BACKGROUND:
On January 10, 2024, the City Council declared its intention to form Improvement Area No.20 of the City of Cathedral City Community Facilities District No. 2006-1 (law enforcement, fire, paramedic, park maintenance and general maintenance services) (“CFD”) for the purpose of paying for additional law enforcement, fire, paramedic, park and general maintenance services within areas of new development.
DISCUSSION:
A public hearing has been set for February 28, 2024. As directed in the Resolution of Intention, David Taussig & Associates, Inc. prepared the Rate and Method of Apportionment (“RMA”), an analysis of the special tax to allow each property owner or resident, within the proposed district, to understand the annual amount required for payment.
New developments are conditioned to join CFD 2006-1 and will join through an annexation process. The annexations will be processed in a timely manner, as new developments go through the approval processes. If formed, this CFD will provide a secure source of funding for the services described above that may not be taken away by Sacramento in the case of State budget cuts. It is proposed this Improvement Area will be formed within the CFD for the Rio Vista Village Condos, a 58-unit development project.
Provided there is no majority protest at this public hearing, the City Council may adopt the resolution forming the CFD. A waiver regarding election timelines from the property owner has been received, so an election can be held February 28, 2024 authorizing the levy of a special tax. Should the proposition for the CFD pass with a two-thirds vote from the qualified voters (the landowners) within the CFD, the City Council may have the first reading of an Ordinance levying the special tax.
FISCAL IMPACT:
The proposed project is residential therefore, as identified in Table 1, the rate for Land Use Class of Residential, per Equivalent Dwelling Unit (“EDU”) for Fiscal Year (“FY”) 2023-2024, is $662.87. The Non-Retail Commercial/Industrial Property special tax is not applicable. This special tax increases (but does not decrease) by the percentage change in the Consumer Price Index, not to exceed one percent (1%) per Fiscal Year.
The proposed IA No. 20, Rio Vista Village Condos project will generate annual revenue in the amount of $38,446.46.
FIVE-YEAR STRATEGIC PLAN:
This action will further Goal C – Fiscal Stability and Sustainability Objective - Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.