Agenda packet — Fontana City Council, July 23, 2024 (part 2 of 6)

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3149 Agenda Date: 7/23/2024
Agenda #: S. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Police Department Donations January - June 2024
RECOMMENDATION:

Accept monetary and gift donations from multiple donors including community programs, businesses, and citizens.

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility and availability. · Improve public safety by emphasizing community-oriented policing, community involvement, and youth programs.

DISCUSSION:

The Fontana Police Department received various donations including foods, drinks, snack items, gift cards, various tickets to services & entertainment venues, miscellaneous household items, gift cards, and monetary donations to charity. Please reference the attached spreadsheet for the complete list of generous donations which help support the Police Department and its various programs.

FISCAL IMPACT:

Increase funds to the following accounts:
· $200 for National Night Out Program, deposited to account #101.3301 · $2,000 for Community Relations Program, deposited to account #101.3304 · $6,000 for Holiday Event Program, deposited to account #101.3308 · $1,500 for PD Peer Support Program, deposited to account #101.3570 MOTION:

Approve staff recommendation.

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DATE DONOR ITEM APPROX VALUE REASON
1/3/2024 PBA $500 Check 500.00$ Shop with a Senior 1/3/2024 PBA $500 Check 500.00$ Shop with a Vet 1/11/2024 Loren & Pamela Tuttle $500 Check 500.00$ Peer Support Donation 1/18/2024 Steri-Clean Granola Bars (6 dozen) 25.00$ Appreciaton 2/8/2024 Fontana Police Foundation $5,000 Check 5,000.00$ Holiday Events 2/15/2024 Volunteers for Veterans Foundation Misc food items, socks 350.00$ Community Outreach Program 2/26/2024 Six Flags Magic Mountain 2 one day tickets for 2024 240.00$ National Night Out 3/11/2024 Volunteers for Veterans Foundation Ice Chest Bags 100.00$ Community Outreach Program 3/13/2024 Knott's Berry Farm 4 one day tickets for 2024 400.00$ National Night Out 3/13/2024 Six Flags Hurricane Harbor LA 2 one day Admission tickets 140.00$ National Night Out 3/13/2024 Purple Easel 2 free passes 70.00$ National Night Out 3/20/2024 Dave and Busters Gift Basket with Gift Card 50.00$ National Night Out 3/20/2024 Assisvis Inc $100 Check 100.00$ National Night Out 3/27/2024 Ingold Funeral Home Donuts 12.00$ Appreciation 3/28/2024 Sam's Club $25 Gift Card 25.00$ National Night Out 4/1/2024 UPS Monster Energy Drinks (3 cases) 60.00$ Appreciation 4/11/2024 Fontana Police Foundation $1,000.00 check 1,000.00$ Peer Support Donation 5/4/2024 Flipside Church Baked goods 20.00$ Appreciation 5/13/2024 Amazon Misc household items 200.00$ Community Outreach Program 5/14/2024 Costco Gift Card 500.00$ Community Outreach Program 5/16/2024 Walmart $1,000.00 check 1,000.00$ Community Relations Donation 5/26/2024 Volunteers for Veterans Foundation Misc food items 300.00$ Community Outreach Program 6/3/2024 Office Star Products $100 Check 100.00$ National Night Out 6/13/2024 Lakers Autographed Basketball Christain Wood 100.00$ National Night Out 6/18/2024 Cardlock Fuels $1,000.00 check 1,000.00$ Community Relations Donation Total value of donated items 2,592.00$
Total checks/cash 9,700.00$
Grand Total 12,292.00$
PD DONATION LOG (January 2024 - June 2024)
305
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3153 Agenda Date: 7/23/2024
Agenda #: T. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Authorize to Award the Purchase of Equipment and Services to Update the Mapping System of the Fontana Police Department Airships
RECOMMENDATION:

1. Approve and authorize the City Manager or his assigned designee to award the purchase of equipment, supplies and services related to the updated mapping system of the airships.

2. Approve an appropriation in the amount of $1,701,450.00 from Federal Asset Seizure (Fund 223).

COUNCIL GOALS:
· Operate in a businesslike manner by creating a memorable customer experience with every interaction.
· Operate in a businesslike manner by improving services through the effective use of technology.

DISCUSSION:

The current fleet for the Fontana Police Department Air Support Unit (ASU) is comprised of (1) Airbus AS350B2, (ASTAR), and (2) Robinson R66 turbine helicopters. The R66 Airships were purchased in (1) 2012 and (1) 2014 and the onboard equipment including camera, Flir (Night vision), mapping, and avionics are outdated and, in most instances, no longer supported for repair by the manufacturers.

Given the unit’scurrent operations and functions as well as onboard technologies available in the currently owned ASTAR, it is imperative for the safety of the crew as well as quality and efficiency for the patrol function to upgrade the equipment.

This proposal is to upgrade the equipment for compatible and sharable equipment between ships that will fully support the mission, while ensuring quality and serviceability to the equipment for years to come. Equipment included in the upgrade include MX10 camera, with Shotover mapping and Flir capabilities, and night vision compatible instrumentation. The best time for the acquisition of this equipment and installation is needed now and most practical as one of the R66’s(N166PD) is set to be overhauled by Robinson summer/fall of 2024.

The ASTAR will be entering engine overhaul summer of 2025. This will include the purchase of parts and components for the overhaul. This is mandatory service to remain in compliance with FAA and ensure airworthiness. Industry standards have shown there are annual increases to equipment cost January 1. The department has obtained current pricing to budget for the components needed for the City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3153 Agenda Date: 7/23/2024
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overhaul and would like to purchase them prior to January 1, 2025, to avoid a 3%-7% average increase seen year to year. Staff is requesting that City Manager or his assigned designee be authorized to award and the purchase with the responsible bidder whose proposal is the most advantageous to the City to expedite the approval process and accommodate the project schedules.

Additionally, having the parts on hand, prior to the overhaul, significantly decreases the airship’s down time during the overhaul.

FISCAL IMPACT:

Appropriate funds from Fund #223 to budget Federal Asset Seizure Org #22340373 in the amount of $1,701,450.00. Appropriate budget change forms will be submitted to the City Budget Office for the initial equipment purchase upon approval.

The department will request additional funding for the installation of equipment from Asset Seizure Fund #223 in the quarter installation begins. Additional funding request budget change forms will be submitted to City Budget Office following approval of additional requests.

MOTION:

Approve staff recommendation.

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DATE ITEM AIRCRAFT MAKE COST COMPLETION
6/24/2024 STABILIZER N166PD R66 $4,000.00 ASAP
6/24/2024 STABILIZER N462PD R66 $4,000.00 ASAP
INVOICE $8,000.00
8/1/2024 OVERHAUL N166PD R66 $480,000.00 11/1/2024
9/1/2024 MX-10 (CAMERA) N166PD/ N462PDR66 $750,000.00 11/1/2024 9/1/2024 SHOTOVER (MAPS) N166PD R66 $124,000.00 11/1/2024 9/1/2024 SHOTOVER (MAPS) N462PD R66 $124,000.00 11/1/2024 9/1/2024 NVG PANEL N166PD R66 11/1/2024
9/1/2024 NVG PANEL N462PD R66 11/1/2024
INVOICE $998,000.00
11/1/2024 NVG GOGGLES (2) ALL $27,423.00 11/10/2024
INVOICE $27,423.00
12/1/2024 N641EG ASTAR $64,000.00 7/1/2025
12/1/2024 N641EG ASTAR $450,000.00 7/1/2025
12/1/2024 N641EG ASTAR $154,000.00 7/1/2025
INVOICE $668,000.00
$1,701,423.00

PROJECTED EXPENSES FOR AIR SUPPORT
TOTAL BY JANUARY 2025
308
MISC. DESCRIPTIONS

PARTS ENGINE

ENGINE OVERHAUL

PARTS ENGINE
309
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3154 Agenda Date: 7/23/2024
Agenda #: U. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities Districts (Maintenance) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-065, Authorizing the Levy of a Special Tax within Community Facilities Districts (Maintenance) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by improving the aesthetics of the community through code enforcement, street sweeping, and landscape maintenance.

DISCUSSION:

Community Facilities Districts (Maintenance) in various locations around the City were established for the purpose of funding annual landscape, lighting, and park maintenance within each District.

Pursuant to Government Code Section 53340, Ordinances have been adopted to levy a special tax at the rate and in the manner specified in each district Rate and Method of Apportionment. Each district Rate and Method of Apportionment has been approved and adopted by the City Council.

The proposed Fiscal Year 2024-2025 special tax rates are shown for each district in the Exhibit attached to the resolution. The proposed rates are the same rates assessed in the prior fiscal year with the exception of the following districts:
2023-2024 Current
Residential Rate
2024-2025
Proposed
Residential Rate
$ Increase % Increase
CFD # 2 Police Services $14.25 $14.53 $0.28 2%
CFD #13M $482.90 $507.04 $24.14 5%
CFD #35M $804.30 $820.38 $16.08 2%
The special tax levied on each assessable parcel within each District is necessary to pay the costs and expenses of each District. A list of each parcel and the related specific tax for each parcel is available for viewing in the City Clerk's Office.

The Districts were established after the adoption of Proposition 218, and comply with its requirements because the Districts and the special taxes were approved by the consent of the City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3154 Agenda Date: 7/23/2024
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property owners at the time each District was formed.

The City Treasurer has reviewed and supports this action.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rates will generate approximately $5.6 million to fund annual landscape and lighting maintenance costs within each District.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICTS FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fontana, (the “Cit y Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified ele ctors relating to the levy of special taxes in the community facilities districts identified on Exhibit “A”, all as auth orized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (th e “Act”); and

WHEREAS, the City Council, by ordinance, as aut horized by Section 53340 of the Government Code of the State of California, has authorized the levy of special taxes to pay for the maintenance of authorized improvements and facilities and other costs and expenses related to said community facilities dist ricts, and the City Council desires to establish the specific rate of the special taxes to be levied and collected with the community facilities districts identified on Exhibit “A” for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, an d ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1 . That the above re citals are all true and correct and that all legal prerequisites to the adoption of this Resolution have been duly and regularly taken.

SECTION 2. The specific rate and amount of the special tax to be collected for Fiscal Year 2024-2025 for the community facilities districts identified in Exhibit “A” is hereby determined and established as set forth in Exhibit “ A” attached hereto and incorporated herein by reference. Said special taxes shall be and are hereby levied for Fiscal Year 2024-2025 on all parcels of real property that are subject to taxation within each community facilities district identified on Exhibit “A” and in the amount set forth fo r each such parcel on file with the City Clerk.

SECTION 3. The rate as set forth above does not exceed the amount previously authorized by Ordinance of the City Council, and is not in excess of that as previously approved by the qualified electors of the District.

SECTION 4. The proceeds of the Special Tax shall be used to pay the costs of maintenance of authorized facilities and improvements for each community facilities district and for payment of administrative expenses incurred in connection with t he levy and collection of said Special Taxes.

312
Resolution No. 2024-

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SECTION 5. The above authorized Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall have the same lien and priority in the case of delinquency as is provided for ad valorem taxes.

SECTION 6. All monies above collected shall be paid into the designated fund for each community facilities district.

SECTION 7 . The City Clerk is hereby directed to transmit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected, the installment of the Special Tax as set forth in the documents on file with the City Clerk.

SECTION 8. The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from wha t property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
313
Type & Number # parcels Rates Total Type & Number # parcels Rates Total CFD # 2* 3724 14.82$ 83,458.32 CFD # 51M* 107 633.45 67,779.15 CFD # 6* 962 441.87 425,078.94 CFD # 53M* 16 567.53 9,080.48 CFD # 6-1* 402 472.87 190,093.74 CFD # 54M* 39 659.20 25,708.80 CFD # 6-2* 183 512.94 93,868.02 CFD # 55M* 9 813.70 7,323.30 CFD # 6-3a 476 480.00 228,480.00 CFD # 56M 62 280.00 26,040.00 CFD # 8* 274 270.00 73,980.00 CFD # 57M* 17 906.40 15,408.80 CFD # 9M* 376 various 167,642.35 CFD # 58M 14 315.00 4,410.00 CFD # 10M* 10 various 38,734.45 CFD # 59M 1 400.00 2,400.00 CFD # 13M* 933 various 507,968.37 CFD # 60M* 16 808.55 12,936.80 CFD # 14M* 790 various 436,690.74 CFD # 61M* 77 621.09 55,277.01 CFD # 15M* 738 408.81 301,701.78 CFD # 62M 8 697.00 5,576.00 CFD # 16M* 101 437.75 44,212.75 CFD # 63M 95 575.00 54,625.00 CFD # 18M* 16 438.27 7,012.32 CFD # 64M* 1 633.45 5,067.60 CFD # 20M* 64 540.75 34,608.00 CFD # 65M* 33 618.00 20,394.00 CFD # 21M* 74 552.08 40,853.92 CFD # 67M* 74 587.10 43,445.40 CFD # 23M* 26 293.55 7,632.30 CFD # 68M* 38 664.35 25,245.30 CFD # 24M* 102 450.11 45,911.22 CFD # 69M* 332 509.85 169,270.20 CFD # 25M* 175 478.95 83,816.25 CFD # 72M* 19 581.95 11,057.05 CFD # 27M* 85 707.85 60,167.25 CFD # 73M* 117 576.80 67,485.60 CFD # 28M* 355 419.21 148,819.55 CFD # 75M* 27 545.90 14,739.30 CFD # 29M* 57 476.99 27,188.43 CFD # 76M* 53 648.90 34,391.70 CFD # 30M* 485 496.46 240,783.10 CFD # 77M* 20 664.35 13,287.00 CFD # 32M* 50 366.68 18,334.00 CFD # 78M* 205 365.65 71,868.25 CFD # 33M* 37 160.68 42,453.21 CFD # 79M 1 N/A 21,500.00 CFD # 34M 168 various 21,135.12 CFD # 82M* 110 267.80 29,458.00 CFD # 35M* 649 844.99 548,398.51 CFD # 83M* 96 664.35 63,777.60 CFD # 36M* 62 365.65 22,670.30 CFD # 84M 30 650.00 19,500.00 CFD # 38M* 363 499.55 181,336.65 CFD # 91M 8 760.00 6,080.00 CFD # 39M* 48 458.35 22,000.80 CFD # 92M* 19 906.40 17,221.60 CFD # 40M 27 390.00 10,530.00 CFD # 93M* 15 772.50 11,587.50 CFD # 41M* 22 705.55 15,522.10 CFD # 94M 6 350.00 2,100.00 CFD # 42M* 88 509.85 44,866.80 CFD # 96M 11 1,010.00 11,110.00 CFD # 44M* 18 509.85 9,177.30 CFD # 97M 13 400.00 5,200.00 CFD # 45M* 168 612.85 102,958.80 CFD # 98M 9 670.00 6,030.00 CFD # 46M* 70 712.76 49,893.20 CFD # 101M 12 655.00 7,860.00 CFD # 47M* 17 694.22 11,801.74 CFD # 102M 6 835.00 5,010.00 CFD # 48M* 90 844.60 76,014.00 CFD # 103M 5 880.00 4,400.00 CFD # 49M* 17 772.50 13,132.50 CFD # 104M 13 1,060.00 13,780.00 CFD # 50M* 96 381.10 36,585.60 CFD # 105M* 96 495.43 47,561.28 CFD # 110M 18 968.00 17,424.00
Totals 14,246 5,567,929.15
*2024-2025 rate for this district has been increased as allowed in the Rate and Method of Apportionment.

Exhibit A

CITY OF FONTANA
Special Assessments Maintenance Districts
Fiscal Year 2024-2025
314
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3155 Agenda Date: 7/23/2024
Agenda #: V. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 1 (Southridge Village) for Fiscal Year 2024- 2025.

RECOMMENDATION:

Adopt Resolution No. 2024-066, Authorizing the Levy of a Special Tax in Community Facilities District No. 1 (Southridge) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

To mitigate the fiscal impact of Southridge Village, the City Council adopted Resolution 84-13 establishing Community Facilities District No. 1 (Southridge). The District was established to fund and provide the following services:
· Police Services
· Fire protection, suppression, ambulance and paramedic services · Operation and maintenance of parks and parkways
Pursuant to the Special Tax Rate and Method of Apportionment, adopted by the City Council on November 15, 1983, the special tax rate in the District may annually increase by an amount which is the lesser of (1) the annual increase in the consumer price index (CPI) as determined by the U.S.

Department of Labor Statistics or (2) five percent (5%) of the maximum special tax rate.

The proposed Fiscal Year 2024-2025 maximum special tax rate for the District is $1,089.66 per equivalent dwelling unit. This reflects a 3.5% ($36.84) increase over the prior fiscal year as the annual increase in CPI was 3.5%. The actual tax will increase by 3% ($23.46) to $805.84.

As recommended, the 3% increase proposed doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, and districts remain sustainable.

The City's special taxes for this District have been reviewed in light of the passage of Proposition City of Fontana Printed on 7/18/2024Page 1 of 2
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218. The recommended actions comply with the provisions of this proposition.

A listing of the parcels and the related specific tax for each parcel is available for viewing in the City Clerk's office.

FISCAL IMPACT:

The proposed actual tax of $805.84 per dwelling unit will generate approximately $6.0 million to fund police services, fire protection, and landscape maintenance for the District. It is projected that the proposed actual rate will generate sufficient revenues to cover the costs of providing these services to the District. Fully funding expenses without the use of fund balance would require a 36% increase to the maintenance assessment. The 3% increase will require the utilization of $1,932,697 or 44% of current fund balance.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 1 (SOUTHRIDGE VILLAGE) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the Ci ty of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be ref erred to as COMMUNITY FACILITIES DISTRICT NO. 1; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the maximum special tax and the actual rate of the special tax to be collected for Fiscal Year 2024-2025; and

WHEREAS, funds of the City are not available to pay for the poli ce protection, fire protection, and the operation and maintenance of parks and parkways in the District during Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. In a manner of apportionment as authorized by Resolution No. 84 - 13, as amended in Resolution No. 84 -57, and as approved by the qualified electors, the specific rate and amoun t of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District are hereby determined and established as follows:

a. For each single or multi -family residential dwelling unit within the District, whether attached, detached or a condominium, as defined by Civil Cod e Section 783, located within each County Assessor’s parcel for which a building permit has been issued, the maximum rate of said special tax shall be one thousand eight nine and thirty eight ($1,089.38) for Fiscal Year 2024-2025. The actual tax amount increased by 2% over the prior fiscal year to $798.02.
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Resolution No. 2024-

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b. For property within each County Assessor’s parcel in the District developed for any non -residential use of a commercial or other busines s nature for which a building permit or use permit has been issued, same rate as provided in subparagraph (a), with the limitations and qualifications as contained therein, and shall be determined on the basis of five (5) residential dwelling units per acr e or portion thereof for such commercial development upon any such parcel, as herein above set forth; provided that the applicable maximum rate of the special tax for a particular fiscal year for any commercially zoned and developed parcel or condominium ownership unit developed for a commercial use and which comprises a separate County Assessor’s parcel shall not be less than the maximum rate of the special tax which otherwise could have been levied in full on a single or multi -family residential dwelling unit or condominium unit with a County Assessor’s parcel in accordance with Paragraph 2(a) hereof.

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following:

a. Police protection
b. Fire protection
c. Operation and maintenance of parks and parkways
d. Repayment of City advances and loans, if appropriate.

SECTION 6 . All moni es above collected shall be paid into the Community Facilities District’s fund.

SECTION 7 . The City Manager is hereby directed to transmit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “Public Improvement, Special Tax” or by any other suitable designation.

SECTION 8 . The C ounty Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what propert y collected, and also provide a statement of any percentages retained for the expense of making any such collection.

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Resolution No. 2024-

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APPROVED AND ADOPTED this 23rd day of July 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Cle rk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
319
Services Authorized Total % Per Unit
Police Services 1,782,279 $ 30% 240.50 $
Fire Protection 1,092,319 18% 147.40
Landscaping 3,747,638 63% 505.70
Delinquency Allowance 119,438 2% 16.12
Excess Cash Balance (769,795) -13% (103.88)
Total 5,971,879$ 100.00% $805.84
Exhibit A
City of Fontana
Community Facilities District No. 1
Southridge Village
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
320
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3156 Agenda Date: 7/23/2024
Agenda #: W. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 7 (Country Club Estates) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-067, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 7 (Country Club Estates) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 7 (Country Club Estates) was established by Resolution No. 98-08 on January 20, 1998, to finance public facilities and to pay annual landscape and lighting maintenance costs within the District. On February 25, 1998, the District issued $4 million in Special Tax Bonds to finance certain public improvements within the District. The bonds were refunded in 2005 and again in 2021 to take advantage of interest rate savings.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1235 approved and adopted by the City Council on February 3, 1998.

The portion of the special tax rate necessary to pay the principal and interest on the outstanding bonded indebtedness and authorized incidental expenses is comprised of available cash balance, debt service payments, and administration costs (Exhibit A, Schedule 1).

The proposed Fiscal Year 2024-2025 special tax rates (Special Tax A and Special Tax B) are outlined in Exhibit A, Schedule 2.

A comparison of the total special tax levy and rates (A and B) for Fiscal Year 2023-2024 and Fiscal City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3156 Agenda Date: 7/23/2024
Agenda #: W. Category: Consent Calendar
A comparison of the total special tax levy and rates (A and B) for Fiscal Year 2023-2024 and Fiscal Year 2024-2025 is outlined in Exhibit A, Schedule 3.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). Special tax rate A (bond) is the same as prior year and special tax rate B (maintenance) will increase by 3% ($9.18) per parcel.

The District was established after the adoption of Proposition 218 and complies with its requirements because the District and the special taxes were approved by the consent of the property owner at the time the District was formed.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax A rates are the same as the prior year while special tax B rates will increase by 3%. This will generate approximately $383,515; $268,159 for debt service expenses and $115,356 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require an 84% increase to the maintenance assessment. The 3% increase will require the utilization of $91,124 or 30% of current fund balance.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 7 (COUNTRY CLUB
ESTATES) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinaf ter be referred to as COMMUNITY FACILITIES DISTRICT NO. 7; and

WHEREAS, on February 25, 1998, Community Facilities District No. 7 (Country Club Estates) Special Tax Bonds were issued to finance certain public improvements within the district; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and established as set forth in Exhibit “ B” attached hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the sp ecial tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

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Resolution No. 2024-

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SECTION 4. The proceeds of Special Tax A shall be used to pa y, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of Special Tax A needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 5. The proceeds of Special Tax B shall be used to pay the costs of park, parkways and open space maintenance of the District and for the payment of administrative expenses incurred in con nection with the levy and collection of said Special Tax B.

SECTION 6. The above authorized Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall have the same lien and priority in the case of delinquency as is provided for ad valorem taxes.

SECTION 7 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The City Manager is hereby directed to transmit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “Public Improvement, Special Tax” or by any other suitable designation, the installment of the Specia l Tax as set forth in Exhibit “B ” or as adjusted pursuant to the provisions of Section 2 above.

SECTION 9 . The County Auditor shall then, at the close of the tax collection period, promptly render to thi s Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

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Resolution No. 2024-

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APPROVED AND ADOPTED this 23rd day of July 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby cert ify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
325
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 200,000$ Bond Service Funds Available 231,299$ Interest Payment 09/2024 21,600 Proposed Special Tax Levy 268,159 Interest Payment 03/2025 17,600 Allowance for Delinquencies (8,045) Principal Payment 09/2025 210,000
Interest Payment 09/2025 17,600
Administration Costs 24,613
Total Costs 491,413$ Available Funds 491,413$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size Special Tax A Special Tax B Tax Rate Small (less than 7,200 sq ft) 667.23$ 315.18$ 982.41$
Medium (7,200 to 9,999 sq ft) 765.60 315.18 1,080.78
Large (10,000 sq ft or larger) 864.73 315.18 1,179.91
Total Proposed Levy 268,159$ 115,356$ 383,515$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years (Special Tax A and Special Tax B)
Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
Small (less than 7,200 sq ft) 181,994$ 973.23$ 183,711$ 982.41$ 1% Medium (7,200 to 9,999 sq ft) 123,234 1,071.60 124,290 1,080.78 1% Large (10,000 sq ft or larger) 74,927 1,170.73 75,514 1,179.91 1% 380,155$ 383,515$
Exhibit "A"
City of Fontana
Community Facilities District No. 7
Country Club Estates Tr. 13332
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
326
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 7
(COUNTRY CLUB ESTATES)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhi bit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on and collecte d in City of Fontana Community Facilities District No. 7 (Country Club Estates) (“CFD No. 7”) each Fiscal Year in an amount determined by the City Council of the City of Fontana through the application of the provisions described herein. All of the real p roperty in CFD No. 7, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Taxing Classification Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

Small (less than 7,200 sq ft) Unit $ 875.00 $ 667.23 $ 124,772 Medium (7,200 sq ft to 9,999 sq ft) Unit 1,004.00 765.60 88,044 Large (10,000 sq ft or larger) Unit 1,134.00 864.73 55,343

$ 268,159

The Levy of Special Tax A

1. Assignment to Land Use Classes

Each Fiscal Year, each Parcel shall be classified as Public Property or Taxable Property. Each parcel of Taxable Property shall be classified as Large Lot, Medium Lot, or Small Lot. The classification of Parcels each Fiscal Year shall be made based on the stat us of each Parcel as of January 1 of the previous Fiscal Year.
327
B-2

2. The Special Tax Requirement

The Special Tax Requirement for any Fiscal Year shall be an amount equal to (A) the sum of the following: (1) debt service and other periodic costs (including deposits to any sinking funds) on the Bonds due in the calendar year commencing in such Fiscal Year, (2) Administration Expenses to be incurred in the Fiscal Year or incurred in any previous Fiscal Year and not paid by CFD No. 7, (3) any amount required to rep lenish any reserve fund established for any Bonds, (4) an amount equal to the estimated delinquencies expected in the payment of Special Tax A for the Fiscal Year, and (5) the cost s of remarketing, credit enhancement and liquidity facility fees (including such fees for instruments that serve as the basis of a reserve fund for any Bonds in lieu of cash), minus (B) any credit pursuant to the indenture, such as investment earnings on account balances.

3. Levy of Special Tax A

Commencing with the 1998-99 Fiscal year and for each following Fiscal Year, the City Council shall determine the Special Tax Requirement for the applicable Fiscal Year and shall levy Special Tax A proportionately on each Parcel of Taxable Property up to the Maximum Annual Special Tax A for each Parcel until the aggregate amount of the levy equals the Special Tax Requirement for such Fiscal Year.

Pursuant to Section 53321 of the Act, under no circumstances shall the Special Tax A levied against any Parcel be increased by more than ten percen t as a consequence of a delinquency or default in the payment of Special Tax A by the owner of any other Parcel. An increase of ten percent or more shall be determined by comparis on of the levy of Special Tax A to the levy if there were no delinquencies or defaults.

Termination of Special Tax A

Except for any delinquencies in Special Tax A and related penalties and interest, Special Tax A used to pay for either or both the acquisition and construction of any public facilities for CFD No. 7 (through the i ssuance of Bonds or otherwise) and levied on any Parcel shall not be levied after Fiscal Year 2027 -28. After such Fiscal Year, and the collection of any delinquencies in Special T ax A, penalties, and interest, the City shall cause a document substantially in the form required by the Act evidencing such termination of the levy and collection to be recorded in the office of the Recorder of the County.

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B-3
II. SPECIAL TAXES FOR MAINTENANCE OF PARKS, PARKWAYS, AND

OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Taxing Classification Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

Taxable Property Unit $ 650.96 $ 315.18 $ 115,356

“Maximum Annual Special Tax B” for each Parcel of Taxable Property shall b e $389 for the 1998 -1999 Fiscal Year, and shall increase by two percent each Fiscal Year thereafter.

The Levy of Special Tax B

1. The Special Tax Requirement

The Special Tax Requirement for any Fiscal Year shall be an amount equal to (A) the sum of the following: (1) the estimated Park, Parkways, and Open Space Maintenance Cost for such Fiscal Year, (2) Administrative Expenses to be incurred in the Fiscal Year or incurre d in any previous Fiscal Year and not paid by CFD No. 7, and (3) an amount equal to th e estimated delinquencies expected in the payment of Special Tax B for the Fiscal Year.

2. Levy of Special Tax B

Commencing with the 1998 -99 Fiscal Year and for each following Fiscal Year, the City Council shall determine the Special Tax Requirement for the applicable Fiscal Year and shall levy Special Tax B proportionately on each parcel of Taxable Property up to the Maximum Annual Special Tax B for each Parcel until the aggregate amount of the levy equals the Special Tax Requirement for such Fiscal Year.

Pursuant to Section 53321 of the Act, under no circumstances shall the Special Tax B levied against any Parcel be increased by more than ten percent as a consequence of a delinquency or default in the payment of Special Tax B by the owner of any other Parc el. An increase of ten percent or more shall be determined by comparison of the levy of Special Tax B to the levy if there were no delinquencies or defaults.

329

330
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3157 Agenda Date: 7/23/2024
Agenda #: X. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 11 (Heritage West End) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-068, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 11 (Heritage West End) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 11 was established by Resolution No. 98-110 on December 1, 1998.

On January 28, 1999, the District issued $15.5 million in Special Tax Refunding Bonds, 1999 Series A, to prepay a portion of the special tax levied on the property within the District by the Community Facilities District No. 2 and to refund certain indebtedness secured by such special tax, namely the City of Fontana Community Facilities District No. 2 (Village of Heritage) Sub-Subordinate Special Tax Refunding Bonds, 1998 Series C. The bonds were refunded in 2021 to take advantage of interest rate savings.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1271 approved and adopted by the City Council on December 15, 1998.

A comparison of the special tax levy and rates for Fiscal Year 2023-2024 and Fiscal Year 2024-2025 is outlined in Exhibit A, Schedule 2. Fiscal Year 2024-2025 rates have increased by 2% over the prior year for residential parcels and 3% on non-residential parcels.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3157 Agenda Date: 7/23/2024
Agenda #: X. Category: Consent Calendar
Method of Apportionment (Exhibit B).

The District was established after the adoption of Proposition 218, and complies with its requirements because the District and the special taxes were approved by the consent of the property owner at the time the District was formed.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rates are 3% higher on non-residential parcels and 2% higher on residential parcels. The proposed levy will generate approximately $554,160 for debt service expenses.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 7/18/2024Page 2 of 2
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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 11 (HERITAGE WEST END) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the C ity of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinaf ter be referred to as COMMUNITY FACILITIES DISTRICT NO. 11; and

WHEREAS, on January 28, 1999, Community Facilities District No. 11 (Heritage West End) Special Tax Refunding Bonds were issued to prepay a portion of the special tax levied on the property wi thin the District by the Community Facilities District No. 2 and to refund certain indebtedness secured by such special tax, namely the City of Fontana Community Facilities District No. 2 (Village of Heritage) Sub -Subordinate Special Tax Refunding Bonds, 1998 Series C; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities Distri ct, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and estab lished as set forth in Exhibit “ B” attached hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the sp ecial tax as shown in Exhibit “B” upon receipt of the Assessor’ s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

333
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Spe cial Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “A”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 7 . The City Manager is h ereby directed to transmit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “Public Improve ment, Special Tax” or by any oth er suitable designation, the installment of the Specia l Tax as set forth in Exhibit “B ” or as adjusted pursuant to the provisions of Section 2 above.

SECTION 8 . The County Auditor shall then, at the close of the tax collec tion period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

334
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of t he City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
335
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 410,000$ Bond Service Funds Available 461,401$ Interest Payment 09/2024 44,500 Proposed Special Tax Levy 554,160 Interest Payment 03/2025 36,300 Allowance for Delinquencies (16,625) Principal Payment 09/2025 430,000
Interest Payment 09/2025 36,300
Administration Costs 41,836
Total Costs 998,936$ Available Funds 998,936$
Schedule 2
Comparison of Special Tax Levy and Rates by Fiscal Years Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1 - R 3,500 sq ft 33,103$ 525.44$ 33,712$ 535.11$ 2%
2 - R 3,280-3,499 sq ft 10,384 494.47 10,575 503.57 2%
3 - R 3,000-3,279 sq ft 32,022 485.18 32,611 494.11 2%
4 - R 2,781-2,999 sq ft 28,365 429.78 28,888 437.69 2%
5 - R 2,601-2,780 sq ft 5,843 417.39 5,951 425.08 2%
6 - R 2,601-2,780 sq ft 25,542 392.96 26,013 400.20 2%
7 - R 2,401-2,600 sq ft 377 377.47 384 384.43 2%
8 - R 2,281-2,400 sq ft 31,563 346.85 32,145 353.24 2%
9 - R 2,050 sq ft 30,640 315.88 31,205 321.70 2%
10 - Non-residential (sq ft) 9,355 0.24 9,623 0.2445 3% 11 - Non-residential (acre) 4,006 3,081.41 4,120 3,169.23 3% 12 - Commercial 308,638 28,710.60 314,811 29,284.82 2%
13 - Commercial 23,454 3,046.16 24,123 3,132.98 3%
14 - Undeveloped 0 0.00 0 0.00
543,294$ 554,160$
Exhibit "A"
City of Fontana
Community Facilities District No. 11
Heritage West End Tr. 11551
Assessed
Percent Rate
Change
FY 2023 - 2024 FY 2024 - 2025
336
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 11
(HERITAGE WEST END)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit fo r an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax as hereinafter defined shall be levie d on all Assessor’s Parcels of Taxable Property in City of Fontana Community Facilities District No. 11 (Heritage West End) (“CFD No. 11”) and collected each Tax Period and/or Fiscal Year commencing in the Initial Tax Period, in an amount determined by the City Council through the application of the appropriate Special Tax for “Developed Property”, “Taxable Property Owner Association Property”, “Taxable Public Property”, and “Undeveloped Property”, as described below. All of the real property in CFD No. 11, unless exempted by l aw or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Tax Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025 1 R 3,500 sq ft Unit $ 1,977.86 $ 535.11 $ 33,712 2 R 3,280-3,499 sq ft Unit 1,861.28 503.57 10,575 3 R 3,000-3,279 sq ft Unit 1,826.31 494.11 32,611 4 R 2,781-2,999 sq ft Unit 1,617.78 437.69 28,888 5 R 2,601-2,780 sq ft Unit 1,571.15 425.08 5,951 6 R 2,401-2,600 sq ft Unit 1,479.18 400.20 26,013 7 R 2,281-2,400 sq ft Unit 1,420.90 384.43 384 8 R 2,051-2,280 sq ft Unit 1,305.62 353.24 32,145 9 R 2,050 sq ft Unit 1,189.05 321.70 31,205
10 Non-Residential Sq Ft 0.90 0.2445 9,623
11 Non-Residential Acre 11,713.93 3,169.23 4,120 12 Commercial Acre 29,284.82 29,284.82 314,811
13 Commercial Acre 11,579.95 3,132.98 24,123
14 Undeveloped Acre 17,426.16 0.00 0

$ 554,160

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B-2
Method of Apportionment of the Special Tax

1. Initial Tax Period

The amount of Special Taxes to be levied in the Initial Tax Period shall be the Maximum Special Tax for each Assessor’s Parcel in Tax Class 1, 2, and 3, multiplied by the quotient derived from dividing the number of months in the Initial Tax Period by twelve (12).

2. After the Initial Tax Period

Commencing with Fiscal year 1999 -2000 and for each following Fiscal Year, the City Council shall determine the S pecial Tax Requirement and shall levy the Special Tax until the amount of Specia l Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied proportionately on each Assessor’s Parcel of Tax Class 1 Property at up to 100% of the applicable Maximum Spe cial Tax.

For Fiscal Years which contain the Second and Third Tax Periods, the Maximum Special Tax for the Fiscal Year shall be the sum of the amounts determined by multiplying the Maximum Special Tax for each Tax Period by the quotient of the number of months of such Tax Period in the Fiscal Year for which the special tax is being levied divided by twelve;

Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, then the Special Tax shall be levied proportionately on each Assessor’s Parcel in Tax Class 2 up to 100% of the applicable Maximum Special Tax and on each Assessor’s Parcel of Developed Property in Tax Class 3 at up to 100% of the applicable Assigned Special Tax;

Third: If additiona l monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax shall be levied proportionately on each Assessor’s Parcel of Undeveloped Property in Tax Class 3 at up to 100% of the Maximum Special Tax for Undeveloped Property;

Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the le vy of the Special Tax on each Assessor’s Parcel of Development Property in Tax C lass 3 whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel;

Fifth: If additional monies a re needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property and Taxable Public Property at up to the Maximum Special 338
B-3
Tax for Taxable Property Owner Association Property and Taxable Public Property.

Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Residential Property for which an occup ancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within the CFD.

Term of Special Tax

The Special Tax shall be levied comme ncing in the Initial Tax Period to the extent necessary to meet the Special Tax Requirement for a period not to exceed forty years on each Assessor’s Parcel.
339

340
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3158 Agenda Date: 7/23/2024
Agenda #: Y. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 12 (Sierra Lakes) for Fiscal Year 2024- 2025.

RECOMMENDATION:

Adopt Resolution No. 2024-069, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 12 (Sierra Lakes) for Fiscal Year 2024- 2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 12 was established by Resolution No. 99-09 on January 19, 1999, to finance public facilities and to pay annual landscape and lighting maintenance costs for the district.

On November 24, 1999, the District issued $25.4 million in Special Tax Bonds, Series 1999, to finance certain public improvements within the District. The bonds were refunded in 2005 and again in 2021 to take advantage of interest rate savings.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Resolution No. 99-09 approved and adopted by the City Council on January 19, 1999, and later amended by Resolution No. 99-99 on October 5, 1999.

The portion of the special tax rate above necessary to pay the principal and interest on the outstanding bonded indebtedness and authorized incidental expenses is comprised of available cash balance, debt service payments, and administration costs (Exhibit A, Schedule 1).

The proposed Fiscal Year 2024-2025 special tax rates (Special Tax A and Special Tax B) are City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3158 Agenda Date: 7/23/2024
Agenda #: Y. Category: Consent Calendar
outlined in Exhibit A, Schedule 2.

A comparison of the total special tax levy and rates (A and B) for Fiscal Year 2023-2024 and Fiscal Year 2024-2025 is outlined in Exhibit A, Schedule 3.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). The rate for the special tax A (bond) and will remain the same as prior year while special tax rate B (maintenance) will increase by 3% ($13.50) per residential parcel.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 bond special tax rates and the maintenance special tax rate will increase 3%. The levy will generate approximately $2.4 million; $1.5 million for debt service expenses and $0.9 million for park, parkways and open space maintenance costs. Fully funding expenses without the use of fund balance would require a 63% increase to the maintenance assessment. The 3% increase will require the utilization of $544,958 or 45% of current fund balance.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 12 (SIERRA LAKES) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City o f Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be r eferred to as COMMUNITY FACILITIES DISTRICT NO. 12; and

WHEREAS, on November 24, 1999, Community Facilities District No. 12 (Sierra Lakes) Special Tax Bonds, Series 1999, were issued to finance certain public improvements within the district; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and established as set forth in Exh ibit “ A” attached hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the sp ecial tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

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Resolution No. 2024-

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SECTION 4. The proceeds of Special Tax A shall be used to pa y, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of Special Tax A needed for the 2024-2025 fiscal year is set forth in Exhibit “A”, attached hereto and incorporated herein by reference.

SECTION 7 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The City Manager is hereby directed to transmit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “Public Improvement, Special Tax” or by any other suitable designation, the installment of the Specia l Tax as set forth in Exhibit “ A” or as adjusted pursuant to the provisions of Section 2 above.

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Resolution No. 2024-

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APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby cer tify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
345
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 1,020,000$ Bond Service Funds Available 1,226,159$ Interest Payment 09/2024 161,200 Proposed Special Tax Levy 1,469,399 Interest Payment 03/2025 140,800 Allowance for Delinquencies (44,082) Principal Payment 09/2025 1,060,000
Interest Payment 09/2025 140,800
Administration Costs 128,676
Total Costs 2,651,476$ Available Funds 2,651,476$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Land Use Category Special Tax A Special Tax B Tax Rate
Greater than 2,700 sq ft 866.96$ 463.50$ 1,330.46$
2,601 - 2,700 sq ft 768.67 463.50 1,232.17
2,501 - 2,600 sq ft 715.11 463.50 1,178.61
2,401 - 2,500 sq ft 675.08 463.50 1,138.58
2,301 - 2,400 sq ft 635.06 463.50 1,098.56
2,201 - 2,300 sq ft 590.33 463.50 1,053.83
2,101 - 2,200 sq ft 545.60 463.50 1,009.10
2,001 - 2,101 sq ft 519.11 463.50 982.61
1,901 - 2,000 sq ft 492.04 463.50 955.54
1,900 sq ft or less 474.38 463.50 937.88
Non-residential property 2,281.28 780.74 3,062.02
Golf Course property 233.07 201.88 434.95
Golf Course structures (sq ft) 0.27 0.00 0.27
Undeveloped - residential 0.00 0.00 0.00
Undeveloped - non-residential 0.00 0.00 0.00
Total Proposed Levy 1,469,399$ 939,153$ 2,408,552$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years (Special Tax A and Special Tax B)
Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
Greater than 2,700 sq ft 906,065 1,316.96$ 915,353$ 1,330.46$ 1% 2,601 - 2,700 sq ft 106,024 1,218.67 107,198 1,232.17 1% 2,501 - 2,600 sq ft 40,779 1,165.11 41,251 1,178.61 1%
2,401 - 2,500 sq ft 120,383 1,125.08 121,828 1,138.58 1% 2,301 - 2,400 sq ft 106,336 1,085.06 107,659 1,098.56 1% 2,201 - 2,300 sq ft 124,840 1,040.33 126,460 1,053.83 1% 2,101 - 2,200 sq ft 78,652 995.60 79,719 1,009.10 1%
2,001 - 2,101 sq ft 203,514 969.11 206,349 982.61 1%
1,901 - 2,000 sq ft 94,204 942.04 95,554 955.54 1%
1,900 sq ft or less 274,542 924.38 278,552 937.88 1%
Non-residential property 255,424 3,039.28 257,335 3,062.02 1% Golf Course property 62,710 429.07 63,570 434.95 1%
Golf Course structures (sq ft) 7,724 0.27 7,724 0.27 0% Undeveloped - residential 0 0.00 0 0.00
Undeveloped - non-residential 0 0.00 0 0.00
2,381,198$ 2,408,552$
Exhibit "A"
City of Fontana
Community Facilities District No. 12
Sierra Lakes
Assessed
Percent Rate
Change
FY 2023-2024 FY 2024-2025
346
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 12
(SIERRA LAKES)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on all Assessor’s Parc els of Taxable Property in City of Fontana Community Facilities District No. 12 (“CFD No. 12”) and collected each Fiscal year commencing in Fiscal year 1999 -2000, in an amount determined by the City Council of the City of Fontana (the “Council”) through th e application of the appropriate Special Tax for “Developed Property,” “Golf Course Property,” “Taxable Property Owner Association Property,” “Taxable Public Property,” “Undeveloped Non -Residential Property,” and “Undeveloped Residential Property.” All of the real property in CFD No. 12, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

R - greater than 2,700 sq ft Unit $ 1,473.00 $ 866.96 $ 596,466 R - 2,601 - 2,700 sq ft Unit 1,306.00 768.67 66,874 R - 2,501 - 2,600 sq ft Unit 1,215.00 715.11 25,029 R - 2,401 - 2,500 sq ft Unit 1,147.00 675.08 72,234 R - 2,301 - 2,400 sq ft Unit 1,079.00 635.06 62,236 R - 2,201 - 2,300 sq ft Unit 1,003.00 590.33 70,840 R - 2,101 - 2,200 sq ft Unit 927.00 545.60 43,102 R - 2,001 - 2,101 sq ft Unit 882.00 519.11 109,014 R - 1,901 - 2,000 sq ft Unit 836.00 492.04 49,204 R - 1,900 sq ft or less Unit 806.00 474.38 140,892 Non-residential property Acre 3,876.00 2,281.28 191,721 Golf course property Acre 396.00 233.07 34,064
Golf course structures (per sq ft) Sq Foot 0.46 0.27 7,724 Undeveloped - residential Acre 8,617.00 0.00 0
Undeveloped - non-residential Acre 3,876.00 0.00 0

$ 1,469,399
347
B-2
The maximum Special Tax Rate of $3,876 per Acre for Non -Residential Property presented above applies only to the first 65.14 Acres ass igned to Land Use Class 11 (Non -residential property). In the event the total amount of Developed Non-Residential Property exceeds 65.14 acres, the additional Acres will be subject to a Maximum Special Tax Rate of $8,617 per Acre. The CFD Administrator sh all determine which Developed Non -Residential Acres will be subject to the Maximum Special Tax Rates of $8,617 per Acre in inverse chronological order as to when the property was assigned as Land Use Class 11 as Developed Non-Residential Property.

Method of Apportionment of Special Tax A

Commencing with Fiscal year 1999 -2000 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy Special Tax A until the amount of Special Taxes equals the Special Tax A Requirement.

Special Tax A shall be levied each Fiscal Year as follows:

First: Special Tax A shall be levied Proporti onately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax A, and Golf Course Property at up to 100% of its applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;

Second: If additional monies are needed to satisfy the Special Tax A Requirement after the first step has been completed, then Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Non - Residential Property and Undeveloped Residential Property a t up to 100% of the Maximum Special Tax A for Undeveloped Non -Residential Property and Undeveloped Residential Property;

Third: If add itional monies are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, then the levy of Special Tax A on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Tax A shall be increased Proportionately from the Assigned Special Tax A up to the Maximum Special Tax A for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax A Requirement after the first thre e steps have been completed, then Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property or Taxable Public Property at up to the Maximum Special Tax A for Taxable Property Owner Association Pr operty or Taxable Public Property.

Notwithstanding the above, under no circumstances will the amount of Special Tax A levied against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within the CFD.
348
B-3
“Special Tax A Requirement” means that amount required in any Fiscal Year for CFD No. 12 to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the bonds, including but not limited to, credit enhancement and arbitrage and other rebate payments on the bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish a ny reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax A delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal year; (vi) pay directly for the acquisition or construction of authorized facilities; less (vii) available funds as directed under the Indenture.

II. SPECIAL TAXES FOR MAINTENANCE OF PARK, PARK WAYS, AND

OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

Residential property Unit $ 899.05 $ 463.50 $ 844,033 Non-residential property Acre 1,514.28 780.74 65,614 Golf course property Acre 390.46 201.88 29,505
Undeveloped property Acre 6,007.99 0.00 0

$ 939,153

Commencing July 1, 2000, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, Non -Residential Property, and Golf Course Property shall be increased by two percent (2%).

The Maximum Special Tax B for Undeveloped Property shall be $1,905 per Acre for Fiscal Year 1999 -2000; $2,860 per Acre for Fiscal Year 2000 -2001; and $3,810 per Acre for Fiscal Year 2001-2002. Commencing July 1, 2002, and each July 1 thereafter, the Maxi mum Special Tax B for Undeveloped Pr operty shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 1999 -2000 and for each following Fiscal Year, the Council shall determine the Special Tax B Requiremen t and shall levy Special Tax B until the amount of Special Taxes equals the Special Tax B Requirement.

Special Tax B shall be levied each Fiscal Year as follows:

First: Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Residential Property classified as Developed Property at up to $ 450 per dwelling unit, on each Assessor’s Parcel of Non -Residential Property classified as Developed Property at up to $ 758 per Acre, and on each Assessor’s Parcel of 349
B-4
Golf Course Property at up to $170 per Acre to satisfy the Special Tax B Requirement;

Second: If additional monies are needed to satisfy the Special Tax B Requirement after the first step has been completed, then Special Tax B shall be levied Proportionately on each Assessor’s Parcel of U ndeveloped Non - Residential Property and Undeveloped Residential Property at up to 100% of the Maximum Special Tax B rate for Undeveloped Non -Residential Property and Undeveloped Residential Property;

Third: If additional monies are needed to satisfy the Special Tax B Requirement after the first two steps have been completed, then Special Tax B shall be levied Proportionately on each Assessor’s parcel of Residential Property that is Developed Property, Non -Residential Property, and Golf Course Property at up to 100% of the applicable Maximum Special Tax B rate;

Fourth: If additional monies are needed to satisfy the Special Tax B Requirement after the first three steps have been completed, then Special Tax B shall be levied proportionately on each Assessor ’s parcel of Taxable Property Owner or Taxable Public Property at up to the Maximum Special Tax B for Taxable Property Owner Association Property or Taxable Public Property.

Notwithstanding the above, under no circumstances will the amount of Special Tax B levied against any Assessor’s Parc el of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within the CFD.

350

351
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3159 Agenda Date: 7/23/2024
Agenda #: Z. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 22 (Sierra Hills South) for Fiscal Year 2024- 2025.

RECOMMENDATION:

Adopt Resolution No. 2024-070, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 22 (Sierra Hills South) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 22 (Sierra Hills South) was established by Resolution No. 2003-38 on April 15, 2003. On August 26, 2004, the District issued $37,365,000 in Special Tax Bonds to refund CFD #90-3 (Empire Center) Special Tax Bonds which were used to finance the construction, installation and acquisition of certain major capital facilities (infrastructure) to serve properties located within the District. On May 29, 2014, the District issued $31 million in Special Tax Refunding Bonds to refinance the 2004 bonds.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Ordinance 1426, approved and adopted by the City Council on August 6, 2003.

The special tax levied on each assessable parcel within the District is necessary to pay the principal and interest on the outstanding bonded indebtedness and authorized administrative expenses (Exhibit A, Schedule 1).

A comparison of the special tax levy and rates for Fiscal year 2023-2024 and Fiscal Year 2024-2025 is outlined in Exhibit A, Schedule 2.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B) and are the same as the prior year.

The City’sspecial taxes for this District have been reviewed in light of the passage of Proposition City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3159 Agenda Date: 7/23/2024
Agenda #: Z. Category: Consent Calendar
The City’sspecial taxes for this District have been reviewed in light of the passage of Proposition 218. The recommended actions comply with the provisions of this proposition.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rates are the same as the prior year and will generate approximately $2.7 million for debt service expenses.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 22 (SIERRA HILLS SOUTH) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafte r be referred to as COMMUNITY FACILITIES DISTRICT NO. 22; and

WHEREAS, on or about August 18, 2004, Community Facilities District No. 22 (Sierra Hills South) Special Tax Bonds were issued to refund the outstanding Community Facilities District No. 90 -3 (E mpire Center) Special Tax Bonds, Series A, which were used to finance the construction, installation and acquisition of certain major capital facilities (infrastructure) to serve properties located within Community Facilities District. On May 29, 2014, the District issued $31 million in Special Tax Refunding Bonds to refinance the 2004 bonds; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special ta x to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and order ed by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fisca l Year 2024-2025 for the referenced District is hereby determined and established as set fort h in Exhibit “ B” attached hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and meth od of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

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SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 7 . The City Manager is hereby directed to transmit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opp osite each lot or parcel of land affected in a space marked “Public Improvement, Special Tax” or by any oth er suitable designation, the installment of the Specia l Tax as set forth in Exhibit “B ” or as adjusted pursuant to the provisions of Section 2 above.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected an d from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

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Resolution No. 2024-

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APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
356
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 1,565,000$ Bond Service Funds Available 2,125,522$ Interest Payment 09/2024 508,125 Proposed Special Tax Levy 2,695,627 Interest Payment 03/2025 469,000 Allowance for Delinquencies (80,869) Principal Payment 09/2025 1,640,000
Interest Payment 09/2025 469,000
Administration Costs 89,155
Total Costs 4,740,280$ Available Funds 4,740,280$
Schedule 2
Comparison of Special Tax Levy and Rates by Fiscal Years Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1 - Non-residential 645,964$ 10,402.00$ 645,964$ 10,402.00$ 0% 2 - Non-residential 967,617 4,623.11 967,617 4,623.11 0% 2 - Hotel Property 4,161 4,623.11 4,161 4,623.11 0%
3 - Residential 440,450 1,150.00 440,450 1,150.00 0%
4 - Residential 455,400 1,150.00 455,400 1,150.00 0%
5 - Non-residential 182,035 10,402.00 182,035 10,402.00 0% 2,695,627$ 2,695,627$
Exhibit A
City of Fontana
Community Facilities District No. 22
Sierra Hills South
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
357
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 22
(SIERRA HILLS SOUTH)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhib it for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

Special Taxes shall be levied on all Parcels l ocated within the boundaries of City of Fontana Community Facilities District No. 22 (Sierra Hills South) (hereinafter “CFD No. 22”). The amount of Special Tax to be levied on a Parcel in any fiscal year shall be determined by the City Council of the City of Fontana (hereinafter the “Council” and the “City”), in accordance with the rate and method of apportionment of the Special Taxes described below. All of the property in CFD No. 22, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner provided herein.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Tax Rate Zone / Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

Tax Rate Zone 1 – Non residential Acre $ 13,641.00 $ 10,402.00 $ 645,964 Tax Rate Zone 2 – Non residential Acre 6,062.67 4,623.11 967,617 Tax Rate Zone 2 – Hotel Acre 6,062.67 4,623.11 4,161 Tax Rate Zone 3 – Residential Unit 1,508.09 1,150.00 440,450 Tax Rate Zone 4 – Residential Unit 1,508.09 1,150.00 455,400 Tax Rate Zone 5 – Non residential Acre 13,641.00 10,402.00 182,035

$ 2,695,627

Maximum Special Tax Rates escalate at 2% per year commencing July 1, 2004.

Tax Rate Zone 3 may only be taxed until the earlier of Fiscal Year 2029 -2030 or when no Bonds are outstanding. All other tax rate zones may be taxed until the earlier of Fiscal Year 2041-2042 or when no Bonds are outstanding.

358
B-2

Method of Apportionment of the Special Tax

No earlier than the fiscal year in which CFD No. 90 -3 is dissolved pursuant to Section 5338.5 of the Act and for each subsequent fiscal year, the C ouncil shall determine the Special Tax Requirement and levy the Special Taxes until the amount of Special Taxes equals the Special Tax Requirement.

Step 1: The Special Tax shall be levied proportionately on each Parcel of Single Family Residential Proper ty, Hotel Property and Non -Residential Property at up to 100 percent of its applicable Maximum Special Tax to satisfy the Special Tax Requirement.

Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been comple ted, then the Special Tax shall be levied proportionately on each Parcel of Property Owner Association Property at up to 100 percent of its applicable Maximum Special Tax to satisfy the Special Tax Requirement.

Step 3: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 and Step 2 have been completed, then the Special Tax shall be levied proportionately on each Parcel of Public Property at up to 100 percent of its applicable Maximum Special Tax to satisfy the Special Tax Requirement.

“Special Tax Requirement” means, for a fiscal year, that amount required in such fiscal year for CFD No. 22 to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the bonds, including but not limited to, credit enhancemen t and rebate payments on the bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for the Bonds; and (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate fo r Special Taxes levied in the previous fiscal year, except for the first fiscal year in which the Special Taxes are levied, for which the delinquency rate will be three percent (3%), taking into account any available funds, as determined by the CFD Administrator.

359

CFD # 22
Sierra Hills South
360
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3160 Agenda Date: 7/23/2024
Agenda #: AA. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 31 (Citrus Heights North) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-071, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax in Community Facilities District No. 31 (Citrus Heights North) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 31 (Citrus Heights North) was established by Resolution No. 2005- 59 on June 7, 2005, to finance public facilities and to pay the annual landscape and lighting maintenance costs for the district. On December 21, 2006, the District issued $26,815,000 in Special Tax Bonds, Series 2006, to finance the acquisition and construction of certain capital facilities (infrastructure). On July 11, 2018, the District issued $18.5 million in Special Tax Refunding Bonds to refinance the 2006 bonds; refinancing the bonds allowed the District to take advantage of interest rate savings and to finance the acquisition and construction of additional capital facilities.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Resolution No. 2005-59 approved and adopted by the City Council on June 7, 2005.

The proposed Fiscal Year 2024-2025 special tax rates (Special Tax A and Special Tax B) are City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3160 Agenda Date: 7/23/2024
Agenda #: AA. Category: Consent Calendar
The proposed Fiscal Year 2024-2025 special tax rates (Special Tax A and Special Tax B) are outlined in Exhibit A, Schedule 2. A comparison of the total special tax levy and rates (A and B) for Fiscal Year 2023-2024 and Fiscal Year 2024-2025 is outlined in Exhibit A, Schedule 3.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). The rates for all categories are the same as the prior year.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rates are the same as the prior year and will generate approximately $3.0 million; $2.5 million for debt service expenses and $480,225 for park, parkways and open space costs.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 31 ( CITRUS HEIGHTS
NORTH) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of th e City of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall herei nafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 31; and

WHEREAS, on December 21, 2006 Community Facilities District No. 31 (Citrus Heights North) Special Tax Bonds, Series 2006, were issued to finance certain public improvements within the district; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished a s set forth in Exhibit “ B” attached hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the sp ecial tax as shown in Exhibit “B” upon receipt of the Assessor’s roll f rom the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

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Resolution No. 2024-

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SECTION 4. The proceeds of Special Tax A s hall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of Special Tax A needed for the 2024-2025 fiscal year is set forth in Exhibit “A”, attached hereto and incorporated herein by reference.

SECTION 7 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The City Manager is hereby direc ted to transmit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “Public Improvement, Speci al Tax” or by any other suitable designation, the installment of the Specia l Tax as set forth in Exhibit “B ” or as adjusted pursuant to the provisions of Section 2 above.

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Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
365
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 1,335,000$ Bond Service Funds Available 1,651,266$ Interest Payment 09/2024 470,925 Proposed Special Tax Levy 2,567,257 Interest Payment 03/2025 444,225 Allowance for Delinquencies (77,018) Principal Payment 09/2025 1,390,000
Interest Payment 09/2025 444,225
Administration Costs 57,130
Total Costs 4,141,505$ Available Funds 4,141,505$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Land Use Category Special Tax A Special Tax B Tax Rate
1 Greater than 4,275 sq ft 3,764.00$ 475.00$ 4,239.00$
2 4,075 - 4,274 sq ft 3,595.00 475.00 4,070.00
3 3,875 - 4,074 sq ft 3,490.00 475.00 3,965.00
4 3,675 - 3,874 sq ft 3,409.00 475.00 3,884.00
5 3,475 - 3,674 sq ft 3,344.00 475.00 3,819.00
6 3,275 - 3,474 sq ft 3,223.00 475.00 3,698.00
7 3,075 - 3,274 sq ft 3,130.00 475.00 3,605.00
8 2,875 - 3,074 sq ft 3,037.00 475.00 3,512.00
9 2,675 - 2,874 sq ft 2,916.00 475.00 3,391.00
10 2,475 - 2,674 sq ft 2,795.00 475.00 3,270.00
11 2,275 - 2,474 sq ft 2,795.00 475.00 3,270.00
12 2,075 - 2,274 sq ft 2,674.00 475.00 3,149.00
13 1,875 - 2,074 sq ft 2,108.00 475.00 2,583.00
14 1,675 - 1,874 sq ft 1,882.00 475.00 2,357.00
15 1,475 - 1,674 sq ft 1,664.00 475.00 2,139.00
16 1,275 - 1,474 sq ft 1,503.00 475.00 1,978.00
17 Less than 1,275 sq ft 1,180.00 475.00 1,655.00
18 Non-residential 32,233.00 2,040.00 34,273.00
Final Mapped Property - Zone 1 - - -
Final Mapped Property - Zone 2 - - -
Final Mapped Property - Zone 3 - - -
Undeveloped Zone 1 property - - -
Undeveloped Zone 2 property - - -
Undeveloped Zone 3 property - - -
Total Proposed Levy 2,567,257$ 480,225$ 3,047,482$
Exhibit "A"
City of Fontana
Community Facilities District No. 31
Citrus Heights North
366
Schedule 3
Comparison of Total Special Tax Levy and Rates for 2023-2024 and 2024-2025 (Special Tax A and Special Tax B)
Land Use Category Special Tax Rate Special Tax Rate
1 Greater than 4,275 sq ft 42,390.00$ 4,239.00$ 42,390.00$ 4,239.00$ 0% 2 4,075 - 4,274 sq ft 240,130.00 4,070.00 240,130.00 4,070.00 0% 3 3,875 - 4,074 sq ft 27,755.00 3,965.00 27,755.00 3,965.00 0% 4 3,675 - 3,874 sq ft 229,156.00 3,884.00 229,156.00 3,884.00 0% 5 3,475 - 3,674 sq ft 171,855.00 3,819.00 171,855.00 3,819.00 0% 6 3,275 - 3,474 sq ft 218,182.00 3,698.00 218,182.00 3,698.00 0% 7 3,075 - 3,274 sq ft 108,150.00 3,605.00 108,150.00 3,605.00 0% 8 2,875 - 3,074 sq ft 147,504.00 3,512.00 147,504.00 3,512.00 0% 9 2,675 - 2,874 sq ft 98,339.00 3,391.00 98,339.00 3,391.00 0% 10 2,475 - 2,674 sq ft 137,340.00 3,270.00 137,340.00 3,270.00 0% 11 2,275 - 2,474 sq ft 415,290.00 3,270.00 415,290.00 3,270.00 0% 12 2,075 - 2,274 sq ft 107,066.00 3,149.00 107,066.00 3,149.00 0% 13 1,875 - 2,074 sq ft 490,770.00 2,583.00 506,268.00 2,583.00 0% 14 1,675 - 1,874 sq ft 202,702.00 2,357.00 219,201.00 2,357.00 0% 15 1,475 - 1,674 sq ft 271,653.00 2,139.00 329,406.00 2,139.00 0% 16 1,275 - 1,474 sq ft 43,516.00 1,978.00 49,450.00 1,978.00 0% 17 Less than 1,275 sq ft - 1,655.00 - 1,655.00 0%
18 Non-residential - 34,273.00 - 34,273.00 0%
Final Mapped Property - Zone 1 - - - - 0%
Final Mapped Property - Zone 2 - - - - 0%
Final Mapped Property - Zone 3 20,425.00 475.00 - - 0%
Undeveloped Zone 1 property - - - - 0%
Undeveloped Zone 2 property - - - - 0%
Undeveloped Zone 3 property - - - - 0%
2,972,223$ 3,047,482$
City of Fontana
Exhibit "A"
Community Facilities District No. 31
Citrus Heights North
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
367
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 31
(CITRUS HEIGHTS NORTH)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

A Special Tax shall be levied on all Assessor ’s Parcels of Taxable Property in City of Fontana Community Facilities District No. 31 (“CFD No. 31”) and collected each Fiscal year commencing in Fiscal year 2006-2007, in an amount determined by the City Council of the City of Fontana (the “Council”) thr ough the application of the appropriate Special Tax for “Developed Property,” “Taxable Property Owner Association Property,” “Taxable Public Property,” “Undeveloped Non-Residential Property,” and “Undeveloped Residential Property.” All of the real property in CFD No. 31, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Actual
Annual Tax Rate Tax Rate Tax Amount
Land Use Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 - Greater than 4,275 sq ft Unit $ 3,764.00 $ 3,764.00 $ 37,640 2 - 4,075 - 4,274 sq ft Unit 3,595.00 3,595.00 212,105 3 - 3,875 - 4,074 sq ft Unit 3,490.00 3,490.00 24,430 4 - 3,675 - 3,874 sq ft Unit 3,409.00 3,409.00 201,131 5 - 3,475 - 3,674 sq ft Unit 3,344.00 3,344.00 150,480 6 - 3,275 - 3,474 sq ft Unit 3,223.00 3,223.00 190,157 7 - 3,075 - 3,274 sq ft Unit 3,130.00 3,130.00 93,900 8 - 2,875 - 3,074 sq ft Unit 3,037.00 3,037.00 127,554 9 - 2,675 - 2,874 sq ft Unit 2,916.00 2,916.00 84,564 10 – 2,475 - 2,674 sq ft Unit 2,795.00 2,795.00 117,390 11 - 2,275 - 2,474 sq ft Unit 2,795.00 2,795.00 354,965 12 - 2,075 - 2,274 sq ft Unit 2,674.00 2,674.00 90,916 13 - 1,875 - 2,074 sq ft Unit 2,108.00 2,108.00 413,168 14 - 1,675 - 1,874 sq ft Unit 1,882.00 1,882.00 175,026 15 - 1,475 - 1,674 sq ft Unit 1,664.00 1,664.00 256,256 16 - 1,275 - 1,474 sq ft Unit 1,503.00 1,503.00 37,575 17 - 1,274 sq ft or less Unit 1,180.00 1,180.00 0
18 - Non-residential property Acre 32,233.00 32,233.00 0 Mapped Property – Zone 1 Acre 17,806.00 0.00 0
368
B-2
Mapped Property – Zone 2 Acre 26,894.00 0.00 0
Mapped Property – Zone 3 Acre 32,233.00 0.00 0
Undeveloped – Zone 1 Property Acre 17,806.00 0.00 0 Undeveloped – Zone 2 Property Acre 26,894.00 0.00 0 Undeveloped – Zone 3 Property Acre 32,233.00 0.00 0

$ 2,567,257

Method of Apportionment of Special Tax A

Commencing with Fiscal year 2005-2006 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement for Facilities and shall levy Special Tax A until the total Special Tax A equals the Special Tax Requirement for Facilities. Special Tax A shall be levied each Fiscal Year as follows:

First: Special Tax A shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Special Tax A;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property in Zone 1, Zone 2, and Zone 3 at up to 100% of the applicable Initial Maximum Special Tax A;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the second step has been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property in Zone 1, Zone 2, and Zone 3 at up to 100% of the applicable Initial Maximum Special Tax A;

Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the levy of the Special Tax A on each Assessor’s Parcel of Final Mapped Property and Undeveloped Property in Zone1, Zone 2, and Zone 3 shall be increased in equal percentages from the applicable Initial Maximum Special Tax A for such Zone up to 100% of the applicable Maximum Special Tax A for F inal Mapped Property and Undeveloped Property;

Fifth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first four steps have been completed, then the levy of the Special Tax A on each Assessor’s Parcel of De veloped Property in Zone 1, Zone 2, and Zone 3 whose Maximum Special Tax A is determined through the application of the Backup Special Tax A shall be increased in equal percentages from the Assigned Special Tax A up to the Maximum Special Tax A for each such Assessor’s Parcel;

Sixth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first five steps have bee completed, then the Special Tax A 369
B-3
shall be levied Proportionately on each Assessor’s Parcel of Taxable P roperty Owner Association at up to the Maximum Special Tax A for Taxable Property Owner Association Property;

Seventh: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first six steps have been completed, then the Special Tax A shall be levied proportionately on each Assessor’s Parcel of Taxable Public Property at up to the Maximum Special Tax A for Taxable Public Property.

Notwithstanding the above the Council may, in any Fiscal Year, levy Proportionately le ss than 100% of the Assigned Special Tax A in step one (above), when (i) the Council is no longer required to levy the Special Tax A pursuant to steps two through seven above in order to meet the Special Tax Requirement for Facilities, and (ii) all authorized Bonds have already been issued or the Council has covenanted that it will not issue any additional Bonds (except refunding bonds) to be supported by the Special Tax A.

Further notwithstanding the above, under no circumstances will the Special Tax A be levied against any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 31.

II. SPECIAL TAXES FOR MAINTENANCE OF PARK, PARKWAYS, AND

OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

Residential property Unit $ 968.78 $ 475.00 $ 480,225 Developed Non-Residential Property Acre 4,166.48 0.00 0

$ 480,225

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2005 -2006 and for each following Fiscal Year, the Council shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax Requirement for Services. The Special Tax B shall be levied each Fiscal Year as follows;

First: The Special Tax B shall be levied proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax B for such Assessor’s Parcel;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the le vy of the Special 370
B-4
Tax B on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assigned Special Tax B up to the Maximum Special Tax B for each such Assessor’s Parcel.

371
372
373
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3161 Agenda Date: 7/23/2024
Agenda #: AB. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 37 (Montelago) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-072, of the City Council of the City of Fontana, California, authorizing the Levy of Special Tax in Community Facilities District No. 37 (Montelago) for Fiscal Year 2024- 2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 37 (Montelago) was established by Resolution No. 2005-63 on June 7, 2005, to finance public facilities and to pay annual landscape and lighting maintenance costs for the district. On September 1, 2005, the District issued $4,590,000 in Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District. The bonds were refunded in 2021 to take advantage of interest rate savings.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1480 approved and adopted by the City Council on June 21, 2005.

The proposed Fiscal Year 2024-2025 special tax rates (Special Tax A and Special Tax B) are shown in Exhibit A, Schedule 2.

A comparison of the total special tax levy and rates (A and B) for Fiscal Year 2023-2024 and Fiscal City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3161 Agenda Date: 7/23/2024
Agenda #: AB. Category: Consent Calendar
Year 2024-2025 is outlined in Exhibit A, Schedule 3.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). Special tax rates A (bond) will remain the same as the prior year and special tax rate B (maintenance) will increase by 3% ($18.21) per parcel.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax A rates are the same as the prior year while special tax B rates will increase by 3%. This will generate approximately $326,716; $237,311 for debt service expenses and $89,405 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 180% increase to the maintenance assessment. The 3% increase will require the utilization of $153,815 or 58% of current fund balance.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 37 (MONTELAGO) FOR
FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of F ontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be r eferred to as COMMUNITY FACILITIES DISTRICT NO. 37; and

WHEREAS, on September 1, 2005, Community Facilities District No. 37 (Montelago) Special Tax Bonds, Series 2005, were issued to acquire the improvements in Tract 16678; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attached h ereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

376
Resolution No. 2024-

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SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

377
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify that t he foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
378
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 130,000$ Bond Service Funds Available 179,316$ Interest Payment 09/2024 38,000 Proposed Special Tax Levy 237,311 Interest Payment 03/2025 35,400 Allowance for Delinquencies (7,119) Principal Payment 09/2025 135,000
Interest Payment 09/2025 35,400
Administration Costs 35,708
Total Costs 409,508$ Available Funds 409,508$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size Special Tax A Special Tax B Tax Rate 1- Greater than 3,700 sq ft 1,892.46$ 625.21$ 2,517.67$ 2- 34,50 to 3,699 sq ft 1,670.01 625.21 2,295.22
3- 3,200 to 3,449 sq ft 1,553.27 625.21 2,178.48
4- Less than 3,200 sq ft 1,386.59 625.21 2,011.80
Total Proposed Levy 237,311$ 89,405$ 326,716$
Schedule 3
Comparison of Special Tax Levy and Rates for 2023-2024 and 2024-2025 (Special Tax A and Special Tax B)
Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1- Greater than 3,700 sq ft 109,976$ 2,499.46$ 110,777$ 2,517.67$ 1% 2- 34,50 to 3,699 sq ft 86,526 2,277.01 87,218 2,295.22 1% 3- 3,200 to 3,449 sq ft 77,770 2,160.27 78,425 2,178.48 1% 4- Less than 3,200 sq ft 49,840 1,993.59 50,295 2,011.80 1% 324,112$ 326,716$
Exhibit "A"
City of Fontana
Community Facilities District No. 37
Montelago
Assessed
Percent Rate
Change
FY 2023 - 2024 FY 2024 - 2025
379
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 37
(MONTELAGO)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on all Assessor’s Parcels of Taxable Property in City of Fontana Community Facilities District No. 37 (“CFD No. 37”) and collected each fiscal year commencing in Fiscal Year 2005-2006, in an amount determined by the City Council of the City of Fontana (the “Council”) through the a pplication of the appropriate Special Tax for “Developed Property,” and “Non -Residential Property.” All o f the real property in CFD No. 37 , unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Actual Tax
Annual Tax Rate Tax Rate Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 - Greater than 3,700 sq ft Unit $ 2,918.00 $ 1,892.46 $ 83,268 2 - 3,450 - 3,699 sq ft Unit 2,575.00 1,670.01 63,460 3 - 3,200 - 3,449 sq ft Unit 2,395.00 1,553.27 55,918 4 – Less than 3,200 sq ft Unit 2,138.00 1,386.59 34,665

$ 237,311

Method of Apportionment of Special Tax A

Commencing with Fiscal year 2005-2006 and for each following Fiscal Year, the Council shall determine th e Special Tax Requirement for Facilities and shall levy Special Tax A until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The Special Tax A shall be levied each Fiscal Year as follows:

380
B-2
First: Special Tax A shall be levie d proportionately on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicabl e Assigned Special Tax A;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax A for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of Special Tax A on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Tax A shall be increased in equal percentages from the Assigned Special Tax A up to the Maximum Special Tax A for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been complet ed, then Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner As sociation Property at up to the Maximum Special Tax A for Taxable Property Owner Association Property;

Fifth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first four steps have been completed, then Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at up to the Maximum Special Tax A for Taxable Public Property;

Notwithstanding the above the Council may, in any Fiscal year , levy Proportionately less than 100 % of the Assigned Special Tax A in step one (above), when (i) the Council is no longer required to levy the Special Tax A pursuant to steps two thr ough five above in order to meet the Special Tax Requirement for Facilities, and (ii) all authorized Bonds have already been issued or the Council has covenanted that it will not issue any additional Bonds (except refunding bonds) to be supported by the Special Tax A.

Further notwithstanding the above, under no circumstances will the Special Tax A levied agains t any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 37.

381
B-3
II. SPECIAL TAXES FOR MAINTENANCE OF PARK, PARKWAYS, AND

OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $ 1,238.29 $ 625.21 $ 89,405 5 – Non-Residential Property Acre 5,324.64 0.00 0

$ 89,405

Commencing July 1, 2006, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council shall levy Special Tax B until the total Special Tax B levy equals the Special Tax Requirement for Services. Special Tax B shall be levied each Fiscal Year as follows:

First: Special Tax B shall be levie d proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax B for such Assessor’s Parcel;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Special Tax B on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assigned Special Tax B up to the Maximum Special Ta B for each such Assessor’s parcel.

382

CFD # 37
143 residential lots
City Council Meeting
Location Map

383
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3162 Agenda Date: 7/23/2024
Agenda #: AC. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 70 (Avellino) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-073, of the City Council of the City of Fontana, California, authorizing the Levy of Special Tax in Community Facilities District No. 70 (Avellino) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 70 (Avellino) was established by Resolution No. 2012-90 on September 25, 2012, to finance public facilities and to pay annual landscape and lighting maintenance costs for the district. On July 24, 2013, the District issued $2,750,000 in Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District. The bonds were refunded in 2021 to take advantage of interest rate savings.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1670 approved and adopted by the City Council on October 9, 2012.

The special tax levied on each assessable parcel within the District is necessary to pay principal and interest on the outstanding bonded indebtedness and authorized administrative expenses (Facilities Special Tax A); and the annual landscape and lighting maintenance costs of the District (Services Special Tax B). The proposed Fiscal Year 2024-2025 special tax rates (Special Tax A and Special Tax B) are shown in Exhibit A, Schedule 2.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B) and are the same as the prior year for special tax A (bond) and are 3% ($19.80) higher for special tax B (maintenance).

As recommended, the 3% increase for Special Tax B doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3162 Agenda Date: 7/23/2024
Agenda #: AC. Category: Consent Calendar
recommendations to the Council for a long-term funding plan to ensure that services are fully funded, and districts remain sustainable.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rate A are the same as prior year and the special tax B rates are 3% higher. This will generate approximately $244,986; $164,769 for debt service expenses and $80,216 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 16% increase to the maintenance assessment. The 3% increase will require the utilization of $10,493 or 4% of current fund balance.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 70 (AVELLINO) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fo ntana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be re ferred to as COMMUNITY FACILITIES DISTRICT NO. 70; and

WHEREAS, on September 25, 2012, Community Facilities District No. 70 (Avellino) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 18824; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attached h ereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

386
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

387
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify that t he foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
388
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 70,000$ Bond Service Funds Available 120,058$ Interest Payment 09/2024 37,200 Proposed Special Tax Levy 164,769 Interest Payment 03/2025 35,800 Allowance for Delinquencies (4,943) Principal Payment 09/2025 70,000
Interest Payment 09/2025 35,800
Administration Costs 31,084
Total Costs 279,884$ Available Funds 279,884$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size Special Tax A Special Tax B Tax Rate 1- >3,850 sq ft 1,801.39$ 679.80$ 2,481.19$
2- 3,450 to 3,850 sq ft 1,634.15 679.80 2,313.95
3- 3,050 to 3,450 sq ft 1,466.91 679.80 2,146.71
4- 2,650 to 3,050 sq ft 1,394.56 679.80 2,074.36
5- 2,250 to 2,650 sq ft 1,260.77 679.80 1,940.57
6- 1,850 to 2,250 sq ft 1,118.79 679.80 1,798.59
7- <1,850 sq ft 976.80 679.80 1,656.60
8- Non-Residential 8,286.80 3,983.01 12,269.81
Total Proposed Levy 164,769$ 80,216$ 244,986$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1- >3,850 sq ft -$ 2,461.39$ -$ 2,481.19$ 1%
2- 3,450 to 3,850 sq ft 45,883 2,294.15 46,279 2,313.95 1% 3- 3,050 to 3,450 sq ft 61,680 2,126.91 62,255 2,146.71 1% 4- 2,650 to 3,050 sq ft 71,910 2,054.56 72,603 2,074.36 1% 5- 2,250 to 2,650 sq ft 40,336 1,920.77 40,752 1,940.57 1% 6- 1,850 to 2,250 sq ft 19,567 1,778.79 19,784 1,798.59 1% 7- <1,850 sq ft 3,274 1,636.80 3,313 1,656.60 1%
8- Non-Residential - 12,153.80 - 12,269.81 1%
242,649$ 244,986$
Exhibit "A"
City of Fontana
Community Facilities District No. 70
Avellino
Assessed
Percent Rate
Change
FY 2023 - 2024 FY 2024 - 2025
389
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 70
(AVELLINO)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on all Assessor’s Parcels of Taxable Property in City of Fontana Community Facilities District No. 70 (“CFD No. 70”) and collected each fiscal year commencing in Fiscal Year 2013-2014, in an amount determined by the City Council of the City of Fontana (the “Council”) through the ap plication of the appropriate Special Tax for “Developed Property,” and “Non -Residential Property.” All o f the real property in CFD No. 70, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Actual Tax
Annual Tax Rate Tax Rate Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 - greater than 3,850 sq ft Unit $ 2,639.00 $ -- $ -- 2 - 3,450 - 3,850 sq ft Unit 2,394.00 1,634.15 32,683 3 - 3,050 - 3,450sq ft Unit 2,149.00 1,466.91 42,540 4 - 2,650 - 3,050sq ft Unit 2,043.00 1,394.56 48,810 5 2,250 – 2,650 sq ft Unit 1,847.00 1,260.77 26,475 6- 1,850 – 2,250 sq ft Unit 1,639.00 1,118.79 12,307 7- less than 1,850 sq ft Unit 1,431.00 976.80 1,954 8- Non-residential Acre 12,140.00 -- -- 9- Undeveloped

Acre 13,486.00 -- --

$ 164,769

Method of Apportionment of Special Tax A

Commencing with Fiscal year 2018-2019 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities 390
B-2
and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step ha s been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Ba ckup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax Requ irement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (ab ove), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 70 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 70 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Fac ilities Special Tax levied against any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued for private residential use be increased as a consequence of delinquency or default by the owner of any other Assessor’s P arcel within CFD No. 70 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

391
B-3

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $ 1,171.86 $ 679.80 $ 80,216 5 – Non-Residential Property Acre 6,866.26 0.00 0

$ 80,216

Commencing July 1, 2013, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property , and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2013-2014 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Specia l Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

First: The Services Special Tax shall be levied Proportionately each Fiscal Year on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Services Special Tax as needed to satisfy the Special Tax Requirement for Services;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assign ed Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

392

393
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3163 Agenda Date: 7/23/2024
Agenda #: AD. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 71 (Sierra Crest) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-074, Authorizing the Levy of Special Tax in Community Facilities District No. 71 (Sierra Crest) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 71 (Sierra Crest) was established by Resolution No. 2014-020 on April 8, 2014, to finance public facilities and to pay annual landscape and lighting maintenance costs for the district. On July 20, 2016, the District issued $5,915,000 in Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the maturing principal and interest on the bonds and/or direct payment for the acquisition or construction of authorized facilities. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1692 approved and adopted by the City Council on April 8, 2014.

The special tax levied on each assessable parcel within the District is necessary to pay principal and interest on the outstanding bonded indebtedness and authorized administrative expenses (Facilities Special Tax A); and the annual landscape and lighting maintenance costs of the District (Services Special Tax B). The proposed Fiscal Year 2023-2024 special tax rates (Special Tax A and Special Tax B) are shown in Exhibit A, Schedule 2. Special tax rate A (bond) will remain the same as the prior year and special tax rate B (maintenance) will increase 3% ($18.78) over the prior year.

A comparison of the total special tax levy and rates (A and B) for Fiscal Year 2023-2024 and fiscal Year 2024-2025 is outlined in Exhibit A, Schedule 3.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B) as amended in April 2016.

City of Fontana Printed on 7/18/2024Page 1 of 2
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394
File #: 21-3163 Agenda Date: 7/23/2024
Agenda #: AD. Category: Consent Calendar
As recommended, the 3% increase for Special Tax B doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, and districts remain sustainable.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rate A is the same as the prior year while special tax rate B will increase by 3%. This will generate approximately $481,037; $360,464 for debt service and $120,574 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 37% increase to the maintenance assessment. The 3% increase will require the utilization of $39,236 or 10% of current fund balance.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 7/18/2024Page 2 of 2
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Page 1 of 3 ends

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 71 (SIERRA CREST ) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City o f Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter b e referred to as COMMUNITY FACILITIES DISTRICT NO. 71; and

WHEREAS, on April 8, 2014, Community Facilities District No. 71 (Sierra Crest) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 18820; and

WHEREAS, the City Counc il, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attache d hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino i f, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

396
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agenc y a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

397
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify tha t the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
398
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 160,000$ Bond Service Funds Available 223,081$ Interest Payment 09/2024 73,684 Proposed Special Tax Levy 360,464 Interest Payment 03/2025 72,084 Allowance for Delinquencies (10,814) Principal Payment 09/2025 165,000
Interest Payment 09/2025 72,084
Administration Costs 29,877
Total Costs 572,730$ Available Funds 572,730$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size Special Tax A Special Tax B Tax Rate 1- >3,450 sq ft 2,240.14$ 644.78$ 2,884.92$
2- 3,250 to 3,450 sq ft 2,153.35 644.78 2,798.13
3- 3,050 to 3,250 sq ft 2,021.36 644.78 2,666.14
4- 2,850 to 3,050 sq ft 1,980.38 644.78 2,625.16
5- 2,650 to 2,850 sq ft 1,900.22 644.78 2,545.00
6- 2,450 to 2,650 sq ft 1,859.76 644.78 2,504.54
7- 2,250 to 2,450 sq ft 1,782.70 644.78 2,427.48
8- 2,050 to 2,250 sq ft 1,737.49 644.78 2,382.27
9- 1,850 to 2,050 sq ft 1,655.53 644.78 2,300.31
10- <1,850 sq ft 1,627.21 644.78 2,271.99
Total Proposed Levy 360,464$ 120,574$ 481,037$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1- >3,450 sq ft 54,457$ 2,866.14$ 54,813$ 2,884.92$ 1%
2- 3,250 to 3,450 sq ft 61,146 2,779.35 61,559 2,798.13 1% 3- 3,050 to 3,250 sq ft 63,537 2,647.36 63,987 2,666.14 1% 4- 2,850 to 3,050 sq ft 46,915 2,606.38 47,253 2,625.16 1% 5- 2,650 to 2,850 sq ft 90,944 2,526.22 91,620 2,545.00 1% 6- 2,450 to 2,650 sq ft - 2,485.76 - 2,504.54 1%
7- 2,250 to 2,450 sq ft 55,400 2,408.70 55,832 2,427.48 1% 8- 2,050 to 2,250 sq ft 70,905 2,363.49 71,468 2,382.27 1% 9- 1,850 to 2,050 sq ft 34,223 2,281.53 34,505 2,300.31 1% 10- <1,850 sq ft - 2,253.21 - 2,271.99 1%
477,526$ 481,037$
Exhibit "A"
City of Fontana
Community Facilities District No. 71
Sierra Crest
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
399
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 71
(SIERRA CREST)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on all Assessor’s Parc els of Taxable Property in City of Fontana Community Facilities District No. 71 (“CFD No. 71”) and collected each fiscal year commencing in Fiscal Year 2014-2015, in an amount determined by the City Council of the City of Fontana (the “Council”) through th e application of the appropriate Special Tax for “Developed Property,” and “Non -Residential Property.” All o f the real property in CFD No. 71, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Actual Tax
Annual Tax Rate Tax Rate Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 - greater than 3,450 sq ft Unit $ 2,333.48 $ 2,240.14 $ 42,563 2 - 3,250 -- < 3,450 sq ft Unit 2,243.08 2,153.36 47,374 3 - 3,050 -- < 3,250 sq ft Unit 2,105.59 2,021.36 48,513 4 - 2,850 -- < 3,050 sq ft Unit 2,062.90 1,980.38 35,647 5 - 2,650 – < 2,850 sq ft Unit 1,979.40 1,900.22 68,407 6 - 2,450 – < 2,650 sq ft Unit 1,937.25 1,859.52 0 7 - 2,250 -- < 2,450 sq ft Unit 1,856.98 1,782.70 41,002 8 - 2,050 -- < 2,250 sq ft Unit 1,809.89 1,737.48 52,124 9 - 1,850 -- < 2,050 sq ft Unit 1,724.51 1,655.52 24,833 10 - less than 1,850 sq ft Unit 1,695.01 1,627.20 0 11 - Non-Residential

Acre 19,074.00 19,074.00 0

$ 360,463

*As amended. Notice of Special Tax Lien with amended rates recorded May 24, 2017. 400
B-2

Method of Apportionment of Special Tax A

Commencing with Fiscal year 2014-2015 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Specia l Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the appli cable Assigned Facilities Special Tax;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the f irst step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then t he levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the applicati on of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Spec ial Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilit ies Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 7 1 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 7 1 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied against any Assessor’s Parcel of Residential Property for which a Cert ificate of Occupancy has been issued for private residential use be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 71 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any 401
B-3
such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $ 1,090.44 $ 644.78 $ 120,574 5 – Non-Residential Property Acre 9,336.50 0.00 0

$ 120,574

Commencing July 1, 2014, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residen tial Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2014-2015 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Spec ial Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in equal percentages fr om the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

402

Location Map
CFD 71

CFD 71
Tract 18820
187 lots

403
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3164 Agenda Date: 7/23/2024
Agenda #: AE. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 74B and 74M (Citrus/Summit) for Fiscal Year 2024-2025.

RECOMMENDATION:

1. Adopt Resolution No. 2024-075 Authorizing the Levy of a Special Tax in Community Facilities District No. 74B (Citrus/Summit) for Fiscal Year 2024-2025.

2. Adopt Resolution No. 2024-076, Authorizing the Levy of a Special Tax in Community Facilities District No. 74M (Citrus/Summit) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 74B (Citrus/Summit) was established by Resolution No. 2016-002 on January 12, 2016, to finance public facilities for the district. On January 12, 2016 the District issued $4,045,000 in Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1738 approved and adopted by the City Council on January 26, 2016.

Community Facilities District No. 74M was established by Resolution No. 2014-053 on June 24, 2014 to finance the maintenance and operation of street lights, landscaping, parks, parkways, storm drains, and open space facilities. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1697 approved and adopted by the City Council on July 8, 2014.

The special tax for CFD 74B is levied on each assessable parcel within the Districts is necessary to pay for the cost of providing public facilities and authorized administrative expenses (Facilities Special Tax). The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). The proposed Fiscal Year 2024-2025 special tax City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3164 Agenda Date: 7/23/2024
Agenda #: AE. Category: Consent Calendar
rates are shown in Exhibit A, Schedule 2. The rate for CFD 74B is the same as the prior year.

The special tax for CFD 74M is levied on each assessable parcel within the Districts is necessary to pay for the cost of providing maintenance and operation of street lights, landscaping, parks, parkways, storm drains, and open space facilities. The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit C). The proposed Fiscal Year 2024-2025 special tax rates are shown in Exhibit A, Schedule 2. The rate for CFD 74M is the same as the prior year.

The Districts were established after the adoption of Proposition 218 and comply with its requirements because the District and the special taxes were approved by the consent of the property owner at the time the District was formed.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rates for CFD 74B are the same as the prior year and will generate approximately $367,297 for debt service expenses. The special tax rate for CFD 74M is the same as the prior year and will generate $84,645 for maintenance expenses.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 7/18/2024Page 2 of 2
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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 74B (CITRUS/SUMMIT) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 74B; and

WHEREAS, on January 12, 2016 , Community Facilities District No. 74B (Citrus/Summit) Special Tax Bonds, were approved for the acquisition of the improvements in Tracts 18825 and 18915; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attached hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

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Resolution No. 2024-

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SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 7 . The City Manager is hereby directed to trans mit or cause to be transmitted to the Auditor of the County of San Bernardino for entry in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “Public Improvement, Special Tax” or b y any other suitable designation, the installment of the Specia l Tax as set forth in Exhibit “B ” or as adjusted pursuant to the provisions of Section 2 above.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly r ender to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

407
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
408

Page 1 of 2 ends

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 74M FOR FISCAL YEAR
2024-2025.

WHEREAS, the City Council of the City of Fontana, (th e “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 74M; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 3. The rate as set forth above does not exceed the amount previously authorized by Ordinance of the City Council, and is not in e xcess of that as previously approved by the qualified electors of the District.

SECTION 4. The proceeds of the Special Tax shall be used to pay the costs of maintenance of the District and for payment of administrative expenses incurred in connection with the levy and collection of said Special Taxes.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District fund.
409
Resolution No. 2024-

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SECTION 7 . The City Clerk is hereby directed to transmit or cause to be transmitted to the Auditor of the County of San B ernardino for entry in the next County assessment roll on wh ich taxes will become due, opposite each lot or parcel of land affected, the installment of the Special Tax as set forth in Exhibit “C”.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
410
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 90,000$ Bond Service Funds Available 96,656$ Interest Payment 09/2024 77,463 Proposed Special Tax Levy 367,297 Interest Payment 03/2025 75,213 Allowance for Delinquencies (11,019) Principal Payment 09/2025 90,000
Interest Payment 09/2025 75,213
Administration Costs 45,046
Total Costs 452,934$ Available Funds 452,934$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax 74B and Special Tax 74M)
Residential Lot Size
(Square Feet)
Special Tax
74B
Special Tax
74M
Total Combined
Tax Rate
1- 2,700 or Greater 2,419.00$ 495.00$ 2,914.00$
2- 2,450 to less than 2,700 2,263.00 495.00 2,758.00
3- 2,200 to less than 2,450 2,160.00 495.00 2,655.00
4- 1,950 to less than 2,200 1,983.00 495.00 2,478.00
5- 1,700 to less than 1,950 1,811.00 495.00 2,306.00
6- Less than 1,700 1,726.00 495.00 2,221.00
7- Non-Residential 21,775.00 - 21,775.00
Undeveloped Mapped - - 0.00
Total Proposed Levy 367,297$ 84,645$ 451,942$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years (Special Tax 74B and Special Tax 74M)
Tax Classification
(Land Use) Special Tax Combined Rate Special Tax Combined Rate 1- 2,700 or Greater 81,592$ 2,914.00$ 81,592$ 2,914.00$ 0% 2- 2,450 to less than 2,700 143,416 2,758.00 143,416 2,758.00 0% 3- 2,200 to less than 2,450 116,820 2,655.00 116,820 2,655.00 0% 4- 1,950 to less than 2,200 39,648 2,478.00 39,648 2,478.00 0% 5- 1,700 to less than 1,950 43,814 2,306.00 43,814 2,306.00 0% 6- Less than 1,700 26,652 2,221.00 26,652 2,221.00 0%
7- Non-Residential - 21,775.00 - 21,775.00 0%
Undeveloped Mapped - - - - 0%
451,942$ 451,942$
Exhibit "A"
City of Fontana
Community Facilities District No. 74B and 74M
Citrus/Summit
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
411
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 74B
(Citrus/Summit)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit f or an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on all Assessor’s Pa rcels of Taxable Property in City of Fontana Community Facilities District No. 74B (“CFD No. 74B”) and collected each fiscal year commencing in Fiscal Year 2016-2017, in an amount determined by the City Council of the City of Fontana (the “Council”) throug h the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 74B, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Assigned Actual Tax
Special Tax Tax Rate Amount
Land Use Class (Square Feet) Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 - Greater than 2,700 Unit $ 2,419.00 $ 2,419.00 $ 67,732 2 - 2,450 to less than 2,700 Unit 2,263.00 2,263.00 117,676 3 - 2,200 to less than 2,450 Unit 2,160.00 2,160.00 95,040 4 - 1,950 to less than 2,200 Unit 1,983.00 1,983.00 31,728 5 1,700 to less than 1,950 Unit 1,811.00 1,811.00 34,409 6- Less than 1,700 Unit 1,726.00 1,726.00 20,712
7- Non-Residential Property Acre 21,775.00 21,775.00 0 Undeveloped Mapped Acre 25,617.00 25,617.00 0

$ 367,297

412
B-2
Method of Apportionment of Special Tax

Commencing with Fiscal year 2016-2017 and for each following Fiscal Y ear, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property and Taxable Pro perty Owner Association Property at up to 100% the Maximum Special Tax A for Taxable P ublic Property and Taxable Property Owner Association Property, as needed to satisfy the Special Tax Requirement;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 74B Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 74B Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Special Tax levied against any Assessor’s Parcel of Residential Property for which a occupancy permit for private residential use has been issued (in accordance with Section 53321(d)(3) of the California Government C ode), be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 74B by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Special Tax on Residential Property is limited by the provision in the p revious sentence, the levy 413
B-3
of the Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentag es up to 100% of the applicable Maximum Special Tax.

414

EXHIBIT “C”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 74M
(Citrus/Summit)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit f or an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on all Assessor’s Pa rcels of Taxable Property in City of Fontana Community Facilities District No. 74M (“CFD No. 74M”) and collected each fiscal year commencing in Fiscal Year 2014-2015, in an amount determined by the City Council of the City of Fontana (the “Council”) throug h the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 74M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK, PARKWAYS,

AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $ 847.20 $ 495.00 $ 84,645

$ 84,645

Commencing July 1, 2014, and each July 1 thereafter, the Maximum Spe cial Tax rates for the Special Tax for Residential Property shall be increased by two percent (2%).

415

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing with Fiscal Year 2014 -15 and for each following Fiscal Year, and prior to the final date on which the County Auditor will accept the levy for inclusion on the ad valorem real property tax roll for such Fiscal Year, the City Manager shall determine the Special Tax Requirement to be collected from Taxable Property in CFD No. 74M in such Fiscal Year. The Sp ecial Tax shall be levied as follows until the amount of the levy equals the Special Tax Requirement.

First: The Special Tax shall be levied in equal percentages on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Specia l Tax for such Assessor’s Parcel;

Second: If additional funds are needed to satisfy the Special Tax Requirement after the first step has been completed, then the Special Tax sh all be levied on each Assessor’s Parcel of Undeveloped Property up to 100% of the Assigned Special tax for such Assessor’s Parcel;

Third: If additional funds are needed to satisfy the Special Tax Requirement after the first and second steps have been completed, then the Special Tax shall be levied on each assessor’s Parcel of Deve loped Property in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel;

Fourth: If additional funds are needed to satisf y the Special Tax Requirement after the first, second, and third steps have been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel.

416
417
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3165 Agenda Date: 7/23/2024
Agenda #: AF. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 80 (Bella Strada) for Fiscal Year 2024- 2025.

RECOMMENDATION:

Adopt Resolution No. 2024-077, Authorizing the Levy of Special Tax in Community Facilities District No. 80 (Bella Strada) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No 80 (Bella Strada) was established by Resolution No. 2015-021 on April 14, 2015, to finance public facilities and to pay annual landscape and lighting costs for the district. On August 15, 2017 the District issued $11,125,000 of Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1726 approved and adopted by the City Council on April 14, 2015.

The special tax levied on each assessable parcel within the District is necessary to pay for the cost of providing public facilities and authorized administrative expenses (Facilities Special Tax A); and the annual landscape and lighting maintenance costs of the District (Services Special Tax B). The proposed Fiscal Year 2024-2025 special tax rates (Special Tax A and Special Tax B) are shown in Exhibit A, Schedule 2.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment. Special tax rate A (bond) will remain the same as the prior year and special tax rate B (maintenance) will increase 3% ($16.95) per parcel.

As recommended, the 3% increase for Special Tax B doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3165 Agenda Date: 7/23/2024
Agenda #: AF. Category: Consent Calendar
recommendations to the Council for a long-term funding plan to ensure that services are fully funded, and districts remain sustainable.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rate A is the same as prior year while special tax rate B will increase by 3%. This will generate approximately $1,021,882; $803,068 for public facility expenses and $218,813 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 17% increase to the maintenance assessment. The 3% increase will require the utilization of $30,337 or 5% of current fund balance.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 80 (BELLA STRADA ) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City o f Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter b e referred to as COMMUNITY FACILITIES DISTRICT NO. 80; and

WHEREAS, on April 14, 2015, Community Facilities District No. 80 (Bella Strada) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 18859; and

WHEREAS, the City Coun cil, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attach ed hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

420
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole o r in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agen cy a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

421
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify th at the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
422
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 275,000$ Bond Service Funds Available 453,943$ Interest Payment 09/2024 211,053 Proposed Special Tax Levy 803,068 Interest Payment 03/2025 207,959 Allowance for Delinquencies (24,092) Principal Payment 09/2025 285,000
Interest Payment 09/2025 207,959
Administration Costs 45,947
Total Costs 1,232,919$ Available Funds 1,232,919$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size Special Tax A Special Tax B Tax Rate 1- >3,300 sq ft 2,522.26$ 581.95$ 3,104.21$
2- 3,100 to 3,300 sq ft 2,472.42 581.95 3,054.37
3- 2,900 to 3,100 sq ft 2,408.34 581.95 2,990.29
4- 2,700 to 2,900 sq ft 2,401.22 581.95 2,983.17
5- 2,500 to 2,700 sq ft 2,295.31 581.95 2,877.26
6- 2,300 to 2,500 sq ft 2,152.91 581.95 2,734.86
7- 2,100 to 2,300 sq ft 2,068.36 581.95 2,650.31
8- 1,900 to 2,100 sq ft 2,011.40 581.95 2,593.35
9- 1,700 to 1,900 sq ft 1,904.60 581.95 2,486.55
10- <1,700 sq ft 1,834.29 581.95 2,416.24
Total Proposed Levy 803,068$ 218,813$ 1,021,882$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1- >3,300 sq ft -$ 3,087.26$ -$ 3,104.21$ 1%
2- 3,100 to 3,300 sq ft 85,048 3,037.42 85,522 3,054.37 1% 3- 2,900 to 3,100 sq ft - 2,973.34 - 2,990.29 1%
4- 2,700 to 2,900 sq ft 145,345 2,966.22 146,175 2,983.17 1% 5- 2,500 to 2,700 sq ft 71,508 2,860.31 71,932 2,877.26 1% 6- 2,300 to 2,500 sq ft 263,637 2,717.91 265,281 2,734.86 1% 7- 2,100 to 2,300 sq ft 65,834 2,633.36 66,258 2,650.31 1% 8- 1,900 to 2,100 sq ft 211,265 2,576.40 212,655 2,593.35 1% 9- 1,700 to 1,900 sq ft 172,872 2,469.60 174,059 2,486.55 1% 10- <1,700 sq ft - 2,399.29 - 2,416.24 1%
1,015,508$ 1,021,882$
Exhibit "A"
City of Fontana
Community Facilities District No. 80
Bella Strada
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
423
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 80
(Bella Strada)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

A Special Tax shall be levied on all Assessor’s Parc els of Taxable Property in City of Fontana Community Facilities District No. 80 (“CFD No. 80”) and collected each fiscal year commencing in Fiscal Year 2015-2016, in an amount determined by the City Council of the City of Fontana (the “Council”) through th e application of the appropriate Special Tax for “Developed Property,” and “Non -Residential Property.” All o f the real property in CFD No. 80, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Actual Tax
Annual Tax Rate Tax Rate Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 - greater than 3,300 sq ft Unit $2,834.00 $2,522.26 $ 0 2 - 3,100 -- <3,300 sq ft Unit 2,778.00 2,472.42 69,228 3 - 2,900 -- <3,100 sq ft Unit 2,708.00 2,408.34 0 4 - 2,700 -- <2,900 sq ft Unit 2,698.00 2,401.22 117,660 5 2,500 – <2,700 sq ft Unit 2,579.00 2,295.31 57,382 6- 2,300 – <2,500 sq ft Unit 2,419.00 2,152.91 208,832 7- 2,100 -- <2,300 sq ft Unit 2,324.00 2,068.36 51,709 8- 1,900 -- <2,100 sq ft Unit 2,260.00 2,011.40 164,935 9- 1,700 -- <1,900 sq ft Unit 2,140.00 1,904.60 133,322 10- less than 1,700 sq ft Unit 2,061.00 1,834.29 0 11- Non-Residential

Acre 25,620.00 25,620.00 0

$803,068

424
B-2

Method of Apportionment of Special Tax A

Commencing with Fiscal year 2015-2016 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assesso r’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, t hen the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fis cal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Fa cilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 8 0 Bonds have already been issued or the Council has covenanted that it shall not issue any additiona l CFD No. 80 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied against any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued for private residential use be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 80 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities 425
B-3
Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $944.12 $581.95 $218,813 5 – Non-Residential Property Acre 9,913.29 6,110.48 0

$218,813

Commencing July 1, 2015, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2015-2016 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Special Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

426
CITY CLERK'S CERTIFICATE_________________________________________________________________ ________________________________________________________________________________

RECORDER'S CERTIFICATE
___________________________________________

SAN BERNARDINO COUNTY

BASIS OF BEARING
PROPOSED BOUNDARIES:

PROPOSED BOUNDARIES OF CITY OF FONTANA
1 OF 1
COMMUNITY FACILITIES DISTRICT NO. 80 (BELLA STRADA)
PROPOSED BOUNDARIES OF CITY OF FONTANA COMMUNITY FACILITIES DISTRICTNO. 80 (BELLA STRADA), COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA 427
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3166 Agenda Date: 7/23/2024
Agenda #: AG. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 81 (Gabriella) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-078, Authorizing the Levy of Special Tax in Community Facilities District No. 81 (Gabriella) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No 81 (Gabriella) was established by Resolution No. 2016-022 on March 22, 2016, to finance public facilities and to pay annual landscape and lighting costs for the district. On March 6, 2018 the District issued $7,180,000 of Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1743 approved and adopted by the City Council on March 22, 2016.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). Special tax rate A (bond) will remain the same as prior year and special tax rate B (maintenance) will increase 3% ($16.35) per parcel.

As recommended, the 3% increase for Special Tax B doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, City of Fontana Printed on 7/18/2024Page 1 of 2
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428
File #: 21-3166 Agenda Date: 7/23/2024
Agenda #: AG. Category: Consent Calendar
and districts remain sustainable.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rate A is the same as the prior year while special tax rate B will increase 3%. This will generate approximately $593,516; $481,246 for public facility expenses and $112,270 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 40% increase to the maintenance assessment. The 3% increase will require the utilization of $40,400 or 36% of current fund balance.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 7/18/2024Page 2 of 2
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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 81 (GABRIELLA) FOR
FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of F ontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be re ferred to as COMMUNITY FACILITIES DISTRICT NO. 81; and

WHEREAS, on March 22, 2016 , Community Facilities District No. 81 (Gabriella) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 18939; and

WHEREAS, the City Council, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “B” attached her eto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

430
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a d etailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

431
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
432
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 165,000$ Bond Service Funds Available 285,791$ Interest Payment 09/2024 126,084 Proposed Special Tax Levy 481,246 Interest Payment 03/2025 122,784 Allowance for Delinquencies (14,437) Principal Payment 09/2025 170,000
Interest Payment 09/2025 122,784
Administration Costs 45,947
Total Costs 752,600$ Available Funds 752,600$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size Special Tax A Special Tax B Tax Rate 1- >2,950 sq ft 2,923.15$ 561.35$ 3,484.50$
2- 2,750 to 2,950 sq ft 2,837.65 561.35 3,399.00
3- 2,550 to 2,750 sq ft 2,752.15 561.35 3,313.50
4- 2,350 to 2,550 sq ft 2,549.80 561.35 3,111.15
5- 2,150 to 2,350 sq ft 2,398.75 561.35 2,960.10
6- 1,950 to 2,150 sq ft 2,247.70 561.35 2,809.05
7- <1,950 sq ft 2,175.50 561.35 2,736.85
8 - Non-Residential 24,312.40 5,335.40 29,647.80
Total Proposed Levy 481,246$ 112,270$ 593,516$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1- >2,950 sq ft -$ 3,468.15$ -$ 3,484.50$ 1%
2- 2,750 to 2,950 sq ft - 3,382.65 - 3,399.00 1%
3- 2,550 to 2,750 sq ft 131,886 3,297.15 132,540 3,313.50 1% 4- 2,350 to 2,550 sq ft 108,318 3,094.80 108,890 3,111.15 1% 5- 2,150 to 2,350 sq ft 103,031 2,943.75 103,604 2,960.10 1% 6- 1,950 to 2,150 sq ft 83,781 2,792.70 84,272 2,809.05 1% 7- <1,950 sq ft 163,230 2,720.50 164,211 2,736.85 1%
8 - Non-Residential - 29,492.40 - 29,647.80 1%
590,246$ 593,516$
Exhibit "A"
City of Fontana
Community Facilities District No. 81
Gabriella
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
433
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 81
(Gabriella)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

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. 81 (Gabriella) (“CFD No. 81”) and collected each fiscal year commencing in Fiscal Year 2016-2017, in an amount determined by the City Council of the City of Fontana (the “Council”) through the application of the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 81, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Maximum Actual Tax
Annual Tax Rate Tax Rate Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 - greater than 2,950 sq ft Unit $3,077.00 $2,923.15 $ 0 2 - 2,750 -- <2,950 sq ft Unit 2,987.00 2,837.65 0 3 - 2,550 -- <2,750 sq ft Unit 2,897.00 2,752.15 110,086 4 - 2,350 -- <2,550 sq ft Unit 2,684.00 2,549.80 89,243 5 2,150 – <2,350 sq ft Unit 2,525.00 2,398.75 83,956 6- 1,950 – <2,150 sq ft Unit 2,366.00 2,247.70 67,431 7- less than 1,950 sq ft Unit 2,290.00 2,175.50 130,530 8- Non-Residential

Acre 25,592.00 24,312.40 0

$481,246

434
B-2
Method of Apportionment of Special Tax A

Commencing with Fiscal year 2016-2017 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount eq ual to 100% of the applicable Assigned Facilities Special Tax;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps hav e been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Ba ckup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax Requ irement for Facilities after the first three steps have been completed, t hen the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (ab ove), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 81 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 81 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Fac ilities Special Tax levied against any Assessor’s Parcel of Residential P roperty for which a Certificate of Occupancy has been issued for private residential use be increased as a consequence of delinquency or default by the owner of any other Assessor’s P arcel within CFD No. 81 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous 435
B-3
sentence, the levy of the Facili ties Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $890.46 $561.35 $112,270 5 – Non-Residential Property Acre 8,461.72 5,335.40 0

$112,270

Commencing July 1, 2017, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2015-2016 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Spe cial Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

Second: If additional monies are neede d to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

436
437
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3167 Agenda Date: 7/23/2024
Agenda #: AH. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 85 (Arboretum) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-079, Authorizing the Levy of Special Tax in Community Facilities District No. 85 (The Meadows) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No 85 (The Meadows) was established by Resolution No. 2018-089 on October 23, 2018, to finance public facilities and to pay annual landscape and lighting costs for the district. On October 22, 2020, the District issued $22,640,000 of Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1782 approved and adopted by the City Council on November 13, 2018.

As recommended, the 3% increase for Special Tax B doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, City of Fontana Printed on 7/18/2024Page 1 of 2
powered by Legistar™
438
File #: 21-3167 Agenda Date: 7/23/2024
Agenda #: AH. Category: Consent Calendar
and districts remain sustainable.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rate A is the same as the prior year while special tax rate B will increase 3%. This will generate approximately $1,923,585; $1,492,762 for public facility expenses and $430,823 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 7% increase to the maintenance assessment. The 3% increase will require the utilization of $15,517 or 2% of current fund balance.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 7/18/2024Page 2 of 2
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Page 1 of 3 ends

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 85 (THE MEADOWS ) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 85; and

WHEREAS, on October 23, 201 8, Community Facilities District No. 85 (The Meadows) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 19960; and

WHEREAS, the City Coun cil, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attach ed hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

440
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole o r in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agen cy a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

441
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify th at the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
442
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 465,000$ Bond Service Funds Available 801,917$ Interest Payment 09/2024 421,575 Proposed Special Tax Levy 1,492,762 Interest Payment 03/2025 414,600 Allowance for Delinquencies (44,783) Principal Payment 09/2025 480,000
Interest Payment 09/2025 414,600
Administration Costs 54,122
Total Costs 2,249,897$ Available Funds 2,249,897$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size (sq ft) Special Tax A Special Tax B Tax Rate 1- 3,651 or Greater 3,055.00$ 736.45$ 3,791.45$
2- 3,451 to less than 3,651 3,005.00 736.45 3,741.45
3- 3,251 to less than 3,451 2,954.00 736.45 3,690.45
4- 3,051 to less than 3,251 2,903.00 736.45 3,639.45
5- 2,851 to less than 3,251 2,784.00 736.45 3,520.45
6- 2,651 to less than 2,851 2,700.00 736.45 3,436.45
7- 2,451 to less than 2,651 2,632.00 736.45 3,368.45
8- 2,251 to less than 2,451 2,531.00 736.45 3,267.45
9- 2,051 to less than 2,251 2,450.00 736.45 3,186.45
10- 1,851 to less than 2,051 2,314.00 736.45 3,050.45
11- 1,651 to less than 1,851 2,192.00 736.45 2,928.45
12- 1,451 to less than 1,651 2,087.00 736.45 2,823.45
13- Less than 1,451 2,036.00 736.45 2,772.45
14- Non-Residential Property 21,320.00 6,118.20 27,438.20 Total Proposed Levy 1,492,762$ 430,823$ 1,923,585$
Schedule 3
Comparison of Special Tax Levy and Rates for Fiscal Years 2023-2024 and 2024-2025 (Special Tax A and Special Tax B)
Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1- 3,651 or Greater 222,430 3,770.00$ 223,696 3,791.45$ 1% 2- 3,451 to less than 3,651 - 3,720.00 - 3,741.45 1%
3- 3,251 to less than 3,451 - 3,669.00 - 3,690.45 1%
4- 3,051 to less than 3,251 123,012 3,618.00 123,741 3,639.45 1% 5- 2,851 to less than 3,251 174,950 3,499.00 176,023 3,520.45 1% 6- 2,651 to less than 2,851 174,165 3,415.00 175,259 3,436.45 1% 7- 2,451 to less than 2,651 184,085 3,347.00 185,265 3,368.45 1% 8- 2,251 to less than 2,451 314,862 3,246.00 316,943 3,267.45 1% 9- 2,051 to less than 2,251 98,115 3,165.00 98,780 3,186.45 1% 10- 1,851 to less than 2,051 366,509 3,029.00 369,104 3,050.45 1% 11- 1,651 to less than 1,851 252,909 2,907.00 254,775 2,928.45 1% 12- 1,451 to less than 1,651 - 2,802.00 - 2,823.45 1%
13- Less than 1,451 - 2,751.00 - 2,772.45 1%
14- Non-Residential Property - 27,260.00 - 27,438.20 1% 1,911,037$ 1,923,585$
Exhibit "A"
City of Fontana
Community Facilities District No. 85
The Meadows
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
443
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 85
(The Meadows)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

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. 85 (The Meadows) (“CFD No. 85”) and collected each fiscal year commencing in Fiscal Year 2019-2020, in an amount determined by the City Council of the City o f Fontana (the “Council”) through the application of the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 85, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Assigned Actual Tax
Special Tax Tax Rate Amount
Land Use Class (square feet) Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – 3,651 or Greater Unit $3,055.00 $3,055.00 $180,245 2 – 3,451 to less than 3,651 Unit 3,005.00 3,005.00 0 3 – 3,251 to less than 3,451 Unit 2,954.00 2,954.00 0 4 – 3,051 to less than 3,251 Unit 2,903.00 2,903.00 98,702 5 – 2,851 to less than 3,051 Unit 2,784.00 2,784.00 139,200 6 – 2,651 to less than 2,851 Unit 2,700.00 2,700.00 137,700 7 – 2,451 to less than 2,651 Unit 2,632.00 2,632.00 144,760 8 – 2,251 to less than 2,451 Unit 2,531.00 2,531.00 245,507 9 – 2,051 to less than 2,251 Unit 2,450.00 2,450.00 75,950 10 – 1,851 to less than 2,051 Unit 2,314.00 2,314.00 279,994 11 – 1,651 to less than 1,851 Unit 2,192.00 2,192.00 190,704 12 – 1,451 to less than 1,651 Unit 2,087.00 2,087.00 0 13 – Less than 1,451 Unit 2,036.00 2,036.00 0
14 – Non-Residential Property Acre 21,320.00 21,320.00 0

$1,492,762
444
B-2

Method of Apportionment of Special Tax A

Commencing with Fiscal year 2019-2020 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirem ent for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable As signed Facilities Special Tax;

Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Spec ial Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 85 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 85 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied against any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued for private residential use be increased as a consequence o f delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 85 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities 445
B-3
Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $1,126.16 $736.45 $430,823 2 – Non-Residential Property Acre 9,358.41 6,118.20 0

$430,823

Commencing July 1, 2019, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2019-2020 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Special Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

446
447
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3168 Agenda Date: 7/23/2024
Agenda #: AI. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 86 (Etiwanda Ridge) for Fiscal Year 2024- 2025.

RECOMMENDATION:

Adopt Resolution No. 2024-080, Authorizing the Levy of Special Tax in Community Facilities District No. 86 (Etiwanda Ridge) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No 86 (Etiwanda Ridge) was established by Resolution No. 2018-034 on June 12, 2018, to finance public facilities and to pay annual landscape and lighting costs for the district. On February 20, 2020, the District issued $5,025,000 of Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1776 approved and adopted by the City Council on June 26, 2018.

As recommended, the 3% increase for Special Tax B doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, City of Fontana Printed on 7/18/2024Page 1 of 2
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448
File #: 21-3168 Agenda Date: 7/23/2024
Agenda #: AI. Category: Consent Calendar
recommendations to the Council for a long-term funding plan to ensure that services are fully funded, and districts remain sustainable.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rate A is the same as the prior year while special tax rate B will increase 3%. This will generate approximately $408,618; $342,955 for public facility expenses and $65,663 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 41% increase to the maintenance assessment. The 3% increase will require the utilization of $24,028 or 11% of current fund balance.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 7/18/2024Page 2 of 2
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449

Page 1 of 3 ends

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 86 (ETIWANDA RIDGE) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 86; and

WHEREAS, on June 12, 201 8, Community Facilities District No. 86 (Etiwanda Ridge) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 18987; and

WHEREAS, the City Coun cil, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attach ed hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

450
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole o r in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agen cy a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

451
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify th at the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
452
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 115,000$ Bond Service Funds Available 193,037$ Interest Payment 09/2024 84,997 Proposed Special Tax Levy 342,955 Interest Payment 03/2025 83,272 Allowance for Delinquencies (10,289) Principal Payment 09/2025 115,000
Interest Payment 09/2025 83,272
Administration Costs 44,163
Total Costs 525,704$ Available Funds 525,704$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size (sq ft) Special Tax A Special Tax B Tax Rate 1- 2,900 or Greater 3,706.56$ 643.75$ 4,350.31$
2- 2,700 to less than 2,900 3,582.72 643.75 4,226.47
3- 2,500 to less than 2,700 3,527.04 643.75 4,170.79
4- 2,300 to less than 2,500 3,382.08 643.75 4,025.83
5- 2,100 to less than 2,300 3,287.04 643.75 3,930.79
6- 1,900 to less than 2,100 3,159.36 643.75 3,803.11
7- 1,700 to less than 1,900 2,961.60 643.75 3,605.35
8- Less than 1,700 2,899.20 643.75 3,542.95
9- Non-Residential Property 26,572.80 - 26,572.80
Total Proposed Levy 342,955$ 65,663$ 408,618$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years (Special Tax A and Special Tax B)
Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1- 2,900 or Greater -$ 4,331.56$ -$ 4,350.31$ 1%
2- 2,700 to less than 2,900 - 4,207.72 - 4,226.47 1%
3- 2,500 to less than 2,700 137,017 4,152.04 137,636 4,170.79 1% 4- 2,300 to less than 2,500 108,191 4,007.08 108,697 4,025.83 1% 5- 2,100 to less than 2,300 78,241 3,912.04 78,616 3,930.79 1% 6- 1,900 to less than 2,100 83,256 3,784.36 83,668 3,803.11 1% 7- 1,700 to less than 1,900 - 3,586.60 - 3,605.35 1%
8- Less than 1,700 - 3,524.20 - 3,542.95 1%
9- Non-Residential Property - 26,572.80 - 26,572.80 0%
406,705$ 408,618$
Exhibit "A"
City of Fontana
Community Facilities District No. 86
Etiwanda Ridge
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
453
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 86
(Etiwanda Ridge)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit f or an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

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. 86 (Etiwanda Ridge) (“CFD No. 86”) and collected each fiscal year commencing in Fiscal Year 2019-2020, in an amount determined by the City Council of the City of Fontana (the “Council”) through the application of the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 86, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Assigned Actual Tax
Special Tax Tax Rate Amount
Land Use Class (square feet) Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – 2,900 or Greater Unit $3,861.00 $3,706.56 $ 0 2 – 2,700 to less than 2,900 Unit 3,732.00 3,582.72 0 3 – 3,251 to less than 2,700 Unit 3,674.00 3,527.04 116,392 4 – 3,051 to less than 2,500 Unit 3,523.00 3,382.08 91,316 5 – 2,851 to less than 2,300 Unit 3,424.00 3,287.04 65,741 6 – 2,651 to less than 2,100 Unit 3,291.00 3,159.36 69,506 7 – 2,451 to less than 1,900 Unit 3,085.00 2,961.60 0 8 – Less than 1,700 Unit 3,020.00 2,899.20 0
9 – Non-Residential Property Acre 27,678.00 27,572.80 0

$342,955

454
B-2
Method of Apportionment of Special Tax A

Commencing with Fiscal year 2019-2020 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Faci lities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax;

Second: If additional monie s are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the M aximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of De veloped Property whose Maximum Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of T axable Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Y ear, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 86 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 86 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied against any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued for private residential use be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 86 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delin quencies or defau lts. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous 455
B-3
sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equ al percentages up to 100% of the applicable Maximum Facilities Special Tax.

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $985.39 $643.75 $65,663 2 – Non-Residential Property Acre 7,826.83 5,113.21 0

$65,663

Commencing July 1, 2019, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2019-2020 and for each following Fiscal Ye ar, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Spec ial Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

456
457
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3169 Agenda Date: 7/23/2024
Agenda #: AJ. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 87 (El Paseo) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-081, Authorizing the Levy of Special Tax in Community Facilities District No. 87 (El Paseo) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No 87 (El Paseo) was established by Resolution No. 2019-011 on January 22, 2019, to finance public facilities and to pay annual landscape and lighting costs for the district. The District will issue a maximum (not to exceed) of $6,200,000 in Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1790 approved and adopted by the City Council on February 12, 2019.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). The rates for special tax A (bond) are the same as the prior year while the rates for special tax B have increased 3% ($9.15) per parcel.

As recommended, the 3% increase for Special Tax B doesn’tfully fund the maintenance expenses for the District and use of fund balance is required. The City is conducting a citywide comprehensive analysis and review of its community facility districts. Following this, the City will present recommendations to the Council for a long-term funding plan to ensure that services are fully funded, City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3169 Agenda Date: 7/23/2024
Agenda #: AJ. Category: Consent Calendar
recommendations to the Council for a long-term funding plan to ensure that services are fully funded, and districts remain sustainable.

FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rate A is the same as the prior year while special tax rate B will increase 3%. This will generate approximately $597,671; $521,961 for public facility expenses and $75,710 for landscape and lighting maintenance costs. Fully funding expenses without the use of fund balance would require a 18% increase to the maintenance assessment. The 3% increase will require the utilization of $11,270 or 4% of current fund balance.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 87 (EL PASEO) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the City of Fo ntana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be refer red to as COMMUNITY FACILITIES DISTRICT NO. 87; and

WHEREAS, on January 22, 201 9, Community Facilities District No. 87 (El Paseo) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 20082; and

WHEREAS, the City Council, by O rdinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” attached hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardino if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

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SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a deta iled report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

461
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Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council, do hereby certify that the fo regoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 23rd day of July, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
462
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 110,000$ Bond Service Funds Available 63,646$ Interest Payment 09/2024 102,300 Proposed Special Tax Levy 521,961 Interest Payment 03/2025 100,100 Allowance for Delinquencies (15,659) Principal Payment 09/2025 115,000
Interest Payment 09/2025 100,100
Administration Costs 42,448
Total Costs 569,948$ Available Funds 569,948$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2024-2025
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size (sq ft) Special Tax A Special Tax B Tax Rate 1 – Detached - 2,550 or Greater 2,553.00$ 314.15$ 2,867.15$ 2 – Detached - 2,350 to <2,550 2,499.00 314.15 2,813.15 3 – Detached - 2,150 to <2,350 2,407.00 314.15 2,721.15 4 – Detached - 1,950 to <2,150 2,374.00 314.15 2,688.15 5 – Detached - 1,750 to <1,950 2,316.00 314.15 2,630.15 6 – Detached - Less than 1,750 2,260.00 314.15 2,574.15 7 – Attached - 1,750 or Greater 2,083.00 314.15 2,397.15 8 – Attached - 1,600 to <1,750 2,032.00 314.15 2,346.15 9 – Attached - 1,450 to <1,600 1,968.00 314.15 2,282.15 10 – Attached - Less than 1,450 1,854.00 314.15 2,168.15 11- Non-Residential Property 55,260.00 8,023.70 63,283.70 Total Proposed Levy 521,961$ 75,710$ 597,671$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years (Special Tax A and Special Tax B)
Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1 – Detached - 2,550 or Greater -$ 2,858.00$ -$ 2,867.15$ 0% 2 – Detached - 2,350 to <2,550 75,708 2,804.00 75,955 2,813.15 0% 3 – Detached - 2,150 to <2,350 59,664 2,712.00 59,865 2,721.15 0% 4 – Detached - 1,950 to <2,150 128,592 2,679.00 129,031 2,688.15 0% 5 – Detached - 1,750 to <1,950 34,073 2,621.00 34,192 2,630.15 0% 6 – Detached - Less than 1,750 - 2,565.00 - 2,574.15 0% 7 – Attached - 1,750 or Greater - 2,388.00 - 2,397.15 0% 8 – Attached - 1,600 to <1,750 116,850 2,337.00 117,308 2,346.15 0% 9 – Attached - 1,450 to <1,600 113,650 2,273.00 114,108 2,282.15 0% 10 – Attached - Less than 1,450 66,929 2,159.00 67,213 2,168.15 0% 11- Non-Residential Property - 63,050.00 - 63,283.70 0% 595,466$ 597,671
Exhibit "A"
City of Fontana
Community Facilities District No. 87
El Paseo
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
463
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 87
(EL PASEO)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

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. 87 (El Paseo) (“CFD No. 87”) and collected each fiscal year commencing in Fiscal Year 2019-2020, in an amount determined by the City Council of the City of Font ana (the “Council”) through the application of the application of the Rate and Method of Apportionment as described below. All o f the real property in CFD No. 87, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Assigned Actual Tax
Special Tax Tax Rate Amount
Land Use Class (square feet) Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Detached - 2,550 or Greater Unit $2,553.00 $2,553.00 $ 0 2 – Detached - 2,350 to <2,550 Unit 2,499.00 2,499.00 67,473 3 – Detached - 2,150 to <2,350 Unit 2,407.00 2,407.00 52,954 4 – Detached - 1,950 to <2,150 Unit 2,374.00 2,374.00 113,952 5 – Detached - 1,750 to <1,950 Unit 2,316.00 2,316.00 30,108 6 – Detached - Less than 1,750 Unit 2,260.00 2,260.00 0 7 – Attached - 1,750 or Greater Unit 2,083.00 2,083.00 0 8 – Attached - 1,600 to <1,750 Unit 2,032.00 2,032.00 101,600 9 – Attached - 1,450 to <1,600 Unit 1,968.00 1,968.00 98,400 10 – Attached - Less than 1,450 Unit 1,854.00 1,854.00 57,474 11 – Non-Residential Property Acre 55,260.00 55,260.00 0 Undeveloped Property Acre 65,010.00 65,010.00 0

$521,961

464
B-2
Method of Apportionment of Special Tax A

Commencing with Fiscal year 2019-2020 and for each following Fisc al Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax;

Second: If additional monies are needed to satisfy the Special Tax Re quirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If additional m onies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 87 Bonds have already been issued or the Co uncil has covenanted that it shall not issue any additional CFD No. 87 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied against any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued for private residential use be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 87 by more th an ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Fa cilities Special Tax on Residential Property is limited by the provision in the previous 465
B-3
sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PAR K,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $474.75 $314.15 $75,710 2 – Non-Residential Property Acre 12,122.81 8,023.70 0

$75,710

Commencing July 1, 2019, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2019-2020 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Spec ial Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in eq ual percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

466
467
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3170 Agenda Date: 7/23/2024
Agenda #: AK. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 88 (Sierra Crest II) for Fiscal Year 2024- 2025.

RECOMMENDATION:

Adopt Resolution No. 2024-082, Authorizing the Levy of Special Tax in Community Facilities District No. 88 (Sierra Crest II) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No. 88 (Sierra Crest II) was established by Resolution No. 2019-087 on June 25, 2019, to finance public facilities and to pay annual landscape and lighting costs for the district. On October 29, 2020, the District issued $6,510,000 of Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1805 approved and adopted by the City Council on July 9, 2019.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B). Special tax rate A (bond) and special tax rate B (maintenance) will remain the same as the prior year.

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File #: 21-3170 Agenda Date: 7/23/2024
Agenda #: AK. Category: Consent Calendar
FISCAL IMPACT:

The proposed Fiscal Year 2024-2025 special tax rates are the same a prior year and will generate approximately $581,710; $468,045 for public facility expenses and $113,665 for landscape and lighting maintenance costs.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 88 (SIERRA CREST II ) FOR FISCAL YEAR 2024-2025.

WHEREAS, the City Council of the Cit y of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter b e referred to as COMMUNITY FACILITIES DISTRICT NO. 88; and

WHEREAS, on June 25, 2019, Community Facilities District No. 88 (Sierra Crest II) Special Tax Bonds, were approved for the acquisition of the improvements in Tract 18944; and

WHEREAS, the City Co uncil, by Ordinance, as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities District, and the City Council desires to establish the specific rate of the special tax to be collected for Fiscal Year 2024-2025.

NOW, THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of Fontana, California, as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. The specific rate and amount of the special tax to be collected to pay for the costs and expenses for Fiscal Year 2024-2025 for the referenced District is hereby determined and establ ished as set forth in Exhibit “ B” atta ched hereto and incorporated herein by reference provided, however, the City Manager is hereby authorized to reduce the specific rate and method of the special tax as shown in Exhibit “B” upon receipt of the Assessor’s roll from the County of San Bernardin o if, as determined by the City Manager in his discretion, following review of the Assessor’s roll, a lower rate and amount of the special tax will be sufficient to pay for the costs and expenses for such fiscal year.

470
Resolution No. 2024-

Page 2 of 3 ends

SECTION 4. The proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority:

(a) Payment of principal and interest on any outstanding authorized bonded indebtedness;

(b) Necessary replenishment of bond reserve funds or other reserve funds;

(d) Repayment of advances and loans, as appropriate.

The basis for the determination of the special tax needed for the 2024-2025 fiscal year is set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 6 . All monies above collected shall be paid into the Community Facilities District’s funds, including any bond and reserve funds.

SECTION 8 . The County Auditor shall then, at the close of the tax collection period, promptly render to this Ag ency a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

471
Resolution No. 2024-

Page 3 of 3 ends

APPROVED AND ADOPTED this 23rd day of July, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk
472
Schedule 1
Special Tax Allocation - Costs to be Allocated
Fiscal Year 2024-2025
Principal Payment 09/2024 135,000$ Bond Service Funds Available 233,345$ Interest Payment 09/2024 125,100 Proposed Special Tax Levy 468,045 Interest Payment 03/2025 122,400 Allowance for Delinquencies (14,041) Principal Payment 09/2025 140,000
Interest Payment 09/2025 122,400
Administration Costs 42,448
Total Costs 687,348$ Available Funds 687,348$
Schedule 2
Proposed Special Tax Rates for Fiscal Year 2023-2024
(Special Tax A and Special Tax B)
Total Special
Residential Lot Size (sq ft) Special Tax A Special Tax B Tax Rate 1 – 3,000 or Greater 2,894.00$ 635.00$ 3,529.00$
2 – 2,800 to less than 3,000 2,814.00 635.00 3,449.00
3 – 2,600 to less than 2,800 2,755.00 635.00 3,390.00
4 – 2,400 to less than 2,600 2,657.00 635.00 3,292.00
5 – 2,200 to less than 2,400 2,562.00 635.00 3,197.00
6 – 2,000 to less than 2,200 2,419.00 635.00 3,054.00
7 – Less than 2,000 2,368.00 635.00 3,003.00
8 – Non-Residential Property 26,060.00 6,140.00 32,200.00 Total Proposed Levy 468,045$ 113,665$ 581,710$
Schedule 3
Comparison of Special Tax Levy and Rates by Fiscal Years (Special Tax A and Special Tax B)
Tax Classification
(Land Use) Special Tax Rate Special Tax Rate
1 – 3,000 or Greater -$ 3,529.00$ -$ 3,529.00$ 0%
2 – 2,800 to less than 3,000 117,266 3,449.00 117,266 3,449.00 0% 3 – 2,600 to less than 2,800 111,870 3,390.00 111,870 3,390.00 0% 4 – 2,400 to less than 2,600 82,300 3,292.00 82,300 3,292.00 0% 5 – 2,200 to less than 2,400 102,304 3,197.00 102,304 3,197.00 0% 6 – 2,000 to less than 2,200 167,970 3,054.00 167,970 3,054.00 0% 7 – Less than 2,000 - 3,003.00 - 3,003.00 0%
8 – Non-Residential Property - 32,200.00 - 32,200.00 0% 581,710$ 581,710$
Exhibit "A"
City of Fontana
Community Facilities District No. 88
Sierra Crest II
FY 2023 - 2024 FY 2024 - 2025 Percent Rate
Change
473
B-1
EXHIBIT “B”

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 88
(SIERRA CREST II)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
(Summary – Full text available in the Financial Services Division)

The Resolution of Annual Levy refers to this Exhibit for an explanation of the rate and method of apportionment of the special tax so as to allow each landowner or resident within the district to estimate the annual amount that would be required for payment.

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. 88 (Sierra Crest II ) (“CFD No. 88”) and collected each fiscal year commencing in Fiscal Year 2019-2020, in an amount determined by the City Council of th e City of Fontana (the “Council”) through the application of the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 88, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

The rate and method of apportionment of the special tax for 2024-2025 shall be as follows.

I. SPECIAL TAXES FOR PUBLIC IMPROVEMENTS:

Assigned Actual Tax
Special Tax Tax Rate Amount
Land Use Class (square feet) Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – 3,000 or Greater Unit $ 2,894.00 $ 2,894.00 $ 0 2 – 2,800 to less than 3,000 Unit 2,814.00 2,814.00 95,676 3 – 2,600 to less than 2,800 Unit 2,755.00 2,755.00 90,915 4 – 2,400 to less than 2,600 Unit 2,657.00 2,657.00 66,425 5 – 2,200 to less than 2,400 Unit 2,562.00 2,562.00 81,984 6 – 2,000 to less than 2,200 Unit 2,419.00 2,419.00 133,045 7 – Less than 2,000 Unit 2,368.00 2,368.00 0 8 – Non-Residential Property Acre 26,060.00 26,060.00 0

$ 468,045

474
B-2
Method of Apportionment of Special Tax A

Commencing with Fiscal year 2019-2020 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Y ear as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax;

Second: If additional monies are needed to satisfy the Spec ial Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;

Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Deve loped Property whose Maximum S pecial Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;

Fourth: If ad ditional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Tax able Public Property at up to 100% the Maximum Facilities Special Tax A for Taxable Public Property, as needed to satisfy the Special Tax Requirement for Facilities;

Notwithstanding the above the C FD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 88 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 88 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwi thstanding the above, under no circumstances shall the Facilities Special Tax levied against any Assessor’s Parcel of Residential Property for which a Certificate of Occupancy has been issued for private residential use be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 88 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous 475
B-3
sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non -Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

II. SERVICES SPECIAL TAXES FOR MAINTENANCE OF PARK,

PARKWAYS, AND OPEN SPACE

Maximum Annual Actual
Tax Rate Tax Rate Tax Amount
Land Use Class Unit FY 2024-2025 FY 2024-2025 FY 2024-2025

1 – Final Residential Subdivision Unit $ 982.63 $ 635.00 $ 113,665 2 – Non-Residential Property Acre 9,495.09 0.00 0

$ 113,665

Commencing July 1, 2019, and each July 1 thereafter, the Maximum Special Tax rates for Special Tax B for Residential Property, and Non-Residential Property shall be increased by two percent (2%).

Method of Apportionment of Special Tax B

Commencing with Fiscal Year 2019-2020 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Special Tax Requirement for Services. The Ser vices Special Tax shall be levied each Fiscal Year as follows:

Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor’s Parcel of Developed Property shall be increased in equal percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s parcel.

476
477
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3171 Agenda Date: 7/23/2024
Agenda #: AL. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Levy of a Special Tax in Community Facilities District No. 89 (Belrose) for Fiscal Year 2024-2025.

RECOMMENDATION:

Adopt Resolution No. 2024-083, Authorizing the Levy of Special Tax in Community Facilities District No. 89 (Belrose) for Fiscal Year 2024-2025.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Community Facilities District No 89 (Belrose) was established by Resolution No. 2019-004 on January 8, 2019, to finance public facilities and to pay annual landscape and lighting costs for the district. On November 19, 2020, the District issued $5,725,000 of Special Tax Bonds to finance the acquisition of certain major capital facilities (infrastructure) to serve properties within the District.

Pursuant to Government Code Section 53340, a resolution must be adopted by the City Council annually to levy a special tax to pay for the cost of providing public facilities, services, and incidental expenses. The rate and method of apportionment of the special tax was originally set forth in Ordinance No. 1787 approved and adopted by the City Council on January 22, 2019.

The proposed special tax rates for Fiscal Year 2024-2025 were developed according to the Rate and Method of Apportionment (Exhibit B) and are the same as prior year.

FISCAL IMPACT:

The proposed Fiscal Year 2023-2024 special tax rates are the same as the prior year and will City of Fontana Printed on 7/18/2024Page 1 of 2
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File #: 21-3171 Agenda Date: 7/23/2024
Agenda #: AL. Category: Consent Calendar
The proposed Fiscal Year 2023-2024 special tax rates are the same as the prior year and will generate approximately $467,393, $406,493 for public facility expenses and $60,900 for landscape and lighting maintenance costs.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 7/18/2024Page 2 of 2
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Fontana City CouncilJuly 23, 2024

Fontana City Council
July 23, 2024