residential property to finance the maintenance of certain public services to be provided by CFD No. 115M. The special tax is based upon the net taxable acres of the property subject to the special tax. Removal of the parcels in question represent over nine (9) taxable acres that will no longer be available to support the special tax as currently calculated. The Developer is currently working with the City’s engineering department to determine what actions are needed to amend their final map application to account for the detention basins.
Once the engineering requirements are finalized, the Developer and the City will be in a position to modify the required legal documents and special tax calculations for CFD No. 115M. By continuing the public hearing this allows for sufficient time to take the corrective measures needed.
FISCAL IMPACT:
All costs for establishing CFD No. 115M have been paid by the Developer through a CFD formation proceedings deposit. The additional costs related to the changes described herein will be paid for by the Developer’s deposit. In the event the costs exceed the amount of the deposit the Developer will be required to post an additional deposit to cover the additional costs.
MOTION:
Staff recommends opening and continuing the October 22, 2024 public hearing to December 10, 2024.