BACKGROUND:
The Desert Recreation District (DRD) currently provides park and recreation services in the region adjacent to the City of Cathedral City (City), but not currently within the City, and is submitting an application to the Riverside County Local Agency Formation Commission (LAFCO) to annex the territory within the City into the service area of the District Recreation District (DRD).
From April 6 through April 20, 2022, Fairbank, Maslin, Maullin, Metz & Associates (FM3) conducted a survey on behalf of the DRD among a random sample of 449 Cathedral City voters likely to vote in the November 2022 election. The survey examined three related topics, voters’: (1) opinions about the City of Cathedral City, (2) views about the Desert Recreation District, and (3) attitudes towards a potential park and recreation parcel tax measure. The full results of this poll were presented to the Board of Directors and City Council for their review, discussion and direction. The Board and Council considered options available to provide parks maintenance and recreation services in Cathedral City and offer the best opportunity for a favorable outcome in an election.
Both the DRD Board and City Council provided staff direction to proceed with the November 2022 Community Facilities District (CFD) Measure and DRD annexation.
DISCUSSION:
In June of 2022, it was determined that the DRD needed to submit its application and receive Certification of Filing from LAFCO prior to the DRD adopting a resolution calling for the formation of the CFD. It was determined that the application and certification of filing could not be completed in time for the final filing date for the November 2022 election. As a result, the City is conducting the proceedings under the Mello-Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.) (the “Act”) to form its City of Cathedral City Community Facilities.
District No. 2022-1 (Cathedral City Park & Recreation Services) (the “CFD”) to finance certain public services (the “Services”) and public facilities (the “Facilities”), which Services and Facilities are detailed in the CFD proceedings. If the CFD proceedings are successful, the City intends to use the special tax revenues generated by the CFD to pay for the Services and to issue special tax bonds (the “Bonds”) to generate up-front monies to pay for some or all of the Facilities. Under Section 53316.2 of the Act, a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or services to be provided by a public agency other than the agency that created the district, or any combination, pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to said section.
The City placing the CFD revenue measure on the ballot and the successful approval of the measure would provide long-term funding for park and recreation facilities and services to the territory within the City, whether provided by the City or by DRD, pursuant to the contemplated LAFCO proceedings and annexation of the City to the DRD. Therefore, Staff recommends authorizing the City Manager to execute and deliver Joint Community Facilities Agreement between the City of Cathedral City and the Desert Recreation District related to City of Cathedral City Community Facilities District No. 22-1 (Parks and Recreation Services).