FROM:
Finance
SUBJECT:
Title
Complete Change Proceedings to Amend the Rate and Method of Apportionment of the Existing Special Tax of City of Fontana Community Facilities District No. 117 (Southridge).
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RECOMMENDATION:
Recommendation
1. Conduct a Public Hearing regarding Proposed Changes to the Rate and Method of Apportionment of the Existing Special Tax of City of Fontana Community Facilities District No. 117 (Southridge).
2. Adopt Resolution No. 2026-086, of the City Council of the City of Fontana, California, calling a Special Election for Proposed Changes to the Rate and Method of Apportionment of the Existing Special Tax of City of Fontana Community Facilities District No. 117 (Southridge).
3. Direct the City Clerk to Conduct a Special Election and take other actions related to such Special Election of the qualified electors of City of Fontana Community Facilities District No. 117 (Southridge).
4. Adopt Resolution No. 2026-087, of the City Council of the City of Fontana, California, Declaring Results of a Special Election regarding Proposed Changes to the Rate and Method of Apportionment of the Existing Special Tax of City of Fontana Community Facilities District No. 117 (Southridge).
5. Adopt Resolution No. 2026-088, of the City Council of the City of Fontana, California, determining that Changes to the Rate and Method of Apportionment of the Existing Special Tax of City of Fontana Community Facilities District No. 117 (Southridge) are Lawfully Authorized and Directing Recording of an Amendment to the Notice of Special Tax Lien.
6. Conduct a first reading of a Special Tax Ordinance No. 1997 of the City Council of the City of Fontana, California, Amending and Restating Ordinance No. 1986 Levying a Special Tax within City of Fontana Community Facilities District No. 117 (Southridge).
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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).
On July 14, 2026, the City Council adopted Resolution 2026-075, a Resolution of Consideration of Proposed Changes to the Original RMA, which called for a Public Hearing and commenced proceedings to implement a narrow, technical amendment to the Original RMA. The sole purpose of the amendment, as reflected in that 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 reference, the amendment substitutes January 1, 2025, as that initial building permit date.
The set of actions before Council are required to implement the proposed changes to the RMA, including:
- Conduct a Public Hearing with regard to such changes;
- Adopt a Resolution Calling for a Special Election, subject to no protest with regard thereto, directing the City Clerk to conduct such Special Election and take certain actions related thereto;
- Adopt a Resolution declaring the results of the Special Election;
- Adopt a Resolution of Change determining the proposed changes are lawfully authorized and directing the recordation of an Amended Notice of Special Tax Lien of the CFD; and
- Conduct a first reading of a Special Tax Ordinance amending and restating the original adopted Special Tax Ordinance of the CFD.
The Landowner has been shown to be the only registered voter over the subject property, and the vote of the Special Election referenced above will 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.
Prior to the commencement of these change proceedings, the City Clerk with report on and acknowledge receipt of all items submitted in furtherance of the proposed changes to the Rate and Method of Apportionment of the Special Tax for the CFD, including: (a) the Consent and Waiver executed by the Landowner, as the sole qualified landowner-elector of the CFD, consenting to the conduct of the Special Election and waiving all applicable statutory time limits, notice requirements, and procedural requirements under the Mello-Roos Community Facilities Act of 1982; (b) any written protests, if any, filed by interested persons prior to the opening of the Public Hearing; (c) receipt of the ballots for the Special Election on the proposition to change the rate and method of apportionment of the Special Tax; and (d) the Canvass and Statement of Results of the Special Election. The City Clerk will report on or otherwise acknowledge that no written protests were filed and that the results of the Special Election have been duly canvassed and certified.
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.