Tentative Tract Map 6366
and CFD 18
• Formation of CFD 18 and annexation of Fanucchi
properties
• Map provided was non-specific on future
annexation area
CFD 18 Formation
Project Area Description
The Project Area development will consist of approximately 238 acres of land generally located north of West Shields Ave, east of N. Bryan Ave, south of W Ashlan Ave, and west of North Polk Ave. The parcels compromising the project area development are highlighted in the following graphic.
Fanucchi
Property
Fanucchi
Property
6366- Project Location
*Delivered to BIA
on 9/25/2023
• 6366 has been annexed since 2007
• Environmental studies have shown no significant impact to public services
• Tract 6366 will generate enough property tax to provide public safety services with positive net revenue
• 6366 is proposed as a single-family, for rent neighborhood Tract 6366
Environmental Findings for 6366
Source: Bliss Ave. Plan Amendment Initial Study/Negative Declaration, certified December 2021
6366 Fiscal Analysis
Avg. Sale Price
$513,170.43 of
New Home Sales
Old Republic Title Company
• $11,644: 2023 CFD 18 Cost to 6366
• Exponential impact for rental properties when
seeking financing
• Net Operating Income (NOI)
Capitalization Rate
CFD 18 and Rental Units
= Value
$11,644
.05 (Typical 5% Cap) = $232,880
Quote from Richard Ginder, Fresno Apartment Builder for 40 years:
1. Apply CFD 18 to new annexations only
2. Exempt rental projects from CFD 18
3. Implement the program for projects
that do not pay for themselves
CFD 18 Implementation Recommendations
• Approval without CFD 18 condition
• 6366 meets all three criteria
• Finding can be made that public
services will be provided
6366 Request
“My hesitation on this is people are already paying taxes that are supposed to fund public safety.
This would be an additional tax of new development homeowners which would essentially be double taxing because we have an unfavorable tax sharing agreement in some of these areas.” 10/20/2022
Councilman Gary Bredefeld: “If this did not pass would those areas not be developed?” Andy Benelli: “That would be a decision by the council… it is the future annexations that could possibly not be approved.”
10/20/2022
Fire Heat Map of Fresno
6366- Project Location
6366- Project Location
6366- Project Location
*Delivered to BIA
on 9/25/2023
• This is a double taxation on new properties that could get litigated
• City did not provide the math to everyone last year, and math uses incorrect data
• If you change the policy, adopt an ordinance that clearly notifies all property owners affected
• Vacant land pays property taxes in city limits, where are those funds?
CFD-18 Items to Consider
• Regulatory costs account for 40% of MF
development costs
• 53% of Fresno apartment hunters looked for
homes outside the metro area in 2022
• CFD-18 will drive up rents at all rental
properties affected
CFD-18 Affects Rental Units
City’s Updated Numbers as of 9/25/2023
City’s CFD-18 Math
CFD-18 Numbers
NBS Study w/ FY2022
Budget Figures
BIA Proposed Income &
Home Values, w/ City FY2024
Public Safety Expenses
Average Single Family Home Value $399,000 $503,476
Homeowner Exemption $7,000 $7,000
Average Assessed Value $392,000 $496,476
Estimated Household Income per SFR Unit $101,908 $150,000 Total City Revenues for Case Study Project
(4,080 New Residents) $1,205,724 $1,523,378
Fire Dept. Expenditures $75,290,500 $101,616,000 +35%
Police Dept. Expenditures $194,538,900 $260,364,200 +34% Demand Adjustment Percentage 95% 95%
Adjusted Fire Expenditures (95%) $71,525,975 $96,535,200 +35% Adjusted Police Expenditures (95%) $184,811,955 $247,345,990 +34% Residential Population Served 552,238 557,760 1% Added
Employee Population Served 424,515 428,760 1% Added
Current Persons Served (Residential + 50%
Employees) 764,496 772,140
Amount per Person Served (Fire) $93.56 $125.02
Amount per Person Served (Police) $241.74 $320.34
Total City Expenditures for the Case Study
Project ($1,368,037) ($1,817,069)
Net Fiscal Impact ($162,314) ($293,691)
CFD Special Tax Required per Single Family
Home $164/year $296/year
How did the city
arrive at these
dollars?
Grant dollars
should be
excluded
City’s NBS Study on
FY 2022 Budget
Numbers
Actual FY 2022
General Fund
Line Item
Numbers
City Used These
Numbers for Updated
CFD-18
Actual General
Fund $ that
should have been
used for CFD-18
Police Budget $194,538,900 $187,749,426 $260,364,200 $244,316,400 (-$16,047,800)
Fire Budget $75,290,500 $75,290,500 $101,616,000 $85,609,400 (-$16,006,600)
FY 2022 FY 2024
City’s Population Numbers are Incorrect
2022 Population Chart
2024 Population Chart
(Based on 2022 Calcs)
2024 Population Projections
City's
Numbers Actual Numbers
Current residential population
(1% escalator) 557,760 557,760
Current employee population
(5% escalator) 428,760 445,741
Adjusted employee population
(50% of employee population) 214,380 222,870
Current persons served
(Resident Pop. + Adjusted Employee
Pop.)
772,140 780,630
CFD-18 Numbers Comparison
• If city is adjusting numbers for police and fire for
new construction to pay, then builders should
have a seat at the negotiation table
• $13 million of grant funding not included in city’s
calculations
1. Apply CFD 18 to new annexations only
2. Exempt rental projects from CFD 18
3. Implement the program for projects
that do not pay for themselves
CFD 18 Implementation Recommendations
• Approval without CFD 18 condition
• 6366 meets all three criteria
• Finding can be made that public
services will be provided
6366 Request