FROM:
Finance
SUBJECT:
Title
Resolution of Intent to Form Community Facilities District No. 114M (Tract 20512)
End
RECOMMENDATION:
Recommendation
1. Adopt Resolution No. 2024-014, declaring the intention of the City Council of the City of Fontana to form the City of Fontana Community Facilities District No. 114M.
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 Tract 20512 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. 114M (the “District”), include approximately 9 acres (85 units) of residential property and is located at the intersection of Summit Avenue and Citrus Road. The property is owned by D.R. Horton Los Angeles Holding Company, Inc.
Due to the passage of Proposition 218 in November of 1996, alternate financing plans other than a traditional Lighting and Landscape 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 proposed 2024-25 special tax is $648 per taxable assessor’s parcel consisting of $371 for maintenance, $7 for street lighting and $270 for parks. The District’s 2024-25 maximum special tax has been established at $907 per taxable assessor’s parcel and allows for a 2% increase per year.
The special taxes for the District and any assessments or special taxes for the school district, together with the projected ad valorem property taxes, do not exceed the City Council policy of 1.95% of the sales price.
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 May 14, 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.