FROM:
Finance
SUBJECT:
Title
Resolution of Consideration to Change the Rate and Method of Apportionment of the Existing Special Tax of Community Facilities District No. 117 (Southridge).End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2026-075, of the City Council of the City of Fontana, California, of Consideration to Change the Rate and Method of Apportionment of the Existing Special Tax of City of Fontana Community Facilities District No. 117 (Southridge).
End
COUNCIL GOALS:
• Practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
On April 14, 2026, the city completed formation of Community Facilities District No. 117 (Southridge) (the CFD) for the purpose of financing certain public facilities and services. Such costs relate to a project under development by KB Home Cal Management Services LLC (the Landowner), which consists of approximately 32.23 gross (20.01 net taxable acres) (255 taxable residential lots), and is located on the east side of Live Oak Avenue and south of Village Drive. Formation proceedings included the adoption and Landowner approval of a Rate and Method of Apportionment of Special Tax for the CFD (the Original RMA).
By this action, the city will commence proceedings to implement a narrow, technical amendment to the Original RMA. The sole purpose of the amendment, as reflected in the attached Resolution and the proposed Amended Rate and Method of Apportionment of Special Tax for the CFD (the Amended RMA), is to back-date an initial building permit date used in the Original RMA originally stated as January 1, 2026. This back-dating is necessary to bring within the defined term "Developed Property" - and thereby subject to the Special Tax - the nine (9) model homes for which building permits were issued shortly prior to January 1, 2026. For ease of reference, the amendment substitutes January 1, 2025, as that initial building permit date. The matter is before Council on a Petition by the Landowner for this correction. As in the original formation proceedings, the Landowner will waive certain election time limits and conduct requirements consistent with the Act. However, the published notice of public hearing, public-hearing before Council, and majority-protest requirements, will be followed with respect to this amendment.
The proposed change to the Original RMA is subject to a public hearing and the approval of the qualified electors of the CFD at a special election scheduled by the attached Resolution for September 8, 2026. As the date of the public hearing and special election on the proposed changes, the Landowner is expected to be shown to be the only registered voter over the subject property, and the vote will therefore be conducted as a landowner election in which the Landowner is entitled to one vote for each acre or portion of an acre it owns within the CFD.
The recommended action complies with the City Council's debt management objectives.
FISCAL IMPACT:
There are no costs to the city. The developer has deposited funds with the City to pay for legal and consultant costs for the formation of the CFD and to implement this amendment.
Annual bond debt service and maintenance costs will be paid from special taxes levied on the future homeowners within the CFD.
MOTION:
Approve staff recommendation.