Agenda packet — Corona City Council, November 20, 2024 (part 9 of 14)

5 other parcel or parcels within the Community Facilities District by more than ten (10) percent.

The rates and method of apportionment of said special taxes shall be as set forth in Exhibit "B" attached hereto and by this reference made a part hereof. The rate of special tax to be levied on property within the territory proposed to be annexed to the Community Facilities District in any fiscal year to pay the cost of the services described in Section 4 above shall be equal to the rate of special tax which will be levied on all other property within the Community Facilities District to pay the cost of such services in such fiscal year.

SECTION 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the areas proposed to be annexed to the Community Facilities District. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation Map in her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

SECTION 7. Hearing. A public hearing on the proposed annexation of said territory to the Community Facilities District shall be held at 6:30 p.m. on January 15, 2025 in the Council Chambers of the City Council, 400 South Vicentia, Corona, California.

SECTION 8. Notice. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the California Government Code, and shall also give notice of the hearing by first class mail to each registered voter and landowner within the territory proposed to be annexed to the Community Facilities District as prescribed by Section 53339.4 of said Code. Said notice shall be published at least ten (10) days and mailed at least fifteen (15) days before the date of the hearing and shall contain the information required by said Section 53339.4.

SECTION 9. Description of Voting Procedures. The voting procedures to be followed in conducting the election on the proposition with respect to the levy of special taxes within the territory proposed to be annexed to the Community Facilities District to shall be as follows:
(a) If at the time of the close of the public or protest hearing (hereinafter referred to as the ''protest hearing") at least 12 persons are registered to vote within the territory proposed to be annexed to the Community Facilities District, the election shall be conducted by the City Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code ("Section 53326") and pursuant to the applicable provisions of law regulating elections of the City, insofar as they may be applicable, and pursuant to Section 53326 the ballots for the election shall be distributed to the qualified electors of the territory proposed to be annexed to the Community Facilities District by mail with return postage prepaid and the election shall be conducted as a mail ballot election. (b) If at the time of the close of the protest hearing, and for at least the preceding 90 days, less than 12 persons have been registered to vote within the territory proposed. to be annexed to the Community Facilities District, and pursuant to Section 53326, the vote is

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6 therefore to be by the landowners of that territory, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns, the election shall be conducted by the City Clerk as follows:
(1) The election shall be held on the earliest date following the conclusion of the protest hearing upon which it can be held pursuant to Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the territory proposed to be annexed to the Community Facilities District and the City Clerk agree and concur is acceptable.
(2) Pursuant to Section 53326, the election may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the territory proposed to be annexed to the Community Facilities District waive the time limits for conducting the election set forth in Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (3) Pursuant to Section 53326, ballots for the election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid or by personal service.
(4) Pursuant to applicable provisions of law regulating elections of the City which govern the conduct of mail ballot elections, and Division 4 (commencing with Section 4000) of the Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolution calling the election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of the said Code, an impartial analysis by the City Attorney pursuant to Section 9280 of the said Code with respect to the ballot proposition contained in the official ballot, ballot arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, of said Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the resolution adopted by the City Council calling and scheduling the election and the exhibits thereto; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners of the territory proposed to be annexed to the Community Facilities District and shall be so stated in the resolution adopted by the City Council calling the election.
(5) The official ballot to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is and officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his

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7 or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landownervoter is entitled based on its land ownership on the proposition set forth in the official ballot as marked thereon in the voting square opposite such proposition, and further certifying as to the acreage of the landowner-voter's land ownership within the territory proposed to be annexed to the Community Facilities District.
(6) The return identification envelope delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk.
(7) The information-to-voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5 o'clock p.m. on the date of the election.
(8) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the election, and shall file a statement with the City Council at its next regular meeting regarding the results of such canvass and the election.

The procedures set forth in this section for conducting the election may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council.

PASSED, APPROVED AND ADOPTED this 20th day of November, 2024.

Mayor of the City of Corona, California
ATTEST:

City Clerk of the City of Corona, California

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8 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 20th day of November, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 20th day of November, 2024.

City Clerk of the City of Corona, California

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9 EXHIBIT “A”

LEGAL DESCRIPTION
ANNEXATION NO. 41 TO
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

CITY OF CORONA, COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
The land hereinafter referred to is situated in the City of Corona, County of Riverside, State of CA, and is described as
follows:

Parcel 1:

That portion of Lot 376 of Chase Plantation, in the City of Corona, County of Riverside, State of California, as shown by map on file in Book 8 Page 73 of Maps, Riverside County Records. Commencing at the Southwest corner of Parcel 34 as shown by map on file in Book 25 Pages 68 through 71, inclusive, of Records of Survey, Riverside County Records; thence North 60° 22'; East, along the Westerly line of said Parcel 34, a distance of 1482.83 to the true point of beginning; thence East, a distance of 160.00 feet; thence South 05° 33' West, a distance of 18.60 feet; thence South 34° 44' East, a distance of 27.85 feet; thence South 29° 49; West, a distance of 53.64 feet; thence South 02° 41' West, a distance of 49.10 feet; thence South 62° 20' East, a distance of 223.24 feet; thence
North 26° 34° East, a distance of 193.32 feet to the Northeasterly line of said Parcel 34; thence North 39° 53' West, 50.96 feet; thence North 44° 17' West, 46.22 feet; thence North 47° 17' West, 15.15 feet; thence North 74° 30' West, 159.16 feet; thence North 81° 00' West, 115.67 feet; thence South 78° 54' West, 78.35 feet; thence North 58° 46' West, 6.74 feet; thence South 00° 22' West, 61.03 feet to the true point of beginning. Excepting therefrom all clays, gravels, minerals and mineral rights in and under said land, as conveyed to Adelaine James David, et al, as trustees, by deed recorded December 25, 1956 as Instrument No. 87326.

Parcel 2:

An easement to maintain, construct, operate, replace and repair a pump station and appurtenant buildings and equipment for use in connection with the water system serving irrigation water to those certain lands described in that Record of Survey of Crown Ranch prepared by J. F. Davidson, dated September 1956, recorded in Book 25, Pages 68 through 71, inclusive, of Records of Survey, Riverside County Records.

Said easement is hereby fixed and located on the following described portion of Parcel 39 as shown on said Record of Survey; Commencing at the intersection of the center lines of upper drive and Lestar Street (at a point indicated as FD. C. P. No. 46 on said Record of Survey of Crown Ranch); thence Southerly, along the center line of said Lestar Street extended, 75 feet to the true point of beginning; thence Northwesterly at right angles a distance of 10 feet; thence Southwesterly at right angles a distance of 15 feet; thence Southwesterly at right angles a distance of 20 feet; thence Northwesterly at right angle a distance of 15 feet; thence Northwesterly at right angles a distance of 10 feet to the true point of beginning.

Parcel 3:

The permanent easement and right of way, to operate and maintain a booster pumping plant on Lot 79 of Orange Heights, as shown by map on file in Book 2, Page 1 of Maps, Riverside County Records, including pit, pumps, power plant and appurtenances, together with a pipe line or pipe lines extending from said pumping plant in a Southerly direction to the Southerly boundary line of said property and Northerly from said pumping plant to the Northerly boundary line thereof; with the perpetual right to operate said pumping plant and transport water across said property in said pipe line or pipe lines; together with the perpetual

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10 right of ingress and egress to and from said property for purposes of maintaining, operating and replacing said pipe lines and pumping plant; the said pumping plant and pipe lines being situated along the Easterly boundary line of said lands.

APN: 116-320-029

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11 EXHIBIT “B”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

OF THE CITY OF CORONA
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2016-3 (Maintenance Services) (the “CFD No. 2016-3” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2017, in an amount determined by the City Council of the City of Corona, acting in its capacity as the legislative body of CFD No. 2016-3, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2016-3, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2016-3 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2016-3, or any designee thereof associated with fulfilling the CFD No. 2016-3 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2016-3 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2016-3 and third party expenses related to CFD No. 2016-3.

Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2016-3 for any other administrative purposes of CFD No. 2016-3, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Corona, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the June 1 preceding the Fiscal year in which the special tax is being levied.

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12 “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such NonResidential Property after issuance of a building permit for expansion or renovation of such building.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2016-3” means the City of Corona Community Facilities District No. 2016-3 (Maintenance Services).
“City” means the City of Corona.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2016-3 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision.

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13 “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year. “Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed. “Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.

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14 “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2016- 3 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” or “SFR” means any Residential Property other than Multi-Family Residential Property on an Assessor’s Parcel. “Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property. “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2016-3 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses.

Under no circumstances shall the Special Tax A Requirement include funds for Bonds. “Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.
“Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2016-3, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax.

Appendix C identifies the Tax Zone in CFD No. 2016-3 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.

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15 "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2016-3 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below.

Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi-Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs.

1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed

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16 into CFD No. 2016-3, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 36533 Single Family Residential Property RU $202
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2018 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel.

The Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2016-3, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 2 below:

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17 TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 36533 Single Family Residential Property RU $202
On each July 1, commencing on July 1, 2018 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2016-3, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 TR 36533 Acre $638
On each July 1, commencing on July 1, 2018 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council.

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18 a. Developed Property
(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD.

When additional property is annexed into CFD No. 2016-3, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 36533 Single Family Residential Property RU $366
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2018 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2016-3, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included

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19 in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 5 below:

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 36533 Single Family Residential Property RU $366
On each July 1, commencing on July 1, 2018 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2016-3, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 TR 36533 Acre $1,156
On each July 1, commencing on July 1, 2018 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2017-18 and for each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate

Page 1190 of 1895 ends

20 amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;
Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2016-3 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.

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21 F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2016-3, all Assessor’s; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by the Administrator.

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2016-3 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2016-3 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Page 1192 of 1895 ends

22 APPENDIX A

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2024-25. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2016-3.

TAX ZONE 41 (SERVICES)
PM 38694
Item Description Estimated Cost
1 Landscaping $2,311
2 Lighting $561
3 Streets $2,282
4 Parks $464
5 Graffiti $9
6 Reserves $318
7 Admin $1,150
Total $7,094
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2016-3.

Page 1193 of 1895 ends

23 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

DEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract/APN
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
1 2017-18 36533 103 SFR RU $202 $366 Mari Girgis, LLC
2 2017-18 36427 146 MFR RU $368 $14 LCG Harrington, LLC 3 2017-18 PM 37167 2.50 NR Acre $953 $0 Third Street Annex, LLC 4 2017-18 115210025 3.74 NR Acre $2,608 $0 LBA RV-Company XX, LP 5 2018-19 36544 292 SFR RU $941 $81 Richland Communities 6 2018-19 TTM 31373 26 SFR RU $1,470 $9 Yahnes El Kaseer, LLC 7 2018-19 TTM 33135 62 SFR RU $378 $425
Knowleton Communities,
LLC
8 2019-20 TTM 37114 5 SFR RU $715 $0 Karen Parker
9 2019-20 PM 27203 4 SFR RU $976 $0 William Meister
10 2019-20 PM 36873 2 SFR RU $832 $0 Kenneth Ibbetson
11 2019-20 TR 36701 12 SFR RU $315 $84 MVV, LP
12 2019-20 PM 30844 2 SFR RU $905 $0 Padilla Family Trust 13 2019-20 LLA 2018-003 32.00 NR Acre $578 $0 Corona Industrial Park, LLC 14 2019-20
TPM 37521
TPM 37765 2 SFR RU $765 $0
Louk, Hobbs, and
Armstrong
15 2019-20 PM 37357 1 SFR RU $1,080 $0
Northpoint Evangelical
Church
16 2020-21 LLA 18-002 4.99 NR Acre $609 $0 Fitness International, LLC 17 2020-21 TR 37565 3.48 NR Acre $4,459 $0
Corona Regional Medical
Center, LLC
18 2020-21 PM 37746 4.08 NR Acre $1,131 $0 RCTC
19 2020-21 TR 37719 23 SFR RU $1,057 $0 EB Corona, LLC
20 2020-21 TTM 37788 11.70 NR Acre $979 $1,132 Bedford Marketplace, LLC 21 2020-21 115-090-008 3.05 NR Acre $2,347 $0 Christopher Ranch 22 2020-21 TTM 37747 3.38 NR Acre $1,965 $756 CI Rancho II, LLC 23 2021-22 TTM 36634 11 SFR RU $686 $66 Poppybend, LLC
24 2021-22 PM 37763 4.36 NR Acre $687 $72
West Corona Freeway
Center Owner LLC
25 2021-22 PM 38461 4.12 NR Acre $488 $0
Promenade Realty
Partners, LLC
26 2021-22
TR 36605
TR 36608 27 SFR RU $1,090 $0 D.R. Horton
27 2021-22 PM 14363 1.14 NR Acre $1,313 $0 HI Corona, LLC 28 2021-22 PM 37334 4.98 NR Acre $1,465 $0
Rodolfo M. & Maria
Franco
29 2021-22 TR 36821 5 SFR RU $1,320 $0 Junfei Dai
30 2021-22 PM 36667 4 SFR RU $1,671 $0 Poppybend, LLC
31 2021-22 PM 37608 71.72 NR Acre $267 $0
Latitude Business Park,
LLC & Latitude Business
Park II, LLC
32 2022-23
LLA 19-009
LLA 19-010 38.71 NR Acre $567 $0
AVMGH II Limited
Partnership

Page 1194 of 1895 ends

24 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

DEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract/APN
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
33 2022-23
DPR 2019-
022 7.00 NR Acre $566 $0
Radio Road Industrial
Owner, LP
34 2023-24 TR 35851 60 SFR RU $224 $0 Corona 4 Land, LLC 35 2023-24
DPR 2022-
0004 3.45 NR Acre $1,605 $0 Leeson Corona LLC
36 2023-24 TR 32703 13 SFR RU $4,064 $0 Southpoint Corona, LLC 37 To Be Determined
38 2023-24
LLA 22-
002 14.82 NR Acre $454 $0
IPT Corona Commerce
Center, LLC
39 2024-25 TR 10896 2.28 NR Acre $1,014 $0 Newcastle Skye Maple LLC 40 2024-25 TR 37980 19 SFR RU $991 $0
FPG Tricon Citron Corona
Property LLC, a Delaware
limited liability company
41 2024-25 PM 38694 2 SFR RU $3,547 $0
Sajid Bari Syed, Memona
Begum Syeda, & Pacific
Premier Trust

Page 1195 of 1895 ends

25 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

UNDEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract/APN
No. of
Taxable
Units
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special Tax B
(Contingent) Subdivider
1 2017-18 36533 32.62 Acres $638 $1,156 Mari Girgis, LLC 2 2017-18 36427 8.30 Acres $6,533 $247 LCG Harrington, LLC 3 2017-18 PM 37167 2.50 Acres $953 $0 Third Street Annex, LLC 4 2017-18 115210025 3.74 Acres $2,608 $0 LBA RV-Company XX, LP 5 2018-19 36544 68.33 Acres $4,018 $343 Richland Communities 6 2018-19 TTM 31373 17.92 Acres $2,112 $12 Yahnes El Kaseer, LLC 7 2018-19 TTM 33135 16.09 Acres $1,454 $1,635 Knowleton Communities, LLC 8 2019-20 TTM 37114 2.99 Acres $1,195 $0 Karen Parker
9 2019-20 PM 37203 1.10 Acres $3,550 $0 William Meister 10 2019-20 PM 36873 1.40 Acres $1,187 $0 Kenneth Ibbetson 11 2019-20 TR 36701 3.95 Acres $957 $255 MVV, LP
12 2019-20 PM 30844 2.15 Acres $1,809 $0 Padilla Family Trust 13 2019-20
LLA 2018-
003 32.00 Acres $578 $0 Corona Industrial Park, LLC
14 2019-20
TPM 37521
TPM 37765 1.78 Acres $859 $0
Louk, Hobbs, and
Armstrong
15 2019-20 PM 37357 1 Acres $1,776 $0
Northpoint Evangelical
Church
16 2020-21 LLA 18-002 4.99 Acres $609 $0 Fitness International, LLC 17 2020-21 TR 37565 3.48 Acres $4,459 $0
Corona Regional Medical
Center, LLC
18 2020-21 PM 37746 4.08 Acres $1,131 $0 RCTC
19 2020-21 TR 37719 3.74 Acres $6,490 $0 EB Corona
20 2020-21 TTM 37788 11.70 Acres $979 $1,132 Bedford Marketplace, LLC 21 2020-21 115-090-008 3.05 Acres $2,347 $0 Christopher Ranch 22 2020-21 TTM 37747 3.38 Acres $1,965 $756 CI Rancho II, LLC 23 2021-22 TTM 36634 2.33 Acres $3,237 $311 Poppybend, LLC 24 2021-22 PM 37763 4.36 Acres $687 $72
West Corona Freeway Center
Owner LLC
25 2021-22 PM 38461 4.12 Acres $488 $0
Promenade Realty Partners,
LLC
26 2021-22
TR 36605
TR 36608 5.52 Acres $5,329 $0 D.R. Horton
27 2021-22 PM 14363 1.14 Acres $1,313 $0 HI Corona, LLC 28 2021-22 PM 37334 4.98 Acres $1,465 $0 Rudy M. & Maria Franco 29 2021-22 TR 36821 4.90 Acres $1,347 $0 Junfei Dai
30 2021-22 PM 36667 1.50 Acres $4,457 $0 Poppybend, LLC 31 2021-22 PM 37608 71.72 Acres $267 $0
Latitude Business Park, LLC &
Latitude Business Park II, LLC
32 2022-23
LLA 19-009
LLA 19-010 38.71 Acres $567 $0
AVMGH II Limited
Partnership
33 2022-23 DPR 2019-022 7.00 Acres $566 $0
Radio Road Industrial Owner,
LP

Page 1196 of 1895 ends

26 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

UNDEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract/APN
No. of
Taxable
Units
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special Tax B
(Contingent) Subdivider
34 2023-24 TR 35851 3.42 Acres $3,925 $0 Corona 4 Land, LLC 35 2023-24 DPR 2022-0004 3.45 Acres $1,605 $0 Leeson Corona LLC 36 2023-24 TR 32703 8.27 Acres $7,208 $0 Southpoint Corona, LLC 37 To Be Determined
38 2023-24 LLA 22-002 14.82 Acres $454 $0
IPT Corona Commerce
Center, LLC
39 2024-25 TR 1096 2.28 Acres $1,014 $0 Newcastle Skye Maple LLC 40 2024-25 TR 37980 4.72 Acres $3,988 $0
FPG Tricon Citron Corona
Property LLC, a Delaware
limited liability company
41 2024-25 PM 38694 1.80 Acres $4,794 $0
Sajid Bari Syed, Memona
Begum Syeda, & Pacific
Premier Trust Custodian

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2018 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

Page 1197 of 1895 ends

27 APPENDIX B

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2016-3, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2016-3; as well as local roads within residential subdivisions located within CFD No. 2016-3; and any portions adjacent to the properties within CFD No. 2016-3; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2016-3 only to the extent that they are in addition to those provided in the territory of CFD No. 2016-3 before CFD No. 2016-3 was created or those provided in the territory annexed to CFD No. 2016-3 before the territory was annexed, as applicable.

Page 1198 of 1895 ends

28 APPENDIX C

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA

BOUNDARIES

Page 1199 of 1895 ends

Page 1200 of 1895 ends

DATE: 11/20/2024
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2024-130

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

RESOLUTION DECLARING THE CITY’S INTENTION TO ANNEX TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES) AND

ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED THERETO (ANNEXATION NO. 41)
EXECUTIVE SUMMARY:

This staff report asks the City Council to adopt a Resolution declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services). Certain development projects are required to form or annex into a maintenance district. In accordance with this requirement, Sajid Bari Syed and Memona Begum Syeda, and Pacific Premier Trust (“Owners”) is requesting annexation of Assessor’s Parcel Numbers 116-320-029 into the City’s Community Facilities District No. 2016-3 (Maintenance Services) to provide maintenance services for public facilities within and for the benefit of the proposed development.

RECOMMENDED ACTION:

That the City Council adopt Resolution No. 2024-104, declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona, and adopting a map of the area proposed to be annexed thereto (Annexation No. 41).

Page 1201 of 1895 ends

BACKGROUND & HISTORY:

On December 7, 2016, the City Council approved Resolution No. 2016-112 establishing Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona (“CFD No. 2016-3” or “District”) for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Certain development projects are required to form or annex into a maintenance district.

These districts apply an annual fee or special tax upon properties within the district, which provides the revenue to offset the cost of maintenance of the public improvements necessary to serve the development.

ANALYSIS:

Sajid Bari Syed and Memona Begum Syeda, and Pacific Premier Trust (“Owners”) have submitted a Petition to the City requesting that Assessment Parcel Numbers 116-320- 029 be annexed to CFD No. 2016-3. The Petition, including the waiver and consent by the Owner, is on file in the City Clerk's office and authorizes the City to: (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; and (4) waive all noticing requirements relating to the conduct of the election immediately following the public hearing.

The development is comprised of an empty lot located south of Upper Dr., east of Lester Ave., and north of Sallie Jeffryes Way. The gross acreage for the entire property in the boundary area is approximately 1.80 acres, as shown in Exhibit “A” of Resolution No. 2024-104 (“Subject Parcel”). The Owner proposes to construct two residential units.

As a condition of approval, the Subject Parcel is required to be annexed into CFD No. 2016-3 to pay for the maintenance of landscaping, lighting and street maintenance, parks and graffiti. Should Resolution No. 2024-104 be approved, the annexation process proceeds, and a public hearing of the proposed annexation shall be held on January 15, 2025.

FINANCIAL IMPACT:

The proposed annexation will establish Tax Zone 41 within CFD No. 2016-3. The Subject Parcel will be assessed as residential units and will benefit from the existing and future landscaping, lighting, street maintenance, park and graffiti. This annexation will yield an estimate of $7,095 annually in special assessment revenue for the District at build-out as planned. The total annexation cost will be paid by the Owner.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This

Page 1202 of 1895 ends

action merely declares the City’s intent to annex the Subject Parcel to CFD No. 2016-3 and there is no possibility that adopting this resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
ATTACHMENTS:

1. Exhibit 1 – CFD No. 2016-3 Annexation No. 41 Project Map

2. Exhibit 2 – Resolution No. 2024-104

Page 1203 of 1895 ends

UPPER
DR
L
E
M
ON

GROVE LN

VAND ERBILT
D
K
R

ESTREL CIR
L
E
S
T
E
R
AV
E

PINEWOOD
DR

CALIFORNIA AVE
RIMPAU
AVE

ARBENZ CIR

BALDWIN
DR

CLEVELAND
WAY

ROADRUNNER
DR
UPPE R
DR
RIMPAU
AVE

STAT E ST

FOOTHILL
PKWY

CALIFO R NIA AVE

VALENCIA
RD

TRINITY CIR

HIDDE N SPRI N GS DR

CLEVELAND WAY

E FOOTHILL
PKWY

NELSON ST
I-15

CHERRY ST

MAIN ST

JAMENSONDR

TAMARRON DR

VIAMIGUEL ST

NI VERNESS DR

LIBERTY AVE

ROMANS RD
§¨¦15
CFD NO. 2016-3 (MAINTENANCE SERVICES)
ANNEXATION NO. 41

PROJECT MAP
^_

Page 1204 of 1895 ends

RESOLUTION NO. 2024-104

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CORONA, CALIFORNIA DECLARING INTENTION TO

ANNEX TERRITORY TO COMMUNITY FACILITIES
DISTRICT NO. 2016-3 (MAINTENANCE SERVICES) OF

THE CITY OF CORONA, AND ADOPTING A MAP OF THE

AREA PROPOSED TO BE ANNEXED THERETO
(ANNEXATION NO. 41)
WHEREAS, the City Council (the "City Council") of the City of Corona (the "City'') has heretofore initiated proceedings for the establishment of Community Facilities District No. 2016-3 of the City of Corona, County of Riverside, State of California (the "Community Facilities District") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the City has received signed petitions from the owner and developer of a certain parcel of property requesting that such parcel be annexed to the Community Facilities District, and agreeing to the annual levy of special taxes on said property sufficient to pay the costs of such services and costs incidental thereto; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part l of Division 2 of Title 5 of the Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982," (the "Act") to annex territory to the Community Facilities District by complying with the procedures set forth in said Article 3.5.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:

SECTION 1. Intention. The City Council declares its intention to conduct proceedings pursuant to Article 3.5 of the Act for the annexation to the Community Facilities District of the territory described in Exhibit "A" attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.

SECTION 2. Name of District. The name of the existing Community Facilities District is Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona, County of Riverside, State of California.

SECTION 3. Description of Territory Proposed to be Annexed; Annexation Map.

The territory which is included in the Community Facilities District is described on the map of the Community Facilities District recorded on November 7, 2016 in Book 80 of Maps of

Page 1205 of 1895 ends

2 Assessment and Community Facilities Districts, page 24, and as Instrument No. 2016-0494014; and the map entitled Annexation Map No. 1 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on March 6, 2017 in Book 80 of Maps of Assessment and Community Facilities Districts, at page 45, and as Instrument No. 2017-0091538; the map entitled Annexation Map No. 2 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 25, 2017 in Book 80 of Maps of Assessment and Community Facilities Districts, at page 61, and as Instrument No. 2017-0164857; the map entitled Annexation Map No. 3 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 25, 2017 in Book 80 of Maps of Assessment and Community Facilities Districts, at page 60, and as Instrument No. 2017-0164856; the map entitled Annexation Map No. 4 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 11, 2018 in Book 82 of Maps of Assessment and Community Facilities Districts, at page 33, and as Instrument No. 2018- 0139326; the map entitled Annexation Map No. 5 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on May 9, 2018 in Book 82 of Maps of Assessment and Community Facilities Districts, at page 46, and as Instrument No. 2018-0180894; the map entitled Annexation Map No. 6 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on August 8, 2018 in Book 82 of Maps of Assessment and Community Facilities Districts, at page 95, and as Instrument No. 2018-0318806; the map entitled Annexation Map No. 7 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on September 12, 2018 in Book 83 of Maps of Assessment and Community Facilities Districts, at page 3, and as Instrument No. 2018-0366312; the map entitled Annexation Map No. 8 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on October 24, 2018 in Book 83 of Maps of Assessment and Community Facilities Districts, at page 19, and as Instrument No. 2018-0420213; the map entitled Annexation Map No. 9 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on December 12, 2018 in Book 83 of Maps of Assessment and Community Facilities Districts, at page 36, and as Instrument No. 2018- 0483574; the map entitled Annexation Map No. 10 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 10, 2019 in Book 83 of Maps of Assessment and Community Facilities Districts, at page 71, and as Instrument No. 2019-0121272; the map entitled Annexation Map No. 11 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 10, 2019 in Book 83 of Maps of Assessment and Community Facilities Districts, at page 72, and as Instrument No. 2019-0121273; the map entitled Annexation Map No. 12 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 10, 2019 in Book 83 of Maps of Assessment and Community Facilities Districts, at page 73, and as Instrument No. 2019-0121274; the map entitled Annexation Map No. 13 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on October 31, 2019 in Book 84 of Maps of Assessment and Community Facilities Districts, at page 47, and as Instrument No. 2019- 0443969; the map entitled Annexation Map No. 14 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on October 23, 2019 in Book 84 of Maps of Assessment and Community Facilities Districts, at page 40, and as Instrument No. 2019-0428088; the map entitled Annexation Map No. 15 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on February 26, 2020 in Book 84 of Maps of Assessment and Community Facilities Districts, at page 97, and as Instrument No. 2020-0087079; the map entitled Annexation Map No. 16 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on July 8, 2020 in Book 85 of Maps of Assessment and Community Facilities Districts, at page 44, and as

Page 1206 of 1895 ends

3 Instrument No. 2020-0296754; the map entitled Annexation Map No. 17 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on June 25, 2020 in Book 85 of Maps of Assessment and Community Facilities Districts, at page 39, and as Instrument No. 2020- 0274667; the map entitled Annexation Map No. 19 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on September 23, 2020 in Book 85 of Maps of Assessment and Community Facilities Districts, at page 61, and as Instrument No. 2020-0451769; the map entitled Annexation Map No. 20 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on September 23, 2020 in Book 85 of Maps of Assessment and Community Facilities Districts, at page 62, and as Instrument No. 2020-0451770; the map entitled Annexation Map No. 21 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on November 12, 2020 in Book 85 of Maps of Assessment and Community Facilities Districts, at page 93, and as Instrument No. 2020-0562417; the map entitled Annexation Map No. 22 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on November 12, 2020 in Book 85 of Maps of Assessment and Community Facilities Districts, at page 94, and as Instrument No. 2020-0562418; the map entitled Annexation Map No. 23 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 7, 2021 in Book 86 of Maps of Assessment and Community Facilities Districts, at page 62, and as Instrument No. 2021-0246658; the map entitled Annexation Map No. 24 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on March 24, 2021 in Book 86 of Maps of Assessment and Community Facilities Districts, at page 50, and as Instrument No. 2021-0186140; the map entitled Annexation Map No. 25 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on April 28, 2021 in Book 86 of Maps of Assessment and Community Facilities Districts, at page 94, and as Instrument No. 2021-0264410; the map entitled Annexation Map No. 26 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on November 4, 2021 in Book 87 of Maps of Assessment and Community Facilities Districts, at page 87, and as Instrument No. 2021-0668966; the map entitled Annexation Map No. 27 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on July 28, 2021 in Book 87 of Maps of Assessment and Community Facilities Districts, at page 32, and as Instrument No. 2021- 0450034; the map entitled Annexation Map No. 28 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on September 22, 2021 in Book 87 of Maps of Assessment and Community Facilities Districts, at page 68, and as Instrument No. 2021-2021-0565136; the map entitled Annexation Map No. 29 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on August 5, 2021 in Book 87 of Maps of Assessment and Community Facilities Districts, at page 43, and as Instrument No. 2021-0469342; the map entitled Annexation Map No. 30 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on September 8, 2021 in Book 87 of Maps of Assessment and Community Facilities Districts, at page 59, and as Instrument No. 2021-0535299; the map entitled Annexation Map No. 31 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on November 10, 2021 in Book 87 of Maps of Assessment and Community Facilities Districts, at page 86, and as Instrument No. 2021-0668965; the map entitled Annexation Map No. 32 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on March 3, 2022 in Book 88 of Maps of Assessment and Community Facilities Districts, at page 41, and as Instrument No. 2022- 0106476; the map entitled Annexation Map No. 33 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on May 5, 2022 in Book 88 of Maps of Assessment and Community Facilities Districts, at page 86, and as Instrument No. 2022-0211816 in the official

Page 1207 of 1895 ends

4 records of the County of Riverside; the map entitled Annexation Map No. 34 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on February 2, 2023 in Book 90 of Maps of Assessment and Community Facilities Districts, at page 51, and as Instrument No. 2023-0032152 in the official records of the County of Riverside; the map entitled Annexation Map No. 35 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on June 28, 2023 in Book 91 of Maps of Assessment and Community Facilities Districts, at page 52, and as Instrument No. 2023-0185724 in the official records of the County of Riverside; the map entitled Annexation Map No. 36 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on September 22, 2023 in Book 91 of Maps of Assessment and Community Facilities Districts, at page 97, and as Instrument No. 2023-0281617 in the official records of the County of Riverside; the map entitled Annexation Map No. 38 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on May 8, 2024 in Book 93 of Maps of Assessment and Community Facilities Districts, at page 7, and as Instrument No. 2024-0133590 in the official records of the County of Riverside; the map entitled Annexation Map No. 39 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on August 27, 2024 in Book 93 of Maps of Assessment and Community Facilities Districts, at page 100, and as Instrument No. 2024-0257967 in the official records of the County of Riverside. The territory proposed to be annexed to the Community Facilities District is described in Exhibit "A" attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 41, Community Facilities District No. 2016-3 (Maintenance Services) City of Corona, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map").

SECTION 4. Types of Services, Incidental Expenses; Plan for Providing Services. The Community Facilities District shall provide and finance the annual costs of maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use, including, but not limited to, maintenance and lighting of parks, parkways, streets, roads and open space, maintenance and operation of water quality improvements and storm drainage systems, and public street sweeping, within and in the area of the Community Facilities District. The Community Facilities District shall also finance cost associated with the determination of the amount of and the levy and collection of special taxes which are levied to provide such services and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District.

SECTION 5. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay the costs of the services described in Section 4 above and the annual administrative expenses of the City and the Community Facilities District in determining, apportioning, levying and collecting such special taxes, shall be annually levied within the territory proposed to be annexed to the Community Facilities District. Pursuant to Section 53340 of the California Government Code, the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

However, under no circumstances shall the special tax levied against any parcel subject to the levy of the special tax be increased as a consequence of delinquency or default by the owner of any

Page 1208 of 1895 ends

5 other parcel or parcels within the Community Facilities District by more than ten (10) percent.

Page 1209 of 1895 ends

Page 1210 of 1895 ends

PASSED, APPROVED AND ADOPTED this 20th day of November, 2024.

Mayor of the City of Corona, California
ATTEST:

City Clerk of the City of Corona, California

Page 1211 of 1895 ends

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 20th day of November, 2024.

City Clerk of the City of Corona, California

Page 1212 of 1895 ends

9 EXHIBIT “A”

LEGAL DESCRIPTION
ANNEXATION NO. 41 TO
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

CITY OF CORONA, COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
The land hereinafter referred to is situated in the City of Corona, County of Riverside, State of CA, and is described as
follows:

Parcel 1:

Parcel 2:

Parcel 3:

Page 1213 of 1895 ends

APN: 116-320-029

Page 1214 of 1895 ends

11 EXHIBIT “B”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

Page 1215 of 1895 ends

Page 1216 of 1895 ends

Page 1217 of 1895 ends

Page 1218 of 1895 ends

Page 1219 of 1895 ends

TABLE 1

MAXIMUM SPECIAL TAX A RATES

Page 1220 of 1895 ends

17 TABLE 2

MAXIMUM SPECIAL TAX A RATES

TABLE 3

MAXIMUM SPECIAL TAX A RATES

Page 1221 of 1895 ends

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

Page 1222 of 1895 ends

19 in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 5 below:

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

Page 1223 of 1895 ends

20 amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

Page 1224 of 1895 ends

21 F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.

Page 1225 of 1895 ends

22 APPENDIX A

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

Page 1226 of 1895 ends

23 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

Page 1227 of 1895 ends

24 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

DEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract/APN
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
33 2022-23
DPR 2019-
022 7.00 NR Acre $566 $0
Radio Road Industrial
Owner, LP
34 2023-24 TR 35851 60 SFR RU $224 $0 Corona 4 Land, LLC 35 2023-24
DPR 2022-
0004 3.45 NR Acre $1,605 $0 Leeson Corona LLC
36 2023-24 TR 32703 13 SFR RU $4,064 $0 Southpoint Corona, LLC 37 To Be Determined
38 2023-24
LLA 22-
002 14.82 NR Acre $454 $0
IPT Corona Commerce
Center, LLC
39 2024-25 TR 10896 2.28 NR Acre $1,014 $0 Newcastle Skye Maple LLC 40 2024-25 TR 37980 19 SFR RU $991 $0
FPG Tricon Citron Corona
Property LLC, a Delaware
limited liability company
41 2024-25 PM 38694 2 SFR RU $3,547 $0
Sajid Bari Syed, Memona
Begum Syeda, & Pacific
Premier Trust

Page 1228 of 1895 ends

25 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

Page 1229 of 1895 ends

26 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

Page 1230 of 1895 ends

27 APPENDIX B

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

Page 1231 of 1895 ends

28 APPENDIX C

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA

BOUNDARIES

Page 1232 of 1895 ends

Page 1233 of 1895 ends

DATE: 11/20/2024
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2024-129

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

RESOLUTION DECLARING THE CITY’S INTENTION TO ANNEX TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES) AND

ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED THERETO (ANNEXATION NO. 40)
EXECUTIVE SUMMARY:

This staff report asks the City Council to adopt a Resolution declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services). Certain development projects are required to form or annex into a maintenance district. In accordance with this requirement, FPG Tricon Citron Corona Property LLC, a Delaware limited liability company (“Owner”) is requesting annexation of Assessor’s Parcel Numbers 110-342-031 into the City’s Community Facilities District No. 2016-3 (Maintenance Services) to provide maintenance services for public facilities within and for the benefit of the proposed development.

RECOMMENDED ACTION:

That the City Council adopt Resolution No. 2024-103, declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona, and adopting a map of the area proposed to be annexed thereto (Annexation No. 40).

Page 1234 of 1895 ends

BACKGROUND & HISTORY:

On December 7, 2016, the City Council approved Resolution No. 2016-112 establishing Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona (CFD No. 2016-3 or District) for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Certain development projects are required to form or annex into a maintenance district.

ANALYSIS:

FPG Tricon Citron Corona Property LLC, a Delaware Limited Liability company (“Owner”) has submitted a Petition to the City requesting that Assessment Parcel Numbers 110- 342-031 be annexed to CFD No. 2016-3. The Petition, including the waiver and consent by the Owner, is on file in the City Clerk's office and authorizes the City to: (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; and (4) waive all noticing requirements relating to the conduct of the election immediately following the public hearing.

The development is comprised of an empty lot located on N Citron Street, west of Taylor Ave., and east of Shirley Dr. The gross acreage for the entire property in the boundary area is approximately 4.72 acres, as shown in Exhibit “A” of Resolution No. 2024-103 (“Subject Parcel”). The Owner proposes to construct 19 residential units.

As a condition of approval, the Subject Parcel is required to be annexed into CFD No. 2016-3 to pay for the maintenance of landscaping, lighting, street maintenance, drainage, park and graffiti. Should Resolution No. 2024-103 be approved, the annexation process proceeds, and a public hearing of the proposed annexation shall be held on January 15, 2025.

FINANCIAL IMPACT:

The proposed annexation will establish Tax Zone 40 within the CFD No. 2016-3. The Subject Parcels will be assessed as residential units and will benefit from the existing and future landscaping, lighting, street maintenance, drainage, park and graffiti. This annexation will yield an estimate of $18,824 annually in special assessment revenue for the District at build-out as planned. The total annexation cost will be paid by the Owner.

ENVIRONMENTAL ANALYSIS:

Page 1235 of 1895 ends

PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
ATTACHMENTS:

1. Exhibit 1 – CFD No. 2016-3 Annexation No. 40 Project Map

2. Exhibit 2 – Resolution No. 2024-103

Page 1236 of 1895 ends

B
E
L
L
E
AV
E

CITRON ST
B
U
E
N
A
VISTA
AVE

CAPISTRANO ST
TAYL
O
R
AV
E

BURR ST

FRANCIS ST

CRESTVIEW ST

SUSANNE ST

HACIENDA DR
QUAIL
CIR
PINYO
N
CIR
VIC
E
N
TIA
AV
E
M
E
R
RIL
L
S
T
C
O
O
K
S
T
C
O
O
K
CIR

DURAZNO ST
CINDY
CIR

MONTEREY RD
RANCHO

OLD MILL

TENTH ST

VICENTIAAVE
SMITH
AVE

SHERIDAN ST

CITRON ST

LINCOLN AVE

TENTH ST

MAGN OLIA
AVE

SIXTH ST
BORDER
AVE

GARRETSON AV E

MAIN ST

GR AN D BLVD

OAK AVE

VIA PACIF ICA

OLIVE ST

ONTARIO AVE

HERITAGE DR

MARSHALL LN

FULLERTON AVE

DAVIS ST

CRESTVIEW ST

FAIRMONT DR

DANA ST

BEVERLY RD

SMITH AVE
FIR ST

EIGHTH ST

MONTOYADR

HACIENDA DR

RAMONAAV
NINT E
H ST

FIFTH ST

COTA AVE

CALL WAY

MISSION RD
CFD NO. 2016-3 (MAINTENANCE SERVICES)
ANNEXATION NO. 40

PROJECT MAP
^_

Page 1237 of 1895 ends

RESOLUTION NO. 2024-103

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CORONA, CALIFORNIA DECLARING INTENTION TO

ANNEX TERRITORY TO COMMUNITY FACILITIES
DISTRICT NO. 2016-3 (MAINTENANCE SERVICES) OF

THE CITY OF CORONA, AND ADOPTING A MAP OF THE

AREA PROPOSED TO BE ANNEXED THERETO
(ANNEXATION NO. 40)
WHEREAS, the City Council (the "City Council") of the City of Corona (the "City'') has heretofore initiated proceedings for the establishment of Community Facilities District No. 2016-3 of the City of Corona, County of Riverside, State of California (the "Community Facilities District") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the City has received signed petitions from the owner and developer of a certain parcel of property requesting that such parcel be annexed to the Community Facilities District, and agreeing to the annual levy of special taxes on said property sufficient to pay the costs of such services and costs incidental thereto; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part l of Division 2 of Title 5 of the Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982," (the "Act") to annex territory to the Community Facilities District by complying with the procedures set forth in said Article 3.5.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:

SECTION 3. Description of Territory Proposed to be Annexed; Annexation Map.

The territory which is included in the Community Facilities District is described on the map of the Community Facilities District recorded on November 7, 2016 in Book 80 of Maps of

Page 1238 of 1895 ends

Page 1239 of 1895 ends

Page 1240 of 1895 ends

4 records of the County of Riverside; the map entitled Annexation Map No. 34 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on February 2, 2023 in Book 90 of Maps of Assessment and Community Facilities Districts, at page 51, and as Instrument No. 2023-0032152 in the official records of the County of Riverside; the map entitled Annexation Map No. 35 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on June 28, 2023 in Book 91 of Maps of Assessment and Community Facilities Districts, at page 52, and as Instrument No. 2023-0185724 in the official records of the County of Riverside; the map entitled Annexation Map No. 36 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on September 22, 2023 in Book 91 of Maps of Assessment and Community Facilities Districts, at page 97, and as Instrument No. 2023-0281617 in the official records of the County of Riverside; the map entitled Annexation Map No. 38 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on May 8, 2024 in Book 93 of Maps of Assessment and Community Facilities Districts, at page 7, and as Instrument No. 2024-0133590 in the official records of the County of Riverside; and the map entitled Annexation Map No. 39 of Community Facilities District No. 2016-3 (Maintenance Services) recorded on August 27, 2024 in Book 93 of Maps of Assessment and Community Facilities Districts, at page 100, and as Instrument No. 2024-0257967 in the official records of the County of Riverside. The territory proposed to be annexed to the Community Facilities District is described in Exhibit "A" attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 40, Community Facilities District No. 2016-3 (Maintenance Services) City of Corona, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map").

However, under no circumstances shall the special tax levied against any parcel subject to the levy of the special tax be increased as a consequence of delinquency or default by the owner of any

Page 1241 of 1895 ends

5 other parcel or parcels within the Community Facilities District by more than ten (10) percent.

Page 1242 of 1895 ends

Page 1243 of 1895 ends

PASSED, APPROVED AND ADOPTED this 20th day of November, 2024.

Mayor of the City of Corona, California
ATTEST:

City Clerk of the City of Corona, California

Page 1244 of 1895 ends

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 20th day of November, 2024.

City Clerk of the City of Corona, California

Page 1245 of 1895 ends

9 EXHIBIT “A”

LEGAL DESCRIPTION
ANNEXATION NO. 40 TO
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

CITY OF CORONA, COUNTY OF RIVERSIDE

STATE OF CALIFORNIA
Real property in the City of Corona, County of Riverside, State of California, described as follows:

THE EASTERLY HALF OF LOT 1 IN BLOCK 52 OF LANDS OF THE SOUTH RIVERSIDE LAND AND WATER COMPANY, AS SHOWN BY MAP RECORDED IN BOOK 9, PAGE 6 OF MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA.

APN: 110-342-031

Page 1246 of 1895 ends

10 EXHIBIT “B”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

Page 1247 of 1895 ends

11 “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such NonResidential Property after issuance of a building permit for expansion or renovation of such building.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2016-3” means the City of Corona Community Facilities District No. 2016-3 (Maintenance Services).
“City” means the City of Corona.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2016-3 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision.

Page 1248 of 1895 ends

12 “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year. “Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed. “Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.

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13 “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2016- 3 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” or “SFR” means any Residential Property other than Multi-Family Residential Property on an Assessor’s Parcel. “Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property. “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2016-3 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses.

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14 "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

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15 into CFD No. 2016-3, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

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16 TABLE 2

MAXIMUM SPECIAL TAX A RATES

TABLE 3

MAXIMUM SPECIAL TAX A RATES

Page 1253 of 1895 ends

17 a. Developed Property
(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD.

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

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18 in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2017-18 within Tax Zone 1 is identified in Table 5 below:

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

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19 amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

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20 F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.

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21 APPENDIX A

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

TAX ZONE 40 (SERVICES)
TR 37980
Item Description Estimated Cost
1 Landscaping $803
2 Lighting $1,977
3 Streets $4,615
4 Drainage $3,707
5 Parks $4,408
6 Graffiti $87
7 Reserves $737
8 Admin $2,490
Total $18,824
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2016-3.

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22 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

Page 1259 of 1895 ends

23 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

DEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract/APN
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
33 2022-23
DPR 2019-
022 7.00 NR Acre $566 $0
Radio Road Industrial
Owner, LP
34 2023-24 TR 35851 60 SFR RU $224 $0 Corona 4 Land, LLC 35 2023-24
DPR 2022-
0004 3.45 NR Acre $1,605 $0 Leeson Corona LLC
36 2023-24 TR 32703 13 SFR RU $4,064 $0 Southpoint Corona, LLC 37 To Be Determined
38 2023-24
LLA 22-
002 14.82 NR Acre $454 $0
IPT Corona Commerce
Center, LLC
39 2024-25 TR 10896 2.28 NR Acre $1,014 $0 Newcastle Skye Maple LLC 40 2024-25 TR 37980 19 SFR RU $991 $0
FPG Tricon Citron Corona
Property LLC, a Delaware
limited liability company

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24 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

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25 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE

Page 1262 of 1895 ends

26 APPENDIX B

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

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27 APPENDIX C

CITY OF CORONA
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE SERVICES)

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA

BOUNDARIES

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JAMIER\06100.00100\10302614.1
DATE: 11/20/2024
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

PUBLIC HEARING FOR CITY COUNCIL AND CORONA UTILITY AUTHORITY CONSIDERATION OF ORDINANCE NO. 3405 MODIFYING THE BUDGET BASED

WATER STRUCTURE AND ESTABLISHING RATES FOR POTABLE WATER, RECLAIMED WATER, AND SEWER SERVICE FEES AND CHARGES.

EXECUTIVE SUMMARY:

This staff report asks the City Council to hold a public hearing and approve Ordinance No. 3405 modifying potable water, reclaimed water, and sewer service fees and charges.

RECOMMENDED ACTION:

That the City Council:
a. Introduce, by title only, and waive full reading of Ordinance No. 3405 first reading of an ordinance modifying the budget based water rate structure and establishing rates for potable water, reclaimed water, and sewer service fees and charges. b. Authorize estimated revenue increases in the amount of $2,879,473 in the Water Utility Fund 570 and $1,852,278 in the Sewer Utility Fund 572, for the remainder of Fiscal Year 2025.

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JAMIER\06100.00100\10302614.1
That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.

BACKGROUND & HISTORY:

The City of Corona Utilities Department provides potable, reclaimed water, and sewer services to residents and business located within the City of Corona and adjacent communities. The Utilities Department is committed to providing the highest quality service to its customers 24 hours a day, 7 days a week, at the lowest possible rates. The City’s utilities rely on revenues from water service fees and charges to fund ongoing operations and maintenance of each respective system. The last water rate changes were adopted in 2020 for potable and reclaimed water. The last sewer rate changes were made in 2013. The Utilities Department is committed to containing operational costs, but costs continue to rise and are anticipated to continue to increase over the next several years.

In addition, the Utilities Department needs to invest in critical capital infrastructure replacement to maintain the operability and reliability of the systems and to avoid higher future replacement costs. In order to plan and assess the current and future financial position of the Utilities Department, the City conducted a Utilities Rate Study for water, reclaimed water, and sewer.

On April 3, 2024, City Council awarded Request for Proposals No. 24-051AS Utility Rate Study Project to Robert D. Niehaus, Inc. (RDN). On May 1, 2024, City Council received a presentation from RDN to clarify the policy objectives of City Council in preparing the Utility Rate Study. On June 5, 2024, City Council received a presentation regarding the financial plans for the water, sewer, and reclaimed water utilities and the anticipated shortfall in revenues over the next five years. On July 3, 2024, City Council received a presentation outlining options for rates for water, sewer, and reclaimed water. On August 21, 2024, City Council received a presentation by staff that provided responses to prior City Council requests and questions. On October 2, 2024, City Council received and filed the 2024 Water, Reclaimed Water, and Sewer Rate Study prepared by RDN (“Rate Study”), which included the cost of service and final proposed rates for all utilities.

ANALYSIS:

The Rate Study represents a plan for the future of the water, sewer and reclaimed water utilities over a five-year planning cycle. The Utilities Department is committed to continual monitoring of revenues and expenses to determine progress toward achievement of the plan as well as check on plan assumptions. The Rate Study calculated the revenue requirements for each utility over the next five years. It then functionalized expenses and allocated those expenses to appropriate rate categories.

For potable water and reclaimed water this includes fixed or Ready to Serve (RTS) charges and volumetric and variable Commodity Charges. The rates for the RTS charge are established based upon the size of the meter and are calculated to recover a portion of fixed costs for potable water and reclaimed water respectively.

Variable costs for potable water and reclaimed water, or Commodity charges, are based on the number of units of water delivered to a property. A unit of water is 1 CCF which is

Page 1267 of 1895 ends

JAMIER\06100.00100\10302614.1
equal to 748 gallons or 100 cubic feet. Each customer class is provided a water budget based on standard calculations. Residential customers receive an indoor and an outdoor budget. The residential indoor budget is based on the number of people in the household, the number of dwelling units, the number of the days in the billing cycle and a prescribed number of gallons per person per day. In 2022, the State of California passed SB 1157 establishing 47 gallons per person per day as the indoor water use standard in California effective January 1, 2025. The outdoor water budget is based on the square footage of the irrigated landscaped area per parcel, the daily plant water loss, referred to as evapotranspiration, and a factor, referred to as an evapotranspiration area factor or efficiency factor. The summation of the indoor and outdoor water budgets comprises the total water budget for residential customers. Non-residential customers without a dedicated landscape meter receive a water budget based on a three-year rolling average; and customers with a dedicated landscape meter receive a water budget that is the same as the residential outdoor water budget.

The Rate Study recommended adjusting the indoor water budget calculation from 55 gallons per person per day to 47 gallons per person per day to comply with SB1157. The Rate Study also recommended eliminating the Wasteful Tier for potable water, referred to as Tier 5, for residential customers, and Tier 4 for non-residential customers as shown in Exhibit “A” of Ordinance 3405, attached. The Rate Study recommended eliminating Tier 3 and Tier 4 for the reclaimed water budgets, which would result in a two-tier structure for reclaimed water with Tier 1 reflecting the unit cost for the water budget and Tier 2 reflecting the unit cost for all consumption exceeding the water budget.

The Rate Study evaluated the current sewer rate structure and recommended an adjustment to increase equity across customer classes as well as within customers classes. Under the recommended sewer rate structure customers will only pay a bill based on their actual impact on the system. The recommended sewer rate structure includes a fixed monthly charge for all customers and a variable charge for non-residential customers. The variable charge will be assessed for each unit (CCF) of water used above 8 CCF. The City will implement a variance program for commercial customers whose water use and sewer flow may not be directly comparable. The City will review the variances on a case-by-case basis.

The proposed rates are set forth in Exhibit “A” of Ordinance No. 3405, attached to this report. If approved, the proposed rates will be effective on January 3, 2025, with scheduled annual rate increases effective each January 1st from 2026 through 2029. If the proposed rate schedule is approved, the City Council will review the schedule at a public meeting prior to the implementation of the rate increase scheduled for January 1, 2028, to assess the accuracy of the City’s cost and revenue estimates and to reaffirm that the 2028 increase remains necessary based upon the costs expended and revenues received during the first two years of the rate increases. After such review, the City Council may direct City staff to proceed with implementing the remaining scheduled rate increases in 2028 through 2029 in an amount that does not exceed the rates set forth in the proposed schedule set forth in Exhibit “A” of Ordinance No. 3405.

Page 1268 of 1895 ends

JAMIER\06100.00100\10302614.1
Proposition 218 Process
On October 3, 2024, the City mailed a Proposition 218 notice to property owners and tenants of 41,190 parcels that receive water and reclaimed water services and 37,330 parcels that receive sewer services advising them of this public hearing and the procedure for submitting a written protest for the proposed rate changes.

The City held four community meetings to engage with the public about the proposed rates. The outreach for these meetings is summarized in the table below.

Date Type Media Type Sent to Metrics
10/28 Community Meeting
reminder (11/2)
Social Media Facebook,
Instagram,
LinkedIN
3,018
Impressions
11/1 Community Meeting
reminder (11/2)
second post
Social Media Facebook,
Instagram,
LinkedIN
2,668
Impressions
10/28 Community Meeting
reminder (11/2)
Email 22,556 12,191
Opens
11/1 Community Meeting
reminder (11/7)
Social Media Facebook,
Instagram,
LinkedIN
3,152
Impressions
11/5 Community Meeting
reminder (11/7)
second post
Social Media Facebook,
Instagram,
LinkedIN
3,919
Impressions
11/5 Community Meeting
reminder (11/7)
Email 22,341 11,714
Opens
A total of 30 people attended the community meetings to hear about the proposed water budgets and water, reclaimed water, and sewer, rate structures. Staff from the Customer Care and Utility Billing division, as well as staff from the Water Resources division, were on hand to provide real-time assistance to the community on billing questions, estimated bill information, and conservation opportunities.

Date Attendees
11/2/2024 @ 2:00 pm at City Hall 13
11/7/2024 @ 11:00 am at City Hall 12
11/7/2024 @ 6:30 pm at City Hall 5
Total 30
The City Clerk’s office accepted written protests regarding the rates via mail and email to [email protected]. A total of 58 were received as of November 7, 2024, and an updated number will be provided at the Public Hearing along with copies of all protest letters.

FINANCIAL IMPACT:

Page 1269 of 1895 ends

JAMIER\06100.00100\10302614.1
Approval of the recommended actions will result in estimated revenue increases in the amount of $2,879,473 in the Water Utility Fund 570, and $1,852,278 in the Sewer Utility Fund 572 for the remainder of Fiscal Year 2025. There is no impact to the Reclaimed Water Utility Fund 567 because the Fiscal Year 2025 estimated revenues are higher than the adjusted revenue estimate projection. Future revenue adjustments will be submitted during the annual budget process.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to California Public Resources Code Section 21080(b)(8) and Section 15273 of the State CEQA Guidelines because the proposed increase in the rates for potable water, reclaimed water, and sewer services are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the potable water, reclaimed water, and sewer systems and will not result in the expansion of such systems. Therefore, no further environmental analysis is required and staff will file a Notice of Exemption with the County of Riverside.

PREPARED BY: KATIE HOCKETT, ASSISTANT DIRECTOR OF UTILITIES REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
ATTACHMENTS:

1. Exhibit 1 – Presentation

2. Exhibit 2 – Ordinance No. 3405

3. Exhibit 3 – Proposition 218 notice

Page 1270 of 1895 ends

Katie Hockett
Assistant Director of Utilities

Page 1271 of 1895 ends

2 Approve and implement
proposed water, reclaimed
water, sewer, and greenfield
electric utility rates

Page 1272 of 1895 ends

 Council Workshop 1 (policy objectives) – May 1, 2024
 Council Workshop 2 (financial plan presentation) – June 5, 2024  Council Workshop 3 (rate structure options) – July 3, 2024  Council Workshop 4 (recommendations) – August 21, 2024  Council Meeting to Receive Report – October 2, 2024
• Rate Hearing – November 20, 2024

Page 1273 of 1895 ends

O&M
Incremental Capital
Improvement
No Debt
RDN Option 3
O&M
Higher annual
contribution to
Capital Improvement
O&M
Fully funded Capital
Improvement
Only O&M
No Capital
Improvement
RDN Option 1
O&M
Incremental Capital
Improvement
Debt Issuance
Planned (if needed)
RDN Option 2 Recommended

Page 1274 of 1895 ends

FY2019 – FY 2024
Electricity – 33.2%
Raw water – 27.4%
Chemicals – 48.9%
Construction materials – 53%
Laboratory Analysis – 29%
These items make up 58.8% of
the budget
Water
Energy purchase costs – 19.2%
Power purchases costs are 77%
of the budget
Electric
All chemicals 83.9%
Bleach 98.4%
Biosolids hauling – 1,101%
Internal service charge – 19.5%
WRCRWA costs – 191.8%
(includes add’l conveyance
capacity)
These items make up 60.3% of
the budget
Sewer

Page 1275 of 1895 ends

6 Meter Size
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
5/8" $27.09 $32.79 $35.75 $38.96 $42.47 $46.29
3/4" $36.46 $42.94 $46.80 $51.02 $55.61 $60.61
1" $55.18 $63.23 $68.92 $75.12 $81.88 $89.25
1 1/2" $101.98 $113.94 $124.20 $135.38 $147.56 $160.84
2" $158.13 $174.81 $190.54 $207.69 $226.38 $246.75
3" $335.95 $367.54 $400.62 $436.67 $475.97 $518.81
4" $598.02 $651.56 $710.20 $774.12 $843.79 $919.74
6" $1,505.89 $1,635.51 $1,782.70 $1,943.15 $2,118.03 $2,308.65 8" $2,629.02 $2,852.76 $3,109.51 $3,389.36 $3,694.40 $4,026.90 10" $3,939.33 $4,272.88 $4,657.44 $5,076.61 $5,533.51 $6,031.52 Tier
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Tier 1 $1.93 $1.96 $2.13 $2.32 $2.53 $2.76
Tier 2 $2.77 $3.31 $3.60 $3.93 $4.28 $4.67
Tier 3 $5.48 $4.38 $4.77 $5.20 $5.67 $6.18
Tier 4 $9.12 $5.22 $5.69 $6.20 $6.76 $7.36
Tier 5 $13.59
Meter
Size
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
5/8" $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
3/4" $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
1" $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
1 1/2" $8.60 $13.33 $14.53 $15.84 $17.27 $18.82
2" $9.74 $14.91 $16.25 $17.71 $19.31 $21.05
3" $10.81 $17.63 $19.21 $20.94 $22.83 $24.88
4" $16.76 $27.38 $29.84 $32.53 $35.46 $38.65
6" $32.74 $44.20 $48.18 $52.51 $57.24 $62.39
8" $60.29 $69.50 $75.76 $82.57 $90.01 $98.11
10" $101.72 $104.57 $113.98 $124.24 $135.42 $147.61
Note: Hydrant and fireline consumption billed at Tier 4 variable Budget Factor Current Proposed
Gallons per person per day
Used to calculate Indoor Budget 55 47
Evapotranspiration Area Factor (ETAF)
Used to calculate Outdoor/Irrigation Budget 80% 80%

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7 Meter Size Current Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 5/8" $23.52 $26.64 $27.70 $28.81 $29.96 $31.16
3/4" $30.81 $35.95 $37.38 $38.88 $40.43 $42.05
1" $45.39 $54.57 $56.75 $59.02 $61.38 $63.84
1 1/2" $81.84 $101.12 $105.16 $109.37 $113.75 $118.30
2" $125.59 $156.98 $163.26 $169.79 $176.58 $183.65
3" $264.13 $333.88 $347.24 $361.13 $375.57 $390.60
4" $468.28 $594.58 $618.36 $643.10 $668.82 $695.57
6" $1,175.53 $1,497.70 $1,557.61 $1,619.91 $1,684.71 $1,752.10 8" $2,050.48 $2,614.96 $2,719.56 $2,828.34 $2,941.48 $3,059.14 10" $3,071.25 $3,918.44 $4,075.17 $4,238.18 $4,407.71 $4,584.02 Tier
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Tier 1 $2.14 $2.37 $2.46 $2.56 $2.66 $2.77
Tier 2 $3.21 $2.60 $2.71 $2.82 $2.93 $3.05
Tier 3 $4.27
Tier 4 $6.41

Page 1277 of 1895 ends

8 Current
Residential FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Base charge
(All Connections) $45.60 $45.46 $50.01 $55.01 $60.51 $66.56 Variable charge
(non-residential >8 HCF) N/A $5.50 $6.05 $6.66 $7.32 $8.05

Page 1278 of 1895 ends

9 Current
Rate FY2025 FY2026 FY2027 FY2028 FY2029
Fixed Charge, $/month
Single Family:
$0.88
Multi-Family: $0.67
$15.90 $16.54 $17.20 $17.89 $18.61
Energy $/kWh Tier 1 Baseline $0.11808 $0.10100 $0.10504 $0.10924 $0.11361 $0.11815 Energy $/kWh Tier 2 101-130% Baseline $0.13741 $0.11100 $0.11544 $0.12006 $0.12486 $0.12985 Energy $/kWh Tier 3 131-200% Baseline $0.22696
$0.21000 $0.21840 $0.22714 $0.23623 $0.24568
Energy $/kWh Tier 4 over 200% Baseline $0.32337
Public Benefits Charge $/kWh Incl. in rates $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

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10 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month $0.11678 $0.12145 $0.12631 $0.13136 $0.13661 Customer Charge - $/Meter/Month $10.26 $10.67 $11.10 $11.54 $12.01 Public Benefits Charge $/kWh $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

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11 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge $/kWh/Meter/Month $0.15500 $0.16120 $0.16765 $0.17436 $0.18133 Customer Charge - $/Meter/Month $20.97 $21.81 $22.68 $23.59 $24.53 Three Phase Service - $/Month* $3.16 $3.29 $3.42 $3.56 $3.70 Public Benefits Charge $/kWh $0.00378 $0.00405 $0.00419 $0.00433 $0.00448 *Cost for Three Phase customer will include Single Phase rate plus Three Phase rate.

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12 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month $0.05905 $0.06141 $0.06387 $0.06642 $0.06908 Customer Charge - $/Meter/Month $35.13 $36.54 $38.00 $39.52 $41.10 Demand Charge - $/kW of Billing
Demand/Meter/Month
Facilities Related $15.74 $16.37 $17.02 $17.70 $18.41
Time Related (Peak)
(4:00 p.m. to 9:00 p.m. year-round) $8.27 $8.60 $8.94 $9.30 $9.67 Public Benefits Charge -
$/kWh/Meter/Month $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

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13 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month $0.11678 $0.12145 $0.12631 $0.13136 $0.13661 Customer Charge - $/Meter/Month $10.26 $10.67 $11.10 $11.54 $12.01 Public Benefits Charge $/kWh $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

Page 1283 of 1895 ends

14 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month $0.16345 $0.17598 $0.18994 $0.20852 $0.23192 Customer Charge - $/Meter/Month $13.91 $14.47 $15.05 $15.65 $16.28 Three-Phase Service - $/Month $4.64 $4.82 $5.02 $5.22 $5.43 Public Benefits Charge $/kWh $0.00378 $0.00405 $0.00419 $0.00433 $0.00448 *Cost for Three Phase customer will include Single Phase rate plus Three Phase rate.

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15 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month
Summer Season – On-Peak $0.09620 $0.10005 $0.10405 $0.10821 $0.11254 Mid-Peak $0.07280 $0.07571 $0.07874 $0.08189 $0.08517
Off-Peak $0.05200 $0.05408 $0.05624 $0.05849 $0.06083
Winter Season – Mid-Peak $0.07986 $0.08305 $0.08637 $0.08982 $0.09341 Off-Peak $0.05200 $0.05408 $0.05624 $0.05849 $0.06083
Customer Charge - $/Meter/Month $49.30 $51.27 $53.32 $55.45 $57.67 Demand Charge - $/kW of Billing
Demand/Meter/Month
Facilities Related $17.51 $18.21 $18.94 $19.70 $20.49
Time Related (Peak)
(4:00 p.m. to 9:00 p.m. year-round) $8.29 $8.62 $8.96 $9.32 $9.69 Power Factor Adjustment - $/KVA $0.18000 $0.18720 $0.19469 $0.20248 $0.21058 Public Benefits Charge $/kWh $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

Page 1285 of 1895 ends

16 Jan 2025 July 2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month
Summer Season – On-Peak $0.10361 $0.10361 $0.09444 $0.09822 $0.10215 $0.10624 Mid-Peak $0.07874 $0.07874 $0.07178 $0.07465 $0.07764 $0.08075 Off-Peak $0.05595 $0.05595 $0.05100 $0.05304 $0.05516 $0.05737 Winter Season – Mid-Peak $0.08592 $0.08592 $0.07832 $0.08145 $0.08471 $0.08810 Off-Peak $0.05595 $0.05595 $0.05100 $0.05304 $0.05516 $0.05737 Customer Charge - $/Meter/Month $19.14 $19.14 $20.86 $21.69 $22.56 $23.46 Demand Charge - $/kW of Billing
Demand/Meter/Month
Facilities Related $8.00 $10.00 $21.55 $22.41 $23.31 $24.24 Time Related (Peak)
(4:00 p.m. to 9:00 p.m. year-round) $6.00 $12.00 $12.98 $13.50 $14.04 $14.60 Power Factor Adjustment - $/KVA $0.18000 $0.18000 $0.18720 $0.19469 $0.20248 $0.21058 Public Benefits Charge $/kWh $0.00378 $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

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17 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month
Summer Season – On-Peak $0.09630 $0.10015 $0.10416 $0.10833 $0.11266 Mid-Peak $0.07319 $0.07611 $0.07915 $0.08232 $0.08561
Off-Peak $0.05200 $0.05408 $0.05624 $0.05849 $0.06083
Winter Season – Mid-Peak $0.07986 $0.08305 $0.08637 $0.08982 $0.09341 Off-Peak $0.05200 $0.05408 $0.05624 $0.05849 $0.06083
Customer Charge - $/Meter/Month $76.97 $80.05 $83.25 $86.58 $90.04 Demand Charge - $/kW of Billing
Demand/Meter/Month
Facilities Related $15.06 $15.66 $16.29 $16.94 $17.62
Time Related (Peak)
(4:00 p.m. to 9:00 p.m. year-round) $8.31 $8.64 $8.99 $9.35 $9.72 Power Factor Adjustment - $/KVA $0.18000 $0.18720 $0.19469 $0.20248 $0.21058 Public Benefits Charge $/kWh $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

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18 FY2025 FY2026 FY2027 FY2028 FY2029
Energy Charge - $/kWh/Meter/Month
On-Peak 4:00 p.m. to 9:00 p.m. $0.19710 $0.20498 $0.21318 $0.22171 $0.23058 Off-Peak (All Other Hours) $0.06570 $0.06833 $0.07106 $0.07390 $0.07686 Customer Charge - $/Meter/Month $76.97 $80.05 $83.25 $86.58 $90.04 Demand Charge - $/kW of Billing
Demand/Meter/Month $15.06 $15.66 $16.29 $16.94 $17.62
Power Factor Adjustment - $/KVA $0.18000 $0.18720 $0.19469 $0.20248 $0.21058 Public Benefits Charge $/kWh $0.00378 $0.00405 $0.00419 $0.00433 $0.00448

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• Second Reading – December 4, 2024
• Rate Implementation – January 3, 2025
• Bill insert reminder about rate changes – January/February • Bills with new rates begin arriving – mid February

Page 1289 of 1895 ends

20 Approve and implement
proposed water, reclaimed
water, sewer, and greenfield
electric utility rates

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1 JAMIER\06100.00100\10302616.2
ORDINANCE NO. 3405

AN ORDINANCE OF THE OF THE CITY OF CORONA,

CALIFORNIA, MODIFYING THE BUDGET BASED

WATER STRUCTURE AND MODIFYING RATES FOR

POTABLE WATER, RECLAIMED WATER, AND SEWER
SERVICE FEES AND CHARGES.

WHEREAS, the City of Corona (the “City”), through its Utilities Department, is charged with providing a continuous and adequate supply of safe and potable water and with developing and encouraging the use of reclaimed or recycled water to supplement existing potable water supplies and ensuring the adequate collection and treatment of sewage in compliance with the Clean Water Act, which services are funded primarily by the revenue derived from potable water, reclaimed water, and sewer service fees; and
WHEREAS, Chapters 13.14 and 13.28 of the Corona Municipal Code (“CMC”) require that the City Council establish the rates for providing potable water, reclaimed water, and sewer services; and
WHEREAS, the Utilities Department engaged the services of Robert D. Niehaus, Inc. (“RDN”) to perform an independent rate study to evaluate the infrastructure needs, programs and operations and maintenance costs of the City’s potable water, reclaimed water and sewer systems and the rates necessary to recover the costs of providing those services for the next five years; and
WHEREAS, RDN prepared the 2024 Water, Reclaimed Water, and Sewer Rate Study dated September 26, 2024 (“Rate Study”), as set forth in Exhibit “B,” attached hereto and incorporated herein by reference, which evaluates the current rates and financial data and proposes new rates for the City’s potable water, reclaimed water, and sewer services based on the cost of service principles necessary to meet the City’s financial and strategic goals; and WHEREAS, based upon the analysis in the Rate Study, it has been determined that adjustments to the rates for the City’s potable water, reclaimed water, and sewer service charges are necessary to enable the City to recover current and projected costs of operations and maintenance and critical capital infrastructure improvements need to repair and update the City’s aging water, reclaimed water, and sewer systems, maintain the operational and financial stability of the utility, comply with State and Federal mandated regulatory requirements, meet and comply with annual debt service requirements, avoid operational deficits and further depletion of reserves, and provide an equitable allocation of the costs of providing service among the various customer classes; and
WHEREAS, the proposed changes to the rates for the potable water, reclaimed water, and sewer service charges will allow the Utilities Department to continue to provide safe, reliable drinking water and sewer collections and treatment to its customers; and WHEREAS, the Utilities Department has experienced and anticipates additional

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2 JAMIER\06100.00100\10302616.2
inflationary increases to the costs to operate and maintain the City’s potable water, reclaimed water, and sewer systems (the “Systems”) and to provide ongoing repairs, replacements, and upgrades to the Systems; and
WHEREAS, without the proposed rate increases the Utilities Department would experience budget shortfalls for each year of the five-year forecast performed by RDN in the Rate Study; and
WHEREAS, California Constitution Article X, Section 2 and California Water Code Section 100 provide that because of conditions prevailing in the State of California, it is the declared policy of the State that the general welfare requires that the water resources of the State shall be put to beneficial use to the fullest extent of which they are capable, the waste or unreasonable use of water shall be prevented, and the conservation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and the public welfare; and
WHEREAS, pursuant to California Water Code Section 106, it is the declared policy of the State that the use of water for domestic use is the highest use of water and that the next highest use is for irrigation; and
WHEREAS, pursuant to Ordinance No. 3025 and Ordinance No. 3309, the City Council previously adopted a Budget Based Water Rate Structure to implement a system of tiered water rates and charges based upon customer water budgets intended to (i) promote efficient water use and resource conservation; and (ii) proportionately allocate the cost of providing water service; and
WHEREAS, the Corona City Council has previously adopted Ordinance No. 3076 establishing sewer rates and service fees; and
WHEREAS, water budgets for residential customers, which will have four tiers and includes a budget for indoor and outdoor use, are determined on the basis of individual household factors, such as the number of people per household, the size of the irrigated landscaped area, the amount of water a typical household requires each month for indoor and outdoor use, actual daily water lost to the atmosphere by plants (evapotranspiration) and an evapotranspiration area factor (“ETAF”); and
WHEREAS, water budgets for commercial, industrial, institutional and governmental customers with non-dedicated irrigation meters are determined on the basis of each customer’s average water use during the last three years and water budgets for commercial, industrial, institutional, and governmental customers with dedicated irrigation meters are determined in the same manner as residential customers; and WHEREAS, the rate structure for the City’s monthly water service fees include the following components: (1) a Ready-to-Serve Charge imposed on residential, non-residential, and reclaimed water customers that is based on the size of the water meter serving the property; (2) a variable potable water Commodity Charge that is determined on the basis of the number of units of water delivered to the property; and (3) a reclaimed water Commodity Charge that is

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3 JAMIER\06100.00100\10302616.2
determined on the basis of the number of units of reclaimed water delivered to the property. The rate increases adopted by this Ordinance would impact both the Ready-to-Serve Charge and the Commodity Charge components of the water service fees and the reclaimed water fees; and WHEREAS, the rate structure for fire protection customers, which includes customers who are required as a condition of extending or initiating water service to install a private fire suppression system on their property and customers who have requested the delivery of water to the property for the purpose of fire service protection, is comprised of two components:
(1) a variable fire protection Commodity Charge that is determined on the basis of the number of units of water delivered to a fire protection customer through the City’s potable water system; and (2) a fixed Fireline Charge that is determined on the basis of the size of the fireline (in inches) through which water is delivered; and
WHEREAS, on September 28, 2022, the State of California passed Senate Bill No. 1157 which amended California Water Code Section 10609.4 to establish an indoor residential water use standard of 47 gallons per capita daily beginning January 1, 2025, and until January 1, 2030; and
WHEREAS, based upon the Rate Study and the requirements under California Water Code Section 10609.4, it has been determined that the indoor water budget tier should be modified to reduce the efficient indoor water use standard from 55 gallons per person per day to 47 gallons per person per day to reflect the State’s indoor water use objective; and WHEREAS, based upon the Rate Study, it has been determined that no change is required to the outdoor budget and ETAF will remain at 80%; and WHEREAS, based upon the Rate Study, it has been determined that for potable water, the water budget tiers should be revised so that inefficient use will remain at 1%-50% over water budget, and excessive use is revised to greater than 50% over water budget, and the wasteful use has been eliminated; and
WHEREAS, based upon the Rte Study, it has been determined that for reclaimed water, the water budget tiers should be revised so that all usage over water budget shall be charged at the inefficient use or Tier 2 rate; and
WHEREAS, based upon the Rate Study, it has been determined that sewer bills shall include a fixed monthly charge for all customers and a variable charge (per hundred cubic feet) for non-residential customers based on the metered water consumption for all water use exceeding 800 cubic feet (8 CCF) per month which increases equity across customer classes as well as within customer classes because customers will only pay a bill based on their actual impact on the system; and
WHEREAS, the City will implement a variance program for commercial customers whose water use and sewer flow may not be directly comparable and the City will review the variances on a case-by-case basis; and

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4 JAMIER\06100.00100\10302616.2
WHEREAS, the rates adopted by this Ordinance have been calculated to meet the cost to the city of providing the services for which the rates and fees are imposed, without generating revenue that exceeds the funds required to provide the services; and without exceeding the proportional cost of service attributable to each customer; and WHEREAS, revenues derived from the rates adopted by this Ordinance will not exceed the funds required to provide the services for which the rates and charges are imposed and shall be exclusive for maintenance and operation of the Systems and the provision of potable water, reclaimed water, and sewer services; and
WHEREAS, the rates adopted by this Ordinance will not exceed the proportional cost of the service attributable to each parcel upon which they are imposed; and WHEREAS, the rates adopted by this Ordinance will not be imposed on a parcel unless the services for which the rates and fees are imposed are actually used by, or immediately available to, the owner of the parcel; and
WHEREAS, the City, as the lead agency under the California Environmental Quality Act (“CEQA”), has determined that this Ordinance is exempt from CEQA review under Public Resources Code Section 21080(b)(8) and State CEQA Guidelines section 15273 because the rates adopted by this Ordinance are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the Systems and will not result in the expansion of the Systems; and
WHEREAS, pursuant to California Constitution article XIII D, Section 6 (“Article XIII D”) at least 45 days prior to the public hearing on the proposed increase in the potable water service fees, reclaimed water services fees, and sewer service fees, the City provided written notice (the “Notice”) by mail to the record owner of each parcel upon which the rates and charges are proposed and any tenant directly liable for payment of the rates and charges, which Notice included the following information: (1) the amount of the rates and charges proposed to be imposed one each parcel; (2) the basis upon which the rates and charges were calculated; (3) the reason for the rates and charges; and (4) the date, time and location of a public hearing on the proposed rates and charges; and
WHEREAS, California Government Code Section 53756 authorizes the City to approve automatic adjustments in the potable water service fees, reclaimed water services fees, and sewer service fees as necessary to pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation, provided that the adjustments are specified in the Notice and approved pursuant to Government Code Section 53756 and Article XIII D for a period not to exceed five years; and WHEREAS, on November 20, 2024, the City Council held a duly noticed public hearing at which all persons wishing to testify in connection with the proposed increase in the potable water services fees, the reclaimed water service fees and sewer service fees were heard and all protests against the proposed rates and fees were considered; and

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WHEREAS, at the close of the hearing, the City Council determined that the City did not receive written protests against the establishment and imposition of the proposed rate increases for potable water service fees, reclaimed water service fees, or sewer service fees from a majority of the affected property owners or tenants directly liable for the payment of such fees.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CORONA
DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council finds and determines that the foregoing Recitals are true and correct and incorporates the Recitals herein.

SECTION 2. As the decision-making body for the City, the City Council has reviewed and considered the information contained in the administrative record, including all oral and written evidence presented the City Council. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds this action exempt pursuant to California Public Resources Code section 21080(b)(8) and Section 15273(a) of the Guidelines for the California Environmental Quality Act (CEQA), which states that the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies that the public agency finds are for the purpose of meeting financial reserve needs and requirements, and obtaining funds for capital projects necessary to maintain service within existing service areas is exempt from CEQA. The City Council hereby finds that the administration, operation, maintenance, and improvements of the Systems, which are to be funded by the potable water service fees, the reclaimed water service fees, and the sewer service fees set forth herein, are necessary to maintain service within the City’s existing service area. The City Council further finds that the administration, operation, maintenance, and improvements of the Systems, to be funded by the potable water service fees, the reclaimed water service fees, and the sewer service fees set forth herein, will not expand the Systems. Based on these findings, the City Council hereby determines that this Ordinance is exempt from the requirements of CEQA pursuant to California Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273(a).

SECTION 3. The City Council hereby adopts the 2024 Water, Reclaimed Water, and Sewer Rate Study dated September 26, 2024, prepared by Robert D. Niehaus, Inc. attached hereto as Exhibit “B”.

SECTION 4. The documents and materials that constitute the record of proceedings on which these findings have been based are located at City of Corona, 400 S. Vicentia Avenue, Corona, California 92882. The custodian for these records is the City Clerk of the City.

SECTION 5. The City Council hereby authorizes and establishes the rates and charges for the City’s potable water service fees, including, without limitation, the fees imposed upon fire protection customers, the City’s reclaimed water service fees, and City’s sewer service fees, as set forth in Exhibit “A,” attached hereto and incorporated herein by reference, which rates and charges will be effective on January 3, 2025, with scheduled annual rate increases authorized pursuant to California Government Code Section 53756 effective on January 1, 2026, January 1, 2027, January 1, 2028, and January 1, 2029. The City Council further authorizes and approves the modifications

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6 JAMIER\06100.00100\10302616.2
to the Budget Based Water Rate Structure adopted pursuant to Ordinance No. 3025 and Ordinance 3309 as set forth in Exhibit “A”. Such rates and charges and modifications to the Budget Based Water Rate Structure shall be in effect beginning January 3, 2025. The City Council will review the rate schedule at a public meeting prior to the implementation of the rate increase scheduled for January 1, 2028, to assess the accuracy of the City’s cost and revenue estimates and to reaffirm that the 2028 increase remains necessary based upon the costs expended and revenues received during the first two years of the rate increases. After such review, the City Council may direct City staff to proceed with implementing the remaining scheduled rate increases in 2028 through 2029 in an amount that does not exceed the rates set forth in the proposed schedule set forth in Exhibit “A”. Prior to implementing any future rate increases, the Director of Utilities shall provide written notice of any such increases to customers not less than 30 days prior to the effective date of the rate increases. Any such notice may be provided in the regular billing statements of the Utilities Department customers.

SECTION 6. The City Council hereby authorizes and directs the Director of Utilities to implement and take all actions necessary to effectuate the rates adopted by this Ordinance and to file a Notice of Exemption with the County Clerk for Riverside County within five (5) working days of the date of the adoption of this Ordinance.

SECTION 7. If any section, subsection, subdivision, sentence, clause, or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

SECTION 8. This Ordinance shall supersede all other previous City Council resolutions and ordinances that may conflict with, or be contrary to, this Ordinance.

SECTION 9. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall within fifteen (15) days of its adoption cause it, or a summary of it, to be published in a general circulation newspaper published in the City of Corona.

SECTION 10. This Ordinance shall take effect and be in force 30 days after its adoption.

PASSED, APPROVED AND ADOPTED this ___(th) day of ________, _____.

Mayor of the City of Corona, California
ATTEST:

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7 JAMIER\06100.00100\10302616.2
City Clerk of the City of Corona, California

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8 JAMIER\06100.00100\10302616.2

CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Ordinance was regularly introduced at a regular meeting of the City Council of the City of Corona, California duly held on the ___(th) day of __________, _____ and thereafter at a regular meeting held on the ___(th) day of __________, _____, it was duly passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this ___(th) day of __________, _____.

City Clerk of the City of Corona, California
[SEAL]

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9 JAMIER\06100.00100\10302616.2
EXHIBIT "A"

RATES AND CHARGES FOR POTABLE WATER SERVICE FEES, RECLAIMED

WATER SERVICE FEES, AND SEWER SERVICE FEES
[SEE ATTACHED THREE (3) PAGES]

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1 JAMIER\06100.00100\10302616.2
Potable Water Budget Tier Modifications
Residential Customers
Water Budget Factors Current Proposed
Gallons per capita per day (GPCD) 55 47
Evapotranspiration Area Factor
(ETAF)
80% 80%
Inefficient Use Definition 1%-50% over water budget 1%-50% over water budget Excessive Use 51%-100% over water budget Greater than 50% over water budget
Wasteful Use Greater than 100% over water
budget
n/a
Potable Water Budget Tier Modifications
Non-Residential Water Customers
Water Budget Factors Current Proposed
Evapotranspiration Area Factor
(ETAF)
80% 80%
Inefficient Use Definition 1%-50% over water budget 1%-50% over water budget Excessive Use 51%-100% over water budget Greater than 50% over water budget
Wasteful Use Greater than 100% over water
budget
n/a
Current and Proposed Rates for Potable Water Commodity Charges ($/CCF) Residential Customers
Tier Tier Width Definition Current Jan 3,
2025
Jan 1,
2026
Jan 1,
2027
Jan 1,
2028
Jan 1,
2029
1 Water use up to efficient indoor water
budget
$1.93 $1.96 $2.13 $2.32 $2.53 $2.76
2 Water use up to efficient outdoor water
budget
$2.77 $3.31 $3.60 $3.93 $4.28 $4.67
3 Water use 1%-50% over water budget
(Indoor+Outdoor)
$5.48 $4.38 $4.77 $5.20 $5.67 $6.18
4 Water use greater than 50% over water
budget (Indoor+Outdoor)
$9.12 $5.22 $5.69 $6.20 $6.76 $7.36
Current and Proposed Rates for Potable Water Commodity Charges ($/CCF) Non-Residential Customers
Tier Tier Width Definition Current Jan 3,
2025
Jan 1,
2026
Jan 1,
2027
Jan 1,
2028
Jan 1,
2029
1 Water use up to efficient water
budget
$2.77 $3.31 $3.60 $3.93 $4.28 $4.67
2 Water use 1%-50% over water
budget
$5.48 $4.38 $4.77 $5.20 $5.67 $6.18
3 Water use greater than 50% over
water budget
$9.12 $5.22 $5.69 $6.20 $6.76 $7.36

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2 JAMIER\06100.00100\10302616.2
Current and Proposed Rates for Potable Water Commodity Charges ($/CCF) Non-Residential Customers with Dedicated Irrigation Meters Tier Tier Width Definition Current Jan 3,
2025
Jan 1,
2026
Jan 1,
2027
Jan 1,
2028
Jan 1,
2029
1 Water use up to efficient outdoor
water budget
$2.77 $3.31 $3.60 $3.93 $4.28 $4.67
2 Water use 1%-50% over water
budget
$5.48 $4.38 $4.77 $5.20 $5.67 $6.18
3 Water use greater than 50% over
water budget
$9.12 $5.22 $5.69 $6.20 $6.76 $7.36
Current and Proposed Rates for Potable Water Monthly Ready-to-Serve Charges ($/Meter Size in Inches)
Residential and Non-Residential
Meter Size Current Jan 3, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 5/8” $27.09 $32.79 $35.75 $38.96 $42.47 $46.29
3/4” $36.46 $42.94 $46.80 $51.02 $55.61 $60.61
1” $55.18 $63.23 $68.92 $75.12 $81.88 $89.25
1 1/2” $101.98 $113.94 $124.20 $135.38 $147.56 $160.84
2” $158.13 $174.81 $190.54 $207.69 $226.38 $246.75
3” $335.95 $367.54 $400.62 $436.67 $475.97 $518.81
4” $598.02 $651.56 $710.20 $774.12 $843.79 $919.74
6” $1,505.89 $1,635.51 $1,782.70 $1,943.15 $2,118.03 $2,308.65 8” $2,629.02 $2,852.76 $3,109.51 $3,389.36 $3,694.40 $4,026.90 10” $3,939.33 $4,272.88 $4,657.44 $5,076.61 $5,533.51 $6,031.52 Current and Proposed Rates for Monthly Fireline Charges ($/Fireline Size in Inches) Fire Protection Customers
Meter Size Current Jan 3, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 5/8” $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
3/4” $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
1” $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
1 1/2” $8.60 $13.33 $14.53 $15.84 $17.27 $18.82
2” $9.74 $14.91 $16.25 $17.71 $19.31 $21.05
3” $10.81 $17.63 $19.21 $20.94 $22.83 $24.88
4” $16.76 $27.38 $29.84 $32.53 $35.46 $38.65
6” $32.74 $44.20 $48.18 $52.51 $57.24 $62.39
8” $60.29 $69.50 $75.76 $82.57 $90.01 $98.11
10” $101.72 $104.57 $113.98 $124.24 $135.42 $147.61
Current and Proposed Rates for Fire Protection Commodity Charges ($/CCF) Fire Protection Customers
Current Jan 3, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 $9.12 $5.22 $5.69 $6.20 $6.76 $7.36

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3 JAMIER\06100.00100\10302616.2
Reclaimed Water Budget Tier Modifications
Reclaimed Water Customers
Water Budget Factors Current Proposed
Evapotranspiration Area Factor
(ETAF)
80% 80%
Inefficient Use Definition 1%-50% over water budget Usage greater than water budget
Excessive Use 51%-100% over water budget n/a
Wasteful Use Greater than 100% over water
budget
n/a
Current and Proposed Rates for Reclaimed Water Commodity Charges ($/CCF) Reclaimed Water Customers
Tier Tier Width Definition Current Jan 3,
2025
Jan 1,
2026
Jan 1,
2027
Jan 1,
2028
Jan 1,
2029
1 Water use up to efficient outdoor
water budget
$2.14 $2.37 $2.46 $2.56 $2.66 $2.77
2 Water use over water budget $3.21 $2.60 $2.71 $2.82 $2.93 $3.05 Current and Proposed Rates for Reclaimed Water Monthly Ready-to-Serve Charges ($/Meter Size in Inches)
Reclaimed Water Customers
Meter Size Current Jan 3, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 5/8” $23.52 $26.64 $27.70 $28.81 $29.96 $31.16
3/4” $30.81 $35.95 $37.38 $38.88 $40.43 $42.05
1” $45.39 $54.57 $56.75 $59.02 $61.38 $63.84
1 1/2” $81.84 $101.12 $105.16 $109.37 $113.75 $118.30
2” $125.59 $156.98 $163.26 $169.79 $176.58 $183.65
3” $264.13 $333.88 $347.24 $361.13 $375.57 $390.60
4” $468.28 $594.58 $618.36 $643.10 $668.82 $695.57
6” $1,175.53 $1,497.70 $1,557.61 $1,619.91 $1,684.71 $1,752.10 8” $2,050.48 $2,614.96 $2,719.56 $2,828.34 $2,941.48 $3,059.14 10” $3,071.25 $3,918.44 $4,075.17 $4,238.18 $4,407.71 $4,584.02 Proposed Rates for Sewer Monthly Fixed Charges
All Sewer Customers
Jan 3, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 $45.46 $50.01 $55.01 $60.51 $66.56
Proposed Rates for Sewer Variable Charges ($/CCF > 8 CCF of water) All Non-Residential Sewer Customers
Variable Rate Jan 3,
2025
Jan 1,
2026
Jan 1,
2027
Jan 1,
2028
Jan 1,
2029
Charged per CCF of water consumption for all
usage over 8 CCF
$5.50 $6.05 $6.66 $7.32 $8.05

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4 JAMIER\06100.00100\10302616.2
EXHIBIT “B”
2024 WATER, RECLAIMED WATER, AND SEWER RATE STUDY
[SEE ATTACHED 158 PAGES]

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CITY OF CORONA
2024 Water, Reclaimed Water, and
Sewer Rate Study
Final Report September 26, 2024

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CITY OF CORONA
2024 WATER, RECLAIMED WATER, AND SEWER RATE
STUDY

FINAL REPORT
Prepared for:

City of Corona
400 South Vicentia Avenue
Corona, CA 92882
Prepared by:

ROBERT D. NIEHAUS, INC.
140 East Carrillo Street
Santa Barbara, CA 93101
(805) 962-0611
RDN Project Number 366

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September 26, 2024
Tom Moody
Director of Utilities
City of Corona
400 South Vicentia Ave.

Corona, CA 92882
Subject: 2024 Water, Reclaimed Water, and Sewer Rate Study Dear Mr. Moody,
Robert D. Niehaus, Inc. is pleased to provide this Financial Planning, Revenue Requirements, Cost of Service, and Rate Setting Analysis report to the City of Corona for its Water, Reclaimed Water, and Sewer services. This rate study includes a financial plan to determine the revenue requirements for the next five years and a comprehensive review of the City’s current rates based on the cost of service principles. This report outlines the approach, methodology, findings, and recommendations of the study. Each of the components of this study has enhanced the equitability of the rates we propose.

The proposed rates were developed utilizing the City’s customer usage data, billing records, accounting, operating and management records, capital plans, and reserve policies. Based on the Cityprovided data, key assumptions were made for the study using appropriate resources and our econometric and financial expertise. We are confident that the rates proposed in this report are costbased and are fully compliant with Proposition 218 and other legal requirements.

It has been an absolute pleasure and honor to work with your city. We thank you, Ms. Hockett, and all additional staff who helped complete this report.

Respectfully submitted,
Robert D. Niehaus, Ph.D. Sanjay Gaur M.S., M.P.A.

Managing Director/Principal Economist - RDN Project Manager - Water Resources Economics

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i
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study

TABLE OF CONTENTS
TABLE OF CONTENTS.............................................................................................................................. i LIST OF TABLES.......................................................................................................................................iv LIST OF FIGURES.....................................................................................................................................ix EXECUTIVE SUMMARY.............................................................................................................................1

1.1 Background...............................................................................................................................................1

1.2 Purpose of Study .....................................................................................................................................3

1.3 Rate Recommendations and Proposed Rates....................................................................................3 METHODOLOGY ......................................................................................................................................11

2.1 General Methodology........................................................................................................................... 11

2.2 Legal Considerations............................................................................................................................ 12

2.3 Key Assumptions .................................................................................................................................. 16 Escalation Factors ........................................................................................................................................ 16 Customer Growth.......................................................................................................................................... 18 Reserve Policy .............................................................................................................................................. 21 Equivalent Meter Size .................................................................................................................................. 22 Debt Service Coverage Ratios ................................................................................................................... 22 WATER UTILITY .......................................................................................................................................24

3.1 Financial Plan........................................................................................................................................ 24 Demand Projections ..................................................................................................................................... 24 Revenues ....................................................................................................................................................... 25 Operating and Maintenance (O&M) Expense .......................................................................................... 26 Other Obligations.......................................................................................................................................... 26 Capital Improvement Projects..................................................................................................................... 26 Debt Service and Coverage Ratios............................................................................................................ 27 Reserves ........................................................................................................................................................ 29 Financial Plan................................................................................................................................................ 31 Revenue Requirements ............................................................................................................................... 33

3.2 Cost of Service Analysis ...................................................................................................................... 34 Functionalization of Costs ........................................................................................................................... 34 Allocation to Units ......................................................................................................................................... 42 Allocation to Customer Classes.................................................................................................................. 45

3.3 Water Rate Design ............................................................................................................................... 47

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City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Monthly Fixed Charge.................................................................................................................................. 48 Monthly Fire Fixed Charge.......................................................................................................................... 49 Variable Water Rates ................................................................................................................................... 51

3.4 Bill Impact Analysis............................................................................................................................... 56 RECLAIMED WATER UTILITY ................................................................................................................57

4.1 Financial Plan........................................................................................................................................ 57 Demand Projections ..................................................................................................................................... 57 Revenues ....................................................................................................................................................... 58 Operating and Maintenance (O&M) Expense .......................................................................................... 59 Other Obligations.......................................................................................................................................... 59 Capital Improvement Projects..................................................................................................................... 59 Debt Service and Coverage Ratios............................................................................................................ 60 Reserves ........................................................................................................................................................ 61 Financial Plan................................................................................................................................................ 63 Revenue Requirements ............................................................................................................................... 65

4.2 Cost of Service Analysis ...................................................................................................................... 66 Functionalization of Costs ........................................................................................................................... 66 Allocation to Units ......................................................................................................................................... 74 Allocation to Customer Classes.................................................................................................................. 76

4.3 Reclaimed Water Rate Design ........................................................................................................... 78 Monthly Fixed Charge.................................................................................................................................. 79 Variable Reclaimed Water Rates ............................................................................................................... 80

4.4 Bill Impact Analysis............................................................................................................................... 82 SEWER UTILITY .......................................................................................................................................84

5.1 Financial Plan........................................................................................................................................ 84 Revenues ....................................................................................................................................................... 84 Operating and Maintenance (O&M) Expense .......................................................................................... 85 Other Obligations.......................................................................................................................................... 86 Capital Improvement Projects..................................................................................................................... 86 Debt Service and Coverage Ratios............................................................................................................ 87 Reserves ........................................................................................................................................................ 88 Financial Plan................................................................................................................................................ 90 Revenue Requirements ............................................................................................................................... 92

5.2 Cost of Service Analysis ...................................................................................................................... 93

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City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Functionalization of Costs ........................................................................................................................... 93 Allocation to Units ......................................................................................................................................... 96

5.3 Rate Design........................................................................................................................................... 99 Sewer Rates .................................................................................................................................................. 99 CONCLUSION.........................................................................................................................................100

6.1 Summary of Recommendations and Financial Results................................................................ 100

6.2 Rate Impacts and Comparison ......................................................................................................... 117 APPENDIX...............................................................................................................................................121

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iv
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study

LIST OF TABLES
Table 1. Current Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size ............................................................................................................................................................................4 Table 2. Current Variable Water Rates for Residential and Non-Residential Customers by Tier.....................5 Table 3. Proposed Revenue Adjustments FY 2025 to FY 2029 ...............................................................................5 Table 4. Proposed Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size, FY 2025 to FY 2029.............................................................................................................................6 Table 5. Proposed Variable Water Rates for Residential and Non-Residential Customers by Tier, FY 2025 to FY 2029.................................................................................................................................................................6 Table 6. Current Reclaimed Water Fixed Rates .........................................................................................................7 Table 7. Current Reclaimed Water Variable Rates ....................................................................................................7 Table 8. Proposed Reclaimed Water Proposed Revenue Adjustments FY 2025 to FY 2029 .............................8 Table 9. Proposed Reclaimed Water Fixed Charges by Meter Size for FY 2025 to FY 2029 ..............................8 Table 10. Proposed Reclaimed Water Variable Rates by Tier for FY 2025 to FY 2029........................................8 Table 11. Current Sewer Fixed Charges......................................................................................................................9 Table 12. Proposed Revenue Adjustments FY 2025 to FY 2029 .............................................................................9 Table 13. Proposed Sewer Rates FY 2025 to FY 2029 ............................................................................................10 Table 14. Expense Escalation Factors ......................................................................................................................18 Table 15. Annual Meter and Fire Service Line Count FY 2024 to FY 2029 ..........................................................19 Table 16. Annual Meter Counts, FY 2024 to FY 2029 ..............................................................................................20 Table 17. Annual Sewer Customer Counts, FY 2024 to FY 2029...........................................................................21 Table 18. Water Reserve Policies and FY 2025 target ............................................................................................21 Table 19. Reclaimed Water Reserve Policies and FY 2025 target ........................................................................21 Table 20. Sewer Reserve Policies and FY 2025 target............................................................................................22 Table 21. AWWA Equivalent Meter and Fire Flow Ratios.......................................................................................22 Table 22. Annual Water Use by Customer Class in hcf, FY 2024 to FY 2029 .....................................................25

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City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 23. Annual Non-Operating Revenue by Source, FY 2024 to FY 2029........................................................25 Table 24. Water Utility Operating Forecast, FY 2024 to FY 2029 ..........................................................................26 Table 25. Operating Expenses by Expense Category, FY 2024 to FY 2029 ........................................................26 Table 26. Rate Study CIP Expenses by Expense Type, FY 2024 to FY 2029 ......................................................27 Table 27. Water Fund Debt Service Payments, FY 2024 to FY 2029.....................................................................28 Table 28. Water Debt Service Coverage Ratio Calculation, FY 2024 to FY 2029................................................28 Table 29. Water Reserve Target, FY 2024 to FY 2029 .............................................................................................29 Table 30. Status Quo Financial Pro Forma for City of Corona Water System, FY 2024 to FY 2029 ...............31 Table 31. Proposed Financial Pro Forma for City of Corona Water System, FY 2024 to FY 2029 ..................32 Table 32. Revenue Requirements for City of Corona Water Utility, FY 2024 ......................................................33 Table 33. Percentage of Operating Costs Allocated to Standard Functions ......................................................35 Table 34. Percentage of Non-operating Costs Allocated to Standard Functions..............................................35 Table 35. System-Wide Peaking Factors...................................................................................................................37 Table 36. Percent of Operating Function Categories Allocated to Cost Components .....................................38 Table 37. Total of Operating Functional Categories Allocated to Cost Components .......................................38 Table 38. Percent of Non-Operating Function Categories Allocated to Cost Components.............................38 Table 39. Total of Non-Operating Functional Categories Allocated to Cost Components ..............................39 Table 40. Operating and Non-Operating Cost Allocation to Cost Components ................................................39 Table 41. Rate Revenue Requirements for Test Year, FY 2024.............................................................................40 Table 42. Allocation of Fire Costs ..............................................................................................................................40 Table 43. Final Cost of Service Allocations with all Adjustments ........................................................................41 Table 44. Total Equivalent Meters Used for Cost Allocation .................................................................................42 Table 45. Total Use and Peak Values used for Cost Allocation ............................................................................43 Table 46. Tier Use and Peak Values used for Cost Allocation ..............................................................................43 Table 47. Estimated Fire Flow by Customer Class..................................................................................................44 Table 48. Cost of Service Units...................................................................................................................................44 Table 49. Rate Revenue Requirements Divided by the Corresponding Units....................................................45

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City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 50. Unit of Service by Customer Class...........................................................................................................46 Table 51. Cost of Service by Customer Class..........................................................................................................46 Table 52. Allocation of Fixed and Variable Costs....................................................................................................48 Table 53. Fixed Cost Components Divided by Number of Units...........................................................................48 Table 54. Monthly Water Service Fixed Charge Calculation..................................................................................49 Table 55. Proposed 5-year Fixed Charge Schedule ................................................................................................49 Table 56. Fixed Cost Components Divided by Number of Units...........................................................................50 Table 57. Monthly Water Service Fixed Charge Calculation..................................................................................50 Table 58. Proposed 5-year Fixed Charge Schedule ................................................................................................51 Table 59. Available Water Supply and Costs............................................................................................................51 Table 60. Tier Width Allocations by Customer Class .............................................................................................54 Table 61. Water Source Unit Cost by Customer Class and Tier and Proposed Revenue Offset ....................54 Table 62. Variable Rate Costs and Components as Allocated to each Tier........................................................55 Table 63. Variable Rate Calculation ...........................................................................................................................55 Table 64. Proposed 5-Year Variable Rate Schedule................................................................................................56 Table 65. Annual Reclaimed Water Use by Customer Class in hcf, FY 2024 to FY 2029 .................................58 Table 66. Annual Non-Operating Revenue by Source, FY 2024 to FY 2029........................................................58 Table 67. Reclaimed Water Utility Operating Revenue Forecast, FY 2024 to FY 2029......................................58 Table 68. Operating Expenses by Expense Category, FY 2024 to FY 2029 ........................................................59 Table 69. Rate Study CIP Expenses by Expense Type, FY 2024 to FY 2029 ......................................................60 Table 70. Reclaimed Water Fund Debt Service Payments, FY 2024 to FY 2029.................................................60 Table 71. Reclaimed Water Debt Service Coverage Ratio Calculation, FY 2024 to FY 2029............................61 Table 72. Reclaimed Water Reserve Target, FY 2024 to FY 2029 .........................................................................62 Table 73. Status Quo Financial Pro Forma for City of Corona Reclaimed Water System, FY 2024 to FY 2029 ..................................................................................................................................................................................63 Table 74. Proposed Financial Pro Forma for City of Corona Reclaimed Water System, FY 2024 to FY 2029 ..................................................................................................................................................................................64

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vii
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 75. Revenue Requirements for City of Corona Reclaimed Water Utility, FY 2024 ..................................65 Table 76. Percentage of Operating Costs Allocated to Standard Functions ......................................................67 Table 77. Percentage of Non-operating Costs Allocated to Standard Functions..............................................67 Table 78. System-Wide Peaking Factors...................................................................................................................68 Table 79. Percent of Operating Function Categories Allocated to Cost Components .....................................70 Table 80. Total of Operating Functional Categories Allocated to Cost Components .......................................70 Table 81. Percent of Non-Operating Function Categories Allocated to Cost Components.............................70 Table 82. Total of Non-Operating Functional Categories Allocated to Cost Components ..............................71 Table 83. Operating and Non-Operating Cost Allocation to Cost Components ................................................71 Table 84. Rate Revenue Requirements for Test Year, FY 2024.............................................................................72 Table 85. Final Cost of Service Allocations with all Adjustments ........................................................................73 Table 86. Total Equivalent Meters Used for Cost Allocation .................................................................................74 Table 87. Total Use and Peak Values used for Cost Allocation ............................................................................75 Table 88. Total Use and Peak Values used for Cost Allocation to Tiers by Percent.........................................75 Table 89. Cost of Service Units...................................................................................................................................75 Table 90. Rate Revenue Requirements Divided by the Corresponding Units....................................................76 Table 91. Unit of Service by Customer Class...........................................................................................................77 Table 92. Cost of Service by Customer Class..........................................................................................................77 Table 93. Allocation of Fixed and Variable Costs....................................................................................................78 Table 94. Fixed Cost Components Divided by Number of Units...........................................................................79 Table 95. Monthly Reclaimed Water Service Fixed Charge Calculation..............................................................79 Table 96. Proposed 5-year Fixed Charge Schedule ................................................................................................80 Table 97. Current and Proposed Reclaimed Water Tier Width Allocations ........................................................81 Table 98. Variable Rate Costs and Components as Allocated to each Tier........................................................82 Table 99. Variable Rate Calculation ...........................................................................................................................82 Table 100. Proposed 5-Year Variable Rate Schedule..............................................................................................82 Table 101. Sewer Customer Growth, FY 2024 to FY 2029 ......................................................................................84

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viii
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 102. Annual Non-Operating Revenue by Source, FY 2024 to FY 2029......................................................85 Table 103. Sewer System Revenue Forecast, FY 2024 to FY 2029.......................................................................85 Table 104. Sewer System O&M Expense Forecast, FY 2024 to FY 2029 .............................................................85 Table 105. Rate Study Sewer CIP Expenses by Expense Type, FY 2024 to FY 2029 ........................................86 Table 106. Sewer Fund Debt Service Payments, FY 2024 to FY 2029..................................................................87 Table 107. Sewer Debt Service Coverage Ratio Calculation, FY 2024 to FY 2029.............................................87 Table 108. Sewer Reserve Target, FY 2024 to FY 2029...........................................................................................88 Table 109. Status Quo Financial Pro Forma for City of Corona Sewer System, FY 2024 to FY 2029.............90 Table 110. Proposed Financial Pro Forma for City of Corona Sewer System, FY 2024 to FY 2029 ...............91 Table 111. Revenue Requirements for City of Corona Sewer Utility, FY 2024 ...................................................92 Table 112. Percent of O&M Functional Categories Allocated ...............................................................................94 Table 113. Percent of O&M Functional Categories Allocated to Cost Components .........................................94 Table 114. Total of Operating Functional Categories Allocated to Cost Components.....................................95 Table 115. Percent of Asset Value Functional Categories Allocated...................................................................95 Table 116. Percent of Non-operating Functional Categories Allocated to Cost Components ........................95 Table 117. Total of Non-operating Functional Categories Allocated to Cost Components.............................95 Table 118. Revenue Requirement Cost Allocation by Cost Component.............................................................96 Table 119. Total Plant Sewer Flows ...........................................................................................................................96 Table 120. Residential Indoor Water Use Under Current Water Rates and Proposed Water Rates ...............97 Table 121. Cost of Service Units of Service .............................................................................................................97 Table 122. Cost of Service Unit Cost .........................................................................................................................98 Table 123. Average Residential Indoor Water Use ..................................................................................................98 Table 124. Sewer Rate Calculation.............................................................................................................................99 Table 125. Proposed Variable Sewer Rates FY 2025 to FY 2029...........................................................................99 Table 126. Proposed Potable Fixed Rates for FY 2025 to FY 2029.....................................................................105 Table 127. Proposed Potable Variable Rates for FY 2025 to FY 2029................................................................105 Table 128. Proposed Reclaimed Water Fixed Rates for FY 2025 to FY 2029....................................................110

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City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 129. Proposed Reclaimed Water Variable Rates for FY 2025 to FY 2029 ...............................................111 Table 130. Proposed Sewer Rates Based on the Proposed Revenue Adjustment..........................................115

LIST OF FIGURES
Figure 1. City of Corona Boundary ..............................................................................................................................2 Figure 2. Water, Reclaimed Water, and Sewer Rate Study Process ....................................................................11 Figure 3. Annual Water Customer Growth FY 2024 to FY 2034 ............................................................................19 Figure 4. Annual Reclaimed Water Customer Growth FY 2024 to FY 2034 ........................................................20 Figure 5. Annual Aggregate Water Use, FY 2024 to FY 2034.................................................................................24 Figure 6. Rate Study CIP Expenses by Funding Source, FY 2024 to FY 2029....................................................27 Figure 7. Debt Service Coverage Ratio Under Current Rates, FY 2024 to FY 2029 ...........................................29 Figure 8. Water Cash Balances and Reserve Target with Current Rates, FY 2024 to FY 2029 .......................30 Figure 9. A Typical Flow for Cost of Service Analysis Process............................................................................34 Figure 10. Single Family Customer Impact by Usage for ¾” Meter .....................................................................56 Figure 11. Annual Aggregate Reclaimed Water Use in hcf, FY 2024 to FY 2034 ...............................................57 Figure 12. Rate Study CIP Expenses by Funding Source, FY 2024 to FY 2029 .................................................60 Figure 13. Debt Service Coverage Ratio Under Current Rates, FY 2024 to FY 2029.........................................61 Figure 14. Reclaimed Water Cash Balances and Reserve Target with Current Rates, FY 2024 to FY 2029 .62 Figure 15. A Typical Flow for Cost of Service Analysis Process .........................................................................66 Figure 16. Reclaimed Water Customer Impact by Usage for 1 1/2” Meter..........................................................83 Figure 17. Rate Study Sewer CIP Expenses by Funding Source, FY 2024 to FY 2029 .....................................86 Figure 18. Debt Service Coverage Ratio Under Current Rates, FY 2024 to FY 2029.........................................88 Figure 19. Sewer Cash Balances and Reserve Target With Current Rates, FY 2024 to FY 2029 ....................89 Figure 20. A Typical Flow for Cost of Service Analysis Process .........................................................................93 Figure 21. Rate Study Water Status Quo Financial Plan ......................................................................................101

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City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Figure 22. Ending Water Cash Balances with No Revenue Adjustment ...........................................................102 Figure 23. Recommended Water Revenue Adjustment........................................................................................103 Figure 24. Recommended Rate Study Adjusted Water Financial Plan..............................................................104 Figure 25. Recommended Ending Water Cash Balances with Revenue Adjustment .....................................106 Figure 26. Rate Study Reclaimed Water Status Quo Financial Plan..................................................................107 Figure 27 Ending Reclaimed Water Cash Balances with No Revenue Adjustment ........................................108 Figure 28. Recommended Reclaimed Water Revenue Adjustment....................................................................109 Figure 29. Recommended Rate Study Adjusted Reclaimed Water Financial Plan..........................................110 Figure 30. Recommended Ending Reclaimed Water Cash Balances with Revenue Adjustment .................111 Figure 31. Rate Study Sewer Status Quo Financial Plan .....................................................................................112 Figure 32. Ending Sewer Cash Balances with No Revenue Adjustment...........................................................113 Figure 33. Recommended Sewer Revenue Adjustment.......................................................................................114 Figure 34. Rate Study Adjusted Sewer Financial Plan .........................................................................................115 Figure 35. Recommended Ending Sewer Cash Balances with Revenue Adjustment.....................................116 Figure 36. Single Family Residential Combined Impacts for Water and Sewer...............................................117 Figure 37. Multi-Family Residential Combined Impacts for Water and Sewer (Four Units)...........................118 Figure 38. Non-Residential (Commercial) Combined Impacts for Water and Sewer (2” Meter)....................119 Figure 39. Neighboring Agencies Combined Bill Comparison ...........................................................................120

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1 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study

EXECUTIVE SUMMARY

1.1 Background
The Water Division of the City of Corona (City) was founded in 1964 and subsequently became the Utilities Department (Department). The Department serves potable and reclaimed water to roughly 45,000 connections in its service area. The population served by the Department is approximately 165,000 residents over a service area covering 45 square miles. The City acquires its water supply from several sources, including local groundwater, regional desalted groundwater, imported water via Western Municipal Water District (WMWD), and reclaimed water produced at City-owned water reclamation facilities. The Department operates and maintains four water treatment facilities, 21 wells, 20 booster stations, and a distribution network consisting of 813 miles of water mains. On average, the City treats and serves approximately 30,000 acre-feet (AF) of water annually. The sewer system is made up of 448 sewer mains and treats approximately 11.5 million gallons of sewer per day. Figure 1 presents the limits of the City of Corona as well as the sphere of influence.

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2 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Figure 1. City of Corona Boundary

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3 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study

1.2 Purpose of Study
The purpose of this analysis is to conduct a rate study which evaluates the City’s current utility rates and financial data and propose new rates for its Water, Reclaimed Water, and Sewer services, if necessary, to meet the City’s financial and strategic goals.

The primary objectives of this Study include:
• Projecting revenues and expenses for a ten-year study period • Proposing five-year revenue adjustments to fund the City’s projected financial needs • Proposing rates that aim to minimize the impact on customers • Producing an administrative record which effectively summarizes all findings • Supporting the City through the Proposition 218 process

1.3 Rate Recommendations and Proposed Rates
Water
• Adjusting rates annually by the recommended revenue adjustments of 9.0 percent per year • Increasing the proportion of revenue collected from fixed rates • Reducing the indoor allocation for residential customers from 55 gallons per capita per day (gpcd) to 47 gpcd
• Reducing the number of tiers for all customers by one Reclaimed Water
• Adjusting rates annually by the recommended revenue adjustments of 4.0 percent per year • Reducing the number of tiers for all customers to two Sewer
• Adjusting rates annually by the recommended revenue adjustments of 10.0 percent per year • Changing the rate structure to bill the same fixed charge for all customers • Introducing a variable charge for non-residential units for all water use over 8 hundred cubic feet (hcf) in a billing period
• Implementing a variance program for commercial customers whose water use does not equal their sewer flow

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4 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Current Water Rates
Currently, the City’s water customers pay a monthly fixed charge based on the customer’s meter size.

Additionally, customers with a dedicated private fire connection pay a monthly fee for their fire connection.

Customers also pay variable charges based on water use, which is billed per hundred cubic feet (hcf).

Residential (single family and muti-family residential) customers currently have a five-tiered rate design where higher use level categories are billed at a higher rate based on the increasing cost of water from different water sources. All other customers (non-residential) are billed variable charges based on a fourtier rate structure. The current rates as described are displayed in Table 1 and Table 2. Every customer with a variable charge has a unique water budget allocation. Water budget rates are designed to reflect efficient water use as determined by the State of California. The first tier for residential customers is based on efficient indoor use, currently set at 55 gallons per capita per day (gpcd). The default number of residents per household is four for single-family homes and two for multi-family homes. Residential tier 2 use is determined based on irrigable area and parcel size, and both tier 1 and tier 2 allocations are included in the total water budget. Non-residential tier 1 use is determined by a three-year average of each customer’s historical use patterns, which defines their water budget. Water use above each customer's water budget are billed at higher rates at an increment of 50 percent of the total budget. There are three tiers above each budget, where the highest tier accounts for all water use which exceeds 100 percent of the total water budget.

Table 1. Current Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size
Meter Size Retail Customers Fire Customers
5/8" $27.09 $8.60
3/4" $36.46 $8.60
1" $55.18 $8.60
1 1/2" $101.98 $8.60
2" $158.13 $9.74
3" $335.95 $10.81
4" $598.02 $16.76
6" $1,505.89 $32.74
8" $2,629.02 $60.29
10" $3,939.33 $101.72
Fixed Charges

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5 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 2. Current Variable Water Rates for Residential and Non-Residential Customers by Tier Customer Class Tier - Width Unit Cost
Residential Tier 1 - Indoor $1.93
Tier 2 - Outdoor $2.77
Tier 3 - 1%-50% Over Budget $5.48
Tier 4 - 51%-100% Over Budget $9.12
Tier 5 - All Additional hcf $13.59
Non-Residential Tier 1 - Efficient Water Use $2.77
Tier 2 - 1%-50% Over Budget $5.48
Tier 3 - 51%-100% Over Budget $9.12
Tier 4 - All Additional hcf $13.59
Variable Charges
Proposed Water Rates
RDN proposes the following rate and revenue adjustments to accomplish the City’s financial goals of capital and reserve funding as well as maintaining debt service coverage ratios. To achieve the proposed financial plan, RDN recommends that the City raise water revenues by 9.0 percent each year of the rate setting period which includes FY 2025 through FY 2029.

Table 3. Proposed Revenue Adjustments FY 2025 to FY 2029 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Recommended Adjustment 9.0% 9.0% 9.0% 9.0% 9.0%
Additionally, the City should implement a four-tiered rate structure for all residential customers. Tier widths for each residential customer should be updated to reflect upcoming changes to State legislation, which reduce the indoor water allocations of water budgets from 55 gpcd to 47 gpcd. RDN also recommends reducing the number of non-residential customer tiers from four to three. These adjustments will create a more equitable rate structure based on the actual cost of providing service to each customer while simplifying the overall rate design.

Costs were allocated equitably between all customers during the cost of service analysis. The rates for each meter size represent an equitable portion of the total cost of service for each class allocated the respective meter based on the calculations shown in the Cost of Service Analysis. The City will implement each fiscal year rate adjustments on January 1
st of the fiscal year. The proposed rates which result from these adjustments are shown in Table 4 and Table 5.

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6 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 4. Proposed Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size, FY 2025 to FY 2029
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Domestic
5/8" $32.79 $35.75 $38.96 $42.47 $46.29
3/4" $42.94 $46.80 $51.02 $55.61 $60.61
1" $63.23 $68.92 $75.12 $81.88 $89.25
1 1/2" $113.94 $124.20 $135.38 $147.56 $160.84
2" $174.81 $190.54 $207.69 $226.38 $246.75
3" $367.54 $400.62 $436.67 $475.97 $518.81
4" $651.56 $710.20 $774.12 $843.79 $919.74
6" $1,635.51 $1,782.70 $1,943.15 $2,118.03 $2,308.65
8" $2,852.76 $3,109.51 $3,389.36 $3,694.40 $4,026.90
10" $4,272.88 $4,657.44 $5,076.61 $5,533.51 $6,031.52
Fire Protection
5/8" $12.64 $13.78 $15.02 $16.37 $17.84
3/4" $12.64 $13.78 $15.02 $16.37 $17.84
1" $12.64 $13.78 $15.02 $16.37 $17.84
1 1/2" $13.33 $14.53 $15.84 $17.27 $18.82
2" $14.91 $16.25 $17.71 $19.31 $21.05
3" $17.63 $19.21 $20.94 $22.83 $24.88
4" $27.38 $29.84 $32.53 $35.46 $38.65
6" $44.20 $48.18 $52.51 $57.24 $62.39
8" $69.50 $75.76 $82.57 $90.01 $98.11
10" $104.57 $113.98 $124.24 $135.42 $147.61
Fixed Charges
Table 5. Proposed Variable Water Rates for Residential and Non-Residential Customers by Tier, FY 2025 to FY 2029
Note: that fire hydrant and private fire rates reflect the peaking and source water cost of peak water use, residential tier 4 Tier FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Residential
Tier 1 $1.96 $2.13 $2.32 $2.53 $2.76
Tier 2 $3.31 $3.60 $3.93 $4.28 $4.67
Tier 3 $4.38 $4.77 $5.20 $5.67 $6.18
Tier 4 $5.22 $5.69 $6.20 $6.76 $7.36
Non-Residential
Tier 1 $3.31 $3.60 $3.93 $4.28 $4.67
Tier 2 $4.38 $4.77 $5.20 $5.67 $6.18
Tier 3 $5.22 $5.69 $6.20 $6.76 $7.36
Variable Charges

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7 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Current Reclaimed Water Rates
Reclaimed water customers currently have the same basic rate structure as potable water customers, a fixed monthly charge and variable rates based on usage levels. Table 6 and Table 7 show the current rates for reclaimed water customers. Reclaimed water tiers were determined based on the water budget allocation methodology as described in the previous section.

Table 6. Current Reclaimed Water Fixed Rates
Meter Size Reclaimed
5/8" $23.52
3/4" $30.81
1" $45.39
1 1/2" $81.84
2" $125.59
3" $264.13
4" $468.28
6" $1,175.53
8" $2,050.48
10" $3,071.25
Fixed Charges
Table 7. Current Reclaimed Water Variable Rates
Customer Class Tier-Width Unit Cost
Reclaimed Tier 1 - Efficient Water Use $2.14
Tier 2 - 1%-50% Over Budget $3.21
Tier 3 - 51%-100% Over Budget $4.27
Tier 4 - All Additional hcf $6.41
Variable Charges
Proposed Reclaimed Water Rates
RDN proposes the following revenue adjustments to accomplish the City’s financial goals of capital and reserve funding as well as maintaining debt service coverage ratios. To maintain the proposed financial plan, the City should raise reclaimed water revenues by 4.0 percent each year of the study period. Table 8 shows the proposed reclaimed water variable rates for FY 2025 through FY 2029. Based on the cost of service analysis, it was determined that the City should reduce the number of variable rate tiers for reclaimed water customers from four to two. The first tier will be based on a customer’s outdoor water budget, and all use beyond that tier will be billed at the tier 2 rate. Reducing the number of tiers allows for better alignment of costs to each use level. Table 9 and Table 10 show the proposed reclaimed rates, with the annual revenue adjustments applied.

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Corona City CouncilNovember 20, 2024

Corona City Council
November 20, 2024