FROM:
Finance
SUBJECT:
Title
Public Hearing on Formation of Community Facilities District No. 110M (Tract 16897)
End
RECOMMENDATION:
Recommendation
End
COUNCIL GOALS:
• Practice sound fiscal management by developing long-term funding and debt management plans.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by improving the aesthetics of the community through code enforcement, street sweeping, and landscape maintenance.
DISCUSSION:
On July 26, 2022, the City Council approved the resolution of intent (the "Resolution of Intent") to establish Community Facilities District No. 110M (the “District”), which set the public hearing on the establishment of the District for September 13, 2022. The purpose for establishing the District is for the maintenance of the street lights, landscaping, detention basins/water quality systems, open space facilities, mailboxes located within the District owned by the City, graffiti removal, and park maintenance.
Pursuant to the requirements of the Resolution of Intent, the City Clerk's designee published a notice of the time and place of this hearing pursuant to Section 53322 of the California Government Code at least seven (7) days before the date of the hearing. Additionally, the City Clerk's designee also gave notice of the time and place of the meeting by mail to each land-owner within the District’s boundaries as prescribed by Section 53322.4 of the California Government Code at least fifteen (15) days before the hearing. The boundary map of the District was recorded on July 27, 2022.
The District boundaries include approximately 5.01 acres (18 units) of residential property and is located at the intersection of Citrus Avenue and Baseline Road.
A copy of the cost/service report is attached which contains a brief description of the service by type and an estimate of the costs of providing those services and the incidental expenses to be incurred therewith. This report is hereby made a part of the record of the public hearing.
The District has no registered voters in its boundaries and has one landowner (Bayrich Development USA, LLC.). The election will be held immediately after the close of the public hearing, the adoption of the resolution of formation, and the adoption of the resolution calling the special election in order for the City Council to be presented with the results of the election during the meeting. The City Council may then adopt a resolution declaring the results of the election after receiving a statement from the City Clerk as to the canvass of ballots.
The first year tax levy will be $968/lot consisting of $661 for maintenance, $37 for street lighting, and $270 for parks. The District’s 2023/24 maximum tax has been established at $1,355/lot and allows for a 2% inflation index pursuant to City guidelines.
Other maintenance districts in the City have annual rates ranging from $262 to $1,060 per assessor's parcel, with $551 per assessor's parcel being the current average. The higher than average rate for this District is due to the low number of units in the District as well as overall increases in contracted landscaping maintenance costs.
The combined special taxes for the District and 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.
The City Council actions on September 13, 2022, will establish the maximum tax and authorize the first year levy. A cost analysis breakdown of the services is also attached.
Attached are three resolutions and an ordinance. The first resolution establishes the District and the rate and method of apportionment of the special tax. The second resolution calls for a special landowner election to be held on September 13, 2022, and the consent of the City Clerk to the election being held on such date. The third resolution declares the results of the election and a statement from the City Clerk as to the canvass of ballots. The ordinance authorizes the first year levy.
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 the special tax. All costs for establishing the District have been paid by the developer with ongoing yearly maintenance service costs paid by the property owners.
MOTION:
Approve staff recommendation.