BACKGROUND:
On November 9, 2022, City Council declared its intention to form Improvement Area No. 15 of the City of Cathedral City Community Facilities District (“CFD”) No. 2006-1 (Law Enforcement, Fire, Paramedic, Park and General Maintenance Services) for the purpose of paying for law enforcement, fire, paramedic, park and general maintenance services. These services are in addition to those provided in the territory (within the CFD) prior to the formation of the CFD, and these services do not supplant services already available within such territory. The CFD was proposed by the property owners of the Escena 52 project.
DISCUSSION:
City Council held a public hearing on December 14, 2022. During that meeting, the City Council adopted the resolution forming the CFD. In addition, a special election was held to authorize the levy of the special taxes, which passed by more than two-thirds of the votes cast by the qualified voters (the landowners), within the CFD, in favor of the proposition. Upon canvassing of the results of the special election, City Council conducted the first reading of an Ordinance authorizing the levy of the special tax. In case there would be State budget cuts, the special taxes levied within this CFD provide a secure source of funding for the services that may not be taken away by the State.
New developments are conditioned to join the CFD and will join through an annexation process. As new developments go through the approval processes, the annexations will be processed in a timely manner.
FISCAL IMPACT:
For the Escena 52 project, the annual revenue generated by this levy will be $34,128 adjusted by the FY 23 Consumer Price Index (not to exceed 1%).