1 of 4
Date Adopted:
Date Approved:
Effective Date:
City Attorney Approval: TWR Ordinance No.
BILL NO. ____________
ORDINANCE NO. ____________
AN ORDINANCE OF THE CITY OF FRESNO, CALIFORNIA,
LEVYING A SPECIAL TAX FOR THE PROPERTY TAX
YEAR 2022-2023 AND FUTURE TAX YEARS WITHIN AND
RELATING TO COMMUNITY FACILITIES DISTRICT NO. 9,
ANNEXATION NO. 56
WHEREAS, on November 17, 2022, the Council of the City of Fresno (Council) adopted Council Resolution No. 2022 -_____, a resolution of the Council annexing territory as Annexation No. 56 to Community Facilities District No. 9, authorizing the levy of a special tax therein to pay for certain facilities and services for Annexation No. 56, and preliminarily establishing an appropriations limit therefore (Annexation Resolution), pursuant to the City of Fresno Special Tax Financing Law, Chapter 8, Division 1, Article 3, of the Fresno Municipal Code (City Law); and
WHEREAS, by Council Resolution No. 20 22 -_____, the Council called a special election on the proposition on levying a special tax and establishing an appropriation s limit within Annexation No. 56; and
WHEREAS, on November 17, 2022 , an election w as held within Annexation No. 56 and as required by City Law, the ballot measure was passed and approved by more than two-thirds of the votes cast.
THEREFORE, THE CITY OF FRESNO DOES ORDAIN AS FOLLOWS:
1. Pursuant to City Law, and in accordance with the Rate and Method of Apportionment of Special Tax as shown in Exhibit B to the Annexation Resolution, which is attached hereto for reference purposes , a special tax is hereby authorized and levied 2 of 4
on all taxable parcels within Annexation No. 56 for the 2022-2023 fiscal year and for each future fiscal year at the same or at a rate lower than the maximum rate of tax provided in Exhibit B to the Annexation Resolution. The special taxes levied in any fiscal year on any parcel within Annexation No. 56 shall not exceed the maximum special tax specified in Exhibit B to the Annexation Resolution, which is attached hereto for reference purposes.
2. The Public Works Director or designee is authorized and directed, with the aid of the appropriate officers and agents of the City, to determine each year, the Special Tax Requirement (as that term is defined in Exhibit B of the Annexation Resolution), to prepare the annual special tax roll in the amount of Special Tax Requirement i n accordance with said Exhibit B and, without further action of this Council, to provide all necessary and appropriate information to the County of Fresno (County) Auditor in the form, and within the time, necessary to effect the correct and timely billing and collection of the special tax on the secured property tax roll of the County. The Special Tax shall be levied and collected in the same manner, shall be subject to the same penalties and the same lien priority, and the same procedure and sale for delinquency, as for ad valorem tax es.
Notwithstanding the foregoing, as set forth in the Annexation Resolution and City Law, this Council reserves the right to use any method of collecting the special tax, which the Council, from time to time, may determine to be in the best interests of the City including, without limitation, direct billing by the City to the property owners and supplemental billing.
The Public Works Director or designee is further authorized and directed to furnish the notices of special tax required by Section 53340.2 of the California Government Code.
3. The appropriate officers and agents of the City are further authorized and directed to adjust the special tax roll before the final posting of the special taxes to the 3 of 4
County tax roll each fiscal year, as necessary to achieve a correct match of the special tax levy with the county assessor’s parcel numbers finally used by the County in sending out property tax bills.
4. If a court of competent jurisdiction finds any part of this Ordinance to be invalid or the special tax to be inapplicable to or unreasonable for any particular parcel, the balance of this Ordinance and the application of the special tax to the remaining parcels, shall not be affected and shall remain in full force and effect.
5. This Ordinance shall take effect and be in force immediately upon the date of final passage, as a tax measure, pursuant to City Charter, Article VI, Section 610. * * * * * * * * * * * * * *
4 of 4
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing resolution was adopted by the Council of the City of Fresno, at a regular meeting held on the day of 2022.
AYES :
NOES :
ABSENT :
ABSTAIN :
Mayor Approval: , 2022
Mayor Approval/No Return: , 2022
Mayor Veto: , 2022
Council Override Vote: , 2022
TODD STERMER, CMC
City Clerk
BY:
Date
Deputy
APPROVED AS TO FORM:
RINA M. GONZALES
Interim City Attorney
BY:
Taylor W. Rhoan Date
Deputy City Attorney
Attachment:
Exhibit B - Rate and Method of Apportionment of Special Tax
EXHIBIT B
B-1
CITY OF FRESNO
Community Facilities District No. 9
Annexation No. 56
Rate and Method of Apportionment of Special Tax
Cost Estimate
The estimate breaks down the costs of providing 1 year’s Service for FY 2022-2023.
Subdivision or Development Appropriation Limit
Subdivision/Development
Permit No.
Total Maximum
Special Tax for
Services
Appropriation Limit Landowner
C.U.P No. P20-04902 $9,828.00 $500,000.00 TCM Partners
LLC
Assessor’s Parcel Number 313-060-09, 313-060-10, 313-810-28, and 313-810-29
ITEM DESCRIPTION ESTIMATED COST
1 Landscape Operational Costs $4,331.00
2 Other Operational Costs $149.00
2 Reserve for Replacement $5,333.00
3 Incidental Expenses $15.00
Total $9,828.00
EXHIBIT B
B-2
City of Fresno
Community Facilities District No. 9
Annexation No. 56
Rate and Method of Apportionment of Special Tax
A special tax applicable to each assessor’ s parcel in Community Facilities District No. 9 (CFD No. 9) shall be levied and collected according to the tax liability determined by the City Council of the City of Fresno, through the application of the appropriate amount or rate for taxable property, as described below. A ll of the property in CFD No. 9 , unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to CFD No. 9 unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an assessor’ s parcel map with an assigned assessor’s parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County of Fresno designating parcels by assessor’s parcel number.
“City” means the City of Fresno.
“City Law” means the City of Fresno Special Tax Financing Law, Chapter 8, Division 1, Article 3, of the Fresno Municipal Code.
“Commercial or Industrial Developments or Subdivisions” means developments or subdivisions zoned for commercial or industrial uses.
“Council” means the City Council of the City of Fresno, acting as the legislative body of CFD No. 9.
“Developable Lot” means a lot that is anticipated development of residential or non- residential uses, and which is not an outlot, remainder parcel or other parcel which is not intended to be developed or which must be further subdivided before being developed.
“Development” means any assessor’s parcel within the City of Fresno which is being developed for Industrial, Commercial, or Multi -Family purposes and requires a Building Permit.
EXHIBIT B
B-3
“Excluded Parcels” means those assessor ’s p arcels identified as ineligible for inclusion in CFD No. 9 as shown in “ Attachment 1” of this Rate and Method of Apportionment of Special Tax.
“Final Map” means a final map, or portion thereof, approved by the Council pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) th at creates individual developable lots for which building permits may be issued. The term “Final Map” shall not include any assessor’ s parcel map or subdivision map or portion thereof, that does not create individual developable lots for which a building permit may be issued, including assessor’s parcels that are designated as remainder parcels.
“Fiscal Year” means the period starting April 1 and ending on the following March 31.
“Maximum Special Tax” means the maximum special tax, determined in accordance with Section C, which can be levied in any Fiscal Year.
“Public Property ” means any property within the boundaries of CFD No. 9 that is owned by the federal government, State of California or other local governments or public agencies.
“Reserve for Replacement” means a reasonable reserve pursuant to Fresno Municipal Code 8-1- 303(e) (4), as a Service cost or expense and not as payment for public facilities under Government Code Section 53321(d).
“Residential Development or Subdivision” means developments or subdivisions zoned for residential multi-family uses.
“Residential Unit ” means a multi-family residential dwelling unit and shall include condominiums, town homes, duplex, triplex and fourplex units, and individual apartment units in a multi-family subdivision. For purposes of the levy of special taxes pursuant to Section B below, “Residential Units” shall include dwelling units already built on taxable property in CFD No. 9, as well as dwelling units planned, but not yet built, when the special tax is levied each fiscal year.
“Shared Services” means the costs of services are paid equally by the property owners of two or more subdivisions.
“Special Tax” means any special tax to be levied each fiscal year on assessor’ s parcels of taxable property to fund the Special Tax Requirement as defined below.
“Special Tax Requirement” means the amount necessary in any fiscal year to (i) pay authorized maintenance and improvement expenses, (ii) pay administrative expenses of CFD No. 9 , and (iii) cure any delinquencies in the payment of special taxes levied in prior fiscal years or (based on delinquencies in the payment of special taxes which have already taken place) are expected to occur in the fiscal y ear in which the tax will be collected.
EXHIBIT B
B-4
“Subdivision” means the division, by any subdivider, of any unit or units of improved or unimproved land, or any portion thereof, shown on the latest equalized county assessment roll as a unit or as contiguous units, for the purpose of sale, lease, or financing whether immediate or future. Property shall be considered as contiguous units, even if it is separated by roads, streets, utility easement or railroad rights -of-way. “Subdivision” includes a condominium project, as defined in Section 4125 of the Civil Code, a community apartment project, as defined in Section 4105 of the Civil Code.
“Taxable Property” means all of the assessor’s parcels within the boundaries of CFD No. 9 which are not exempt from the special tax pursuant to law or Section E below.
B. CALCULATIONS
COMMERCIAL AND INDUSTRIAL DEVELOPMENTS OR SUBDIVISIONS
On or about April 1 of each f iscal year, the City of Fresno (City ) or its designee shall determine how many square feet of taxable area are in each assessor’s p arcels within each commercial or industrial development or subdivision of CFD No. 9.
For commercial or industrial developments or subdivisions, the area to be taxed is the total area within each assessor’s parcels of the subdivision or development not designated as public right-of-way and is not to exceed the Maximum Special Tax identified for the development or subdivision in Section C, Table 1 below.
RESIDENTIAL SUBDIVISIONS
On or about April 1 of each f iscal year, the City or its designee shall determine how many residential units are built, or allowed to be built, on assessor’s p arcels within CFD No. 9. For parcels of undeveloped property zoned for development of multi-family units, the number of residential units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the p arcel. Once a multi- family building o r buildings have been built on an assessor’s p arcel, the City or its designee shall determine the actual number of r esidential units contained within the building or buildings, and the special tax levied against the parcel in the next fiscal year shall be calculated by dividing the Special Tax Requirement by the actual number of residential units not to exceed the Maximum Special Tax per r esidential unit identified for the subdivision in Section C, Table 1 below.
C. MAXIMUM SPECIAL TAX
The Maximum Special Tax (MST) applicable to each assessor’s p arcel in CFD No. 9 shall be specific to each development , subdivision, subdivisions, or portion thereof within CFD No. 9. When additional property is annexed into CFD No. 9, the rate and method adopted for the annexed property shall reflect the MST for the development , subdivision, subdivisions, or respective portion thereof then annexed.
EXHIBIT B
B-5
The MST applicable to each development, subdivision, subdivisions, or portion thereof in CFD No. 9 shall be the rate that is created at the time of CFD No. 9 annexation expressly for the individual development, subdivision, subdivisions, or portion thereof being annexed to CFD No. 9 at that time. Beginning in January of each year, the MST will be adjusted upward annually by 2% or by the rise of the Construction Cost Index (CCI), if it exceeds 2%, for the San Francisco Region for the prior 12- month period (December through December) as published in the Engineering News Record, or published in a comparable index if the Engineering News Record is discontinued or otherwise not available. Each annual adjustment of the MST shall become effective on the subsequent July 1.
Subject to the maximum limit set by the MST, the Special Tax for the commercial, industrial or multi-family development or subdivision assessor’s parcels is calculated by spreading the Special Tax Requirement to the total taxable square footage of the development or subdivision and then apportioned proportionately by area to the individual assessor’s parcels within the development or subdivision or by the number of residential units as applicable.
The total Maximum Special Tax for Fiscal Year 2022- 2023 for Annexation No. 56 of CFD No. 9 is identified in Table 1 below:
Table 1
Maximum Special Tax
(Fiscal Year 2022-2023)*
Multi-Family Development or
Subdivision Number**
Total Maximum Special Tax
C.U.P No. P20-04902 $9,828.00
Assessor’s Parcel Number 313-060-09, 313-060-10, 313-810-28, and 313-810-29 **A Special Tax shall be levied on all assessor’s parcels within an identified development or subdivision except excluded parcels as identified in Attachment 1.
D. METHOD OF LEVY AND COLLECTION OF THE SPECIAL TAX
Commencing with Fiscal Year 2022- 2023, the Special Tax shall be levied on all p arcels of taxable property as follows:
Step 1: Determine the Special Tax Requirement (as defined in Section A above) for the fiscal year in which the special tax will be collected;
Step 2: Calculate the total special tax revenues that could be collected from taxable property within CFD No. 9 based on applying the Maximum
EXHIBIT B
B-6
Special Tax rates determined pursuant to Section C above to each parcel of taxable property in CFD No. 9;
If the amount determined in Step 1 is greate r than or equal to the amount calculated in Step 2, levy the Maximum Special Tax set forth in Table 1 above on all parcels of taxable property in CFD No. 9;
If the amount determined in Step 1 is less than the amount calculated in Step 2, levy the Special Tax proportionately against all parcels of taxable property up to 100% of the Maximum S pecial Tax for each subdivision as identified in Table 1, until the amount of the Special Tax levy equals the Special Tax Requirement for that fiscal year.
The Special Tax for CFD No. 9 shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 9 may (under the authority of Government Code 53340), in any particular case, bill the taxes directly to the property owner off of the County of Fresno tax roll, and the Special Taxes will be equally subject to penalties and foreclosure if delinquent.
E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on parcels that have been conveyed to a public agency, except as otherwise provided in City Law, and properties receiving a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code. In addition, no Special Tax shall be levied on e xcluded parcels or p arcels that are determined not to be developable lots.
EXHIBIT B
B-7
ATTACHMENT 1
City of Fresno
Community Facilities District No. 9
Annexation 56
Excluded Parcels
THERE ARE NO EXCLUDED PARCELS