Item 23.
2 City of Coachella November 7, 2024
Fiscal Impacts Resulting from the Proposed Annexation of West Annexation Area 2024 A Description of Annexation Area
The Annexation Area encompasses approximately 355.87 acres of land abutting the City’s western boundaries and is generally bounded on the north by 50th Avenue, on the west by Jackson Street, and on the south by 52nd Avenue. Pursuant to the City 2035 General Plan Update and illustrated in Figure 2 below, the Annexation Area is comprised of the following zoning designations:
Rural Rancho: Allows for 0.4 to 1 dwelling unit (“DU”) per acre in residential density; Residential Estate: Permissible dwelling density ranges from 1 to 2.2 DUs per acre; General Neighborhood: Allows for 7 to 25 DUs per acre in residential density, with 12 DUs per acre anticipated to be the average density for new projects therein; and General Commercial: Allows for commercial development up to the maximum floor area ratio (“FAR”) of 1.00.
Figure 2: Zoning Designations within the Annexation Area
Item 23.
3 City of Coachella November 7, 2024
Fiscal Impacts Resulting from the Proposed Annexation of West Annexation Area 2024 The Annexation Area is currently comprised of both developed and vacant parcels. To evaluate the fiscal impact of the Annexation Area upon its annexation into the City, DTA developed a build-out land use projection for the Annexation Area. Utilizing the 2024 County Assessor’s Roll, DTA first determined if a parcel could be developed or redeveloped in the future based on its current development status and nature of such development.
Pursuant to the direction from LAFCO, DTA applied applicable development density factors1 to project the maximum allowed residential DUs and non-residential building square feet (“BSF”) at the build-out of areas that are deemed developable. Table 1 below lists the projected land uses and their respective development unit count for the current developed property (the “Current Developed Area”), i.e., existing development, and future developable lands (the “Future Developable Area”) within the Annexation Area.
Table 1: Projected Land Uses at Annexation Area Build-out Zoning Designation Gross
Acres
Development
Density Factor DUs/Business/BSF
Current Developed Area
Rural Rancho 11.92 N/A 5 DUs
Residential Estate 148.34 N/A 36 DUs and 5 Businesses
General Neighborhood 86.91 N/A 13 DUs and 3 Businesses
General Commercial 3.12 N/A 1 Business
Subtotal Non-Developable Area 250.29 N/A 54 DUs and 9 Businesses Future Developable Area
Rural Rancho 0.00 1 DU/Acre 0 DUs
Residential Estate 74.01 2.2 DUs/Acre 163 DUs
General Neighborhood 31.57 12 DUs/Acre 379 DUs
General Commercial 0.00 1.00 FAR 0 BSF
Subtotal Developable Area 105.58 N/A 542 DUs
Grand Total Annexation Area 355.87 N/A 596 DUs and 9 Businesses B Analytic Methodology and Assumptions
Notably, only recurring revenues and costs are analyzed in this FIA. Costs that are considered non-recurring, such as capital expenditures, are excluded from the analysis.
This is because new development is generally required to construct its own new capital improvements, such as roads or parks, or pay Development Impact Fees (“DIFs”) that enable the City or another developer to construct these improvements. As these are one-time costs that will not recur, there is no expectation that new development will need to pay for these capital expenditures a second time. Likewise, revenues that are non-recurring, such as DIFs paid by developers, are also excluded from the FIA. In sum, the model reflects the estimated recurring annual deficit or surplus to the City’s General Fund that will result from the annexation of the Annexation Area into the City.
1 The City indicates that homebuilders within the General Neighborhood zoning have elected to build at a dwelling density toward the lower end of the permissible range, as illustrated by the new community adjacent to the Annexation Area currently being constructed by Pulte Homes at 7.7 DUs per acre. The City deems the average residential density at 12 DUs per acre to be an appropriate metric to project the maximum DUs at the build-out of developable lands within the General Neighborhood zoning.
Item 23.
4 City of Coachella November 7, 2024
Fiscal Impacts Resulting from the Proposed Annexation of West Annexation Area 2024 DTA chooses its analytical assumptions in accordance with industry standards and documents those decisions carefully. The following list explains how some of these assumptions were derived:
Discounting Revenues: Certain revenues are not expected to increase one-to-one with new development. Thus, a 15% discount rate has been applied to various General Fund revenues to reflect the estimated ratio of fixed revenues (not impacted by future development) to variable revenues. In addition, DTA conservatively applies a 100% discount on the intergovernmental revenues received by the City given that the allotment of such revenues generally involves complex socioeconomic and demographic factors that are difficult to forecast. A 100% discount is also applied to miscellaneous General Fund revenues since DTA conservatively deemed those revenues to be static.
Discounting Expenses: Certain expenditures are not expected to increase one-to-one with new development. Thus, a 15% discount rate has been applied to various General Fund expenditures to reflect the estimated ratio of fixed expenditures (not impacted by future development) to variable expenditures. Even though the public safety service costs are not expected to increase one-to-one with new development, DTA has conservatively assumed that no discount factors would be applied to such expenditures.
Residential Population: There are currently approximately 159 residents residing within the Annexation Area2. Future residential population projection at the buildout of the Future Developable Area is based on the current Citywide average household size of 4.15 persons3
.
Tax Sharing (Secured Property Taxes): Property tax revenue estimates were derived using apportionment factors provided by the County Auditor-Controller as applied to the general 1% ad valorem property tax levy. Currently, total secured property tax revenues received by the County General Fund from the Annexation Area will equal approximately 13.04% of the basic 1% [Proposition (“Prop”) 13] property tax levy from the Tax Rate Area (“TRA”) encompassing the Annexation Area. Please note that the gross tax increment, as calculated by the County Auditor-Controller, has been reduced to account for the projected Education Revenue Augmentation Fund (“ERAF”) property tax shifts. Although the City and County have not entered into a property tax sharing agreement, the County indicated that it would retain 75% of its current 1% property tax apportionment from the Annexation Area after its annexation into the City, with the City receiving the remaining 25%.
Notably, the Annexation Area is located within the boundaries of the County’s Eastern Coachella Valley Enhanced Infrastructure Financing District (the "ECV EIFD"), with the County proposing to dedicate 20% of its annual property tax increment therefrom to the ECV EIFD. Although the County has not officially determined whether the 20% ECV EIFD property tax increment dedication would occur before or after the property tax sharing has been initiated with the City, DTA conservatively 2 Source: Environics Analytics, EmploymentProfiles by NAICS Codes 2024 for the Annexation Area. 3 Source: California Department of Finance, Housing and Population Information, January 1, 2024.
Item 23.
5 City of Coachella November 7, 2024
Fiscal Impacts Resulting from the Proposed Annexation of West Annexation Area 2024 assumed the County will first pledge 20% of its 1% property tax increment from the Annexation Area to the ECV EIFD and apportion 25% of the remaining 1% property tax increment to the City. Under this framework, the City is assumed to receive approximately 2.61% of the basic 1% property tax levy from the Annexation Area for the purpose of this FIA.
In addition, the Coachella Fire Protection District, a component unit of the City for financial reporting purposes, will receive approximately 5.44% of the basic 1% property tax levy from the Annexation Area.
Property Tax In Lieu of Vehicle License Fees (“VLFs”): The approval of Prop 1A in California in 2004 enacted a constitutional amendment that introduced a new methodology to calculate property taxes in lieu of VLFs. Per California Revenue and Taxation Code §97.70, the property tax in lieu of VLF amount now grows in proportion to the growth rate of gross assessed valuation in a city or county.
Property taxes in lieu of VLF revenues are projected to grow with the change in the Citywide gross assessed valuation of taxable property from the prior Fiscal Year (“FY”). Property taxes in lieu of VLF revenues constitute an addition to other property tax apportionments and were calculated for the purposes of this FIA at $2.19 per $1,000 increase in assessed valuation on a Citywide basis.
Valuation: The estimated valuation of future DUs is based on the projected sales price per DU for comparable home products being proposed in the KPC Coachella Specific Plan, with 10% and 20% discount factors applied to reflect the difference in the potential amenities offered by the residential developments within the Annexation Area and KPC Coachella Specific Plan.
Taxable Sales: Of the nine businesses currently within the Annexation Area, Moon Valley Nurseries is deemed to be the only establishment that generates meaningful taxable sales. For the purpose of this FIA, the $8.51M average annual sales per store is utilized to estimate the annual sales taxes to the City after the annexation of the Annexation Area.
Transient Occupancy Tax (“TOT”): There are currently three venues within the Annexation Area that will generate TOTs to the City General Fund after its annexation into the City:
Old Polo Estate: An upscale private estate wedding venue located at 51270 Jackson Street;
The Ranch at Coachella: A gated private luxury vacation rental estate on a 5- acre site located at 51600 Jackson Street; and
Rancho 51 Festival Campgrounds: An 8-acre date ranch located at 83272 51st Avenue providing glamping experience.
Water and Sewer Services: The Annexation Area is located within the service area of the Coachella Water Authority and Coachella Sanitary District. The City indicated that existing development within the Annexation Area currently do not receive water and sewer services from the City. For the purpose of this FIA, DTA assumes that future residential development will receive water and sewer services from the City
Item 23.
6 City of Coachella November 7, 2024
Fiscal Impacts Resulting from the Proposed Annexation of West Annexation Area 2024 through the construction of the necessary water and sewer improvements to connect to the existing City water and sewer systems.
For additional details regarding the specific assumptions and methodology utilized to calculate the fiscal impacts for the Project, please see Attachment 1 below.
C The City’s General Fund – Net Fiscal Impact Summary
As listed in Table 2 below, the overall net fiscal impact to the City's General Fund resulting from the revenues anticipated to be generated by the build-out of Annexation Area, as compared with the cost of public services associated with the build-out of Annexation Area, will be an annual recurring fiscal surplus of $773,534 upon its annexation into the City.
Table 2: General Fund Fiscal Impact Summary
Item 23.
7 City of Coachella November 7, 2024
Fiscal Impacts Resulting from the Proposed Annexation of West Annexation Area 2024 As reflected in Figure 3 below, the largest two projected City General Fund revenue sources attributable to the Annexation Area at build-out are property taxes (including property tax in lieu of VLFs) and Transient Occupancy Tax (“TOT”). Property taxes alone will generate
50.6% of the City's revenues from the Project, with TOT adding an additional 24.8%.
Conversely, the largest projected City General Fund expenditures will be for police (33.1%) and general government (23.5%), as reflected in Figure 4 below.
Figure 3: Recurring General Fund Revenues at Annexation Area Build-Out
Figure 4: Recurring General Fund Expenditures at Annexation Area Build-Out
If you have any further questions regarding this Executive Summary, please feel free to contact David Taussig or Jerry Wen at (800) 969-4DTA.
Enclosures:
1. Attachment 1 – FIA
Item 23.
ATTACHMENT 1
City of Coachella
Fiscal Impacts Resulting from the Proposed Annexation of West Annexation Area 2024 FIA
Item 23.
ATTACHMENT 1-A
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024
BASE PROGRAM
CITY FUND REVENUES (BY TYPE)
I Demographics and Other Data
2024 Estimated City Population [1] 43,173
2024 Estimated City Employees [2] 8,711
2024 Persons Served Population [3] 47,529
Notes:
[1] California Department of Finance, Housing and Population Information, January 1, 2024. [2] Environics Analytics, EmploymentProfiles by NAICS Codes 2024 for the City of Coachella.
II City Revenue Sources (by Type)
General
Fund
Revenue
Type
Fiscal Impact
Basis Discount
Fiscal Impact
Revenue
Factor
Tax Revenue $15,913,912 Persons Served $0.00
Property Tax - Securred $587,583 Recurring Case Study 0% NA Property Tax - Supplemental $120,000 Recurring Case Study 0% NA Property Tax - Unsecurred $25,000 Recurring Case Study 0% NA Property Tax In Lieu $213,016 Recurring Case Study 0% NA RPTTF Residual $322,000 Recurring Case Study 0% NA
Real Property Transfer Tax $110,000 Recurring Case Study 0% NA Transient Occupancy Tax $1,150,000 Recurring Case Study 0% NA Sales and Use Tax - Measure U $6,967,462 Recurring Case Study 0% NA Sales Tax $5,575,992 Recurring Case Study 0% NA
Delinquent Tax $10,000 Recurring Case Study 0% NA
Construction Tax $832,859 Recurring Case Study 0% NA
Utility Users Tax $3,400,000 Recurring Case Study 0% NA Business Licenses $734,000 Recurring Per Employee 15% $71.62 Franchise Fees $1,200,000 Recurring Persons Served 15% $21.46 Interest Income $75,000 Recurring Case Study 0% NA
Charges for Service $697,752 Recurring NA 100% NA
Building/Planning/Engineering Fees $503,195 Recurring NA 100% NA Licenses and Permits $15,000 Recurring Persons Served 15% $0.27 VLF/Property Tax Compensation $6,408,020 Recurring Case Study 0% NA Fines and Forfeitures $250,000 Recurring Persons Served 15% $4.47 Intergovernmental $814,890 Recurring NA 100% NA
Motor Vehicle License Fees $54,000 Recurring Case Study NA NA Other / Miscellaneous $491,750 Recurring Persons Served 100% $0.00 Cannabis Business Tax $900,000 Recurring Case Study 0% NA Transfers In $5,891,519 Non-Recurring NA 0% NA
$37,349,038 NA NA NA NA
Total Recurring Revenues $31,457,519 NA NA NA NA
[3] Assumes City population plus 50% of employees.
Revenue Type
Total Revenues
Item 23.
ATTACHMENT 1-B
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024
BASE PROGRAM
CITY FUND EXPENDITURES (BY TYPE)
I Demographics and Other Data
2024 Estimated City Population [1] 43,173
2024 Estimated City Employees [2] 8,711
2024 Persons Served Population [3] 47,529
Notes:
[1] California Department of Finance, Housing and Population Information, January 1, 2024. [2] Environics Analytics, EmploymentProfiles by NAICS Codes 2024 for the City of Coachella. [3] Assumes City population plus 50% of employees.
II City Expenditures (by Type)
General
Fund
Fire Protection
District [1]
Total
Expenditures
Expenditure
Type
Fiscal Impact
Basis Discount
Fiscal Impact
Expenditure
Factor
General Government
City Council $267,195 NA $267,195 Recurring Case Study 0% NA City Clerk $167,548 NA $167,548 Recurring Case Study 0% NA City Attorney $810,600 NA $810,600 Recurring Case Study 0% NA City Manager $305,999 NA $305,999 Recurring Case Study 0% NA Public Information Officer $363,761 NA $363,761 Recurring Case Study 0% NA General Government $4,411,341 NA $4,411,341 Recurring Case Study 0% NA Finance $1,405,070 NA $1,405,070 Recurring Case Study 0% NA Information Technology $1,040,051 NA $1,040,051 Recurring Case Study 0% NA Human Resources $399,094 NA $399,094 Recurring Case Study 0% NA Economic Development $475,828 NA $475,828 Recurring Case Study 0% NA Engineering $1,188,400 NA $1,188,400 Recurring Case Study 0% NA Non-General Government
Public Works $7,627,932 NA $7,627,932 Recurring Persons Served 15% $136.42 Development Services $3,780,084 NA $3,780,084 Recurring Persons Served 15% $67.60 Police Services $11,268,079 NA $11,268,079 Recurring Persons Served 0% $237.08 Animal Control $514,500 NA $514,500 Recurring Persons Served 15% $9.20 Emergency Services $80,000 NA $80,000 Recurring Persons Served 0% $1.68 Fire Services $3,242,928 $1,361,311 $4,604,239 Recurring Persons Served 0% $96.87 $37,348,410 $1,361,311 $38,709,721 NA NA NA NA
$37,348,410 $1,361,311 $38,709,721 NA NA NA NA
Notes:
[1] Represents the net expenditures reflecting revenues from the General Fund transfers-in of $3,242,928 and allocated CFD special taxes of 1,163,299.
Total Recurring Expenditures
Expenditure Type
Total Expenditures
Item 23.
ATTACHMENT 1-C
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
LAND USE AND DEMOGRAPHICS SUMMARY
I Developable Land Use Description
A Projected Residential Land Uses Number of Units [1]
General Neighborhood 379
Residential Estate 163
II Existing Land Use Description
A Existing Residential Land Uses Number of Households [2] General Neighborhood 13
Rural Rancho 5
Residential Estate 36
B Existing Non-Residential Land Uses Number of Gross Acres [3] General Neighborhood 61.29
Residential Estate 64.21
General Commercial 3.12
I Residential Land Use Population
A Projected Residential Land Uses Persons per Household [4] General Neighborhood 4.15
Residential Estate 4.15
I Residential Population
A Projected Residential Land Uses Number of Units Estimated Residential Population General Neighborhood 379 1,572
Residential Estate 163 676
B Existing Residential Land Uses Projected Residential Population [6] General Neighborhood 38
Rural Rancho 15
Residential Estate 106
II Direct Employees
A Existing Non-Residential Land Uses Estimated Direct Employees [6] General Neighborhood 81
Residential Estate 40
General Commercial 6
I Total Projected Residential Population 2,407
II Total Projected Direct Employees 127
III Total Persons Served Population [7] 2,471
Population and Employees (Totals)
Land Use Data
Demographic Data
Population and Employees (Calculations)
Item 23.
ATTACHMENT 1-C
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
LAND USE AND DEMOGRAPHICS SUMMARY
NOTES:
[1] Based on the residential density of 12 and 2.2 dwelling units per acre for the General Neighborhood and Residential Estate zonings, respectively.
[2] Source: Environics Analytics, EmploymentProfiles by NAICS Codes 2024 for the Annexation Area. [3] Source: County of Riverside Assessor Office.
[4] California Department of Finance, Housing and Population Information, January 1, 2024. [6] Source: Environics Analytics, EmploymentProfiles by NAICS Codes 2024 for the Annexation Area. [7] An employee is typically assumed to be equivalent to 50% of a resident given they would spend only eight active hours in the City per day versus a resident who is active for 16 hours per day. * All figures subject to rounding
Item 23.
ATTACHMENT 1-D
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
PROPERTY TAX REVENUE ANALYSIS
I Property Tax Allocation (as a Portion of the 1% General Property Tax Levy) [1] Prior to Annexation to City Upon Annexation to City
A Category / Code County of Riverside [2] County of Riverside City of Coachella [3] General Fund 10.437341% 7.828006% 2.609335%
Coachella Fire Protection District NA NA 5.442458%
Total 8.051793%
II Homeowner's Exemption
Homeowner's Exemption (Annually) $7,000
Percent of Sale Units Taking Homeowner's Exemption [4] 90% I Projected Residential Land Uses
A General Neighborhood
Number of Units [5] 379
Estimated Sales Price per Unit [6] $511,875
Total Estimated Net Taxable Value $191,612,925
B Residential Estate
Number of Units [5] 163
Estimated Sales Price per Unit [6] $1,184,000
Total Estimated Net Taxable Value $191,965,100
II Existing Residential Land Uses
A General Neighborhood
Total Net Taxable Value [7] $3,237,339
B Rural Rancho
Total Net Taxable Value [7] $1,311,868
C Residential Estate
Total Net Taxable Value [7] $10,074,690
I Existing Non-Residential Land Uses
A General Neighborhood
Total Net Taxable Value [7] $7,591,063
B Residential Estate
Total Net Taxable Value [7] $10,600,084
C General Commercial
Total Net Taxable Value [7] $2,834,185
II Total Land Use Net Taxable Value (Includes Takeout from Homeowner's Exemption) $419,227,254 I Unsecured Property Taxes - Assumptions [8]
A Unsecured Taxes as a % of Secured
Residential Property 2.50%
Non-Residential Property 10.00%
II Property Tax Transfer - Assumptions [8]
A Turnover Rate
Residential Property 10.00%
Non-Residential Property 3.00%
B Other Assumptions
Transfer Tax as a % of Assessed Value [9] 0.11%
Property Transfer Tax Passed Through to City of Coachella [10] 50.00% III Motor Vehicle Licensing Fees - Assumptions
Vehicle Licensing Fees per Capita NA
IV Property Tax In-Lieu of Vehicle License Fee - Assumptions General Property Tax Assumptions
Assessed Valuation Assumptions
Other Property Tax Revenue Assumptions
Item 23.
ATTACHMENT 1-D
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
PROPERTY TAX REVENUE ANALYSIS
Total City of Coachella Gross Assessed Value [11] $2,924,559,096 City of Coachella Property Tax In-Lieu of Vehicle License Fee [12] $6,408,020 Property Tax In-Lieu of Vehicle License Fee Increase per $1,000 Assessed Value $2.19 I Fiscal Impact Category Annual Fiscal Impact Amount
A Secured Property Tax
A.1 Projected Residential Land Uses
General Neighborhood $154,283
Residential Estate $154,566
A.2 Existing Residential Land Uses
General Neighborhood $2,607
Rural Rancho $1,056
Residential Estate $8,112
A.3 Existing Non-Residential Land Uses
General Neighborhood $6,112
Residential Estate $8,535
General Commercial $2,282
B Unsecured Property Tax
B.1 Projected Residential Land Uses
General Neighborhood $3,857
Residential Estate $3,864
B.2 Existing Residential Land Uses
General Neighborhood $65
Rural Rancho $26
Residential Estate $203
B.3 Existing Non-Residential Land Uses
General Neighborhood $611
Residential Estate $854
General Commercial $228
C Property Transfer Tax
C.1 Projected Residential Land Uses
General Neighborhood $10,539
Residential Estate $10,558
C.2 Existing Residential Land Uses
General Neighborhood $178
Rural Rancho $72
Residential Estate $554
C.3 Existing Non-Residential Land Uses
General Neighborhood $125
Residential Estate $175
General Commercial $47 #REF! $0
D Property Tax In-Lieu of Vehicle License Fee
Projected Residential and Non-Residential Land Uses [13] $918,571 II Total Property Tax Revenues $1,288,080
Fiscal Impact Calculation
Item 23.
ATTACHMENT 1-D
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
PROPERTY TAX REVENUE ANALYSIS
NOTES:
[1] Based on Tax Rate Area (TRA) data provided by the County of Riverside Auditor-Controller's Office. TRA allocations adjusted for the Educational Revenue Augmentation Fund ("ERAF"). [2] Assumes the County of Riverside will first pledge 20% of its 1% property tax increment from the Annexation Area to the Eastern Coachella Valley Enhanced Infrastructure Financing District ("ECV EIFD"). [3] Assumes the City of Coachella will receive 25% of County of Riverside's remaining 1% property tax increment after the aforementioned dedication to the ECV EIFD in Note No. 2. [4] Estimate, subject to change.
[5] Please see Attachment 1-C. Subject to change.
[6] Based on the comparable assessed value assumptions utilized in the KPC Coachella Specific Plan Project. [7] Source: County of Riverside Assessor Office.
[8] Based on typical DTA baseline assumptions.
[9] Source: California Revenue & Taxation Code §11901, et seq. [10] City of Coachella Municipal Code §4.20.020.
[11] Source: County of Riverside Auditor-Controller Office. [12] Source: City of Coachella Fiscal Year 2024/2025 Adopted Budget. [13] Property Tax in-lieu of Vehicle Licensing Fees applies to incremental property value. * All figures subject to rounding
Item 23.
ATTACHMENT 1-E
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
SALES TAX REVENUE ANALYSIS
I Indirect Sales Tax Assumptions - Residential
A Projected Residential Land Use Mortgage/Rent Assumptions A.1 General Neighborhood
Projected Sales Price per Unit [1] $511,875
Average Mortgage (20% Down Payment) $409,500
Annual Mortgage Payment (5% for 30 Years) $26,379
Additional Annual Taxes & Insurance (2.00%) $10,238
A.2 Residential Estate
Projected Sales Price per Unit [1] $1,184,000
Average Mortgage (20% Down Payment) $947,200
Annual Mortgage Payment (5% for 30 Years) $61,017
Additional Annual Taxes & Insurance (2.00%) $23,680
B Existing Residential Land Use Mortgage/Rent Assumptions B.1 General Neighborhood
Projected Sales Price per Unit [2] $249,026
Average Mortgage (20% Down Payment) $199,221
Annual Mortgage Payment (5% for 30 Years) $12,834
Additional Annual Taxes & Insurance (2.00%) $4,981
B.2 Rural Rancho
Projected Sales Price per Unit [2] $262,374
Average Mortgage (20% Down Payment) $209,899
Annual Mortgage Payment (5% for 30 Years) $13,521
Additional Annual Taxes & Insurance (2.00%) $5,247
B.3 Residential Estate
Projected Sales Price per Unit [2] $279,853
Average Mortgage (20% Down Payment) $223,882
Annual Mortgage Payment (5% for 30 Years) $14,422
Additional Annual Taxes & Insurance (2.00%) $5,597
C Projected Residential Land Use Disposable Income Assumptions C.1 General Neighborhood
Average Household Income (3:1 Income to Household Payment Ratio) $109,851 Retail Taxable Expenditures (as a % of Disposable Income) [3] 23.92% C.2 Residential Estate
Average Household Income (3:1 Income to Household Payment Ratio) $254,092 Retail Taxable Expenditures (as a % of Disposable Income) [3] 15.46% D Existing Residential Land Use Disposable Income Assumptions D.1 General Neighborhood
Average Household Income (3:1 Income to Household Payment Ratio) $53,442 Retail Taxable Expenditures (as a % of Disposable Income) [3] 30.52% D.2 Rural Rancho
Average Household Income (3:1 Income to Household Payment Ratio) $56,307 Retail Taxable Expenditures (as a % of Disposable Income) [3] 30.52% D.3 Residential Estate
Average Household Income (3:1 Income to Household Payment Ratio) $60,058 Retail Taxable Expenditures (as a % of Disposable Income) [3] 30.52% I Indirect Sales Tax Assumptions - Employees
Annual Spending per Employee [4] $7,540
II Retail Taxable Sales Capture
City of Coachella Retail Taxable Purchase Capture [5] 50% Indirect Sales Tax Assumptions
Item 23.
ATTACHMENT 1-E
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
SALES TAX REVENUE ANALYSIS
I Existing Non-Residential Direct Sales Tax Assumptions A Existing Non-Residential Land Uses Taxable Sales per Acre [5] General Neighborhood $0.00
Residential Estate $132,544
General Commercial $0.00
I Percent to the City of Coachella General Fund
City of Coachella Municipal Code §4.24.050 1.00%
Measure U 1.00%
Total 2.00%
I Fiscal Impact Category Annual Fiscal Impact Amount
A Indirect Sales Tax
A.1 Projected Residential Land Uses
General Neighborhood $99,608
Residential Estate $64,046
A.2 Existing Residential Land Uses
General Neighborhood $2,120
Rural Rancho $859
Residential Estate $6,598
A.3 Employee Taxable Sales
Direct Employees $9,576
B Direct Sales Tax
B.1 Existing Non-Residential Land Uses
General Neighborhood $0
Residential Estate $170,213
General Commercial $0
II Total Sales Tax Revenues $353,020
NOTES:
[1] Based on the comparable assessed value assumptions utilized in the KPC Coachella Specific Plan Project. [2] Based on the average assessed valuation per dwelling unit. Source: County of Riverside Assessor Office. [3] Source: Bureau of Labor Statistics, 2022 Consumer Expenditure Survey. [4] Based on the average daily spending of $29 on coffee, breakfast, and lunch.
Source: "State of Hybrid Work 2023, United States," Owl Labs. [5] Based on typical DTA baseline assumptions.
* All figures subject to rounding
Direct Sales Tax Assumptions
Other Sales Tax Assumptions
Fiscal Impact Calculation
Item 23.
ATTACHMENT 1-F
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
TRANSIENT OCCUPANCY TAX REVENUE ANALYSIS
I Venue Assumptions [1]
A Old Polo Estate
Rental Rate (per Night) $6,516
Occupancy Rate 50.00%
B Rancho 51 [1]
Average Weekly Visitors 600
Visitor Rate (per Night) $175
C The Ranch at Coachella
Rental Rate (per Night) $1,973
Occupancy Rate 50.00%
II Transient Occupancy Tax Rate Assumptions
City of Coachella Municipal Code §4.28.030 9.00%
IV Annual Revenue
Old Polo Estate $1,189,134
Rancho 51 $5,460,000
The Ranch at Coachella $360,013
I Fiscal Impact Category Annual Fiscal Impact Amount
A Transient Occupancy Tax
Old Polo Estate $107,022
Rancho 51 $491,400
The Ranch at Coachella $32,401
II Total Transient Occupancy Tax Revenues $630,823
NOTES:
[1] Source: DTA research.
Transient Occupancy Tax Assumptions
Fiscal Impact Calculation
Item 23.
ATTACHMENT 1-G
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
UTILITY USERS' TAX REVENUE ANALYSIS
I Utility Usage Assumptions
Telephone Electricity Natural Gas Water Sewer
A Projected Residential Land Uses ($ per Unit) [1] ($ per Unit) [2] ($ per Unit) [2] ($ per Unit) [2] ($ per Unit) [3] General Neighborhood $1,920 $2,412 $720 $624 $597
Residential Estate $1,920 $2,412 $720 $624 $597
Telephone Electricity Natural Gas Water Sewer
B Existing Residential Land Uses ($ per Unit) [1] ($ per Unit) [2] ($ per Unit) [2] ($ per Unit) [4] ($ per Unit) [5] General Neighborhood $1,920 $2,412 $720 $0 $0
Rural Rancho $1,920 $2,412 $720 $0 $0
Residential Estate $1,920 $2,412 $720 $0 $0
C Existing Non-Residential Land Uses ($ per Business) [1] (kWh per Sq. Ft.) [6] (Cu. Ft. per Sq. Ft.) [7] (Gal. per Unit) [4] (Gal. per Unit) [5] General Neighborhood $1,920 9.0 21.9 $0 $0
Residential Estate $1,920 0.00 0.00 $0 $0
General Commercial $1,920 7.6 39.1 $0 $0
II Energy Price Assumptions
A Non-Residential Land Uses Commodity Charge
Electricity Costs per kWh [8] $0.1181
Natural Gas Rate per 1,000 Cu. Ft. [9] $13.19
I Projected Residential Land Uses
A General Neighborhood
Telephone $727,680
Electricity $914,148
Natural Gas $272,880
Sewer $226,218
Water $236,496
B Residential Estate
Telephone $312,960
Electricity $393,156
Natural Gas $117,360
Sewer $97,291
Water $101,712
II Existing Residential Land Uses
A General Neighborhood
Telephone $24,960
Electricity $31,356
Natural Gas $9,360
B Rural Rancho
Telephone $9,600
Electricity $12,060
Natural Gas $3,600
C Residential Estate
Telephone $69,120
Electricity $86,832
Natural Gas $25,920
III Non-Residential Land Uses
A General Neighborhood
Telephone $19,200
Electricity $178,208
Natural Gas $48,431
B Residential Estate
Telephone $9,600
Electricity $0
Natural Gas $0
C General Commercial
Telephone $1,920
Electricity $12,198
Natural Gas $7,009
I Utility Users' Tax Rate Assumptions
Telephone (Municipal Code §4.30.040) 5.00%
Electricity (Municipal Code §4.30.050) 5.00%
Natural Gas (Municipal Code §4.30.060) 5.00%
Sewer (Municipal Code §4.30.090) 5.00%
Water (Municipal Code §4.30.080) 5.00%
Utility Assumptions
Utility Users' Tax Assumptions
Gross Utility Receipts
Item 23.
ATTACHMENT 1-G
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
UTILITY USERS' TAX REVENUE ANALYSIS
I Fiscal Impact Category Annual Fiscal Impact
Amount
A Utility User's Tax - Telephone
A.1 Projected Residential Land Uses
General Neighborhood $36,384
Residential Estate $15,648
A.2 Existing Residential Land Uses
General Neighborhood $1,248
Rural Rancho $480
Residential Estate $3,456
A.1 Existing Non-Residential Land Uses
General Neighborhood $960
Residential Estate $480
General Commercial $96
B Utility User's Tax - Electricity
B.1 Projected Residential Land Uses
General Neighborhood $45,707
Residential Estate $19,658
B.2 Existing Residential Land Uses
General Neighborhood $1,568
Rural Rancho $603
Residential Estate $4,342
B.3 Existing Non-Residential Land Uses
General Neighborhood $8,910
Residential Estate $0
General Commercial $610
C Utility User's Tax - Natural Gas
C.1 Projected Residential Land Uses
General Neighborhood $13,644
Residential Estate $5,868
C.2 Existing Residential Land Uses
General Neighborhood $468
Rural Rancho $180
Residential Estate $1,296
C.1 Existing Non-Residential Land Uses
General Neighborhood $2,422
Residential Estate $0
General Commercial $350
D Utility User's Tax - Sewer
D.1 Projected Residential Land Uses
General Neighborhood $11,311
Residential Estate $4,865
E Utility User's Tax - Water
E.1 Projected Residential Land Uses
General Neighborhood $11,825
Residential Estate $5,086
II Total Utility Users' Tax Revenues $197,464
NOTES:
[1] Based on the current base cost of AT&T Family Cell Phone plan and Business Unlimited Premium plan with two lines. [2] Source: DTA research.
[3] Source: Coachella Sanitary District.
[4] Existing properties do not currently receive water services from the Coachella Water Authority. [5] Existing properties do not currently receive sewer services from the Coachella Sanitary District. [6] Source: Table C15, 2018 Commercial Buildings Energy Consumption Survey, U.S. Energy Information Administration. [7] Source: Table C25, 2018 Commercial Buildings Energy Consumption Survey, U.S. Energy Information Administration. [8] Source: https://www.electricitylocal.com/states/california/coachella/ [9] Source: https://naturalgaslocal.com/states/california/coachella/ * All figures subject to rounding
Fiscal Impact Calculation
Item 23.
ATTACHMENT 1-H
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
MULTIPLIER REVENUE SOURCES ANALYSIS
I Revenue Category Multiplier Factor [1] Revenue Projection Basis Business Licenses $71.62 Per Employee
Franchise Fees $21.46 Persons Served
Licenses and Permits $0.27 Persons Served
Fines and Forfeitures $4.47 Persons Served
I Fiscal Impact Category Annual Fiscal Impact Amount
Business Licenses $9,096
Franchise Fees $53,028
Licenses and Permits $667
Fines and Forfeitures $11,045
II Total Multiplier Revenues $73,836
NOTES:
[1] Source: City of Coachella Approved Budget, Fiscal Year 2024-2025. * All figures subject to rounding
Multiplier Revenue Assumptions
Fiscal Impact Calculation
Item 23.
ATTACHMENT 1-I
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
INVESTMENT INCOME REVENUES ANALYSIS
I Investment Income Assumptions
Investment Period for Recurring Non-Interest General Fund Revenues 1 Month Local Agency Investment Fund (LAIF) Rate of Return [1] 2.06% Local Agency Investment Fund (LAIF) Percentage of Earnings Cost [1] 50.00% I Fiscal Impact Category Annual Fiscal Impact Amount
Total Property Tax Revenues (Attachment 1-D) $1,288,080 Total Sales Tax Revenues (Attachment 1-E) $353,020
Total Transient Occupancy Tax Revenues (Attachment 1-F) $630,823 Total Utility Users' Revenues (Attachment 1-G) $197,464 Total Multiplier Revenues (Attachment 1-H) $73,836
II Projected Recurring General Fund Revenues Available for Investment $2,543,223 III Plus: Investment Income (Less Earnings Cost) $2,186 IV Total Recurring General Fund Revenues $2,545,409
NOTES:
[1] Estimate. Subject to change.
* All figures subject to rounding
Assumptions
Fiscal Impact Calculation
Item 23.
ATTACHMENT 1-J
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
MULTIPLIER EXPENDITURES ANALYSIS
I Expenditure Category Multiplier Factor [1] Expenditure Projection Basis Public Works $136.42 Persons Served
Development Services $67.60 Persons Served
Police Services $237.08 Persons Served
Animal Control $9.20 Persons Served
Emergency Services $1.68 Persons Served
Fire Services $96.87 Persons Served
I Fiscal Impact Category Annual Fiscal Impact Amount
Public Works $337,094
Development Services $167,040
Police Services $585,825
Animal Control $22,733
Emergency Services $4,151
Fire Services $239,366
II Total Multiplier Expenditures $1,356,209
NOTES:
[1] Source: City of Coachella Approved Budget, Fiscal Year 2024-2025. * All figures subject to rounding
Multiplier Expenditure Assumptions
Fiscal Impact Calculation
Item 23.
ATTACHMENT 1-K
COACHELLA, CALIFORNIA: WEST ANNEXATION AREA 2024 (P7 AND MESQUITE)
BASE PROGRAM
GENERAL GOVERNMENT EXPENDITURES ANALYSIS
I General Government Overhead Expenditures
Total Recurring Fund Expenditures (excluding General Government Overhead) [1] $26,513,523 Recurring General Government Overhead Expenditures (as a % of Total Recurring Fund Expenditures) [2] 40.9% Marginal Increase in General Government Costs 75%
I Fiscal Impact Category Annual Fiscal Impact Amount
Total Multiplier Expenditures (Attachment 1-I) $1,356,209 II Projected Recurring General Fund Expenditures $1,356,209 III Plus: General Government Costs $415,666
IV Total Recurring Expenditures $1,771,875
NOTES:
[1] Source: City of Coachella Approved Budget, Fiscal Year 2024-2025. [2] General Government Overhead Expenditures defined as costs for Legislative, Administration, Finance, Development Services, and other General Government.
* All figures subject to rounding
Assumptions
Fiscal Impact Calculation
Item 23.
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Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
PLAN OF SERVICES
CITY OF COACHELLA
ANNEXATION OF PROPOSED WEST ANNEXATION
AREA (P7 AND MESQUITE)
November 5, 2024
Item 23.
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
CITY OF COACHELLA
PLAN OF SERVICES
ANNEXATION OF PROPOSED WEST ANNEXATION AREA
(P7 AND MESQUITE)
Prepared for:
City of Coachella
53990 Enterprise Way
Coachella, CA 92236
Approved by:
By:
Its:
Date:
Item 23.
TABLE
OF CONTENTS
SECTION PAGE
I INTRODUCTION .............................................................. 1 A Purpose of the Plan of Services ....................................... 1 B Description of the Annexation Area ............................... 1
II PLAN OF SERVICES BEFORE AND AFTER
ANNEXATION OF ANNEXATION AREA ....................... 4 A General Government and Administrative
Services ................................................................................. 6 B Fire Protection and Emergency Response
Services ................................................................................. 6 C Law Enforcement ................................................................ 7 D Library ................................................................................... 7 E Parks and Recreation ......................................................... 8 F Animal Control .................................................................... 9 G Street Lighting ..................................................................... 9 H Landscape Maintenance ................................................... 9 I Water ................................................................................... 10 J Wastewater ........................................................................ 10 K Transportation ................................................................... 11 L Flood Control and Drainage ........................................... 11 M Utilities ................................................................................ 12 N Schools ................................................................................ 12 O Solid Waste Management ............................................... 12 III FISCAL IMPACT ............................................................. 13 A One-Time Fiscal Impacts ................................................ 13 B Recurring Fiscal Impact ................................................... 14
Item 23.
1 SECTION I
INTRODUCTION
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
I INTRODUCTION
DTA has been retained to prepare a Plan of Services (“POS”) for the City of Coachella (the "City") to serve the proposed annexation of certain areas designated as West Annexation Area 2024 (the “Annexation Area”), commonly known as P7 and Mesquite. The entire Annexation Area is currently located within the unincorporated portion of the County of Riverside (the “County”) and the City’s Sphere of Influence (“SOI”).
A Purpose of the Plan of Services
The City is in the process of submitting an annexation application (the “Annexation Application”) to the County Local Agency Formation Commission (“LAFCO”) for the annexation of the Annexation Area into the City. LAFCO requires the preparation and certification of a study, called a POS, when a jurisdiction is to be impacted by a proposed change of organization or reorganization, such as an annexation of additional properties into its jurisdiction. The intent of this POS is to provide LAFCO with sufficient information to assess the capabilities of the City related to providing municipal services to the Annexation Area once it has been absorbed by the City. In addition, the POS includes information on the fiscal impacts of such annexation action on the City General Fund.
B Description of the Annexation Area
As depicted in Figure 1 below, the Annexation Area encompasses approximately 355.87 acres of land abutting the City’s western boundaries and is generally bounded on the north by 50th Avenue, on the west by Jackson Street, and on the south by 52nd Avenue.
Figure 1: Boundaries of the Annexation Area
Item 23.
2 SECTION I
INTRODUCTION
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
Pursuant to the City 2035 General Plan Update and illustrated in Figure 2 below, the Annexation Area is comprised of the following zoning designations:
Rural Rancho: Allows for 0.4 to 1 dwelling unit (“DU”) per acre in residential density; Residential Estate: Permissible dwelling density ranges from 1 to 2.2 DUs per acre; General Neighborhood: Allows for 7 to 25 DUs per acre in residential density, with 12 DUs per acre anticipated to be the average density for new projects therein; and General Commercial: Allows for commercial development up to the maximum floor area ratio (“FAR”) of 1.00.
Figure 2: Zoning Designations within the Annexation Area
Item 23.
3 SECTION I
INTRODUCTION
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
The Annexation Area is currently comprised of both developed and vacant parcels. To evaluate the required municipal services of the Annexation Area upon its annexation into the City, DTA developed a build-out land use projection for the Annexation Area. Utilizing the 2024 County Assessor’s Roll, DTA first determined if a parcel could be developed or redeveloped in the future based on its current development status and nature of such development. Pursuant to the direction from LAFCO, DTA applied applicable development density factors1
to project the maximum allowed residential DUs and non-residential building square feet (“BSF”) at the build-out of areas that are deemed developable. Table 1 below lists the projected land uses and their respective development unit count for the current developed property (the “Current Developed Area”), i.e., existing development, and future developable lands (the “Future Developable Area”) within the Annexation Area.
Table 1: Projected Land Uses at Annexation Area Build-out Zoning Designation Gross
Acres
Development
Density Factor DUs/Business/BSF
Current Developed Area
Rural Rancho 11.92 N/A 5 DUs
Residential Estate 148.34 N/A 36 DUs and 5 Businesses
General Neighborhood 86.91 N/A 13 DUs and 3 Businesses
General Commercial 3.12 N/A 1 Business
Subtotal Non-Developable Area 250.29 N/A 54 DUs and 9 Businesses Future Developable Area
Rural Rancho 0.00 1 DU/Acre 0 DUs
Residential Estate 74.01 2.2 DUs/Acre 163 DUs
General Neighborhood 31.57 12 DUs/Acre 379 DUs
General Commercial 0.00 1.00 FAR 0 BSF
Subtotal Developable Area 105.58 N/A 542 DUs
Grand Total Annexation Area 355.87 N/A 596 DUs and 9 Businesses
1 The City indicates that homebuilders within the General Neighborhood zoning have elected to build at a dwelling density toward the lower end of the permissible range, as illustrated by the new community adjacent to the Annexation Area currently being constructed by Pulte Homes at 7.7 DUs per acre. The City deems the average residential density at 12 DUs per acre to be an appropriate metric to project the maximum DUs at the build-out of developable lands within the General Neighborhood zoning.
Item 23.
4 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
II PLAN OF SERVICES BEFORE AND AFTER ANNEXATION OF ANNEXATION AREA
The list of municipal services necessary to serve the Annexation Area are the following:
General Government and Administrative Services;
Fire Protection and Emergency Response Services;
Sheriff/Police and Public Safety Services;
Library;
Parks and Recreation;
Animal Control;
Street Lighting;
Landscape Maintenance;
Water;
Wastewater;
Transportation;
Flood Control and Drainage;
Utilities;
Schools; and
Solid Waste Management.
Table 2, below, provides a summary of which public agencies are currently responsible for providing each type of municipal service, prior to the annexation, as well as which public agency is anticipated to be providing that same service after the annexation. In addition, one-time Development Impact Fees (“DIFs”) will be collected by a number of public agencies to fund the capital costs of public facilities, as summarized in Section III of this Study.
Table 2: Municipal Services Providers for Proposed Annexation Area Municipal Services Current Municipal Provider Future Municipal Provider After Annexation
General Government and
Administrative Services2 County of Riverside City of Coachella Fire Protection and Emergency
Response Services
Riverside County Fire Department; and
Riverside County Emergency Medical
Service (“EMS”) Agency.
Coachella Fire Protection District
Sheriff/Police and Public Safety Riverside County Sheriff's Department City of Coachella Police Department Library Riverside County Library System Riverside County Library System 2 Including General municipal administration, planning and community development services, economic development, local road operation and maintenance (“O&M”), street lighting O&M, local parks O&M, and human resources, among other services.
Item 23.
5 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
Municipal Services Current Municipal Provider Future Municipal Provider After Annexation
Parks and Recreation
Regional Facilities
Riverside County Regional Park and
Open-Space District; and
Desert Recreation District
Riverside County Regional Park and
Open-Space District; and
Desert Recreation District
Local Facilities None
City of Coachella Public Works
Department; and/or
Special Assessment Districts such as
Landscaping and Lighting
Maintenance Districts (“LLMDs”)
Animal Control Riverside County Department of Animal
Services
Riverside County Department of Animal
Services
Street Lighting Imperial Irrigation District (“IID”)/Riverside County Transportation Department
IID/City of Coachella Public Works
Department; and/or
Special Assessment Districts such as
LLMDs
Landscape Maintenance
Special Assessment Districts such as LLMD
No. 89-1-Consolidated, Community Service
Areas, or a Community Services District.
City of Coachella Public Works
Department; and/or
Special Assessment Districts such as
LLMDs
Water Coachella Water Authority Coachella Water Authority Wastewater Coachella Sanitary District Coachella Sanitary District Transportation
Freeways and Interchanges Caltrans Caltrans
Local Public Roads Riverside County Transportation Department City of Coachella Public Works Department
Regional Transit Riverside County Transportation Commission (“RCTC”) RCTC
Local Transit Sunline Transit Agency Sunline Transit Agency Flood Control and Drainage
Regional Facilities Coachella Valley Water District Coachella Valley Water District Local Facilities None
City of Coachella Public Works
Department; and/or
Special Assessment Districts such as
LLMDs
Utilities
Cable/Internet
Provider/Phone Spectrum and Frontier Spectrum and Frontier Power IID IID
Natural Gas Southern California Gas Company Southern California Gas Company Schools Coachella Valley Unified School Coachella Valley Unified School Solid Waste Management
Burrtec Waste Industries, Inc. through
franchise agreement with Riverside County
Department of Waste Resources.
Burrtec Waste Industries, Inc. through
franchise agreement with the City of
Coachella.
Item 23.
6 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
A written narrative describing the pre-annexation and post-annexation provision of each service listed above follows:
A General Government and Administrative Services
A.1 Before Annexation
The County currently provides general government and administrative services to the Annexation Area. These include certain services that the County only provides in the unincorporated County, such as planning and community development services, economic development, arterial, collector and other local road operation and maintenance (“O&M”), local parks O&M and human resources, among other services. In addition, the County provides certain services on a Countywide basis to both cities and the unincorporated County, such as criminal justice services related to jails and courts, which include district attorney, public defender and probation services, as well as health and welfare services and other Countywide functions.
A.2 After Annexation
The City will assume responsibility for all of the administrative and general government services that had been previously provided by the County exclusively for unincorporated County areas. As discussed above, these would include planning and community development services, economic development, local road and street light O&M, etc. within the Annexation Area. However, the other services currently provided by the County on a Countywide basis, such as criminal justice services related to jails and courts, which include district attorney, public defender and probation services, and health and welfare services, will continue to be the County’s responsibility within the Annexation Area.
B Fire Protection and Emergency Response Services
B.1 Before Annexation
The Riverside County Fire Department (“RCFD”) currently provides fire protection and emergency response services to the Annexation Area. The Annexation Area is primarily served by Fire Station No. 86, located at 46990 Jackson Street in the City of Indio, which is approximately 1.8 miles north of the Annexation Area. The Riverside County EMS Agency provides medical care outside of and prior to receiving treatment by a physician or nurse practitioner in a hospital, clinic, or office.
B.2 After Annexation
The Coachella Fire Protection District (“CFPD”), a component unit of the City for financial reporting purposes, will provide the fire protection and emergency response services to the Annexation Area after its annexation via a cooperative agreement with the RCFD and Cal Fire. The Annexation Area will continue to be primarily served by the RCFD Fire Station No. 86. Based on its proximity to an existing RCFD fire station, the Annexation Area is anticipated to be adequately served by fire
Item 23.
7 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
protection services.
Pursuant to the findings in the Initial Study/Negative Declaration (“IS/ND”) prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. Any additional fire protection facilities needed to serve future developments will be funded through the collection of applicable Fire Facilities Impact Fees. Please see Section III for the current Fire Facilities Impact Fees and FIA for the estimated annual recurring fire protection service expenditures associated with the build-out of the Annexation Area, and the fiscal revenues generated therefrom, to fund such services.
C Law Enforcement
C.1 Before Annexation
The Riverside County Sheriff’s Department (“RCSD”) currently provides public safety services to the Annexation Area. The Annexation Area is primarily served by the Thermal Station, located at 86625 Airport Boulevard in City of Thermal, which is approximately 6.7 miles southeast of the Annexation Area.
C.2 After Annexation
The City of Coachella Police Department (“CPD”), via its contract with the RCSD, will provide comprehensive law enforcement services to the Annexation Area after its annexation. The Annexation Area will continue to be primarily served by the RCSD’s Thermal Station. Based on its proximity to an existing RCSD patrol station, the Annexation Area is anticipated to be adequately served by police protection services.
Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. Any additional police facilities needed to serve future developments will be funded through the collection of applicable Police Facilities Impact Fees. Please see Section III for the current Police Facilities Impact Fees and FIA for the estimated annual recurring police expenditures associated with the build-out of the Annexation Area, and the fiscal revenues generated therefrom, to fund such services.
D Library
D.1 Before Annexation
Currently, the Annexation Area is served by the Riverside County Library system. The nearest County library is the Coachella Library, located at 1500 6th Street in Coachella.
Item 23.
8 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
D.2 After Annexation
The Riverside County Library system will continue to serve the Annexation Area after its annexation into the City. Notably, the City will be responsible for constructing any new libraries required to serve the Annexation Area through the collection of applicable Library Facilities Impact Fees. Please see Section III for the current Library Facilities Impact Fees.
E Parks and Recreation
E.1 Before Annexation
The Riverside County Regional Park and Open-Space District (“RCRPD”) provides regional park services to all residents and employed persons within the County, including parks located in both incorporated and unincorporated areas. The closest regional park is Lake Cahuilla Veterans Regional Park, which is a 710-acre park located 6 miles southeast of Old Town La Quinta with 96 campsites near the Santa Rosa Mountains and a 135-acre lake. However,RCRPD’s mandate is only to provide regional park facilities, so it does not support the construction, operations or maintenance of local parks anywhere within its jurisdiction, including within the Annexation Area.
The Annexation Area is also located within the boundaries of the Desert Recreation District (“DRD”), formerly known as the Coachella Valley Recreation and Park District.
The DRD, encompassing over 1,800 square miles, is the largest park and recreation district in California. The DRD currently has over 30 parks and recreation facilities and provide recreational services to approximately 300,000 residents within its boundaries. The DRD facilities closest to the Annexation Area, both located within the City limits, are Bagdouma Park, a 46-acre multi-sport complex at 51723 Douma Street, and the newly constructed Rancho Las Flores Park at 48400 Van Buren Street.
The Annexation Area currently does not have any local public parks or recreational facilities.
E.2 After Annexation
The City will operate and maintain any new local public parks and/or recreational facilities within the Annexation Area after their construction through its Public Works Department, the formation of new special assessment districts such as landscaping and lighting maintenance districts (“LLMDs”), or combination of both. The Parks and Recreation Division of City’s Public Works Department currently supports the operations and maintenance of four community parks within the City, which are available for use by residents and employed persons located within the Annexation Area.
There are currently 38 LLMDs within the City, with each LLMD encompassing a discrete service area. In connection with the creation of each individual LLMD, an
Item 23.
9 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
Engineer’s Report was prepared to identify the services to be provided therein and the annual assessments required for funding such services. Authorized services for a LLMD can include the common area landscape maintenance, street lighting, and storm system maintenance.
Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. Any additional park lands and facilities needed to serve future developments will be funded through the collection of applicable Park Land Impact Fees and Park Facilities Impact Fees. Please see Section III for the current Park Land Impact Fees and Park Facilities Impact Fees.
F Animal Control
F.1 Before Annexation
The Riverside County Department of Animal Services (“RCDAS”) currently operates four animal shelters within the County, with Animal Samaritans being the closest shelter located at 72050 Pet Land Place in the City of Thousand Palms.
F.2 After Annexation
The RCDAS will continue to provide animal control and shelter services to the Annexation Area after its annexation into the City.
G Street Lighting
G.1 Before Annexation
The Imperial Irrigation District (“IID”) and the Riverside County Transportation Department are responsible for operating and maintaining streetlights within the Annexation Area.
G.2 After Annexation
Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. Upon annexation, IID and the City will be responsible for operating and maintaining streetlights in the Annexation Area. The operation and maintenance of those streetlights that are City’s responsibility will be provided through its Public Works Department, the formation of new special assessment districts such as LLMDs, or a combination of both.
H Landscape Maintenance
H.1 Before Annexation
Landscape maintenance services within the right-of-way in unincorporated areas of the County may be provided through applicable special assessment districts, such as Landscaping and Lighting Maintenance District No. 89-1-Consolidated, community
Item 23.
10 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
service areas, or a community services district.
H.2 After Annexation
Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. Upon annexation, the City’s Public Works Department and/or new special assessment districts, such as LLMDs, will be responsible for providing operations and maintenance services for the landscaping of all right-of-way, parkways and medians within the Annexation Area.
I Water
I.1 Before Annexation
Coachella Water Authority (“CWA”) provides drinking water service to retail customers within the Annexation Area. CWA indicated that none of the properties within the Annexation Area are currently connected to the CWA water system to receive water services.
I.2 After Annexation
CWA will continue to be the retail drinking water service provider for the Annexation Area after its annexation into the City. Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future.
Future residential developments will need to construct the required improvements to connect to the CWA water system if they intend to receive water services from CWA. Any additional water facilities needed to serve future developments will be funded through the collection of applicable Water Connection Fees. Please see Section III for the current Water Connection Fees.
J Wastewater
J.1 Before Annexation
Coachella Sanitary District (“CSD”) provides wastewater services to the Annexation Area. CSD indicated that none of the properties within the Annexation Area are currently connected to the CWA wastewater system to receive sewer services.
J.2 After Annexation
CSD will continue to provide wastewater services to the Annexation Area after its annexation into the City. Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. Future residential developments will need to construct the required improvements to connect to the CSD wastewater collection system if they intend to receive sewer services from CSD. Any additional sewer facilities needed to serve
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11 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
future developments will be funded through the collection of applicable Sanitary District Connection Fees. Please see Section III for the current Sanitary District Connection Fees.
K Transportation
K.1 Before Annexation
Caltrans currently operates and maintains freeways located in the unincorporated County, while, as noted in Section A.1 of this study, arterials, collectors and other local public roads are operated and maintained by the Riverside County Transportation Department. Riverside County Transportation Commission (“RCTC”) provides regional public transit in the unincorporated County, with Sunline Transit Agency providing the local transit services.
K.2 After Annexation
Caltrans, RCTC, and Sunline Transit Agency will continue to provide freeway and public transit services to the Annexation Area once the annexation has been completed. As noted previously in Section A.2, the City’s Public Works Department will be responsible for the operations and maintenance of local public roads within the Annexation Area.
Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. Any additional local transportation facilities needed to serve future developments will be funded through the collection of applicable Bus Shelter Impact Fees and Street & Transportation Impact Fees. Please see Section III for the current Bus Shelter Impact Fees and Street & Transportation Impact Fees.
L Flood Control and Drainage
L.1 Before Annexation
The Coachella Valley Water District (“CVWD”) provides operations and maintenance services for regional flood control facilities. There are currently no local flood control facilities within the Annexation Area.
L.2 After Annexation
The CVWD will continue to manage regional flood control facilities on behalf of the Annexation Area. Pursuant to the findings in the IS/ND prepared for the Annexation Area, no additional facilities or personnel are required to serve the Annexation Area “as-is”, i.e., assuming no additional developments in the future. The City will operate and maintain future local flood control facilities through its Public Works Department, the formation of new special assessment districts such as LLMDs, or a combination of both.
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12 SECTION II
PLAN OF SERVICES BEFORE AND
AFTER ANNEXATION OF
ANNEXATION AREA
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
M Utilities
M.1 Before Annexation
The current providers of cable television, internet and telephone services within the area are Spectrum and Frontier Communications. Electricity is supplied by IID and natural gas by the Southern California Gas Company.
M.2 After Annexation
All utility services in the Annexation Area will continue to be maintained by the same private parties.
N Schools
N.1 Before Annexation
The local primary and secondary schools are being operated by the Coachella Valley Unified School (“CVUD”).
N.2 After Annexation
Both primary and secondary school services will continue to be the responsibility of CVUD.
O Solid Waste Management
O.1 Before Annexation
Burrtec Waste Industries, Inc. currently provides waste and recycling services to the Annexation Area site through a franchise agreement with the County Department of Waste Resources.
O.2 After Annexation
Burrtec Waste Industries, Inc. will continue to provide waste and recycling services to the Annexation Area site after its annexation, although its franchise agreement will be executed with the City rather than with the County.
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13 SECTION III
FISCAL IMPACT
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
III FISCAL IMPACT
Fiscal impacts arising from a land development plan can be broadly categorized as one of two types, specifically one-time impacts or recurring impacts.
A One-Time Fiscal Impacts
DIFs are one-time fees utilized to fund a project’s fair share of a municipality’s infrastructure and capital needs, and are generally paid upon issuance of grading permits or building permits. It is assumed that one-time revenues would directly offset one-time costs.
Projected residential uses within the Annexation Area are subject to the following DIFs collected by the City:
Park Land Impact Fee: Collected to provide necessary parkland and open space for the additional residential population generated by new developments. Current fees are imposed at $3,056.94 per single-family unit (“SFU”) and $2,567.83 per multi-family unit (“MFU”).
Library Facilities Impact Fee: Collected to provide library access to books, internet, and other reading and learning materials for the additional residents generated by new developments. Current fees are assessed at $577.88 and $485.42 per SFU and MFU, respectively.
Bus Shelter Impact Fee: Collected to provide sufficient bus shelters at designated bus stops to accommodate transit expansion, with the current fee imposed at $85 per residential unit.
Park Improvement Impact Fee: Collected to provide sufficient park facilities and equipment for the additional residents generated by new developments. Current fees are assessed at $6,480.35 and $5,443.49 per SFU and MFU, respectively.
Street & Transportation Impact Fee: Collected to provide for street improvements based on trip demand placed on the road system by new developments. Current fees are imposed at $3,357.48 and $1,738.69 per SFU and MFU, respectively.
Police Facilities Impact Fee: Collected to provide police facilities and service equipment for increased police needs to serve new developments. Current fees are assessed at $306.54 and $257.49 per SFU and MFU, respectively.
General Government Facilities Impact Fee: Collected to provide general government facilities needed to serve additional residents generated by new developments.
Current fees are imposed at $2,357.61 and $1,980.39 per SFU and MFU, respectively.
Fire Facilities Impact Fee: Collected to provide fire protection and medical services facilities and equipment needed to serve additional residential population generated by new developments. Current fees are assessed at $1,750.03 and $1,470.02 per SFU and MFU, respectively.
Item 23.
14 SECTION III
FISCAL IMPACT
City of Coachella November 5, 2024
West Annexation Area 2024 Plan of Services
www.FinanceDTA.com
Water Connection Fee: Collected to provide adequate water facilities to meet the demands of new communities, with the current fee imposed at $3,948.17 per equivalent dwelling unit (“EDU”). The determination of EDUs is based on the number and size of water connections required.
Sanitary District Connection Fee: Collected to provide adequate sanitation facilities to meet the demands of new communities, with the current fee imposed at $4,141.56 per EDU. A SFU is deemed to be one EDU, with a MFU converted to the applicable EDU based on its “equivalence” as an SFU.
Art in Public Places Impact Fee: Collected to provide continued community access to public art. Current fees are assessed at 0.25% of the residential unit valuation.
Notably, the Transportation Uniform Mitigation Fee (“TUMF”) and Multiple Species Habitat Conservation Plan Fee (“MSHCPF”) are excluded from the above list, as both fees are collected through the City. The TUMF will be paid directly to the Western Riverside Council of Governments and MSHCPF to the Western Riverside County Regional Conservation Authority. The fees listed above focus on City-based fees only. Actual fees will be calculated by the City at the time of issuance of a building permit. Fees may vary due to exemptions, credits or other variables.
B Recurring Fiscal Impact
As detailed in the Fiscal Impact Analysis Summary Memorandum (the “FIA Memo”) submitted under a separate cover, the Annexation Area site is anticipated to generate an annual recurring incremental fiscal surplus at buildout of $78,199 based on the generation of $1,850,074 in annual recurring revenues and $1,771,875 in recurring annual costs (See Section C of the FIA Memo). Overall, the annual General Fund revenues generated are projected to equal 1.04 times the associated General Fund costs. If the fiscal impact analysis for a project reflects a revenue/cost Ratio >1, the project is expected to generate a positive net fiscal impact for the municipality’s funds.
Item 23.
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
Item 23.
Gavin Newsom, Governor
Gabe Tiffany, Acting Director
State of California Natural Resources Agency | Department of Conservation 715 P Street, MS 1904, Sacramento, CA 95814
conservation.ca.gov | T: (916) 324-0850 | F: (916) 327-3430 NOVEMBER 1, 2024
VIA EMAIL: [email protected]
CITY OF COACHELLA
DEVELOPMENT SERVICES
ATTN: GABRIEL PEREZ
53990 ENTERPRISE WAY
COACHELLA, CA 92236
Dear Mr. Perez:
INITIAL STUDY AND NEGATIVE DECLARATION FOR THE COACHELLA POCKET 7 MESQUITE ANNEXATION PROJECT, SCH# 2024100426
The Department of Conservation’s (Department) Division of Land Resource Protection (Division) has reviewed the Initial Study and Negative Declaration for the Coachella Pocket 7 Mesquite Annexation Project (Project).
The Division monitors and maps farmland conversion on a statewide basis, provides technical assistance regarding the Williamson Act, and administers various agricultural land conservation programs. Public Resources Code, section 614, subdivision (b) authorizes the Department to provide soil conservation advisory services to local governments, including review of CEQA documents.
Protection of the state’s agricultural land resources is part of the Department’s mission and central to many of its programs. The CEQA process gives the Department an opportunity to acknowledge the value of the resource, identify areas of Department interest, and offer information on how to assess potential impacts or mitigation opportunities.
The Department respects local decision-making by informing the CEQA process, and is not taking a position or providing legal or policy interpretation.
We offer the following comments for consideration with respect to the project’s potential impacts on agricultural land and resources within the Department’s purview.
PROJECT ATTRIBUTES
The proposed project would annex 78 parcels and approximately 374 acres, which are currently within the City’s Sphere of Influence (SOI) or General Plan Planning Area, generally bounded by Jackson Street to the west, Avenue 50 to the north, Van Buren Street to the east, and Avenue 52 to the south. A portion of this area, known as P7, was added to the City’s General Plan Planning Area in 2023 through a General Plan
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Amendment. The northern and eastern portions of this area were previously included in the City’s SOI and had land use overlays identified in the 2015 Certified General Plan Environmental Impact Report (EIR).
The project site contains Prime Farmland as designated by DOC’s Farmland Mapping and Monitoring Program, and a portion of the project site is subject to a Williamson Act contract.
PROJECT CONSIDERATIONS
The conversion of agricultural land represents a permanent reduction and impact to California’s agricultural land resources. The Department generally advises discussion of the following in any environmental review for the loss or conversion of agricultural land:
• Type, amount, and location of farmland conversion resulting directly and indirectly from implementation of the proposed project. • Impacts on any current and future agricultural operations in the vicinity; e.g., land-use conflicts, increases in land values and taxes, loss of agricultural support infrastructure such as processing facilities, etc.
• Incremental impacts leading to cumulative impacts on agricultural land. This would include impacts from the proposed project, as well as impacts from past, current, and likely future projects.
• Implementation of any City or County Agricultural Mitigation Plans, Programs, or Policies.
• Proposed mitigation measures for impacted agricultural lands within the proposed project area.
• The project’s compatibility with lands within an agricultural preserve and/or enrolled in a Williamson Act contract.
WILLIAMSON ACT
Where, as here, the project site is located on land subject to a Williamson Act contract, the Department advises that the environmental review discuss the compatibility of the project with the contract and local Williamson Act program requirements.
MITIGATING AGRICULTURAL LAND LOSS OR CONVERSION
Consistent with CEQA Guidelines, the Department advises that the environmental review address mitigation for the loss or conversion of agricultural land. An agricultural conservation easement is one potential method for mitigating loss or conversion of agricultural land. (See Cal. Code Regs., tit. 14, § 15370 [mitigation includes “compensating for the impact by replacing or providing substitute resources or environments, including through permanent protection of such resources in the form of conservation easements.”]; see also King and Gardiner Farms, LLC v. County of Kern (2020) 45 Cal.App.5th 814.)
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Mitigation through agricultural conservation easements can take at least two forms: the outright purchase of easements or the donation of mitigation fees to a local, regional, or statewide organization or agency whose purpose includes the acquisition and stewardship of agricultural easements. The conversion of agricultural land may be viewed as an impact of at least regional significance. Hence, the search for replacement lands may not need to be limited strictly to lands within the project’s surrounding area. A helpful source for regional and statewide agricultural mitigation banks is the California Council of Land Trusts. They provide helpful insight into farmland mitigation policies and implementation strategies, including a guidebook with model policies and a model local ordinance. The guidebook can be found at:
California Council of Land Trusts
Of course, the use of conservation easements is only one form of mitigation, and the Department urges consideration of any other feasible measures necessary to mitigate project impacts.
Thank you for giving us the opportunity to comment on the Initial Study and Negative Declaration for the Coachella Pocket 7 Mesquite Annexation Project. Please provide the Department with notices of any future hearing dates as well as any staff reports pertaining to this project. If you have any questions regarding our comments, please contact Farl Grundy, Associate Environmental Planner via email at [email protected].
Sincerely,
Monique Wilber
Conservation Program Support Supervisor
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Dear Mr. Gabriel Perez,
The Agua Caliente Band of Cahuilla Indians (ACBCI) appreciates your efforts to include the Tribal Historic Preservation Office (THPO) in the Coachella West Annexation project. A records check of the ACBCI cultural registry revealed that the project area is not located within the boundaries of the ACBCI Reservation. However, it is within the Tribe’s Traditional Use Area.We currently have no concerns regarding this project. This letter shall conclude our consultation efforts.
[VIA EMAIL TO:[email protected]]
City of Coachella
Mr. Gabriel Perez
53-990 Enterprise Way
Coachella, CA 92236
November 07, 2024
Re: Notice of Intent to Adopt a Negative Declaration for Coachella Pocket 7/Mesquite Annexation Project
Again, the Agua Caliente appreciates your interest in our cultural heritage. If you have questions or require additional information, please call me at (760) 883-1137. You may also email me at [email protected].
Cordially,
Luz Salazar
Cultural Resources Analyst
Tribal Historic Preservation Office
AGUA CALIENTE BAND
OF CAHUILLA INDIANS
03-017-2024-001
# * Please provide us updates or notifications for the approval of the annexation and future projects within Pocket 7 to consult on.
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