Resolution Calling Special Election — Fontana City Council, May 14, 2024

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RESOLUTION NO. ______

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA CALLING A SPECIAL ELECTION AND

SUBMITTING TO THE VOTERS OF CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 114M,

COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA, A PROPOSITION REGA RDING THE

ANNUAL LEVY OF SPECIAL TAXES WITHIN THE

COMMUNITY FACILITIES DISTRICT TO PAY THE

COST OF CERTAIN PUBLIC SERVICES TO BE

PROVIDED BY THE COMMUNITY FACILITIES

DISTRICT AND ESTABLISH ING AN APPROPRIATIONS

LIMIT FOR THE COMMUNITY FACILITIES DISTRICT
WHEREAS, on May 14 , 2024 , the City Council (the “City Council”) of the City of Fontana (the “City”) adopted its resolution of formation (the “Resolution of Formation”) of the City of Fontana Community Facilities District No. 114M, County of San Bernardino, State of California (“CFD No. 114M”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”), thereby establ ishing CFD No. 114M and the boundaries thereof; and
WHEREAS, pursuant to Section 53326 of the Act, it is necessary that the City Council submit to the qualified voters of CFD No. 114M the proposition relating to the annual levy of special taxes on taxable property within CFD No. 114M to pay the costs of providing the public services described in the Resolution of Formation; and
WHEREAS, pursuant to Section 53325.7 of the California Government Code, the City Council may also submit to the qualified voters of CFD No. 114M a proposition with respect to establishing an appropriations limit for CFD No. 114M; and WHEREAS, the City Clerk (the “City Clerk”) has advised the City Council that a statement has been received from the Registrar of Voters of the County of San Bernardino stating that there are no persons registered to vote in the territory of CFD No. 114M; and WHEREAS, the City Council is fully advised in this matter and now desires to call the special mail ballot election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, as follows:

Section 1. Findings. The City Council hereby finds and determines as follows:
(a) The foregoing recitals are true and correct;
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(b) The public hearing held by the City Council pursuant to the Resolutio n of Intention has been properly conducted, and notice thereof was duly given, in compliance with all applicable requirements of the Act;
(c) No written protests were filed with the City Clerk prior to the conclusion of said public hearing and the City Co uncil is therefore authorized, pursuan t to Section 53338 of the Act, to submit to the qualified electors of CFD No. 114M the question of the levy of the special tax and the appropriations limit;
(d) No persons have been registered to vote within the territory of CFD No. 114M for each of the 90 days preceding the close of the public hearing on May 14, 2024, and pursuant to Section 53326 of the Act, the vote in the special election called by this resolution shall, therefore, be by the landowners of CFD No. 114M whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within CFD No. 114M which would be subject to the proposed special taxes if they were levied at the time of the election; (e) The owner of all of the property in CFD No. 114M has, by written consent, (a) waived the conduct and time limits for holding the election called by this resolution, including as set forth in Section 53326 of the California Government Code , (b) consented to the calling and holding of the special election on May 14, 2024 , (c) waived notice of the time and date of the special election, (d) waived an impartial analysis of the ballot proposit ions pursuant to Section 9313 or 13119 of the California Elections Code and arguments and rebuttals pursuant to Sections 9314 to 9317, inclusive, (e) waived the word limit requirement for the ballot pursuant to Section 13247 and 905 1 of the Elections Code, and (f) waived the mailing of a statement pursuant to Section 9401 of the Elections Code, and receipt of a ballot pamphlet as required by Section 3023 of that Code; and
(f) the City Clerk, as the election official, has consented to the holding of the special election on May 14, 2024.

Section 2 . Call of Election . The City Council hereby calls and schedules a special election for May 14, 2024, within and for CFD No. 114M as to (i) the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 114M for the payment of the costs of the public services to be provided within and for the benefit of CFD No. 114M, and (ii) the proposition with respect to establishing an appropriations limit for CFD No. 114M.

Section 3. Propositions. The propositions to be submitted to the qualified electors of CFD No. 114M at such special election shall be as follows:

Proposition A: “Shall the City of Fontana, Community Facilities District No. 114M, County of San Bernardino, State of Californi a, subject to accountability measures required pursuant to Government Code Section 50075.1, levy a special tax annually on taxable property therein in the amounts set forth in the following table:
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Maximum Special Tax for Developed Property
Land Use Class FY 2024-2025 Maximum Special Tax
Developed Property $907 per Assessor’s Parcel

plus annual increases on each July 1, commencing July 1, 2025, by an amount equal to two percent (2%) per fiscal year in perpetuity, to pay the costs of the maintenance of pa rks, parkways, street lighting and open space within and surrounding the area of Community Facilities District No. 114M and within and surrounding the area of any territory to be annexed to Community Facilities District No. 114M in the future and the costs associated with the determination of the amount of and collection of taxes, the payment of taxes and costs otherwise incurred in order to carry out the authorized purposes of Community Facilities District No. 114M, and to pay costs associated with the det ermination of the amount of and the levy and collection of the special taxes, as provided in the Rate and Method of Apportionment for Community Facilities District No. 114M of the City of Fontana, County of San Bernardino, State of California, which is att ached as Exhibit “C” to the Resolution of Formation adopted by the City Council of the City of Fontana on May 14, 2024?”
Proposition B: “Shall the City of Fontana Community Facilities District No. 114M, County of San Bernardino, State of California, esta blish an annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, in the amount of $5,000,000?” Section 4. Conduct of Election. Except as otherwise provided in Section 5 hereof, the special election shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail , and provisions of the Act, insofar as they may be applicable. The ballot for said elections shall be in the form attached hereto as Exhibit “A.” The full text of the ballot for said elections shall b e as set forth in Exhibit “B” and shall be included in the ballot pamphlet mailed to each qualified elector pursuant to Section 5 below.

Section 5. Election Procedures . The procedures to be followed in conducting the special election on the propositions described in Section 3 above shall be as follows:
(a) Pursuant to Section 53326 of the Act, ballots for the special e lection shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid or by personal service.
(b) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and in particular Division 4 (commencing with Section 4000) of that Code with respect to elections conducted by mail, and of the Act, the City Clerk shall mail or deliver to each qualified elector an official ballot in the f orm attached hereto as Exhibit A, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, ballot title and summary, including a sample ballot identical in form to the 16498.00505\42240805.1

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official ballot but identified as a sample ballot, 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 of Intention adopted by the City Council on April 9, 2024. (c) 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 landowne r-voter is other than a natural person, that he or she is an 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 or her intent, as well as the intent of the landowner -voter, to vote all votes to which the landowner -voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within CFD No. 114M. (d) The return identification envelope to be mailed or delivered by the City Clerk to each landowner -voter shall have printed or t yped 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 th e declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk.
(e) The instructions to voter form to be mailed or delivered by the City Clerk to the landowner-voter shall infor m them that the off icial ballot 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 a nd all other information to be inserted thereon properly inserted by 2:00 p.m. on the date of the special election; provided that if all qualified el ectors have voted, the election shall be closed with the concurrence of the City Clerk. (f) 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 special election, and shall file a statement with the City Council as to the results of suc h canvass and the election on each proposition set forth in the official ballot.

Section 6. Effective Date. This Resolution shall take effect immediately from and after the date of its passage and adoption.
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APPROVED AND ADOPTED this 14th day of May, 2024.

READ AND APPROVED AS TO LEGAL FORM:
_____________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City of Fontana at a regular meeting on the 14th day of May, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

_________
City Clerk of the City of Fontana

_________
Mayor of the City of Fontana

ATTEST:
_________________________________
City Clerk

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EXHIBIT A

FORM OF OFFICIAL BALLOT

SPECIAL ELECTION FOR

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 114M

COUNTY OF SAN BERNARDINO

STATE OF CALIFORNIA
May 14, 2024

This ballot represents ___ votes.

To vote, mark a cross (+) or “X” in the voting square after the wo rd “YES” or after the word “NO.” All marks otherwise made are forbidden.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain another.

PROPOSITION A : “Shall the City of Fontana, Communi ty Facilities District No. 114M, County of San Bernardino, State of California, subject to accountability measures required pursuant to Government Code Section 50075.1, levy a special tax annually on taxable property therein in the amounts set forth in the following table:

Maximum Special Tax for Developed Property
Land Use Class FY 2024-2025 Maximum Special Tax
Developed Property $907 per Assessor’s Parcel

Yes

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PROPOSITION B : “Shall the City o f Fontana Community Facilities District No. 114M, County of San Bernardino, State of California, establish an annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, in the amount of $5,000,000?”

Yes

PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 50075 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

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EXHIBIT B

FULL TEXT OF PROPOSITION

SPECIAL ELECTION AUTHORIZING THE ANNUAL LEVY OF SPECIAL TAXES ON TAXABLE PROPERTY WITHIN CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 114M,

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA , AND AUTHORIZING THE

ESTABLISHMENT OF AN APPROPRIATIONS LIMIT FOR COMMUNITY FACILITIES DISTRICT NO. 114M

May 14, 2024
Proposition A : “Shall the City of Fontana, Community Facilities District No. 114M, County of San Bernardino, State of California, subject to accountability measures required pursuant to Government Code Section 50075.1, levy a special tax annually on taxable property therein in the amounts set forth in the following table:

Maximum Special Tax for Developed Property
Land Use Class FY 2024-2025 Maximum Special Tax
Developed Property $907 per Assessor’s Parcel

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BALLOT SUMMARY
By approval of each proposition by two -thirds of the votes cast hereupon within City of Fontana Community Facilities District No. 114M, County of San Bernardino, State of California (the “Community Facilities District”), the Community Facilities District shall be authorized as follows:

To (i) levy a special tax annually on taxable property within CFD No. 114M as provided in the Resolution of Formation adopted on May 14, 2024; and (ii) establish an annual appropr iations limit for CFD No. 114M.

A Special Tax as hereinafter defined shall be levied on all Assessor ’s Parcels of Taxable Property in City of Fontana Community Facilities District No. 114M ( “CFD No. 114M”) and collected each Fiscal Year, commencing in Fisc al Year 2024 -2025, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 114M, unless exempted by law or by the provision s hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

“Acre” or “Acreage” means the land area expressed in acres of an Assessor’s Parcel a s shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable sat isfaction of the CFD Administrator using the boundaries set forth on such map or plan.

"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 114M, including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special T ax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 114M or any designee thereof of complying with City or CFD No. 114M di sclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 114M or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 114M for any other administrative purposes of CFD No. 114M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

"Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.

"Assessor’s Parcel Map" means an official map of the County Assessor of the County of San Bernardino designating parcels by Assessor’s Parcel Number.

“Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification.
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"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.

“CFD No. 114M” means the City of Fontana Community Facilities District No. 114M.

"City" means the City of Fontana, California.

"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 114M.

"County" means the County of San Bernardino.

"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a final tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could be issued for construction has been recorded with the County, as of January 1 of the previous Fiscal Year.

"Fiscal Year" means the period starting July 1 and ending on the following June 30.

"Land Use Class" means any of the classes listed in Table 1 below.

"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C hereof, that can be levied by CFD No. 114M in any Fiscal Year on any Assessor’s Parcel.

“Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 114M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub -association, as of January 1 of the previous Fiscal Year.

“Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.

"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 114M that is (i) owned by, irrevoc ably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement. To ensure that property is classified as Public Pro perty in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred.

“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 114M.

"Special Tax" means the special tax to be levied in each Fisca l Year on each Assessor’s Parcel of Taxable Property, to fund the Special Tax Requirement. 16498.00505\42240805.1

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"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 114M to pay for: (1) maintenance services authorized to be financed by CFD No. 1 14M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 114M for the previous Fiscal Year), and (4) less a credit for funds available to reduce th e annual Special Tax levy, if any, as determined by the CFD Administrator.

"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 114M which are not exempt from the Special Tax pursuant to law or Section E below.

“Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property which are not categorized as Developed Property.

"Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is used exclusively for charitable, hospita l, or religious purposes and that has a property tax welfare exemption as indicated in the County’s assessor’s roll finalized as of the last preceding January 1, including those Assessor’s Parcel receiving a welfare exemption under subdivision (g) of Secti on 214 of the California Revenue and Taxation Code.

B. ASSIGNMENT TO LAND USE CATEGORIES

For each Fiscal Year, commencing with Fiscal Year 2024-2025, all Taxable Property within CFD No. 114M shall be categorized as either Developed Property or Undevelop ed Property, and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property

The Fiscal Year 2024 -2025 Maximum Special Tax fo r each Assessor’s Parcel classified as Developed Property shall be equal to the amount shown in the table below:

TABLE 1
Fiscal Year 2024-2025
Maximum Special Tax for Developed Property
Land Use Class FY 2024-2025 Maximum Special Tax
Developed Property $907 per Assessor’s Parcel

On each July 1, commencing July 1, 2025, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.

2. Undeveloped Property

The Maximum Special Tax for each Assessor’s Parcel classifie d as Undeveloped Property shall be equal to $0 per Acre.
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D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing with Fiscal Year 2024 -2025 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the Cit y shall provide for the levy of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the Maximum Special Tax for such Assessor’s Parcel.

E. EXEMPTIONS

No Special Tax shall be levied on (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easeme nts making impractical their utilization for other than the purposes set forth in the easement, (iv) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (v) or any Assessor’s Parcel that has a Welfare Ex emption. Should an Assessor’s Parcel, however, no longer be classified as items (i)-(v) above, including Property Owner Association Property, Public Property, or have a Welfare Exemption, its tax-exempt status will, without the necessity of any action by the Council, terminate.

The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.

F. MANNER OF COLLECTION

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes 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 property taxes; provided, however, that CFD No. 114M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 114M.

G. TERM OF SPECIAL TAX

The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requir ement, unless no longer required to pay for the authorized services as determined at the discretion of the Council.

H. APPEALS

Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its dete rmination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified, reduced, or 16498.00505\42240805.1

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eliminated through an adjustment to th e Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator shall int erpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

I. PREPAYMENT

No prepayments of the Special Tax are permitted.

The public services to be provided by Community Facilities District No. 114M are:

The types o f services to be provided by the proposed Community Facilities District No. 114M are the maintenance of parks, parkways, street lighting and open space within and surrounding the area of Community Facilities District No. 114M and within and surrounding the area of any territory to be annexed to Community Facilities District No. 114M in the future and the costs associated with the determination of the amount of a collection of taxes, the payment of taxes and costs otherwise incurred in order to carry out the authorized purposes of Community Facilities District No. 114M.

“Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of such parks, parkways, street lighting and open space, and the i ncidental costs related thereto, including but not limited to:

a) Repair, removal, or replacement of all or any part of any improvement.

b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.

c) The removal of trimmings, rubbish, debris, and other solid waste.

d) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Fontana City CouncilMay 14, 2024

Fontana City Council
May 14, 2024