Hesperia City Council
February 15, 2022

Tuesday, February 15, 2022
Meeting Agenda
Closed Session - 5:30PM

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT
City Council Chambers
9700 Seventh Ave., Hesperia CA, 92345
City Clerk's Office: (760) 947-1007
City Council Members
Brigit Bennington, Mayor
William J. Holland, Mayor Pro Tem
Larry Bird, Council Member
Cameron Gregg, Council Member
Rebekah Swanson, Council Member
Nils Bentsen, City Manager
Eric Dunn, City Attorney
See page (3) for details on public meeting guidelines during the COVID-19 (Coronavirus) Pandemic

FIRE PROTECTION DISTRICT - SPECIAL MEETING
NOTE: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 947-1007 or (760) 947-1026. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility.

Came
ron Gregg, Mayor 9700 Seventh Avenue
Brigit Bennington, Mayor Pro Tem Hesperia, CA 92345 Larry Bird, Council Member
Bill Holland, Council Member 760-947-1000
Rebekah Swanson, Council Member TD 760-947-1119
Nils Bentsen, City Manager www.cityofhesperia.us
Gateway to the High Desert
City of Hesperia
Public Access to City Council Meetings:

City Council meetings are now open to the public within the guidelines provided by the State which may include wearing masks and socially distancing from other attendees.

Public Comments can be made in- person at City Council Meetings and/or can be submitted via telephone recording that will be played during the meeting.

City Council meetings may be viewed live or af ter the event on the City’s website at www.cityofhesperia.us.

Remote Public Comment:

Public Comments Made By-Telephone Process
Public comments will b e accepted in advance until 5: 30 pm on the day of the scheduled meeting by calling and leaving a recor ded message at (760) 947-1 056. Comments received past 5:30 pm will not be included in the record. If you would like to comment remotely, please follow the protocols below:
• Call ( 760)947-1056 to leav e a detailed message of your public comment.

• Identify your name and the item you wish to comment on in your message.

• Contact information in your voicemail is optional, but will allow staff to easily follow up with you if necessary.

• Each public comment received by voicemail will be played by a staff member for up to three (3) minutes for Consent Calendar/New Business items and up to five (5) minutes for Public Hearing items.

Remote public comments received outside of the comment period outlined above will not be included in the record.

NOTICE AND CALL OF SPECIAL MEETING

HESPERIA FIRE PROTECTION DISTRICT
NOTICE IS HEREBY GIVEN that a special meeting of Hesperia Fire Protection District will be held on Tuesday, February 15, 2022, at 6:30 p.m. in the City Council Chambers, at 9700 Seventh Avenue , Hesperia , CA 92345.

Brigit Bennington, Chair

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February 15, 2022City Council Meeting Agenda

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT

FIRE PROTECTION DISTRICT - SPECIAL MEETING
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
As a courtesy, please silence your cell phones and other electronic devices while the meeting is in session. Thank you.

Prior to action of the Council, any member of the audience will have the opportunity to address the legislative body on any item listed on the agenda, including those on the Consent Calendar.

Individuals wishing to speak during General Public Comments or on a particular numbered item must submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

CLOSED SESSION - 5:30 PM
Roll Call
Mayor Brigit Bennington
Mayor Pro Tem William J. Holland
Council Member Larry Bird
Council Member Cameron Gregg
Council Member Rebekah Swanson
Conference with Legal Counsel - Potential Litigation:

Government Code Section 54956.9(d)2

1. Two (2) Cases
Conference with Legal Counsel – Existing Litigation
Government Code Section 54956.9(d)1

1. Assistant Secretary for FHEO v. City of Hesperia, California, et al.; Case Number 09-16-4717-8
CALL TO ORDER - 6:30 PM
A. Invocation

February 15, 2022City Council Meeting Agenda
B. Pledge of Allegiance to the Flag
C. Roll Call
Mayor Brigit Bennington
Mayor Pro William J. Holland
Council Member Larry Bird
Council Member Cameron Gregg
Council Member Rebekah Swanson
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Individuals wishing to speak during General Public Comments or on a particular numbered item are requested to submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the joint agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

JOINT CONSENT CALENDAR

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, February 1, 2022.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, February 1, 2022.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2022-02-01Attachments:

2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Commission - Water)
Recommended Action:

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Staff Person: Director of Administrative Services Casey Brooksher

February 15, 2022City Council Meeting Agenda
SR Warrant Run 2-15-2022
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended December 31, 2021 Recommended Action:

It
is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Hesperia Water District.

Staff Person: Director of Administrative Services Casey Brooksher SR Treasurer's Report 2-15-2022
Attachment 1 - Treasurer's Report
Attachments:

4. Printing Services Contract Amendment
Recommended Action:

It
is recommended that the City Council and Board of Directors for the Hesperia Housing Authority (HHA) and Hesperia Water District (HWD) authorize the City Manager to approve an amendment to the existing contract with Wirz and Company Printing, Inc. for an additional $30,000 for a revised not-to-exceed contract amount of $110,000.

Staff Person: Director of Administrative Services Casey Brooksher SR Printing Services Contract Amendment 2-15-2022Attachments:

5. Amendment to the Contract with NBS for a Fiscal Impact Analysis Report Recommended Action:

It
is recommended that the City Council authorize the City Manager to amend the current agreement with NBS Government Finance Group (NBS) by $21,000, to include a Fiscal Impact Analysis (FIA) report related to the Non-Bonded Residential Community Facilities District (CFD) formation services with landowner vote as well as extend the contract an additional year to June 30, 2023. Upon approval, the amended contract total with NBS will not exceed $37,000.

Staff Person: Director of Administrative Services Casey Brooksher SR NBS Contract Amendment for a Fiscal Impact Analysis Report 2-15-2022Attachments:

6. Consideration of Contract with OpenGov, Inc. for Budgeting & Planning Software
Recommended Action:

It
is recommended that the City Council authorize the City Manager to enter into a five-year agreement with OpenGov, Inc. (OpenGov), in an amount not-to-exceed $250,534, to provide software pertaining to the development and preparation of the City’s budget.

February 15, 2022City Council Meeting Agenda
Staff Person: Director of Administrative Services Casey Brooksher SR OpenGov Inc. Contract for Budgeting & Planning Software 2-15-2022Attachments:

7. Resolution Supporting the "Brand-Huang-Mendoza Tripartisan Land Use Initiative"
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-008 to express support of the "Brand-Huang-Mendoza Tripartisan Land Use Initiative" to amend Article XI of the constitution of the State of California to ensure zoning and land use decisions remain in local control and are community affairs.

Staff Person: Management Analyst Jamie Carone
SR Supporting the Brand-Huang-Mendoza Initiative 2-15-2022 Resolution 2022-008
Attachment 2 - Exhibit A Brand Huang-Mendoza Initiative Attachments:

8. Final Tract Map 18214
Recommended Action:

It
is recommended that the City Council adopt Resolution No. 2022-06 approving Final Tract Map No. 18214 to create a 36 Single-family Residential lot subdivision on approximately 21.9 gross acres in the R1-18000 zone located south of Ranchero Road between Glider Avenue and Jenkins Avenue. (Applicant: Prime 40 West, LLC APN: 0397-091-05 and 0397-161-10, 12, 13 and 17).

Staff Person: Administrative Analyst Bethany Hudson
SR Final Tract Map 18214 2-15-2022
Resolution 2022-06
Attachment 2 - Final Tract Map 18214
Attachments:

PUBLIC HEARING
Individuals wishing to comment on public hearing items must submit a speaker slip to the City Clerk with the numbered agenda item noted. Speaker slips should be turned in prior to an agenda item being taken up.

Comments will be limited to five minutes for Public Hearing items.

WAIVE READING OF ORDINANCES
Approve the reading by title of all ordinances and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

9. Specific Plan Amendment SPLA21-00004; Applicant: Anastasi Properties; APNs: 0405-052-03 thru 07
Recommended Action:

The Planning Commission recommends that the City Council introduce and place on first reading Ordinance No. 2021-11 approving Specific Plan Amendment SPLA21-00004 to change approximately 35 gross acres from

February 15, 2022City Council Meeting Agenda
Office Park (OP) to Low Density Residential (LDR) with a minimum lot size of 7,200 square feet.

Staff Person: Senior Planner Ryan Leonard
SR Specific Plan Amendment SPLA21-00004 2-15-2022
Ordinance 2021-11
Attachment 2 - Exhibit A
Attachment 3 - Planning Commission Staff Report with Attachments Attachments:

10. Adoption of Resolution Establishing the Formation of Community Facilities District
No. 2021-1 (Residential Maintenance and Services) and Future Annexation Area, Calling for a Special Election, and Declaring the Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien Recommended Action:

It is recommended that the City Council conduct the Public Hearing and after receiving public testimony and deliberation: 1) Adopt a Resolution Establishing the Formation of the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (“CFD 2021-1”) and Future Annexation Area, 2) Adopt a Resolution Calling a Special Election and 2) Adopt a Resolution Declaring the Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien.

Staff Person: Assistant City Manager Rachel Molina and Director of Administrative Services Casey Brooksher
SR Resolution Establishing the Formation of CFD 2021-1 2-15-2022 Attachment 1 - Resolution 2022-10 Formation of CFD
Attachment 2 - Resolution 2022-11 Calling for a Special Election Attachment 3 - Resolution 2022-12 Certifying Election Results Attachment 4 - Ordinance 2022-01 CFD 2021-1
Attachment 5 - CFD Special Tax Report
Attachments:

NEW BUSINESS

11. Fiscal Year 2021-22 Mid-Year Budget Review
Recommended Action:

It
is recommended that the Fiscal Year (FY) 2021-22 Mid-Year Budget Review be received and filed and the related following resolutions, which amend the respective FY 2021-22 Budgets for the City of Hesperia and the Hesperia Water District be approved:
1) City of Hesperia Resolution No. 2022-09
2) Hesperia Water District HWD 2022-02
Staff Person: Director of Administrative Services Casey Brooksher

February 15, 2022City Council Meeting Agenda
SR FY 2021-22 Mid-Year Budget Review 2-15-2022
Attachment 1 - FY 21-22 Mid Year Budget Review
Resolution 2022-09
Resolution HWD 2022-02
Attachments:

12. Discussion on Opposition to Vaccine and Mask Mandates Recommended Action:

It
is recommended that the City Council discuss and provide staff with direction on vaccine verification and mask mandates for local business.

Staff Person: Assistant City Manager Rachel Molina
SR Opposition to Vaccine and Mask Mandates 2-15-2022Attachments:

13. Discussion on Supporting Legislation that Limits Gubernatorial Emergency Orders
Authority to a Designated Timeframe Unless Extended by an Act of the Legislature
Recommended Action:

It is recommended that the City Council discuss supporting legislation that limits gubernatorial emergency orders authority to a designated timeframe unless that timeframe is extended by an act of the legislature .

Staff Person: Assistant City Manager Rachel Molina
SR Support Legislation that Limits Gubernatorial Emergency Orders 2-15-2022Attachments:

COUNCIL COMMITTEE REPORTS AND COMMENTS
The Council may report on their activities as appointed representatives of the City on various Boards and Committees and/or may make comments of general interest or report on their activities as a representative of the City.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager, City Attorney or staff may make announcements or reports concerning items of interest to the Council and the public.

ADJOURNMENT

February 15, 2022City Council Meeting Agenda
I, Erin Baum, Assistant City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Thursday, February 10, 2021 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Erin Baum,
Assistant City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.

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City of Hesperia
City of Hesperia
Meeting Minutes - Final
City Council
Tuesday, February1, 2022 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
February 1, 2022
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
CLOSED SESSION - 5:30 PM
Roll Call

Present: 5 - Mayor Bennington, Mayor Pro Tem Holland, Council Member Bird, Council Member Gregg and Counci
l Member Swanson
Conference with Legal Counsel - Potential Litigation: Government Code Section 54956.9(d)2

1. Three (3) Cases
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Mayor Bennington, Mayor Pro Tem Holland, Council Member Bird, Council Member Gregg and Counci
l Member Swanson
D. A genda Revisions and Announcements by City Clerk
Green Sheet Ite
m 15 was added and continued to the February 15, 2022 meeting.

A motion was made by Holland, seconded by Gregg, that this item be continued. The motion carried by the follow
ing vote:

Aye: 5 - Bennington, Bird, Swanson, Holland and Gregg
Nay: 0
E. Closed Session Reports by City Attorney
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

City of Hesperia
Daniel Krist commented on community issues.

Bob Nelson commented on community issues.

JOINT CONSENT CALENDAR
A motion was made by Holland, seconded by Swanson, that this item be approved. The motion carried by the following vote:

Aye: 5 - Bennington, Bird, Swanson, Holland and Gregg
Nay: 0

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, January 18, 2022.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Regular Meeting held
Tuesday, January 18, 2022
.

Sponsors: Assistant City Clerk Erin Baum

2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Comm
ission - Water)
Recommended Action:

It is recommended that the Council/Board ratify the warrant run and payrollreport for the City, Succes sor Agency to the Hesperia Co
mmunity Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Sponsors: Director of Administrative Services Casey Brooksher

3. Amendment to Agreement for Interactive Voice Response, Online Bill Pay, Presentment Services, Data Processing, and Printing an
d Mailing Services for Water/Sewer Utility Bills through Fiscal Year 2023-24 Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an
amendment of $299,066 to the existing contract with InfoSend, Inc. (InfoSend), for a
total revised not-to-exceed amount of $449,066, for the continued Interactive Voice Response, Onl
ine Bill Pay, Presentment Services, Data Processing, and Printing and Mailing S ervices for W
ater/Sewer utility bills through Fiscal Year (FY) 2023-24.

Sponsors: Director of Administrative Services Casey Brooksher

4. Increase to Contract with Apex Rentals
Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an
amendment of $40,000 to the existing contract with Apex Rentals, for a total
revised not-to-exceed amount of $90,000, for off-road heavy vehicles and equipment maintenance.

Sponsors: Director of Public Works Jeremy McDonald

5. Equipment Procurement for Water Pipeline Program
Recommended Action:

City of Hesperia
It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to approve the procurement of one (1) new Case backhoe; adopt Hesperia Water District (HWD) Resolution No. 2022-01 amending the Fiscal Year (FY) 2021-22 Budget by appropriating $34,501 to the Water Pipeline Program; and award the bid to Sonsray Machinery LLC of Fontana in the not-to-exceed amount of $129,301.

Sponsors: Director of Public Works Jeremy McDonald

6. G & M Automotive and Towing Contract Amendment
Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an
amendment to the existing contract with G & M Automotive and To wing in the amount
of $56,000, for a total not-to-exceed amount of $156,000, for on-road heavy equipm ent vehicle m
aintenance and repairs.

Sponsors: Director of Public Works Jeremy McDonald

7. Parcel Map No. 19608
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-04 approving Parcel Map No. 19608 to create four single fam
ily residentialparcels and a remainder lot from five (5) gross acres located on the southeast corner
of Sage Street and Topaz Avenue. (Applicant: James Vandenberg Construction, Inc.; APN: 3046-1
31-27).

Sponsors: Administrative Analyst Bethany Hudson

8. Parcel Map No. 20038
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-05 approving Parcel Map No. 20038 to create two single fam
ily residential parcels from 2.16 acres gross acres located in the A1 Agricu ltural zone
located on Cherry Street between Willow Street and Timberlane Avenue. (Applicant: Santiago Nuno; APN: 0411-172-08).

Sponsors: Administrative Analyst Bethany Hudson

9. Authorize Submittal of Applications for CalRecycle
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-002 authorizing subm ittal of applications for
all Department of Resources Recycling and Recovery (CalRecycle) grants for which the City is eligible f
or five (5) years from the date of adoption of this resolution.

Sponsors: Management Analyst Jamie Carone

10. Authorize Submittal of Urban and Multibenefit Drought Relief Funding for the Hesperia Recycled W ater Expansion Project
Recommend
ed Action:

It is recommended that the City Council adopt Resolution No. 2022-003 authorizing subm ittal of an

City of Hesperia
application for the California Department of Water Resources (DWR) 2021 Urban and Multibenefit Drought Relief Funding (UMDRF) for the Hesperia Recycled Water Expansion Project.

Sponsors: Management Analyst Jamie Carone

11. Authorize Submittal of a Notice of Intent to Comply to CalRecycle Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-007 authorizing subm ittal of a Notification of
Intent to Comply to the Department of Resources Recycling and Recovery (CalRecycle) to secure adm
inistrative civil penalty relief from possible violations of Senate Bill 1383 (SB 1383).

Sponsors: Management Analyst Jamie Carone

12. Award Professional Services Agreement to LDM & Associates, Inc.

Recommended Action:

It is recommended that the City Council and the Hesperia Housing Authority (HHA) Board award a Professional S
ervice Agreement (PSA) with LDM & Associates, Inc. (LDM) to provide consulta ncy services to ass
ist the City in implementing its Community Development Block Grant (CDBG) Program , m
onitoring Affordable Housing activities and program assistance for a three year period in an amou nt not-to-exceed $2
49,702.

Sponsors: Economic Development Manager Victor Knight

PUBLIC HEARING

13. Development Impact Fee Update
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-01, which authorizes the reducing of the current discounted Dev
elopment Impact Fees (DIF), in the DIF categories of Fire Suppressio n Facilities, Vehicl
es, & Equipment, Police Facilities, Animal Control Facilities, City Hall Facilities, Records Storage Facil
ities, Drainage Facilities and Transportation Facilities that will amend the fees to Single Fam
ily Residence/Multi-Family/Office/Retail sites per 1,000 square feet (SF), Industrial sites per 1,000 SF, and Hote
l/Motel sites per room.

Sponsors: Assistant City Manager Rachel Molina and Director of Administrative Services Casey Brooksher
A motion was made by Holland, seconded by Gregg, that this item be approved. The motion carried by the follow
ing vote:

Aye: 5 - Bennington, Bird, Swanson, Holland and Gregg
Nay: 0

NEW BUSINESS

14. Consideration of the 2022 Legislative Platform and Funding Priorities Recommended Action:

It is recommended that the City Council adopt the 2022 Legislative Platform consisting of Legislative

City of Hesperia
Policy Statements and Funding Priorities.

Sponsors: Management Analyst Jamie Carone
A motion was made by Bird, seconded by Holland, that this item be approved. The motion carried by the following vote:

Aye: 5 - Bennington, Bird, Swanson, Holland and Gregg
Nay: 0

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Bird paid tribute to his mother, Ida Jane Bird, who passed the previous Thursday.

Council Member Swanson commented on the passing of Council Member Bird’s mother, her appointment of Don Bartz to the Planning Commission, the City’s legislative platform, and the status of the waste water treatment plant.

Council Member Bird commented on the passing of Council Member Bird’s mother, requested that the podium return to Council Chambers, congratulated Don Bartz on his appointment to the Planning Commission, wished Mayor Pro Tem Holland a Happy Birthday, wished his parents a happy anniversary, thanked City, Police and Fire staff, and cautioned everyone to drive safely,
Mayor Pro Tem Holland commented on the passing of Council Member Bird’s mother, the commissioning of the natural gas project at VVWRA, his appointment of John Dunbar to the Planning Commission, thanked Fire and Police Staff, and wished Council Member Gregg and Rachel Molina happy birthday, and thanked his wife for forty years of marriage.

Mayor Bennington commented on the City’s Notify Me system, the upcoming Neighborhood Beautification day on February 17
th, the opening of Charlie’s Cheesesteak and Wings, the VVWRA ribbon cutting ceremony for the natural gas project, attendance at AQAMD board meeting, the Hegman’s mayors COVID meeting, her recent interview with Epic Radio/TV, presentation to Cody Leis at the last Planning Commission meeting, requested that staff bring back a resolution in support of the Brand-Hogman-Mendoza measure for local building control and against Measure N, the support of her parents, upcoming Coffee with the Mayor event, the passing of former employee Karen Hardy’s husband Jim, wished Mayor Pro Tem Holland, Council Member Gregg, and Rachel Molina a happy birthday, the Library’s closing for staffing issues, congratulated new Planning Commissioners Bartz and Dunbar on their appointment, and thanked City, Police and Fire staff.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None

ADJOURNMENT
The meeting was adjourned in honor of Ida Jane Hubanks Bird at 8:14 PM. _____________________________
Erin Baum,
Assistant City C
lerk

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City of Hesperia

STAFF REPORT
DATE: February 15, 2022
TO: Mayor and Council Members
City Council, as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Fatima Jacobo, Accountant
SUBJECT: Warrant Run Report (City – Successor Agency – Housing Authority – Community Development Commission – Water)

RECOMMENDED ACTION
It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND
The Warrant Run totals represented below are f or th e period December 25, 2021 through January 14, 2022.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $1,094,194.69 $223,649.75 $0.00 $1,317,844.44 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 0.00 0.00 0.00 0.00
Community Development Commission 0.00 0.00 0.00 0.00
Water 560,332.93 101,798.21 0.00 662,131.14
Totals $1,654,527.62 $325,447.96 $0.00 $1,979,975.58

YEAR-TO PRIOR FY YTD

W/E W/E W/E WARRANT DATE DATE
FUND # FUND NAME 12/30/2017 1/6/2018 1/13/2018 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL -$ 96, 740.26$ 65, 750.12$ 162, 490.38$ -$ 15, 290,308.43$ 13, 853,274.08$ 204 MEASURE I - RENEWAL -$ -$ -$ -$ -$ 84, 308.86$ 539, 131.75$ 207 LOCAL TRANSPORT-SB 325 -$ -$ -$ -$ -$ 25, 091.93$ 16, 902.70$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ 67, 468.24$ 2, 751,697.93$ 210 HFPD (PERS) -$ -$ -$ -$ -$ 1, 007,746.00$ 975, 994.00$ 251 CDBG -$ 1, 391.00$ 873. 00$ 2, 264.00$ -$ 595, 568.30$ 612, 404.11$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT -$ 2, 530.01$ -$ 2, 530.01$ -$ 23, 196.14$ 14, 134.53$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ -$ -$ 5, 404.88$ 258 CDBG-CV CARES ACT -$ -$ -$ -$ -$ -$ -$
260 DISASTER PREPARED GRANT -$ -$ -$ -$ -$ -$ -$ 263 STREETS MAINTENANCE -$ 20, 258.09$ 12, 521.62$ 32, 779.71$ -$ 984, 027.73$ 1, 386,363.52$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ -$ -$ 35, 488.33$ 269, 608.05$ 301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ -$ -$ 34, 769.50$ 54, 401.25$ 302 DEV. IMPACT FEES - FIRE -$ -$ -$ -$ -$ -$ -$ 303 DEV. IMPACT FEES - POLICE -$ -$ -$ -$ -$ 23, 330.00$ -$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS -$ -$ 20, 979.23$ 20, 979.23$ -$ 111, 216.31$ -$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ 6, 888.17$ -$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ -$ 963, 024.00$ -$ 396 DEVELOPMENT IMPACT -$ -$ -$ -$ -$ -$ -$
399 FEMA-1203-DR (DISASTER) -$ -$ -$ -$ -$ -$ -$ 400 2004 STREETS -$ -$ -$ -$ -$ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ -$ -$ -$
402 WATER RIGHTS ACQUISITION -$ -$ -$ -$ -$ 1, 074,335.70$ 1, 061,726.83$ 403 2013 REFUNDING LEASE REV BONDS -$ -$ 2, 540.00$ 2, 540.00$ -$ 635, 512.25$ 2, 190.00$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ -$ -$ -$
504 CITY WIDE STREETS - CIP -$ 154, 768.82$ 33, 938.99$ 188, 707.81$ -$ 712, 671.51$ 361, 022.84$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 75,284.53$ 280, 947.96$ 243, 173.01$ 599, 405.50$ -$ 4, 353,425.46$ 4, 077,854.00$ 801 TRUST/AGENCY -$ 7, 991.48$ 71, 165.79$ 79, 157.27$ -$ 1, 624,502.44$ 1, 331,208.73$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$ -$
804 TRUST-INTEREST BEARING -$ -$ -$ -$ -$ 28, 905.00$ 65. 00$ 807 CFD 2005-1 -$ -$ 3, 340.78$ 3, 340.78$ -$ 933, 223.43$ 1, 487,752.46$ 808 HFPD (TRANSITION) -$ -$ -$ -$ -$ 369, 875.18$ 349, 739.56$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ -$ -$ -$ CITY 75,284.53$ 564,627.62$ 454, 282.54$ 1, 094,194.69$ -$ 28,984,882.91$ 29, 150,876.22$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ -$ 7, 944,168.22$ 7, 586,988.44$ SUCCESSOR AGENCY -$ -$ -$ -$ -$ 7,944,168.22$ 7, 586,988.44$ 370 HOUSING AUTHORITY -$ -$ -$ -$ -$ 9, 324.93$ 41, 021.35$ HOUSING AUTHORITY -$ -$ -$ -$ -$ 9,324.93$ 41, 021.35$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 1, 135.42$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 1,135.42$ 700 WATER OPERATING -$ 225, 359.45$ 29, 223.31$ 254, 582.76$ -$ 5, 654,905.10$ 11, 837,423.96$ 701 WATER CAPITAL -$ 66, 123.75$ -$ 66, 123.75$ -$ 88, 561.90$ 815, 954.96$ 710 SEWER OPERATING -$ 4, 425.94$ 488. 21$ 4, 914.15$ -$ 2, 612,486.55$ 2, 104,304.69$ 711 SEWER CAPITAL -$ -$ -$ -$ -$ 150, 661.87$ 1, 437,385.02$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ 54, 882.50$ 720 RECLAIMED WATER OPERATIONS -$ 234, 712.27$ -$ 234, 712.27$ -$ 236, 037.58$ 234, 635.83$ WATER -$ 530,621.41$ 29, 711.52$ 560, 332.93$ -$ 8,742,653.00$ 16, 484,586.96$ ACCOUNTS PAYABLE TOTAL 75,284.53$ 1,095,249.03$ 483, 994.06$ 1, 654,527.62$ -$ 45, 681,029.06$ 53, 264,608.39$ REG. PAYROLL
City -$ 223,649.75$ -$ 223, 649.75$ -$ 3, 297,770.66$ 2, 990,682.17$ Housing Authority -$ -$ -$ -$ -$ 745.24$ 3, 275.79$ Water -$ 101,798.21$ -$ 101, 798.21$ -$ 1, 437,968.42$ 1, 410,665.00$ PAYROLL TOTAL -$ 325,447.96$ -$ 325, 447.96$ -$ 4, 736,484.32$ 4, 404,622.96$ City of Hesperia

WARRANT RUNS
12/25/2021 - 01/14/2022
* The year to date totals for this Warrant Report are for the 2021-22 fiscal year starting July 1, 2021; however, the year-to-date totals include a total of $219,412.79 in payments issued on 6/28/21 and 6/29/21.

Attachment 1

City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District

FROM: Nils Bentsen, City Manager

BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Nichole Eddleman, Financial Analyst

SUBJECT: Treasurer’s Cash Report for the unaudited period ended December 31, 2021.

RECOMMENDED ACTION

It is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND

This report is presented to the City Council pursuant to Government Co de Section 53646 (b) setting forth the City’s investment portfolio.

ISSUES/ANALYSIS

The Treasurer’s Cash Reports are presented on the following pages for each agency.

FISCAL IMPACT

These reports reflect unaudited cash balances as of December 31, 2021.

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. City of Hesperia Investment Report

2. Successor Agency to the Hesperia Community Redevelopment Agency Investment Report

3. Hesperia Housing Authority Investment Report

4. Community Development Commission Investment Report

5. Hesperia Water District Investment Report

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
February 15, 2022

FUND VALUE
General Fund (100 & 800) 10,129,984.36$
Fire District Fund (200) 321.00
HFPD (PERS) (210) 2,580,402.52
AB27666 - Transit (254) 23,904.39
AB3229 Supplemental Law (255) 157,752.81
AD No. 91-1 (802) 372,370.94
Beverage Recycling Grant (256) 205,235.04
CFD 2005-1 (807) 1,499,938.10
HFPD Transition (808) 27,311.37
City Wide-Capital Projects (504) (958,265.85)
Community Dev Block Grant (251, 252, & 253) 291,061.59
American Rescue Plan Grant (261) 11,704,022.47
Development Impact Fund (300-304) 5,554,415.67
Development Impact Fund 2018 (306-312) 14,054,380.65
Development Impact Fund A-04 Drainage (313) 7,099.66
Disaster (260) 44,156.39
Gas Tax Fund (205) 818,441.05
Gas Tax - RMRA (209) 1,518,603.40
Gas Tax Swap (206) 679,872.56
Local Transportation SB325 (207) 2,314,484.33
Measure I - Renewal (204) 7,333,757.52
Neighborhood Stabilization Prog (257) 2,876,235.92
Public Works Street Maint (263) 738,657.68
Trust Fund (801, 803-806, & 815) 1,895,322.15
2012 Water Rights Acquisition (402) 548,507.26
2013 Refunding Lease Rev Bonds (403) 1,605,125.47
TOTAL CITY FUNDS 66,023,098.45$

CITY OF HESPERIA

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
February 15, 2022

FUND VALUE
RORF Retention - (163) 3,435,576.63$

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

FUND VALUE

Hesperia Housing Authority Fund (370) 3,625,748.25$
VVEDA Housing Authority (371) 1,821,170.89
TOTAL HOUSING AUTHORITY FUNDS 5,446,919.14$

HESPERIA HOUSING AUTHORITY

FUND VALUE

Community Development Commission Fund (170) (600,672.50)$

COMMUNITY DEVELOPMENT COMMISSION

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
February 15, 2022

VALUE
Water Operating (700) 12,099,435.43$
Water Capital (701) (6,878,053.60)
Water Capital Rehab and Replace (703) 1,421,825.50
Water Contamination Mitigation (704) 1,916,497.05
Sewer Operating (710) 13,681,661.64
Sewer Capital (711) 3,270,069.74
Sewer Capital Rehab and Replace (713) 740,692.51
Reclaimed Water Operations (720) (235,961.14)
TOTAL WATER FUNDS 26,016,167.13$
1 WATER
FUND

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City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Cristina Hall, Accountant
SUBJECT: Printing Services Contract Amendment

RECOMMENDED ACTION

It is recommended that the City Council and Board of Directors for the Hesperia Housing Authority (HHA) and Hesperia Water District (HWD) authorize the City Manager to approve an amendment to the existing contract with Wirz and Company Printing, Inc. for an additional $ 30,000 for a revised not-to-exceed contract amount of $110,000.

BACKGROUND

Printed items are ordered by the City on an as-needed basis for business such as printed forms, envelopes, and special mailers. Ordering through a comprehensive agreement allows staff to operate more efficiently by consolidating and reducing time spent obtaining quotes for every printing service purchase.

ISSUES/ANALYSIS

In 2019, the City executed a one -year agreement with Wirz and Company Printing, Inc . in the amount not-to-exceed $50,000. In August of 2020, the City Council and Board of Directors of the Hesperia Housing Authority and Hesperia Water District approved an amendment to the agreement to extend services for an additional year and revised the contract amount an additional $30,000. While the existing fee schedule will be maintained, additional contract authority is needed to continue City-wide printing services through the end of Fiscal Year (FY) 2021-22. A Request for Bids (RFB) for FY 2022-23 printing services will be conducted in spring 2022, and a contract will be presented for the Council’s consideration by June 2022.

FISCAL IMPACT

Funding exists within the FY 2021-22 adopted budget throughout the various departments and will continue to be budgeted on an annual basis.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None.

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City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and City Council Members

FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services

SUBJECT: Amendment to the Contract with NBS for a Fiscal Impact Analysis Report

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to amend the current agreement with NBS Government Finance Group (NBS) by $21,000, to include a Fiscal Impact Analysis (FIA) report related to the Non-Bonded Residential Community Facilities District (CFD) formation services with landowner vote as well as extend the contract an additio nal year to June 30, 2023. Upon approval, the amended contract total with NBS will not exceed $37,000.

BACKGROUND

Currently, the City contracts with NBS to provide CFD administration/delinquency services for the City’s CFD 2005 -1 Belgate Development and development of a CFD for new residential areas outside of the Tapestry Development (Tapestry). For Fiscal Year (FY) 2021-22, the total contract for these during this year is $34,130 ($19,630 for administration services for CFD 2005 -1 and $16,000 for c urrent Non -Bonded Residential Community Facilities District (CFD) formation services with landowner vote).

Tapestry encompasses approximately 9,365 acres and is located in the southeastern portion of the City of Hesperia (City), at the southern edge of the San Bernardino County High Desert area.

The City Council adopted the Specific Plan for the Tapestry in February 2016 . Additionally, the Developer of Tapestry (Developer) entered into a Development Agreement (DA) with the City on January 30, 2018.

ISSUES/ANALYSIS

The negotiated DA identifies the establishment of a special financing district for public safety services specific to the Tapestry. An example of a special financing district is a CFD. Specifically, the following components funded by the special financing district as identified in the DA are as follows:

 Animal Control Officer – 1 position upon completion of Phase 1 and 1 additional position per 20,000 residents
 Code Enforcement Officer – 1 position upon completion of Phase 1 and 1 additional position per 10,000 residents
 Senior Code Enforcement Officer – 1 position 45,000 Residents  Law Enforcement – 0.8 Deputy per 1,000 Residents

Staff Report to the Mayor and City Council Members
Amendment to the Contract with NBS for a Fiscal Impact Analysis Report February 15, 2022

In order to calculate the required special taxes for Tapestry, a fiscal impact analysis (FIA) must be completed. This analysis will determine the costs of the identified public safety components in the DA and the expected amount of property taxes that will need to be levied on each property within Tapestry.

NBS understands the City’s needs and expectations, as the consultant has prepared similar fiscal impact studies to determine the feasibility of the CFDs for new industrial development and residential developments.

FISCAL IMPACT

Funding for the fiscal impact analysis report was not included in the Fiscal Year 2021-22 Budget and will be submitted as a budget amendment during the Fourth Quarter Budget Review , if savings are not available.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and City Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services SUBJECT: Consideration of Contract with OpenGov, Inc. for Budgeting & Planning Software

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to enter into a five-year agreement with OpenGov, Inc. (OpenGov) , in an amount not-to-exceed $250,534, to provide software pertaining to the development and preparation of the City’s budget.

BACKGROUND

Currently, t he City utilizes OpenGov to provide its financial transparency portal. This is an interactive tool that allows the citizens to view, as well as create and develop custom reports based on the City’s audited financial statements, as well as the adopted budget. The City began providing these tools during Fiscal Year 2015-16 at an annual cost of $8,100.

While financial transparent is key to OpenGov’s operations, the company has grown to provide software aiming to increase productivity and streamline governmental processes. This includes software to assist with the annual budget process through their Budget & Planning software.

The City begins its annual budget process in March of each year. While the process is managed by the Finance Division, City staff as a whole, spends countless amount of hours developing the budget to present to the City Council for adoption in June of each year. The budget is developed using software programs, which include printed worksheets from the City’s financial system New World, Microsoft Excel, Microsoft Word, Microsoft Access, and Crystal Re ports. Since each of these are standalone programs, Finance staff must take the output from each of these programs and manually enter budget data into the New World Financial System. This is a very laborious process and can lead to minor mistakes from ke ystroke errors. One minor change to an expenditure account, say for example office supplies, will take approximately up to one hour of staff time to change throughout all the programs associated with the preparation of the budget.

This outlined process is to ensure that the proposed budget is entered into the financial system.

Finance will then import the data from the financial system into Microsoft Excel to create the reports, including charts and graphs, as seen in the budget book. In addition to Microsoft Excel, the budget book narrative is typed into Microsoft Word. Finance staff spends the majority of the month of May creating and editing the budget book in preparation of delivering to the City Council and citizens. The City of Hesperia is not unique with this the budget preparation; as a majority of cities follow a very similar process.

Staff Report to the Mayor and City Council Members
Consideration of Contract with OpenGov, Inc. for Budgeting & Planning Software February 15, 2022

ISSUES/ANALYSIS

As stated, OpenGov started as a financial transparency tool for local governments, which the City currently utilizes. Through the years, OpenGov has expanded its software offerings which aimed to add efficiencies to City processes. Seeing that a large am ount in staff-hours are spent developing the Budgeting & Planning software.

The Budget & Planning Suite is an integrated budge ting solution that has the capacity to aggregate and synchronize both financial and non-financial data. It is intended to streamline and transform the budget process from the ini tial stages of planning and personnel forecas ting on through final publica tion while enabling collabora tion throughout. The software includes mul ti- year and personnel forecasting, and an electronic budget book, which links to the financial and non-financial data as appropriate.

With the Budget & Planning software (software), City staff will be development department budgets in one centralized location (software) as opposed to handwriting figures on worksheets, keying data into Microsoft Excel, and typing narrative into Microsoft Word. Additionally, the software has the capabilities to be linked directly into New World Financial System, which will decrease the time spent on data entry and reducing ty pographical errors. Finally, this software will generate and create an electronic budget.

With an electronic budget book, the City will not only save time, it will reduce the amount of paper needed. The average final budget book is about 400 pages. There are multiple draft versions printed prior to finalization. In total, the City will reduce the amount of paper used on an electronic budget. With that, a version can be printed; however, the look of the budget will be slightly different than the current budget. Additionally, as with the financial transparency portal, Citizens will have the ability to create custom budget reports and charts.

In an effort to streamline implementa tion, should Council approve this contract, staff anticipates the following is the planned implementation schedule:
 Workforce (positon budgeting) – Implement by March 2022. This will streamline the budgeting of positions , which comprises approximately 32% of the operating budgeted expenditures.
 Creation of Digital Budget in Brief – Implement by end of May 2022. A budget in brief is a high level summary budget that can be used as a quick reference to the City’s budget.  Creation of the Digital Budget Book – Complete by September 2022. For the FY 2022-23 Budget, staff will create the paper document as in years past. To ensure that the Budget & Planning software is implemented properly, the budget will be recreated with the OpenGov software. The Digital Budget Book will be available for viewing at this time.  Train sta ff on new process – Complete in December 2022. All City staff will receive training on the process in preparation of using the Budgeting & Planning software for the development of the FY 2023-24 Budget.

Staff Report to the Mayor and City Council Members
Consideration of Contract with OpenGov, Inc. for Budgeting & Planning Software February 15, 2022

FISCAL IMPACT

The annual cost of services is $49,900 and the pro-rated fee for the period of March through June 2022 is $13,934. Additionally, there is an implementation feel of $37,000. The following is the five-year contracted cost:

Date Amount
Due
March 1, 2022* $50,934
July 1, 2022 49,990
July 1, 2023 49,990
July 1, 2024 49,990
July 1, 2025 49,990
Total $214,894
*Includes software costs of $13,933.33 and implementation of $37,000

Staff anticipates there is adequate budgeted savings for the $50,934 year one costs in the current fiscal year budget. Additionally, should this software be approved by the City Council, staff will include the $49,900 annual cost in the General Fund Operating budget for the duration of the contract (FY 2022-23 through FY 2025-26).

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None.

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City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Jamie Carone, Management Analyst

SUBJECT: Resolution Supporting the “Brand-Huang-Mendoza Tripartisan Land Use Initiative”

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2022-008 to express support of the “Brand-Huang-Mendoza Tripartisan Land Use Initiative” to amend Article XI of the constitution of the State of California to ensure zoning and land use decisions remain in local control and are community affairs.

BACKGROUND

The “Brand -Huang-Mendoza Tripartisan Land Use Initiative” is a tri -partisan, ethnically and geographically diverse statewide coalition of local leaders working on a Constitutional Amendment Initiative for the November 8, 2022 ballot that will make all land use and planning a municipal affair only, as intended by the California State Constitution. The subject initiative has been filed with the California State Attorney General’s Office and received title and summary on November 1, 2021. The coalition will have 180 days to collect approximately 1.3 million signatures across California to qualify for the ballot this November.

This measure will amend the State Constitution to ensure zoning, land -use, and development decisions are made at the local level, and to stop the multitude of legislative bills like SB 9 and SB 10, originating from Sacramento that seek to override municipal and county control over land- use and development.

ISSUES/ANALYSIS

The Legislature of the State of California in recent years has proposed, passed, and signed into law a number of bills addressing a range of land use planning and housing issues. Since 2017, the Legislature has passed roughly 80 housing bills under emergency powers, including the recent bills, SB 9 and SB 10, which eliminate single family zoning.

Most of the bills passed remove the authority of local jurisdictions to determine land use policies and practices that best suit each city and its residents and ignore the unique needs and circumstances of each community. Furthermore, the majority of these bills are passed under the auspices of increasing affordable housing; however, the majority of these bills do not provide any incentives or requirements for low-income housing. Instead, these bills impose new policies that will result in the addition of market -rate or luxury housing and will eliminate the opportunity for local jurisdictions to implement effective policies that will create affordable housing.

Staff Report to the Mayor and Council Members
Brand-Huang-Mendoza Tripartisan Initiative
February 15, 2022

This initiative would amend the State Constitution to specify that actions by a city or county related to zoning, development, or land use would be a local affair and prevail over conflicting state laws.

Under this measure, local laws that currently conflict wit h state law would become enforceable and local initiatives related to zoning or land use would prevail over state law. Proponents and supporters of the initiative include elected local government officials, affordable housing advocates, and residents of C alifornia that reject efforts to remove local communities and local elected officials from decisions regarding land use policies.

FISCAL IMPACT

There are no fiscal impacts identified with this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff

ATTACHMENT(S)

1. Resolution No. 2022-008

2. Exhibit A: Brand-Huang-Mendoza Initiative

RESOLUTION NO. 2022-008

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA , EXPRESSING SUPPORT FOR THE “BRAND-HUANG-MENDOZA TRIPARTISAN LAND USE INITIATIVE” TO AMEND ARTICLE XI OF THE CONSTITUTION OF THE STATE OF

CALIFORNIA TO MAKE ZONING AND LAND USE COMMUNITY AFFAIRS AND NOT OF STATE INTEREST.

WHEREAS, the Legislature of the State of California in recent years has proposed, passed, and signed into law a number of bills addressing a range of land use planning and housing issues ; and

WHEREAS, the majority of these bills usurp the authority of local jurisdic tions to determine for themselves the land use policies and practices that best suit each city and its residents and instead impose “one-size-fits-all” mandates that do not take into account the unique needs and differences of local jurisdictions throughout the State of California; and

WHEREAS, the majority of these bills do not provide any incentives or requirements for low - income affordable or moderate income workforce housing, but instead impose new policies that will incentivize speculation and result in the addition of market -rate or luxury housing, thereby eliminating the opportunity for local jurisdictions to implement effective policies that will create more affordable housing and affirmatively further fair housing practices; and

WHEREAS, the ability of local jurisdictions to determine for themselves which projects require review beyond ministerial approval; what parking requirements are appropriate for various neighborhoods; what housing plans and programs are suitable and practical for each community; and what zoning should be allowed for residential properties, rather than having these decisions imposed upon cities without regard for the unique circumstances and needs of each individual community, is a matter of critical importance to the City of Hesperia and many other municipalities focused on local zoning and housing issues; and

WHEREAS, the City Council of the City of Hesperia hereby determines that local government entities are best able to assess and respond to the unique needs of their respective communities and hereby objects to the proliferation of State legislation (including SB 9 and SB 10) that would deprive Cities of that ability.

NOW THEREF ORE, BE IT RESOLVED BY THE CITY OF HES PERIA CITY COUNCIL AS FOLLOWS:

Section 1. That the City Council of the City of Hesperia is opposed to the legislature of the State of California continually proposing and adopting legislation that overrides the zoning and land use authority of local government and inhibits the ability of local government to effectively plan for and implement policies to stimulate the efficient production of affordable housing in the City of Hesperia.

Section 2. That the City Council of the City of Hesperia supports the “Brand-Huang-Mendoza Tripartisan Land Use Initiative” (Attached to the Resolution as Exhibit A) to ensure

Resolution City Council No. 2022-008
Brand-Huang-Mendoza Initiative

that zoning and land use authority rests with the local government entities that represent the communities in which the residents reside, and to allow local government to participate in solving our affordable housing crisis through solutions that effectively address the unique needs and conditions of each local community.

Section 4. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 15th day of February 2022.

______________________________
Brigit Bennington, Mayor

ATTEST:

____________________________
Erin Baum, Assistant City Clerk

November 1, 2021
Initiative 21-0016 (Amdt. 1)
The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure:

PROVIDES THAT LOCAL LAND-USE AND ZONING LAWS OVERRIDE
CONFLICTING STATE LAWS. INITIATIVE CONSTITUTIONAL AMENDMENT.

Provides that city and county land-use and zoning laws (including local housing laws) override all conflicting state laws, except in certain circumstances related to three areas of statewide concern: (1) the California Coastal Act of 1976; (2) siting of power plants; or (3) development of water, communication, or transportation infrastructure projects. Prevents state legislature and local legislative bodies from passing laws invalidating voter-approved local land-use or zoning initiatives. Prohibits state from changing, granting, or denying funding to local governments based on their implementation of this measure. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Fiscal effects of the measure depend on future decisions by the cities and counties and therefore are unknown. (21-0016A1.)
Attachment 2 Exhibit A

58277666.v2
SECTION 1. The people of the State of California find and declare all of the following:
(a) The circumstances and environmental impacts of local land use decisions vary greatly across the state from locality to locality.
(b) The infrastructure required to maintain appropriate levels of public services, including police and fire services, parklands and public open spaces, transportation, water supply, schools, and sewers varies greatly across the state from locality to locality. (c) Land use decisions made by local officials must balance development with public facilities and services while addressing the economic, environmental, and social needs of the particular communities served by those local officials. (d) Thus, it is in the best interests of the state and local communities for these complex decisions to be made at the local level to ensure that the specific, unique characteristics, constraints, and needs of those communities are properly analyzed and addressed. (e) Gentrification of housing adjacent to public transportation will reduce or eliminate the availability of low or very low income housing near public transit, resulting in the loss of access by low or very low income persons to public transit, declines in public transit ridership, and increases in vehicle miles travelled.
(f) The State Legislature cannot properly assess the impacts upon each community of sweeping centralized and rigid state land use rules and zoning regulations that apply across the state without regard to community impacts and, as a result, statewide land use and zoning will do great harm to local communities with differing circumstances and concerns. (g) Community development should not be controlled by state planners, but by local governments that know and can address the needs of, and the impacts upon, local communities.

Local initiatives approved by voters pertaining to land use and zoning restrictions should not be nullified or superseded by the actions of any local or state legislative body. (h) Numerous state laws that target communities for elimination of zoning standards have been enacted, and continue to be proposed, that eliminate or erode local control over local development and circumvent the California Environmental Quality Act (“CEQA”), creating the potential for harmful environmental impacts to occur.
(i) The purpose of this measure is to ensure that all decisions regarding local land use controls, including zoning law and regulations, are made by the affected communities in accordance with applicable law, including but not limited to CEQA (Public Resources Code § 21000 et seq.), the California Fair Employment and Housing Act (Government Code §§ 12900 – 12996), prohibitions against discrimination (Government Code § 65008), and affirmatively furthering fair housing (Government Code § 8899.50). This constitutional amendment would continue to provide for state control in the coastal zone, the siting of a power plant that can generate more than 50 megawatts of electricity, or the development or construction of water, communication or transportation infrastructure projects which the Legislature declares are matters of statewide concern and are in the best interests of the state. For purposes of this measure, it is the intent that a transportation infrastructure project shall not include a transit-oriented development project that is residential, commercial, or mixed-use.

58277666.v2
SECTION 2. Section 4.5 is added to Article XI of the California Constitution, to read:

SEC. 4.5. (a) Except as provided in subdivision (b), in the event of a conflict with a state statute, a county charter provision, general plan, specific plan, ordinance or a regulation adopted pursuant to a county charter, that regulates the zoning, development or use of land within the boundaries of an unincorporated area of the county shall be deemed a county affair within the meaning of Section 4 and shall prevail over a conflicting state statute. No voter approved local initiative that regulates the zoning, development or use of land within the boundaries of any county shall be overturned or otherwise nullified by any legislative body. (b) A county charter provision, general plan, specific plan, ordinance or a regulation adopted and applicable to an unincorporated area within a county, may be determined only by a court of competent jurisdiction, in accordance with Section 4, to address either a matter of statewide concern or a county affair if that provision, ordinance, or regulation conflicts with a state statute with regard to only the following:
(1) The California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), or a successor statute. (2) The siting of a power generating facility capable of generating more than 50 megawatts of electricity and the California Public Utilities Commission has determined that a need exists at that location that is a matter of statewide concern. (3) The development or construction of a water, communication or transportation infrastructure project for which the Legislature has declared in statute the reasons why the project addresses a matter of statewide concern and is in the best interests of the state. For purposes of this paragraph, a transportation infrastructure project does not include a transit-oriented development project, whether residential, commercial, or mixed-use.
(c) No modification to appropriations for state funded programs shall occur, and no state grant applications or funding shall be denied as a result of the application of this section. No benefit or preference in state appropriations or grants shall be given to an entity that opts not to utilize the provisions of this section.
(d) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SECTION 3. Section 5.5 is added to Article XI of the California Constitution, to read:

SEC. 5.5. (a) Except as provided in subdivision (b), in the event of a conflict with a state statute, a city charter provision, general plan, specific plan, ordinance or a regulation adopted pursuant to a city charter, that establishes land use policies or regulates zoning or development standards within the boundaries of the city shall be deemed a municipal affair within the meaning of Section 5 and shall prevail over a conflicting state statute. No voter approved local initiative that regulates the zoning, development or use of land within the boundaries of any city shall be overturned or otherwise nullified by any legislative body. (b) A city charter provision, general plan, specific plan, ordinance or a regulation adopted pursuant to a city charter, may be determined only by a court of competent jurisdiction, in accordance with Section 5, to address either a matter of statewide con cern or a municipal affair

58277666.v2
if that provision, ordinance, or regulation conflicts with a state statute with regard to only the following:
(1) The California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), or a successor statute. (2) The siting of a power generating facility capable of generating more than 50 megawatts of electricity and the California Public Utilities Commission has determined that a need exists at that location that is a matter of statewide concern. (3) The development or construction of a water, communication or transportation infrastructure project for which the Legislature has declared in statute the reasons why the project addresses a matter of statewide concern and is in the best interests of the state. For purposes of this paragraph, a transportation infrastructure project does not include a transit-oriented development project, whether residential, commercial, or mixed-use.
(c) No modification to appropriations for state funded programs shall occur, and no state grant applications or funding shall be denied as a result of the application of this section. No benefit or preference in state appropriations or grants shall be given to an entity that opts not to utilize the provisions of this section.
(d) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SECTION 4. Section 7 of Article XI of the California Constitution is amended to read:

SEC. 7. (a) A county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not that are not, except as provided in subdivision (b), in conflict with general laws. A county or city may not supersede or otherwise interfere with any voter approved local initiative pertaining to land use or zoning restrictions. (b) A county or city general plan, specific plan, ordinance or regulation that regulates the zoning, development or use of land within the boundaries of the county or city shall prevail over conflicting general laws, except for only the following:
(A) A coastal land use plan, ordinance or regulation that conflicts with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), or a successor statute.
(B) An ordinance or regulation that addresses the siting of a power generating facility capable of generating more than 50 megawatts of electricity and the California Public Utilities Commission has determined that a need exists at that location that is a matter of statewide concern.
(C) An ordinance or regulation that addresses the development or construction of a water, communication or transportation infrastructure project for which the Legislature has declared in statute the reasons why the project addresses a matter of statewide concern and is in the best interests of the state. For purposes of this subparagraph, a transportation infrastructure project does not include a transit- oriented development project, whether residential, commercial, or mixed-use.

58277666.v2
(c) No modification to appropriations for state funded programs shall occur, and no state grant applications or funding shall be denied as a result of the application of this section. No benefit or preference in state appropriations or grants shall be given to an entity that opts not to utilize the provisions of this section.
(d) The provisions of this subdivision are severable. If any provision of this subdivision or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members

FROM: Nils Bensten, City Manager
BY: Rachel Molina, Assistant City Manager
Bethany Hudson, Administrative Analyst

SUBJECT: Final Tract Map 18214

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2022-06 approving Final Tract Map No. 18214 to create a 36 Single-family Residential lot subdivision on approximately 21.9 gross acres in the R1-18000 zone located south of Ranchero Road between Glider Avenue and Jenkins Avenue. (Applicant: Prime 40 West, LLC APN: 0397-091-05 and 0397-161-10, 12, 13 and 17).

BACKGROUND

On January 8, 2009, the Planning Commission approved Tentative Tract Map No. 18214 to create 44 Single-family Residential lots on 26.1 gross acres in the R1 -18000 zone located south of Ranchero Road between Glider Avenue and Jenkins Avenue.

On November 29, 2017, the Design Review Committee approved a Tentative Tract Revision for Tentative Tract Map 18214 to create a 36 Single-family Residential lot subdivision on approximately 21.9 gross acres in the R1-18000 zone located south of Ranchero Road between Glider Avenue and Jenkins Avenue.

Staff has reviewed the final map and determined that it complies with all General Plan and zoning regulations, all required conditions of approval, and with all local ordinances related to the creation of these parcels. The developer has executed a Subdivision Agreement in accordance with local ordinances and the Subdivision Map Act.

ISSUES/ANALYSIS

There are no issues identified with this item.

FISCAL IMPACT

None

ALTERNATIVE(S)

1. Provide alternative direction to staff.

Staff Report to the Mayor and Council Members
Final Tract Map 18214
February 15, 2022

ATTACHMENT(S)

1. Resolution No. 2022-06

2. Final Tract Map No. 18214

RESOLUTION NO. 2022-06

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPER IA, CALIFORNIA, APPROVING FINAL TRACT MAP NO. 18214 TO CREATE 36 LOTS ON 21.9 GROSS ACRES IN THE R1-18000 ZONE LOCATED SOUTH OF RANCHERO ROAD BETWEEN GLIDER AVENUE AND JENKINS AVENUE. (APPLICANT: PRIME 40 WEST, LLC APN: 0397-091-05 AND 0397-161-10, 12, 13 AND 17)

WHEREAS, on January 8, 2009 the Planning Commission recommended that Tentative Tract Map No. 18214 for approval; and

WHEREAS, on November 29, 2017 the Design Review Committee approved a revision to Tentative Tract Map No. 18214; and

WHEREAS, Tract Map No. 18214 is to create 36 lots on 21.9 gross acres in the R1-18000 zone located south of Ranchero Road between Glider Avenue and Jenkins Avenue; and

WHEREAS, all legal prerequisites to the adoption of this resolution have occurred.

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

Section 1. Final Tract Map No. 18214 is hereby approved, and the City Clerk is authorized to present same to the County Recorder to be filed for record.

Section 2. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 15th day of February 2022.

Brigit Bennington
Mayor

ATTEST:

Melinda Sayre
City Clerk

Attachment 2

City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Ryan Leonard, Senior Planner
SUBJECT: Specific Plan Amendment SPLA21-00004; Applicant: Anastasi Properties; APNs:
0405-052-03 thru 07

RECOMMENDED ACTION
The Planning Commission recommends that the City Council introduce and place on first reading Ordinance No . 2021 -11 approving Specific Plan Amendment SPLA21 -00004 to change approximately 35 gross acres from Office Park (OP) to Low Density Residential (LDR) with a minimum lot size of 7,200 square feet.

PROJECT SUMMARY

Proposal: Anastasi Properties submitted an application requesting a Specific Plan Amendment to change approximately 17 acres (APNs 0405 -052-04, 05, 06) within the Main Street and Freeway Corridor Specific Plan from Office Park (OP) to Low Density Residential (LDR). In addition, staff expanded the application to include an additional 18 gross acres (APNs 0405-052- 03 and 07).

Location: Generally located on the west side of Topaz Avenue, south of Verde Street, approximately 375 feet east of Blanchard Rd (APNs: 0405-052-03 thru 07)

BACKGROUND

On November 4, 2021, staff presented SPLA21 -00004 to the Planning Commission and discussed Ballot Measure N which among other things , increased the minimum lot size requirement in the Low Density Residential (LDR) zone from 7,200 square feet to 14,520 square feet. However, Measure N can’t become effective until January 1, 2030 or until State law allows.

Staff recommended that if SPLA21 -00004 is approved, the zoning reflect a minimum lot size of 14,520 square feet. The Planning Commission deliberated and discussed the project, including staff’s recommended minimum lot size requirements, and voted 3 -1 (Commissioner Leis voted no; Commissioner Caldwell was absent) to forward this item to the City Coun cil with a recommendation for approval and to modify staff’s recommendation to allow for a minimum lot size of 7,200 square feet.

On December 21, 2021, staff presented SPLA21 -00004 to the City Council for review and consideration. The Council discussed the project and the recommended minimum lot size requirements. The Council voted 5-0 to continue SPLA21 -00004 to a future meeting and requested a separate item be brought back for a presentation on land-use designations along the freeway corridor, the likelihood of a future hospital being constructed in the City of Victorville, as

Staff Report to the City Council
SPLA21-00004
February 15, 2022

well as information about proposed freeway interchanges. Staff presented the requested items to the Council on January 18, 2022.

Conclusion: Staff is upholding its original recommendation that if SPLA21-00004 is approved, the zoning reflect a minimum lot size of 14,520 square feet consistent with the requirements of Ballot Measure N, which is not yet in effect. The properties are currently zoned Office Park (OP) and residential uses are prohibited in the zone. If SPLA21-0004 is approved it would allow for new residential uses that aren’t currently permitted. Therefore, the City can choose the preferred lot size.

Alternatively, the Council could deny the requested zone change for all but one of the parcels that make up the 35 acre project area. Staff recommends that APN 0405-052-07 which is a part of an approved tentative tract map (TT-17655) to create 118 single family lots be changed from Office Park (OP) to Low Density Residential (LDR) . The existing Office Park (OP) zoning designation for this parcel was likely an administrative error.

FISCAL IMPACT

None

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance No. 2021-11

2. Exhibit "A"

3. Planning Commission Staff Report with attachments.

ORDINANCE NO. 2021-11

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA,

CALIFORNIA ADOPTING A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMATELY 35 GROSS ACRES WITHIN THE MAIN STREET AND

FREEWAY CORRIDOR SPECIFIC PLAN FROM OFFICE PARK (OP) TO LOW DENSITY RESIDENTIAL (LDR) (SPLA21-00004)

WHEREAS, on January 5, 1998, the City Council of the City of Hesperia adopted Ordinance No. 250, thereby adopting the Hesperia Municipal Code; and

WHEREAS, On September 2, 2008, the City Council of the City of Hesperia adopted Ordinance No. 2008-12, thereby adopting the Main Street and Freeway Corridor Specific Plan; and

WHEREAS, Anastasi Properties has initiated an application for SPLA21-00004 described herein (hereinafter referred to as the “Application”) for assessor’s parcels 0405-052-03 thru 07; and

WHEREAS, the application proposes to change approximately 35 gross acres within the Main Street and Freeway Corridor Sp ecific Plan from Office Park (OP) to Low Density Re sidential (LDR) with a minimum lot size of 14,520 square feet; and

WHEREAS, on November 3, 2020 Hespe ria voters approved Ballot Measure N which among other things, changed the Low Density R esidential (LDR) development standards in the Main Street and Freeway Corridor Specific Plan to require a mi nimum lot size of 14,520 square feet.

Measure N can’t become effective until January 1, 2030 or until State law allows; and

WHEREAS, the site is currently zoned Office Park (OP) which does not allow for residential uses. Therefore, the City can choose t he preferred lot size since any new residential land us e will result in an increase in density; and

WHEREAS, the properties to the south and east are within the Low Density Residential (LDR) zone and the properties to the west and north are within the Office Park (OP) zone of the Main Street and Freeway Corridor Specific Plan; and

WHEREAS, there has been very little interest from developers to develop the property with commercial or office uses primarily because the pro perty is located approximately 1.8 miles from the nearest on/off ramp; and

WHEREAS, the project is exem pt from the California Environmental Quality Act (CEQA) per Section 15061(b)(3), where it can be seen with certainty that there is no significant effect on the environment. The prop osed Specific Plan Amendment is exempt from the requirements of the California Environmental Quality Act by Section 16.12.415(B)(10) of the City’s CEQA Guidelines, as Specific Plan Amendments are exempt if they do not propose to incre ase the density or intensity allowed by the General Plan , Office Park (OP) uses are more inten sive than Low Density Residential uses; and

WHEREAS, on November 4, 2021, the Planning Commission of the City of Hesperia conducted a duly noticed public hearin g pertaining to the proposed amendment and forwarded this item to the City Council with a recommendation for approval and to modify staff ’s recommendation to allow for a minimum lot size of 7,200 square feet; and
ATTACHMENT 1

Ordinance No. 2021-11

WHEREAS, on December 7, 2021, the City Council of the City of Hesperia conducted a duly noticed public hearing pertaining to the proposed amendment and continued SPLA21-00004 to a future meeting. The Council requested a separate item be brought back for a presentation on land-use designations along the freeway c orridor, the likelihood of a future hospital being constructed in the City of Victorville, as well as information about proposed freeway interchanges. Staff presented the requested items to the Council on January 18, 2022; and

WHEREAS, on February 15, 2022, the City Council of the City of Hesperia conducted a duly noticed public hearing pertaining to the proposed amendment and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CI TY OF HESPERIA DO ES ORDAIN AS FOLLOWS:

Section 1. The City Council hereby specifically finds that all of the facts set forth in this Ordinance are true and correct.

Section 2. The subject parcels of the proposed Amendment are suitable for the land uses allowed in the Low Density Residential (LDR) zoning classification, and adequate space exists which can meet the standards for setbacks, height, lot coverage, parking and circulation within the proposed Specific Plan designation.

Section 3. The proposed change in zone will n ot have a significant adverse impact on surrounding properties or the community in g eneral, because the project is bounded by land that is zoned Low Density R esidential (LDR) to the south a nd to the east. In addition, an approved tentative tract map (TT-17655) to create 118 single family lots is immediately to the south, and a recorded Tract (TT-17291) to develop 281 single family homes is immediately to the east.

Section 4. Based upon s ubstantial evidence presented to the Commission, including written and oral s taff reports, the Commission specifically finds that the proposed Ordinance is consistent with the goals and objectives of the adopted General Plan. The subject parcels are capable of utilizing existing supporting in frastructure and municipal services, as directed by the City’s adopted General Plan.

Section 5. Based on the findings and conclusions set forth in this Resolution, this Commission hereby recommends adoption of Specific Plan Amendment SPLA21-00004, to change approximately 35 gross acres within the Main Street and Freeway Corridor Specific Plan from Office Park (OP) to Low Density Residential (LDR) with a minimum lot size of 14,520 square feet (LDR-14,520) as shown on Exhibit “A.”

Section 6. This Ordinance shall take effect thirty (30) days from the date of adoption.

Section 7. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be posted in three (3) public places within the City of Hesperia pursuant to the provisions of Resolution No. 2007-101

ADOPTED AND APPROVED on this 15th day of February 2022.

Ordinance No. 2021-11

__________________________________ _______________________________ Brigit Bennington, Mayor

ATTEST:

_________________________________________
Melinda Sayre, City Clerk

SPLA21-00004

A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMATELY 35 GROSS

ACRES FROM OFFICE PARK (OP) TO LOW DENSITY RESIDENTIAL WITH A MINIMUM LOT SIZE OF 14,520 SQUARE FEET (LDR-14,520)

Exhibit “A”

DATE: November 4, 2021
TO: Planning Commission
FROM: Chris Borchert, Principal Planner
BY: Ryan Leonard, Senior Planner
SUBJECT: Specific Plan Amendment SPLA21-00004; Applicant: Anastasi Properties; APNs:
0405-052-03 thru 07

RECOMMENDED ACTION
It is recommended that the Planning Commission adopt Resolution No. PC -2021-16 recommending that the City Council introduce and place on first reading an ordinance approving SPLA21-00004 to change approximately 35 gross acres from Office Park to Low Density Residential with a minimum lot size of 14,520 square feet.

BACKGROUND
Proposal: Anastasi Properties submitted an application requesting a Specific Plan Amendment to change approximately 17 acres (APNs 0405 -052-04, 05, 06) within the Main Street and Freeway Corridor Specific Plan from Office Park (OP) to Low Density Residential (LDR).

Staff has expanded the application to include an additional 18 gross acres (APNs 0405-052-03 and 07) (Attachment 1). Inclusion of the two additional parcels will create a logical transition between the subject property and the residential uses to the south and east. In addition, APN 0405-052-07 which is adjacent to Topaz Avenue is a part of an approved tentative tract map (TT- 17655) to create 118 single family lots. The existing Office Park (OP) zoning designation for this parcel was likely an adm inistrative error. On the west side of the site, APN 0405 -052-03 is built with a single family residence, which is a legal non -conforming use that will be corrected if SPLA21-0004 is approved.

Location: Generally located on the west side of Topaz Avenue, south of Verde Street, approximately 375 feet east of Blanchard Rd (APNs: 0405-052-03 thru 07) General Plan and Land Uses: The project consists of five parcels that total approximately 35 gross acres. Four (4) of the parcels are vacant and APN 0405-052-03 is built with a single-family house. The subject parcels are all currently zoned Office Park (OP) within the Main Street and Freeway Corridor Specific Plan (Specific Plan). The surrounding land is designated as noted o n Attachment 1. The properties to the north are vacant. The properties to the south are vacant, but a portion of the land consists of an approved tentative tract map (TT-17655) to create 118 single family lots. The properties to the east consist of partial ly built tract homes. The property to the west consists of a contractor yard. (Attachment 2)

Attachment 3

ISSUES/ANALYSIS
Land Use: The subject parcels are currently zoned Office Park (OP) which allow for administrative, business and professional activities in relatively large campus like settings. This zone also allows limited commercial uses that support the office uses and their employees.

Residential uses are prohibited within the Office Park (OP) zone.

Although the City originally planned for the subject parcels to be developed with office and commercial uses, very little interest has ever been expressed from developers. One of the primary reasons for the lack of demand is that the properties are located approximately 1.8 miles from the nearest freeway on/off ramp. The applicant recently approached the City and stated that they are not able to develop the property as it is currently zoned due to a lack of demand for commercial and office space in the area. The applicant subsequently submitted an application for SPLA21 - 00004 to change the land use designation from Office Park (OP) to Low Density Residential (LDR). The Low Density Residential (LDR) zone allows single family residential uses with a minimum lot size of 7,200 square feet.

On November 3, 2020 Hesperia voters approved Ballot Measure N which among other things, changed the Low Density Residential (LDR) development standards in the Main Street and Freeway Corridor Specific Plan to require a minimum lot size of 14,520 square feet. However, Measure N can’t become effective until January 1, 20 30 or until State law allows. Staff is recommending that if SPLA21 -0004 is approved, the zoning reflect a minimum lot size requirement of 14,520 square feet (Exhibit A). Since the properties are currently zoned Office Park (OP), the City can choose the prefe rred lot size, as any new residential use is an increase in overall density. For these reasons staff supports the proposed Specific Plan Amendment.

The proposed Low Density Residential (LDR) designation would be appropriate in that other properties nearby are similarly zoned. The project is bounded by land that is zoned Low Density Residential (LDR) to the south and to the east. In addition, an approved tentative tract map (TT- 17655) to create 118 single family lots is immediately to the south, and a recorded Tract (TT- 17291) to develop 281 single family homes is immediately to the east. Both of the adjacent tracts are within the Low Density Residential (LDR) zone.

Drainage: Any future development will be required to handle the increase in storm water runoff as a result of construction of a project. Future applicants will be required to submit a drainage study when they apply for a site plan review.

Water and Sewer: The subject parcels have the ability to connect to existing water and sewer lines.

Environmental: The project is exempt from the California Environmental Quality Act (CEQA) per Section 15061(b)(3), where it can be seen with certainty that there is no significant effect on the environment. The proposed Specific Plan Amendment is also exempt from the requirements of the California Environmental Quality Act by Section 16.12.415(B)(10) of the City’s CEQA Guidelines, as Specific Plan Amendments are exempt if they do not propose to increase the density or intensity allowed in the General Plan. Office Park (OP) has a higher impact to services than Low Density Residential (LDR).

Conclusion: The subject parcels are located adjacent to other single family homes and residentially zoned properties. The proposed Low Density Residential (LDR) with a minimum lot size of 14,520 square feet zoning designation is appropriate at this location and conforms to the

Staff Report to the Planning Commission
SPLA21-00004
November 4, 2021

Staff Report to the Planning Commission
SPLA21-00004
November 4, 2021
polices of the City’s General Plan and standards of the Development Code and Specific Plan with adoption of the Specific Plan Amendment.

FISCAL IMPACT
None

ALTERNATIVE(S)
Provide alternative direction to staff.

ATTACHMENT(S)

1. General Plan Map

2. Aerial Photo

3. Resolution No. PC-2021-16 with Exhibit "A"

APPLICANT:

ANASTASI PROPERTIES
FILE NO:

SPLA21-00004
LOCATION:

WEST SIDE OF TOPAZ AVE, SOUTH OF VERDE ST, APPROXIMATELY 375

FEET EAST OF BLANCHARD RD
APNs : 0405-052-03 thru 07
PROPOSAL:

CHANGE APPROXIMATELY 35 GROSS ACRES WITHIN THE M AIN STREET AND

FREEWAY CORRIDOR SPEC IFIC PLAN FROM OFFICE PARK (OP) TO LOW DENSITY

RESIDENTIAL (LDR)
N


GENERAL PLAN MAP
ATTACHMENT 1

PROJECT SITE

APPLICANT:

ANASTASI PROPERTIES
FILE NO:

SPLA21-00004
LOCATION:

WEST SIDE OF TOPAZ AVE, SOUTH OF VERDE ST, APPROXIMATELY 375

FEET EAST OF BLANCHARD RD
APNs : 0405-052-03 thru 07
PROPOSAL:

CHANGE APPRO XIMATELY 35 GROSS ACRES WITHIN THE MAIN STRE ET AND

FREEWAY CORRIDOR SPEC IFIC PLAN FROM OFFICE PARK (OP) TO LOW DENSITY

RESIDENTIAL (LDR)
N


AERIAL PHOTO
ATTACHMENT 2

PROJECT SITE
0405-052-03 0405-052-
04 0405-052-05 0405-052-06 0405-052-
07

RESOLUTION NO. PC-2021-16

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

HESPERIA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMATELY 35

GROSS ACRES WITHIN THE MAIN STREET AND FREEWAY C ORRIDOR

SPECIFIC PLAN FROM OFFICE PARK (OP) TO LOW DENSI TY
RESIDENTIAL WITH A MINIMUM LOT SIZE OF 14,520 SQUARE F EET (LDR- 14520) (SPLA21-00004)
WHEREAS, on January 5, 1998, the City Council of the City of Hesperia adopted Ordinance No. 250, thereby adopting the Hesperia Municipal Code; and WHEREAS, On September 2, 2008, the City Council of the City of Hesperia adopted Ordinance No. 2008-12, thereby adopting the Main Street and Freeway Corridor Specific Plan; and WHEREAS, Anastasi Properties has initiated an appl ication for SPLA21-00004 described herein (hereinafter referred to as the “Application”) for assessor’s parcels 0405-052-03 thru 07; and
WHEREAS, the application proposes to change approximately 35 gross acres within the Main Street and Freeway Corridor S pecific Plan from Office Park (OP) to Low Density Re sidential (LDR) with a minimum lot size of 14,520 square feet; and WHEREAS, on November 3, 2020 Hespe ria voters approved Ballot Measure N which among other things, changed the Low Density R esidential (LDR) development standards in the Main Street and Freeway Corridor Specific Plan to require a minimum l ot size of 14,520 square feet.

Measure N can’t become effective until January 1, 2030 or until State law allows; and WHEREAS, the site is currently zoned Office Park (OP) which does not allow for residential uses. Therefore, the City can choose the preferred lot size since any new residential land use will result in an increase in density; and
WHEREAS, the properties to the south and east are within the Low Density Residential (LDR) zone and the properties to the west and north are within the Office Park (OP) zone of the Main Street and Freeway Corridor Specific Plan; and
WHEREAS, there has been very little interest from developers to develop the pr operty with commercial or office uses primarily because the pro perty is located approximat ely 1.8 miles from the nearest on/off ramp; and
WHEREAS, the project is exem pt from the California Environmental Quality Act (CEQA) per Section 15061(b)(3), where it can be seen with certainty that there is no significant effect on the environment. The proposed Specific Plan Amendment is exempt from the requirements of the California Environmental Quality Act by Section 16.12.415(B)(10) of the City’s CEQA Guidelines, as Specific Plan Amendments are exempt if they do not propose to incre ase the density or intensity allowed by the General Plan , Office Park (OP) uses are more inten sive than Low Density Residential uses; and
ATTACHMENT 3

WHEREAS, on November 4, 2021, the Planning Commission of the City of Hesperia conducted a duly noticed public hearin g pertaining to the proposed amendment and concluded said hearing on that date; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE , BE IT RESOLVED BY T HE CITY OF HESPERIA PLANNING COMMISSION AS FOLLOWS:

Section 1. The Planning Commission hereby specifically finds that all of the facts se t forth in this Resolution are true and correct.

Section 2. The subject parcels of the p roposed Amendment are suitable for the land uses allowed in the Low Density Residential (LDR) zoning classification, and adequate space exists which can meet the standards for setbacks, height, lot coverage, parking and circulation within the proposed Specific Plan designation.

Section 3. The proposed change in zone will n ot have a significant adverse impact on surrounding properties or the community in g eneral, because the project is bounded by land that is zoned Low Density R esidential (LDR) to the south and to the east . In addition, an approved tentative tract map (TT-17655) to create 118 single family lots is immediately to the south, and a recorded Tract (TT-17291) to develop 281 single family homes is immediately to the east.

Section 4. Based upon substantial evi dence presented to the Commission, including written and oral s taff reports, the Commission specifically finds that the proposed Ordinance is consistent with the goals and objectives of the adopted General Plan. The subject parcels are capable of utilizing existing supporting infrastructure and municipal services, as directed by the City’s adopted General Plan.

Section 5. Based on the findings and conclusions set forth in this Resolution, this Commission hereby recommends adoption of Specific Plan Amendment SPLA21-00004, to change approximately 35 gross acres within the Main Street and Freeway Corridor Specific Plan from Office Park (OP) to Low Density Residential with a minimum lot size of 14,520 square feet (LDR-14520) as shown on Exhibit “A.” Section 6. That the Secretary shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED on this 4th day of November 2021.
__________________________________ _______________________________ Cody Leis, Chair, Planning Commission
ATTEST:
_________________________________________
Maricruz Montes, Secretary, Planning Commission

SPLA21-00004
A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMATELY 35 GROSS

ACRES FROM OFFICE PARK (OP) TO LOW DENSITY RESIDENTIAL WITH A MINIMUM LOT SIZE OF 14,520 SQUARE FEET (LDR-14520)
Exhibit “A”

City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Casey Brooksher, Director of Administrative Services

SUBJECT: Adoption of Resolution Establishing the Formation of Community Facilities District No. 2021 -1 (Residential Maintenance and Services) and Future Annexation Area, Calling for a Special Election, and Declaring the Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien

RECOMMENDED ACTION

It is recommended that the City Council conduct the Public Hearing and after receiving public testimony and deliberation: 1) Adopt a Resolution Establishing the Formation of the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (“CFD 2021-1”) and Future Annexation Area, 2) Adopt a Resolution Calling a Special Election and 2) Adopt a Resolution Declaring the Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien.

BACKGROUND

The Mello -Roos Community Facilities Act of 1982 (Government Code Section 53311 and following) (the “Act”) contains the statutory framework pursuant to which the City of Hesperia (the “City”) or other local agencies may form a community facilities district (“CFD”) for the purpose of financing the purchase, construction, expansion, improvement or rehabilitation of public facilities or the provision of certain authorized public services or maintenance. A CFD may finance such public facilities, services or maintenance through the levy of special taxes within the geographic boundaries of the CFD. Additionally, to the extent a CFD is formed to pay for public facilities, bonds secured by such special taxes may be issued for a CFD. No bonds may be issued for a CFD formed to fund services.

The City is currently considering the formation of CFD 2021 -1 to fund maintenance and associated services related to new residential development. The City adopted Local Goals and Policies related to the use of CFDs at the April 1, 2008 City Council meeting as Resolution No. 2008-032, as required by the Act. On December 21, 2021, the City Council adopted Resolution 2021-61 (the “ROI”), which declared the City’s intention to establish a Community Facilities District and Future Annexation Area and authorize the levy of special taxes for CFD 2021-1. A place and time for the public hearing was also set for February 1, 2022 and was on February 1 continued to February 15, 2022. The ROI includes a description of the services to be provided, a map of the boundary of CFD 2021 -1, including Future Annexation Area, and the Rate and Method of Apportionment (the “RMA”) which details the manner in which special taxes may be levied within CFD 2021-1. A Future Annexation Area allows future developments within the area to annex by unanimous written consent of the property owner.

Staff Report to the Mayor and Council Members
Adoption of Resolution of Formation for CFD 2021-1
February 15, 2022

ISSUES/ANALYSIS

Public Hearing
If the owners of one-half or more of the area of the land in the territory proposed to be included in the district and not exempt from the special tax file written protests against the establishment of the district, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to create the specified community faciliti es district or to authorize the specified special tax shall be taken tonight.

Resolution of Formation of the CFD and Future Annexation Area If the City Council determines to proceed with the district and future annexation area formation, it shall adopt a resolution of formation establishing the district and future annexation area. The resolution of formation shall contain all of the information required to be included in the resolution of intention to establish the district specified in Section 53321.

If a special tax is proposed to be levied in the district to pay for any facilities or services and the special tax has not been eliminated by majority protest pursuant to Section 53324, the resolution shall:
a) state that the proposed special tax to be levied within the district has not been precluded by majority protest;
b) describes the services proposed to be funded with the special tax; c) set forth the name, address, and telephone number of the office, department, or bureau that will be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Section 53340.2.
d) state that upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the district and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. e) set forth the county of recordation and the book and page in the Book of Maps of Assessments and Community Facilities Districts in the county recorder’s office where the boundary map of the proposed community facilities district has been recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code. f) in the resolution of formation adopted pursuant to subdivision (a), the legislative body shall determine whether all proceedings were valid and in conformity with the requirements of this chapter. If the legislative body determines that all proceedings were valid and in conformity with the requirements of this chapter, it shall make a finding to that effect and that finding shall be final and conclusive.

Resolution Calling for a Special Election

Upon adoption of the Resolution of Formation, the City Council will adopt a Resolution Calling for a Special Election for CFD 2021-1. There is on file with the City Clerk a written waiver executed by all of the qualified electors of the CFD 2021 -1 allowing fo r a shortening of the time for the special election to expedite the process of formation of CFD 2021-1 and waiving any requirement for notice, analysis, and arguments in connection with the special election. Accordingly, all qualified electors have been f ully apprised of and have agreed to the shortened time for the special election and waiver of analysis and arguments, and have thereby been fully protected in

Staff Report to the Mayor and Council Members
Adoption of Resolution of Formation for CFD 2021-1
February 15, 2022

these proceedings. As a result, the special election is being held tonight and analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

Resolution Declaring the Result of a Special Election and Directing the Recording of a Special Lien

Once the special election has been held and the City Clerk has canvassed the returns, the City Clerk will file a Canvass and Statement of Results of Special Election, (the “Canvass”) a copy of which is attached to the Resolution Declaring the Result of a Special Election. Pursuant to the resolution, the Cl erk will also complete, execute and cause to the recorded in the office of the County Recorder of the County of San Bernardino notice of special tax lien in the form required by the Act.

Ordinance
If two-thirds of the votes cast are in favor of imposing the special tax, CFD 2021-1 may consider the Ordinance Authorizing the Levy of Special Taxes in a Community Facilities District.

FISCAL IMPACT

As indicated in the Fiscal Impact Analysis, each new single and multi -family property (SFR & MFR) has negative fiscal impacts to the City. Prior to consideration of enhancements for law enforcement, the negative fiscal impacts are as follows:

Description

SFR CFD
Tax Rate

MFR CFD
Tax Rate
Total CFD Special Tax Rate per Dwelling Unit(1) $143.66 $129.96 (1) Rates for services portion; does not include potential CFD administration or reserve/contingency costs

In order to provide enhanced law enforcement, the Fiscal Impact analysis includes the needed funding to provide 0.8 deputy per 1,000 residents. The following table includes the total CFD special tax to mitigate the negative fiscal impacts, enhanced law enforcement, and costs to administer the CFD.

Description
Annual SFR
Tax Rate
Annual MFR
Tax Rate
Total Negative Fiscal Impact per Dwelling Unit $143.66 $129.96 Enhanced Police Protection Services 620.29 357.49
CFD Administration Costs 76.40 48.75
Total CFD Special Tax Rate per Dwelling Unit $840.35 $536.20

The cost of formation of CFD 2021 -1 is approximately $17,000, which will be borne by the City.

Subsequently, should any development be annexed into the district, those costs are approximately $4,000 and will be paid by the developer.

ALTERNATIVES

Staff Report to the Mayor and Council Members
Adoption of Resolution of Formation for CFD 2021-1
February 15, 2022

1. Provide alternative direction to Staff.

ATTACHMENTS

1. Resolution Establishing the Formation of the CFD

2. Resolution Calling for a Special Election

3. Resolution Declaring the Results of a Special Landowner Election

4. Ordinance Authorizing the Levy of Special Taxes in a Community Facilities District

5. CFD Special Tax Report

RESOLUTION NO. 2022-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE

OF CALIFORNIA, ESTABLISHING THE FORMATION OF A COMMUNITY

FACILITIES DISTRICT AND FUTURE ANNEXATION AREA

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)
WHEREAS, on December 21, 2021, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted Resolution No. 2021-61 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District and Future Annexation Area, and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”), stating its intention to form the “City of Hesperia, Community Facilities District No. 2021-1 (Residential Maintenance and Services)” (the “District”) and “City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”), of the City pursuant to the Mello- Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and
WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the District and Future Annexation Area and stating the services to be provided, the estimated cost of providing such services, and the rate and method of apportionment of the special tax to be levied within the District to pay for the services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and
WHEREAS, under the Resolution of Intention, the Director of Public Works was directed to make, or cause to be made, and file with the City Clerk a report (the “Report”) in writing, presenting the services to be provided and an estimate of the reasonable cost of providing the services. The Report was prepared and submitted to the City Clerk prior to the public hearing described below; and WHEREAS, the Resolution of Intention called for a public hearing pertaining to the formation of the District and Future Annexation Area and the levy of said special tax to be held on February 1, 2022; and WHEREAS, on February 1, 2022, the Council opened and continued the public hearing to February 15, 2022, at 6:30 p.m., or as soon thereafter as the matter may be heard, at the meeting place of the City Council; and
WHEREAS, appropriate notices were mailed, published and/or posted as required by law; and WHEREAS, under the Resolution of Intention, the City Clerk was directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District and Future Annexation Area, and the City Clerk caused the publication of such notice at least seven (7) days before the date set for said public hearing; and

WHEREAS, on February 15, 2021, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the District and Future Annexation Area; and
WHEREAS, at the public hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area, the services to be provided therein and the levy of such special tax were heard and a full and fair public hearing was held; and WHEREAS, written protests with respect to the formation of the District and Future Annexation Area, the furnishing of specified types of services and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or property owners of one-half (1/2) or more of the area of land within the District and Future Annexation Area and not exempt from the proposed special taxes; and
WHEREAS, the special tax proposed to be levied in the District to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or the owners of one-half (1/2) or more of the area of land within the District and Future Annexation Area and not exempt from the special taxes.

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

Section 1. The foregoing recitals are true and correct.

Section 2. The proposed special tax to be levied within the District has not been precluded by majority protest pursuant to Section 53324, 53339.6 and/or other applicable provisions of the Act.

Section 3. All prior proceedings taken by the City Council in connection with the establishment of the District and Future Annexation Area and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the requirements of the Act. The City Council has heretofore adopted Local Goals and Policies for Community Facilities Districts, and the City Council hereby finds and determines that the District and Future Annexation Area are in conformity with said goals and policies.

Section 4. Thecommunity facilities district designated as the “City of Hesperia, Community Facilities District No. 2021-1 (Residential Maintenance and Services)” and the future annexation area designated as “City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (Future Annexation Area)” of the City is hereby established pursuant to the Act.

Section 5. The District Report is hereby approved.

Section 6. The boundaries of the District and Future Annexation Area, as set forth in the map entitled "Proposed Boundaries of City of Hesperia, Community Facilities District No. 2021-1 (Residential Maintenance and Services) and Future Annexation Area, City of Hesperia, County of San Bernardino County, State of California" heretofore recorded in the San Bernardino County Recorder’s Office on January 4, 2022, in Book 90 at Page 2 as Document 2022-0004210 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference, and shall be the boundaries of the District.

Parcels within the Future Annexation Area shall be annexed to the District only with the unanimous approval (each, a "Unanimous Approval") of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings.

Section 7. The type of public services proposed to be funded by the District and Future Annexation Area and pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference incorporated herein (the “Services”). It is hereby found and determined that the Services are necessary to meet the increased demands as the result of development occurring in the District and Future Annexation Area.

Section 8. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the District pursuant to the Rate and Method of Apportionment, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council or its designee shall determine, including direct billing of the affected landowners.

Section 9. The Rate and Method of Apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the District to estimate the maximum amount such owner will have to pay, is shown in Exhibit B attached hereto and hereby incorporated herein.

Section 10. Territory in the Future Annexation Area will be annexed into the District and a special tax will be levied on such territory only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed into the District. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the Future Annexation Area, is intended to be levied annually within the Future Annexation Area, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council. The City Council hereby determines that the special tax proposed to pay for Services to be supplied within the Future Annexation Area shall be equal to any special tax levied to pay for the same Services in the District, except that a higher or lower tax may be levied within the Future Annexation Area to the extent that the actual cost of providing the Services in the Future Annexation Area is higher or lower than the cost of providing those Services in the District. In so finding, the City Council does not intend to limit its ability to levy a special tax within the Future Annexation Area to provide new or additional services beyond those supplied within the District. The Special Taxes in the original CFD shall be designated as Tax Zone 1. Subsequent annexations may provide for different Zones or the same Zone as provided herein and therein.

Section 11. The Director of Administrative Services for the City, 9700 Seventh Avenue, City of Hesperia, California, 92345, telephone number (760) 947-1876, is the officer of the City who will be responsible for preparing annually a current roll of the levy of the special tax obligations by assessor’s parcel number and who will be responsible for estimating future levies of the special tax.

Section 12. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the collection of the special tax by the City ceases.

Section 13. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the District is hereby preliminarily established at an amount equal to the $100,000 annually, as adjusted by law, commencing Fiscal Year 2022-23, and such appropriations limit shall be submitted to the voters of the District as hereafter provided. Future Annexations to the District will each approve annual appropriations limit increases applicable to such Annexation that will be added to the appropriations limit established at formation and all previously approved annexations to sum to the total appropriations limit for the CFD. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the California Constitution.

Section 14. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this City Council.

15. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 15th day of February, 2022.
____________________________________
Brigit Bennington, Mayor
Attest:
___________________________________
Erin Baum, Assistant City Clerk
Section

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)

DESCRIPTION OF SERVICES TO BE FINANCED BY THE DISTRICT
Services:

The services to be funded, in whole or in part, by the community facilities district (the "District”) consist of all services authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance and lighting of parks, parkways, streets, roads, storm drains, and open space. (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Other:

The incidental expenses that may be funded by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

EXHIBIT B

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. CFD 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
The following pages contain the Rate and Method of Apportionment of Special Tax.

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
C

ITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)
A Special Tax shall be levied and collected in City o f Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (“CFD 2021-1”) each Fiscal Year, in an amount determined by the application of the procedures below. All of the Taxable Property (as defined below) in CFD 2021-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

I. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2 as that may be amended from time to time, that is accessory to a single-unit dwelling. The ADU may be on the same Assessor’s Parcel as the single-unit dwelling or on a separate Assessor’s Parcel.
"Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event that the Assessor’s Parcel Map or Assessor’s Data shows no Acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon the applicable condominium plan, final map, parcel map, or calculated using available spatial data and GIS.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD 2021-1 including, but not limited to, the following: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Tax, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Tax; the costs of the City or designee related to levying or an appeal of the Special Tax; and the costs of commencing and pursuing to completion action arising from any delinquent Special Tax in CFD 2021-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD 2021-1 for any other administrative purposes, including, but not limited to, attorney’s fees.
“Annual Services Costs” means the amounts required to fund services authorized to be funded by CFD 2021-1.
“Annual Special Tax Requirement” means that amount with respect to CFD 2021-1 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the

Annual Services Costs, (3) any amount required to establish or replenish any reserve or replacement fund e
stablished in connection with CFD 2021-1, and (4) any reasonably anticipated delinquent Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year. “Assessor’s Data” means Units, Acreage, or other information contained in the records of the County Assessor for each Assessor’s Parcel.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessment’s Parcel by the County Assessor for purposes of identification. “Boundary Map” means that map recorded with the County Recorder’s office on January 4, 2022, in Book 90 at Page 2 as Document 2022-0004210 of Maps of Assessment and Community Facilities Districts “CFD 2021-1 ” means the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services), County of San Bernardino, State of California. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement and providing for the levy and collection of the Special Taxes. “City” means the City of Hesperia, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD 2021-1. “County” means the County of San Bernardino, California. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD 2021-1 for which a building permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. “Exempt Property” means all Assessor’s Parcels located within the boundary of CFD 2021-1 which are exempt from the Special Tax pursuant to Section E.
“Fiscal Year” means the period starting July 1 and ending on the following June 30th. “
GIS” means a geographic information system.
“Maximum Special Tax” means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section C.
“Multi-Family Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with two or more Units that share a single Assessor’s Parcel Number, are offered for rent to the general public, and cannot be purchased by individual homebuyers, according to Assessor’s Data or as otherwise known by the CFD Administrator. Multi-Family Property also means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with one Unit with a single Assessor’s Parcel Number that is a condominium pursuant the definition in Civil Code Section 4125 or a townhome. “Property Owner’s Association” means any property owner’s association. As used in this definition, a

Property Owner’s Association includes any home-owner’s association, condominium owner’s as
sociation, master or sub-association.
“Property Owner’s Association Property” means any property within the boundaries of CFD 2021-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. “Proportionately” means, in any Fiscal Year, that the ratio of the Special Tax to the Maximum Special Tax is equal for all Assessors’ Parcels Authorized to be levied in that Fiscal Year within each respective Tax Zone.
“Public Property” means any property within the boundaries of CFD 2021-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency.

For purposes of this definition, a public agency includes the federal government, the State, the County, school districts, or any other public agency.
“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax for CFD 2021-1.
“Single Family Residential Property” means, all Assessor’s Parcels of Developed Property with a residential structure intended for a single primary Unit. “Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “State” means the State of California.
“Tax Escalation Factor” means change in the April to April Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) up to a maximum factor of 5% that will be applied annually after Fiscal Year 2022/23 to increase the Maximum Special Tax shown in Section III. Should the specified index cease to be reported, the CFD Administrator will determine a comparable index to use. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD 2021-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD 2021-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD 2021-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation.
“Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD 2021-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Undeveloped Property” means all Assessor’s Parcels of Taxable Property within the boundaries of CFD 2021-1 that are not Developed Property.
“Unit” means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii)

other research by the CFD Administrator. Accessory Dwelling Units are considered Units for purposes of t
he Special Tax.
“Vacant Property” means all Taxable Property that is Undeveloped Property and is not Public Property, Property Owner’s Association Property.
“Welfare Exempt Property” means all Parcels within the boundaries of CFD 2021-1 that have been granted a welfare exemption pursuant to Section 53340 (c) of the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code.

B. DETERMINATION OF TAXABLE PARCELS
On, or about, July 1 of each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD 2021-1. If any Assessor’s Parcel Numbers are no longer valid, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers in effect for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property and Undeveloped Property; (iii) the number of Units or Acreage each Parcel contains; (iv) the property type, i.e., Single Family Residential Property, etc.; and (v) the Annual Special Tax Requirement for the Fiscal Year.

C. MAXIMUM ANNUAL SPECIAL TAX RATE
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property shall be assigned according to the table below:

TABLE 1
MAXIMUM SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2022/23*
Property Type Maximum Special Tax Rate Per
Single Family Residential Property $840.35 Unit
Multi-Family Residential Property 536.20 Unit
Accessory Dwelling Unit
30% of the applicable Maximum
Special Tax Rate for the property
type of the primary Unit
Unit
*On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

In some instances, an Assessor’s Parcel of Developed Property may contain more than one property type.

T
he Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Units of each property type on that Assessor’s Parcel, i.e. more than one Single Family or more than one Multi-Family Unit.

For purposes of clarification, where an Accessory Dwelling Unit and primary Unit are on the same Assessor’s Parcel, the primary Unit and Accessory Dwelling Unit located on such Assessor’s Parcel are both

levied a Special Tax.

S
hould an Assessor’s Parcel contain only an Accessory Dwelling Unit, such Assessor’s Parcel will be levied a Special Tax.

All of the Taxable Property within CFD 2021-1 at the time of its formation is within Tax Zone No. 1.

Additional Tax Zones may be created when property is annexed to CFD 2021-1, and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD 2021-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation. A different Maximum Special Tax rate may be identified in Tax Zones added to CFD 2021-1 as a result of future annexations.

D. METHOD IF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to a Special Tax defined as follows.

The Special Tax shall be levied each Fiscal Year by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD 2021-1 by the method shown below.

First. Determine the Annual Special Tax Requirement.

Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax described in the table below to satisfy the Annual Special Tax Requirement.

Under no circumstances will the Special Tax on any Assessor’s Parcel of Developed Property be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2021-1.

E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on Property Owner’s Association Property, or Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.

Welfare Exempt Property shall thereafter be exempt from the Special Tax for as long as the property qualifies as Welfare Exempt Property.

F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner m
ay then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City Council may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.

H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD 2021-1, and may collect delinquent Special Taxes through available methods.

A Special Tax shall be levied commencing in Fiscal Year 2022/23 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied perpetually or for as long as required to satisfy the Annual Special Tax Requirement, as determined by the CFD Administrator.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

RESOLUTION NO. 2022-11

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE

OF CALIFORNIA, CALLING A SPECIAL ELECTION FOR A COMMUNITY

FACILITIES DISTRICT

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)
WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facilities District No. 2021-1 (Residential Maintenance and Services) (the “District”), defining the public services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and
WHEREAS, pursuant to the provisions of the Resolution of Formation, the propositions of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors of the District as required by the provisions of the Act.

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

Section 1. The foregoing recitals are true and correct.

Section 2. Pursuant to the Act, the issues of the levy of the special tax and the establishment of the appropriations limit sh all be submitted to the qualified electors (as defined below) of the District at a special election called therefor as provided below.

Section 3. The City Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the District for each of the ninety (90) days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings.

Accordingly, and pursuant to Section 53326 of the Act, this City Council finds that, for these proceedings, the qualified electors are the landowners within the District and that the vote shall be by such landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the District as of the close of the public hearing.

Section 4. The City Council hereby calls a special election to consider the issues described in Section 2, above, which special election shall be held on February 15, 2022, and the results thereof canvassed at the meeting of this City Council on February 15, 2022. The City Clerk is hereby designated as the official to conduct the special election and to receive all ballots until the close of business on the special election date. It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a map of the boundaries of the District, and a sufficient description to allow the City Clerk to determine the electors of

the District. The special election shall be conducted by messenger or mail-delivered ballot in accordance with the Act.

Section 5. As authorized by Section 53353.5 of the Act, the issues described in Section 2 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit A is hereby approved. The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit A, to be delivered to each of the qualified electors of the District. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot shall be enclosed with the ballot, have the return postage prepaid, and contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot.

Section 6. This City Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the District. There is on file with the City Clerk a written waiver executed by all of the qualified electors of the District allowing for a shortening of the time for the special election to expedite the process of formation of the District and waiving any requirement for notice, analysis, and arguments in connection with the special election. Accordingly, this City Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the special election and waiver of analysis and arguments, and have thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred in the shortened time for the special election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

Section 7. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing the appropriations limit are cast in favor of the proposition after the canvass of the returns of such special election, the City Council may levy such special tax within the District under the Act in accordance with the approved rate and method of apportionment of special tax. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in the Resolution of Formation, subject to the Act, except that the special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered.

Section 8. Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the operation and maintenance Services and the incidental costs thereof t, all as defined in the Resolution of Formation, shall constitute the specific purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual report as required by Section 50075.3 of the Government Code.

Section 9. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 15th day of February, 2022. ____________________________________
Brigit Bennington, Mayor
Attest:
___________________________________
Erin Baum, Assistant City Clerk

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)

SPECIAL TAX ELECTION
(February 15, 2022)

This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Hesperia no later than the hour of 5:00 p.m. on Tuesday, February 15, 2022, either by mail or in person. The City Clerk’s office is located at 9700 Seventh Avenue, Hesperia, California, 92345.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Hesperia and obtain another.

The estimated maximum amount of money raised annually by this measure is expected to be $30,252.42, in 2022/23 special tax rates, upon full build out of the CFD, based on the rate and duration of the special tax and subject to the tax escalation factor, as set forth in the rate and method of apportionment of special taxes for the CFD.

BALLOT MEASURE : Shall the measure authorizing the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (the “District”) to annually levy a special tax solely on lands within the District of up to $840.35 per residence, as adjusted annually, to pay for Services and authorizing an appropriations limit of $100,000, as adjusted by law, and all as provided in the Resolution of Formation adopted by the City Council on February 15, 2022, commencing Fiscal Year 2022-23, be adopted?
YES:

NO:

By execution in the space provided below, you also confirm your written waiver of the time limit pertaining to the conduct of the election and any requirement for form of ballot, analysis and arguments with respect to the ballot measure.

Number of Votes: 22

Property Owner: 40 Prime West LLC

By: __________________________________________

Property Owned by Property Owner: San Bernardino County Assessor’s Parcel Numbers:
0397-091-05-0000, 0397-161-10-0000, 0397-161-12-0000, 0397-161-13-0000, and 0397-161-17-0000

RESOLUTION NO. 2022-12

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE

OF CALIFORNIA, DECLARING RESULTS OF A SPECIAL LANDOWNER

ELECTION AND DIRECTING THE RECORDING OF A SPECIAL TAX LIEN

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)
WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facilities District No. 2021-1 (Residential Maintenance and Services) (the “District”), and the Future Annexation Area designated as the “City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”) defining the public services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and
WHEREAS, under the provisions of the Resolution of Formation, and pursuant to the resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Calling a Special Election for a Community Facilities District” (the “Resolution Calling the Special Election”) heretofore adopted by this City Council, a measure containing propositions relating to the levy of the special tax and the establishment of the appropriations limit was submitted to the qualified electors of the District as required by the provisions of the Act; and
WHEREAS, pursuant to the terms of the Resolution Calling the Special Election, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Results of Special Election, (the “Canvass”) a copy of which is attached hereto as Exhibit A; and
WHEREAS, this City Council has been informed of the Canvass, finds it appropriate and wishes to complete its proceedings for the District.

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

1. The foregoing recitals are true and correct.

2. The issues presented at the special election were the levy of a special tax within the District and the approval of an annual appropriations limit of not to exceed $100,000 as adjusted by law, commencing Fiscal Year 2022-23, annually all pursuant to the Resolution of Formation.

3. The City Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the District. Pursuant to the Canvass, the issues presented at the Section
Section
Section

special election were approved by the qualified electors of the District by more than two-thirds (2/3) of the votes cast at the special election.

4. Pursuant to the voter approval, the District is hereby declared to be fully formed with the authority to levy the special taxes and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act. It is hereby found that all prior proceedings and actions taken by this City Council with respect to the District were valid and in conformity with the Act.

5. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of San Bernardino a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption of this Resolution by the City Council.

Section 6. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 15th day of February, 2022.
____________________________________
Brigit Bennington, Mayor
Attest:
___________________________________
Erin Baum, Assistant City Clerk
Section
Section

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)

CANVASS AND STATEMENT OF RESULT OF SPECIAL ELECTION

I hereby certify that on February 15, 2022, I canvassed the returns of the special election held on February 15, 2022, in the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) of the City of Hesperia and the total number of ballots cast in such special election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes
Votes
Cast
Votes
YES
Votes
NO
City of Hesperia
Community Facilities District No. 2021-1
(Residential Maintenance and Services)
Special Tax Election, February 15, 2022 _22__
_____ _____ _____

BALLOT MEASURE : Shall the measure authorizing the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (the “District”) to annually levy a special tax solely on lands within the District of up to $840.35 per residence, as adjusted annually, to pay for Services and authorizing an appropriations limit of $100,000, as adjusted by law, and all as provided in the Resolution of Formation adopted by the City Council on February 15, 2022, commencing Fiscal Year 2022-23, be adopted?

Yes: __________

No: __________

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on February 15, 2022.

By:

City Clerk
City of Hesperia

ORDINANCE 2022-01

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA,

STATE OF CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES

IN A COMMUNITY FACILITIES DISTRICT

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE & SERVICES)
WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) on December 21, 2021 adopted Resolution No. 2021-61 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District and Future Annexation Area and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”) and has conducted proceedings (the “Proceedings”) to establish the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance & Services) (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”) to finance the costs of the maintenance of police protection services, maintenance and lighting of parks, parkways, streets, roads, storm drains, and open space (the “Services”) as provided in the Act; and
WHEREAS, the Resolution of Intention called for a public hearing to be held on February 15, 2022, or as soon thereafter as the matter may be heard; and WHEREAS, on February 15, 2022, and as part of the Proceedings, this City Council held a public hearing under the Act relative to the determination to proceed with the formation of the District and Future Annexation Area and the rate and method of apportionment of the special tax (the “Special Tax”) to be levied within the District to finance the Services and, at such hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area and the levy of the Special Tax were heard, substantial evidence was presented and considered by this City Council, and a full and fair public hearing was held; and
WHEREAS, upon the conclusion of the hearing, this City Council adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area” (the “Resolution of Formation”), whereby the City Council (i) established the District and Future Annexation Area, (ii) authorized the levy of the Special Tax within the District, and (iii) preliminarily established an appropriations limit for the District, all pursuant to the Act; and WHEREAS, on February 15, 2022, a special election was held among the landowner voters within the District at which the landowner voters approved the proposition relating to the levy of Special Taxes within the District and the establishment of an appropriations limit for

the District by the two-thirds vote required by the Act, which approval has been confirmed by resolution of this City Council; and
WHEREAS, the City Council ordered the recordation with the County Recorder of the County of San Bernardino of a Notice of Special Tax Lien (the “Notice”).

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

SECTION 1: All of the facts set forth in this Ordinance are true, correct and are adopted as findings.

SECTION 2: By the passage of this Ordinance, the City Council hereby authorizes and levies the Special Tax within the District pursuant to the Act, at the rate and in accordance with the rate and method of apportionment of Special Tax set forth in the Resolution of Formation, which rate and method is by this reference incorporated herein. The Special Tax is hereby levied commencing in fiscal year 2022-2023 and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District, as contemplated by the Resolution of Formation and the Proceedings. By this Ordinance, the City Council also authorizes and levies the Special Tax upon any parcels annexed to the District in the Future Annexation Area for fiscal year 2022-2023 and in each fiscal year thereafter.

SECTION 3: The Director of Administrative Services or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Resolution of Formation.

SECTION 4: Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation and the applicable provisions of the Act. In no event shall the Special Tax be levied on any parcel within the District in excess of the maximum Special Tax specified in the Resolution of Formation.

SECTION 5: All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the Special Tax.

SECTION 6: The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Director of Administrative Services of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Bernardino in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of San Bernardino for fiscal year 2022-23 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City.

SECTION 7: If for any reason any portion of this ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District by a court of competent jurisdiction, the balance of this ordinance and the application of the special tax to the remaining parcels within the District shall not be affected.

SECTION 8: The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published immediately after its passage at least once in a newspaper of general circulation for the City.

SECTION 9: This Ordinance shall become effective thirty (30) days following adoption.

SECTION 10: The City Clerk shall certify to the adoption of the Ordinance and shall cause the same to be posted in three (3) public places withing the City of Hesperia pursuant to the provisions of Resolution no. 2007-101.

ADOPTED AND APPROVED this 15th day of February 2022.
__________________________________
Brigit Bennington, Mayor
ATTEST:
__________________________________
Erin Baum, Assistant City Clerk

Prepared by:

Report for:

Community Facilities District No. 2021-1
(Residential Maintenance & Services)
Special Tax Report
January 2022
Prepared by NBS for and on behalf of the City of Hesperia Attachment 5

TABLE OF CONTENTS

INTRODUCTION ..................................................................................................................... 1 DESCRIPTION OF SERVICES ..................................................................................................... 2 Authorized Services: ............................................................................................................ 2 Administrative Expenses: .................................................................................................... 2 Incidental Expenses: ............................................................................................................ 2 COST ESTIMATE ..................................................................................................................... 3 Fiscal Year 2022/23 Maximum Annual Special Tax Rate .................................................... 3 Annual Maximum Special Tax Escalation ............................................................................ 3 APPENDIX A: PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT AND FUTURE ANNEXATION AREA ............................................................................................................... 4 APPENDIX B: RATE AND METHOD OF APPORTIONMENT......................................................... 5

City of Hesperia
Community Facilities District No. 2021-1 (Residential Maintenance and Services) Special Tax Report 1

INTRODUCTION
The City Council (the “City Council”) of the City of Hesperia (the “City”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), on December 21, 2021, adopted Resolution 2021-61 entitled the Resolution of the City Council of the City of Hesperia, State of California, Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes (the “Resolution of Intention”). In the Resolution of Intention, the City Council directed the study and filing of a public hearing report (the “Report”) required by Section 53321.5 of the Act for the proposed City of Hesperia Community Facilities District No. 2021-1 (Hesperia Residential Maintenance & Services) (the “District”).

Section
53321.5 of the Act provides that the Report contain the following:

1. A brief description of the public facilities or services to be provided by the District; and

2. An estimate of the fair and reasonable cost of providing the public facilities or services, including the incidental expenses in connection therewith, any City administration costs, and all other related costs.

For particulars, reference is made to the Resolution of Intention for the District, as previously adopted on December 21, 2021 by the City Council.

NOW, THEREFORE, the Director of Public Works of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit this Report containing the following information:

 DESCRIPTION OF SERVICES. A description of the services that the City Council has determined to be eligible to be funded by the District.
 COST ESTIMATE. The initial maximum cost estimate for the District services and the anticipated initial maximum special tax revenue.
 PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT: The proposed boundaries of the District are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the Services. The proposed boundaries of the District are described on the map of the District.
 RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax which was included in the Resolution of Intention and approved by this City Council on December 21, 2021.

City of Hesperia
Community Facilities District No. 2021-1 (Residential Maintenance and Services) Special Tax Report 2

DESCRIPTION OF SERVICES
The public services and incidental costs authorized to be funded by the special taxes levied in the District consist of the following:

Authorized Services:

The services to be funded, in whole or in part, by the community facilities district (the "District”) consist of all services authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance and lighting of parks, parkways, streets, roads, storm drains, and open space. (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Incidental Expenses:

The incidental expenses that may be funded by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

City of Hesperia
Community Facilities District No. 2021-1 (Residential Maintenance and Services) Special Tax Report 3

COST ESTIMATE
Initial Maximum Amount Proposed to be Expended
The annual budget presented below represents the initial maximum costs for providing the District services as well as the estimated costs for Fiscal Year 2022/23.

District Costs
2022/23 Maximum
Budget Amount
2022/23 Estimated
Budget Amount
District Service Costs $25,752.42 $25,752.42
District Administration Costs $4,500.00 4,500.00
Total: $30,252.42 $30,252.42

Anticipated Fiscal Year 2022/23 Maximum Special Tax Revenue The initial maximum annual special tax rates are set forth in the Rate and Method of Apportionment for the District. Based upon expected development, the initial maximum annual special tax revenue is as follows:

Property Land Use
2022/23
Maximum Annual
Special Tax Rate
2022/23
Total Anticipated
Maximum Annual
Special Tax
Single Family Residential Property $840.35 per Unit $30,252.42 Multi-Family Residential Property $536.20 per Unit 0.00 Accessory Dwelling Unit
30% of the applicable
Maximum Special Tax
Rate for the property
type of the primary
Unit

0.00 Total Anticipated Maximum Annual Special
Tax Revenue (1): $30,252.42
(1) Anticipated based upon the full development of 36 residential lots.

Fiscal Year 2022/23 Maximum Annual Special Tax Rate
The Fiscal Year 2022/23 maximum annual special tax rate for Single Family Residential Property within the District is $840.35 per single family residential lot. The maximum annual special tax rate for Multi-Family Residential Property is $536.20 per unit.

Annual Maximum Special Tax Escalation
On July 1 of each Fiscal Year, commencing on July 1, 2023, the maximum annual special tax rate shall be increased by an amount equal to three percent (5%) of the maximum annual special tax rate in effect for the previous Fiscal Year.

City of Hesperia
Community Facilities District No. 2021-1 (Residential Maintenance and Services) Special Tax Report 4 APPENDIX A: PROPOSED BOUNDARIES OF THE

COMMUNITY FACILITIES DISTRICT AND FUTURE

ANNEXATION AREA
The boundary map and future annexation area for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

City of Hesperia
Community Facilities District No. 2021-1 (Residential Maintenance and Services) Special Tax Report 5 APPENDIX B: RATE AND METHOD OF APPORTIONMENT
The following pages provide a copy of the District’s Rate and Method of Apportionment approved by the City Council on December 21, 2021.

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2021-1
(RESIDENTIAL MAINTENANCE AND SERVICES)

A Special Tax shall be levied and collected in City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services) (“CFD 2021-1”) each Fiscal Year, in an amount determined by the application of the procedures below. All of the Taxable Property (as defined below) in CFD 2021-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

I. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2 as that may be amended from time to time, that is accessory to a single-unit dwelling. The ADU may be on the same Assessor’s Parcel as the single-unit dwelling or on a separate Assessor’s Parcel.
"Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event that the Assessor’s Parcel Map or Assessor’s Data shows no Acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon the applicable condominium plan, final map, parcel map, or calculated using available spatial data and GIS.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD 2021-1 including, but not limited to, the following: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Tax, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Tax; the costs of the City or designee related to levying or an appeal of the Special Tax; and the costs of commencing and pursuing to completion action arising from any delinquent Special Tax in CFD 2021-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD 2021-1 for any other administrative purposes, including, but not limited to, attorney’s fees.
“Annual Services Costs” means the amounts required to fund services authorized to be funded by CFD 2021-1.
“Annual Special Tax Requirement” means that amount with respect to CFD 2021-1 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the

Annual Services Costs, (3) any amount required to establish or replenish any reserve or replacement fund established in connection with CFD 2021-1, and (4) any reasonably anticipated delinquent Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year. “Assessor’s Data” means Units, Acreage, or other information contained in the records of the County Assessor for each Assessor’s Parcel.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessment’s Parcel by the County Assessor for purposes of identification. “Boundary Map” means that map recorded with the County Recorder’s office on January 4, 2022, in Book 90 at Page 2 as Document 2022-0004210 of Maps of Assessment and Community Facilities Districts “CFD 2021-1 ” means the City of Hesperia Community Facilities District No. 2021-1 (Residential Maintenance and Services), County of San Bernardino, State of California. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement and providing for the levy and collection of the Special Taxes. “City” means the City of Hesperia, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD 2021-1. “County” means the County of San Bernardino, California. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD 2021-1 for which a building permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. “Exempt Property” means all Assessor’s Parcels located within the boundary of CFD 2021-1 which are exempt from the Special Tax pursuant to Section E.
“Fiscal Year” means the period starting July 1 and ending on the following June 30 th.
“GIS” means a geographic information system.
“Maximum Special Tax” means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section C.
“Multi-Family Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with two or more Units that share a single Assessor’s Parcel Number, are offered for rent to the general public, and cannot be purchased by individual homebuyers, according to Assessor’s Data or as otherwise known by the CFD Administrator. Multi-Family Property also means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with one Unit with a single Assessor’s Parcel Number that is a condominium pursuant the definition in Civil Code Section 4125 or a townhome. “Property Owner’s Association” means any property owner’s association. As used in this definition, a

Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or sub-association.
“Property Owner’s Association Property” means any property within the boundaries of CFD 2021-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. “Proportionately” means, in any Fiscal Year, that the ratio of the Special Tax to the Maximum Special Tax is equal for all Assessors’ Parcels Authorized to be levied in that Fiscal Year within each respective Tax Zone.
“Public Property” means any property within the boundaries of CFD 2021-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency.

For purposes of this definition, a public agency includes the federal government, the State, the County, school districts, or any other public agency.
“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax for CFD 2021-1.
“Single Family Residential Property” means, all Assessor’s Parcels of Developed Property with a residential structure intended for a single primary Unit. “Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “State” means the State of California.
“Tax Escalation Factor” means change in the April to April Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) up to a maximum factor of 5% that will be applied annually after Fiscal Year 2022/23 to increase the Maximum Special Tax shown in Section III. Should the specified index cease to be reported, the CFD Administrator will determine a comparable index to use. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD 2021-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD 2021-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD 2021-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation.
“Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD 2021-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Undeveloped Property” means all Assessor’s Parcels of Taxable Property within the boundaries of CFD 2021-1 that are not Developed Property.
“Unit” means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii)

other research by the CFD Administrator. Accessory Dwelling Units are considered Units for purposes of the Special Tax.
“Vacant Property” means all Taxable Property that is Undeveloped Property and is not Public Property, Property Owner’s Association Property.
“Welfare Exempt Property” means all Parcels within the boundaries of CFD 2021-1 that have been granted a welfare exemption pursuant to Section 53340 (c) of the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code.

B. DETERMINATION OF TAXABLE PARCELS
On, or about, July 1 of each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD 2021-1. If any Assessor’s Parcel Numbers are no longer valid, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers in effect for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property and Undeveloped Property; (iii) the number of Units or Acreage each Parcel contains; (iv) the property type, i.e., Single Family Residential Property, etc.; and (v) the Annual Special Tax Requirement for the Fiscal Year.

C. MAXIMUM ANNUAL SPECIAL TAX RATE
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property shall be assigned according to the table below:

TABLE 1
MAXIMUM SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2022/23*
Property Type Maximum Special Tax Rate Per
Single Family Residential Property $840.35 Unit
Multi-Family Residential Property 536.20 Unit
Accessory Dwelling Unit
30% of the applicable Maximum
Special Tax Rate for the property
type of the primary Unit
Unit
*On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

In some instances, an Assessor’s Parcel of Developed Property may contain more than one property type.

The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Units of each property type on that Assessor’s Parcel, i.e. more than one Single Family or more than one Multi-Family Unit.

For purposes of clarification, where an Accessory Dwelling Unit and primary Unit are on the same Assessor’s Parcel, the primary Unit and Accessory Dwelling Unit located on such Assessor’s Parcel are both

levied a Special Tax.

Should an Assessor’s Parcel contain only an Accessory Dwelling Unit, such Assessor’s Parcel will be levied a Special Tax.

All of the Taxable Property within CFD 2021-1 at the time of its formation is within Tax Zone No. 1.

Additional Tax Zones may be created when property is annexed to CFD 2021-1, and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD 2021-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation. A different Maximum Special Tax rate may be identified in Tax Zones added to CFD 2021-1 as a result of future annexations.

D. METHOD IF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to a Special Tax defined as follows.

The Special Tax shall be levied each Fiscal Year by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD 2021-1 by the method shown below.

First. Determine the Annual Special Tax Requirement.

Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax described in the table below to satisfy the Annual Special Tax Requirement.

Under no circumstances will the Special Tax on any Assessor’s Parcel of Developed Property be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2021-1.

E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on Property Owner’s Association Property, or Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.

Welfare Exempt Property shall thereafter be exempt from the Special Tax for as long as the property qualifies as Welfare Exempt Property.

F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City Council may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.

H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD 2021-1, and may collect delinquent Special Taxes through available methods.

A Special Tax shall be levied commencing in Fiscal Year 2022/23 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied perpetually or for as long as required to satisfy the Annual Special Tax Requirement, as determined by the CFD Administrator.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

City of Hesperia

STAFF REPORT

RECOMMENDED ACTION

It is recommended that the Fisc al Year (FY) 2021-22 Mid-Year Budget Review be received and filed and the related following resolutions, which amend the respective FY 2021-22 Budgets for the City of Hesperia and the Hesperia Water District be approved:

1) City of Hesperia Resolution No. 2022-09
2) Hesperia Water District HWD 2022-02

BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2021-22 Mid-Year Budget Review for the City Council , the Hesperia Housing Authority , Community Development Commission, the Hesperia Fire Protection District and the Hesperia Water District Board’s consideration and action.

ISSUES/ANALYSIS
The attached document entitled “ FY 2021-22 Mid-Year Budget Review” includes a report on the status of the City’s FY 2021-22 Budget and financial plan for the first six months of the current fiscal year. The report format is designed to facilitate the review of complex financial information for an efficient and effective financial review process.

FISCAL IMPACT
See FY 2021-22 Mid-Year Budget Review attached.

ALTERNATIVE

1. Provide alternative direction to staff.

ATTACHMENTS

1. FY 2021-22 Mid-Year Budget Review

2. Resolution No. 2022-09

3. Resolution HWD 2022-02
DATE: February 15, 2022
TO: Mayor and Council Members
Chair and Commission, Hesperia Housing Authority
Chair and Commission, Community Development Commission
Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Lorraine Carmona, Budget/Finance Specialist
SUBJECT: Fiscal Year 2021-22 Mid-Year Budget Review

FISCAL YEAR 2021-22
MID-

YEAR BUDGET REVIEW
Fe
bruary 15, 2022
Attachment 1

2021-22 MID-YEAR BUDGET REVIEW REPORT
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T A B L E O F C O N T E N T S

Page
Executive Summary ............................................................................................................................ 3 Status of FY 2021-22 Budget, Budget Amendments, and Reserves:

General Fund .......................................................................................................................... 5 Water District .......................................................................................................................... 6 Streets Maintenance ............................................................................................................... 7 FY 2021-22 December 31, 2021 Year-To-Date Revenue Review:

Major Funds Revenue Summary ............................................................................................ 8 General Fund Revenues ......................................................................................................... 9 Community Development Block Grant Revenue ..................................................................... 11 Hesperia Housing Authority Revenue ..................................................................................... 12 Street Related Funds Revenue ............................................................................................... 12 Other City Funds Revenue ..................................................................................................... 14 Water District Revenue ........................................................................................................... 15 Department FY 2021-22 Budget Expenditure Status Summary ........................................................... 17 Total Expenditures By Department and Program ................................................................................. 17 Proposed Budget Amendments – Summary ........................................................................................ 22 Proposed Budget Amendments – Narrative ......................................................................................... 22 2021-22 Mid-Year Budget Salaries and Positions ................................................................................ 25 2022-23 Tentative Budget Calendar ................................................................................................ .... 26

2021-22 MID-YEAR BUDGET REVIEW REPORT
- 3 -

EXECUTIVE SUMMARY
The following chart compares the FY 2021-22 Budget and December 2021 year-to-date (YTD) revenue and expenditure totals, with the difference being budgeted reserves and transfers.

Status of Overall City Fiscal Year 2021-22 Budget
The percentage comparisons for expenditures are based on comparing the December 2021 YTD to the 20 21-22 Amended Budget. The Amended Budget is used to accurately reflect any changes to the adopted budget that occur from City Council approving budget amendments throughout the fiscal year.

Revenue: Through December 2021, YTD revenue is $ 51.8 million, which is approximately 48% more than the December 2020 YTD revenue of $35.0 million. This increase over the previous year is mainly attributed to the $11.7 million received revenue for the American Rescue Plan Act (Coronavirus State and Local Fiscal Recovery Funds) Grant.

However, without the American Rescue Plan Act related funding, the December 2021 YTD revenue would be 15% more than December 2020, which is mainly due to increased development related revenue. Overall, revenue is 36% collected through December 2021 and additional detail is provided further within the report.

Expenditures: At 26% of the amended budget utilized, the FY 20 21-22 Budget is proceeding as planned. Overall , the December 2021 YTD expenditures of $33.3 million are $6.3 million or 16% less than the December 2020 YTD of $39.6 million. This decrease from the FY 2020- 21 Mid-Year Report is related to the Water District’s early retirement of the $5.5 million 1998A Variable Rate Lease Revenue Bonds . It should be noted that there are eight (8) budget amendments totaling $339,055 included in this report.

Reserves: The General Fund and Water District (operating and capital) exceed the City Council’s policy of 10% cash reserves. Because the City’s audited financial statements have not yet been completed, the following reserve calculations are based on estimates of the unaudited June 30, 20 21 ending cash balances. These estimates will be updated with actual numbers from the June 30, 2021 Annual Comprehensive Financial Report (ACFR) for the upcoming FY 2022-23 Proposed Budget. In addition, the eight (8) Mid-Year Budget Amendments, totaling $339,055, are reflected below where appropriate:

2021-22 2021-22 December Revised %
Budget Revised 2021 YTD Received/Expended
Planned Revenue 131,534,779$ 132,079,405$ 40,143,633$ 30% American Rescue Plan Act Grant 0 11,701,844 Total Revenue 131,534,779 143,781,249 51,847,655 36% Use of Reserves 5,951,412 6,445,467
Net Transfers 0 0
Total Resources 137,486,191 150,226,716
Expenditures 130,777,772 130,228,314 33,297,706 26% Difference 6,708,419$ 19,998,402$
10% Cash Reserves (Council/Board Policy) 3,994,828$ 10% 3,276,987$ 10% Cash Reserves Above 10% Reserve 8,435,305 21% 16,912,006 52% Total Estimated Cash Reserves 12,430,133 $ 31% 20,188,993$ 62% Months of Cash 3.7 8 .0
Water DistrictGeneral Fund

2021-22 MID-YEAR BUDGET REVIEW REPORT
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EXECUTIVE SUMMARY (Continued)

Proposed Budget Amendments – 8 Budget Amendments are proposed for $339,055 The FY 2021-22 Mid-Year Budget Review includes eight (8) items as proposed budget amendments totaling $339,055.

The proposed budget amendments are included in the fund balance analyses where appropriate:

Revenues and Expenditures through December 31, 2021 for the City’s main funds are summarized as follows:

General Other
F
Y 2021-22 Mid-Year Budget Requests Fund Funds Totals
Operating Repairs & Vehicle Retrofit $ 16,000 $ 0 16, 000$ City Hall Tenant Improvements 67,054 0 67, 054 Vactor Truck Engine Replacement 0 56, 000 56,000 Plan Review and Inspection Services 12,000 18, 000 30,000 Plant 19 HVAC Unit & Plant 14A Electric Motor 0 57, 000 57,000 State Water Resources Control Board (SWRCB) Annual
Connection Fees
0 8,500 8, 500
Backhoe Purchase 0 34, 501 34,501 Sewer Feasibility Study 0 70, 000 70,000 Total Mid-Year Amendment Requests $ 95,054 $ 244,001 339, 055$ General Fund
Amended
Budget December
% of Amend.

Received
Amended
Budget December
%
Expended
City Council 796,307$ 459,860$ 58%
City Manager 3,199,571 1,656,069 52%
Management Services 4,899,937 2,822,642 58% Economic Development 322,232 170,010 53% D.S.-Community Development 2,138,652 1,060,061 50% D.S.-Code Compliance 3,759,159 1,895,856 50% D.S.-Public Works (G.F.) 1,997,928 993,232 50% Police 19,277,217 9,530,067 49%
Total General Fund 39,493,002$ 12,731,763$ 32% 36,391,003$ 18,587,797$ 51% Community Development Block Grant 2,355,270 41,060 2% 2,303,429 456,728 20% Hesperia Housing Authority 440,298 387,588 88% 66,650 10,512 16% D.S.-Public Works 38,395 36,666 95% 3,418,733 1,524,041 45% Streets CIP Funds 54,741,752 6,903,910 13% 54,235,156 511,406 1% Other City Related Funds 2,594,198 2,330,983 90% 2,482,834 1,755,409 71% D.S.-Water Operating and Capital 26,807,988 14,802,156 55% 22,337,812 7,101,832 32% D.S.-Sewer Operating and Capital 5,608,502 2,909,508 52% 7,950,277 2,342,235 29% Fire District 0 0 n/a 1,042,420 1,007,746 97% Sub -Total 132,079,405$ 40,143,633$ 30% 130,228,314$ 33,297,706$ 26% American Rescue Plan Act Grant 11,701,844 11,704,022 100% 0 0 n/a Total 143,781,249$ 51,847,655$ 36% 130,228,314$ 33,297,706$ 26% 2021-22 Revenue 2021-22 Expenditures

2021-22 MID-YEAR BUDGET REVIEW REPORT
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STATUS OF CITY GENERAL FUND 2021-22 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2021-22 2021-22
Budget Revised D ollars Percent

RESOURCES
General Fund Operating Revenue 36,474,374$ 36,724,946$ 250,572$ 1%

1. Fund 700 - Indirect Cost Allocation - Water 2,273,119 2,273,119

2. Fund 710 - Indirect Cost Allocation - Sewer 494,937 494,937 Total General Fund Revenue 39,242,430$ 39,493,002$ 250,572$ 1% Transfers In

1. Fund 255 - AB 3229 COPS Grant 200,000 200,000 Total Transfers In 200,000 200,000
Budgeted Reserves

1. Budgeted Reserves 267,000$ 335,165$

2. First Quarter Approved Budget Amendment Reserves 0 125,000

3. Mid-Year Budget Amendment Reserves 0 95,054 Total Budgeted Reserves 267,000$ 555,219$
Total General Fund Resources 39,709,430$ 40,248,221$ 538,791$ 1%

EXPENDITURES
Total General Fund Operating Expenses 36,197,838$ 36,266,003$ Transfers Out

1. Fund 210 - HFPD CalPERS 1,043,000 1,043,000
870,000 8 70,000
1,438,675 1,438,675
110,549 110,549
Total Transfers Out 3,462,224 3,462,224
First Quarter Budget Amendments - Approved 0 125,000 Total General Fund Expenditures & Transfers Out 39,660,062$ 39,853,227$ 193,165$ 0% Mid-Year Budget Amendments Requested

1. Operating Repairs & Vehicle Retrofit 0$ 16,000$

2. City Hall Tenant Improvements 0 67,054

3. Plan Review and Inspection Services 0 12,000 Total Mid-Year Budget Amendments - Requested 0 95,054 Total Expenditures and Amendments 39,660,062$ 39,948,281$ 288,219$ 1% DIFFERENCE TOTAL RESOURCES/TOTAL EXPENDITURES 49,368$ 299,940$ 250,572$ 508% GENERAL FUND FUND BALANCE AND RESERVESFund Balance
July 1 Beginning Balance unaudited 16,766,341$ 20,480,170$ Total Budgeted Reserves (267,000) ( 555,219) Difference Total Resources/Total Expenditures 49,368 299,940 Estimated June 30 Ending Fund Balance 16,548,709$ 20,224,891$ 3,676,182$ 22% Months of Cash to Pay Expenditures and Transfers Out
Beginning Cash July 01, unaudited 8,224,087$ 12,685,412$ Estimated Resources Less Budgeted Reserves 39,442,430 39,693,002 Estimated Expenditures (39,660,062) (39,948,281)
8,006,455$ 1 2,430,133$
Months of Cash to Pay Expenditures and Transfers Out 2.4 3.7 Estimated Cash Reserves Percentage 20% 3 1%
Estimated Ending Cash June 30,

4. Fund 403 - 2005 COP Refinance Debt Service
Change

3. Fund 402 - 2012 Water Rights Acquisition Debt Service

2. Fund 309 - DIF 2018-City Hall Facilities

2021-22 MID-YEAR BUDGET REVIEW REPORT
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STATUS OF WATER DISTRICT 2021-22 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2021-22 2021-22
Resources Budget Revised Dollars Percent
Revenue
Water Operating and Capital 25,712,181$ 26,507,988$ Sewer Operating and Capital 5,484,996 5,608,502 Reclaimed Water Operations 300,000 300,000
Total Revenue 31,497,177 32,416,490 919,313 3% Budgeted Reserves 2,528,368$ 2,630,728$
Mid-Year Budget - Requested 0 188,001 Total Budgeted Reserves 2,528,368$ 2,818,729$
Total Water District Resources 34,025,545$ 35,235,219$ 1,209,674$ 4% Expenditures by Program
Water Operating and Capital and Transfer Out 21,972,896$ 22,075,256$ 102,360$ 0% Sewer Operating and Capital 7,950,277 7,950,277 Reclaimed Water Operations 262,556 262,556
Total Water District Expenditures & Transfers Out 30,185,729$ 30,288,089$ 102,360$ 0% Mid-Year Budget Amendments - Requested
0$ 18,000$
0 57,000

3. State Water Resources Control Board (SWRCB)
Annual Connection Fees
0 8,500

4. Backhoe Purchase 0 34,501
0 70,000
0 188,001
Total Expenditures and Amendments 30,185,729$ 30,476,090$ 290,361$ 1% Establishment of Reserve Balances
Permanent Water Rights $ 2,293,776 2,293,776$
Total Reserve Balances 2,293,776 2,293,776
Total Water Expenditures & Reserve Balance Funding $ 32,479,505 $ 32,769,866 Difference Total Resources/Total Expenditures 1,546,040$ 2,465,353$ July 1 Beginning Balance unaudited 96,753,292$ 102,031,029$ Budgeted Reserves (2,528,368) (2,818,729)
Difference Resources/Expenditures 1,546,040 2,465,353 Reserve Balances 2,293,776 2,293,776
Estimated June 30 Ending Fund Balance 98,064,740$ 103,971,429$ Months of Cash to Pay Expenditures
Beginning Cash July 01, unaudited 15,695,038$ 20,542,369$ Estimated Resources Less Budgeted Reserves 31,497,177 32,416,490 Estimated Expenditures (32,479,505) (32,769,866)
14,712,710$ 20,188,993$
Months of Cash to Pay Expenditures and Transfers Out 5.8 8.0 Total Estimated Cash Reserves Percentage 45% 62%
Estimated Ending Cash June 30,
Change

1. Plan Review and Inspection Services
Total Mid-Year Budget Amendments - Requested

5. Sewer Feasibility Study

2. Plant 19 HVAC Unit & Plant 14A Electric Motor

2021-22 MID-YEAR BUDGET REVIEW REPORT
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STATUS OF STREETS MAINTENANCE FUND 2021-22 BUDGET, FUND BALANCE, AND RESERVES

2021-22 2021-22
RESOURCES Budget R evised Dollars Percent
Street Maintenance Operating Revenue 2,157$ 38,395$ 36,238$ 1680% Transfers In
Fund 204 - Measure I - Renewal 1,750,000$ 1, 750,000 $
Fund 205 - Gas Tax Fund 1,109,565 1,109,565
Total Transfers In 2,859,565$ 2, 859,565 $
Budgeted Reserves

1. Budgeted Reserves 527,011$ 527,011$

2. First Quarter Budget Amendment Reserves 0 30,000

3. Mid-Year Budget Amendment Reserves 0 56,000 Total Budgeted Reserves 527,011$ 613,011$
Total Street Maintenance Resources 3,388,733$ 3, 510,971 $ EXPENDITURES 3,388,733$ 3, 388,733 $ 0$ 0% First Quarter Budget Amendments - Approved 0 30,000 Mid-Year Budget Amendments - Requested

1. Vactor Truck Engine Replacement 0 56, 000 Total Mid-Year Budget Amendments - Requested 0 56,000 Total Expenditures and Amendments 3,388,733$ 3, 474,733 $ 86,000$ 3% DIFFERENCE RESOURCES/EXPENDITURES 0$ 36,238$ 36,238$ n/a Fund Balance
July 1 Beginning Balance unaudited 577,011$ 796,251$ Total Budgeted Reserves (527,011) ( 613,011)
Difference Resources/Expenditures 0 36,238 Estimated June 30 Ending Balance 50,000$ 219,478$ Change

2021-22 MID-YEAR BUDGET REVIEW REPORT
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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW

Overall – Through the end of December 2021, 31% percent of the total budgeted revenue has been collected. During the First Quarter Budget Review , the revenue was revised to include $1 1.7 million in American Rescue Plan Act (Coronavirus State and Local Fiscal Recovery Funds) Grant that the City had received. Additionally, the Community Development Block Grant (CDBG) CV-Cares Act revenue was revised from $1.0 million to $0 to reflect that the City would not receive the funds, and further information is provided on page 11 of this report . By including the American Rescue Plan Grant received, YTD revenue received is 39% or $51.8 million.

As a whole, the Water District revenue is 56% received and Sewer Operating & Capital combined is 53% collected. As detailed in the Water narrative, it is recommended to increase the Water District revenue budget by $919,313.

It addition, staff recommends to revise the FY 2021 -22 revenue budget for the General Fund, Hesperia Housing Authority, Street Related Funds, and the Water District by $ 1,494,123. This revised amount includes an increase in development related revenue, proceeds from sale of vacant land and equipment, reimbursement from damaged equipment and City property, Water Arreages Grant, and Sewer Connections. The following pages will detail the current revenue collections for each fund.

December Change From
2021-22 2021-22 Percent 2021-22 Budget To
Budget Actual Received Revised Revised
General Fund 39,242,430$ 12,731,763$ 32% 39,493,002$ 250,572$ Community Development Block Grant 3,304,767 41,060 1% 2,355,270 (949,497) Hesperia Housing Authority 152,298 387,588 254% 440,298 288,000 Street Related Funds 54,743,909 6,940,576 13% 54,780,147 36,238 Other City Related Funds 2,594,198 2,330,983 90% 2,594,198 0 Water Operating 24,327,581 13,946,746 57% 25,123,388 795,807 Water Capital 1,375,000 854,013 62% 1,375,000 0 Water Reserves 9,600 1,397 15% 9,600 0 Reclaimed Water 300,000 0 0% 300,000 0 Total Water Operating & Capital 26,012,181 14,802,156 57% 26,807,988 795,807 Sewer Operating 5,277,514 2,584,411 49% 5,277,514 0 Sewer Capital 206,632 324,787 157% 330,138 123,506 Sewer Reserves 850 310 36% 850 0 Total Sewer Operating & Capital 5,484,996 2,909,508 53% 5,608,502 123,506 Water District 31,497,177 17,711,664 56% 32,416,490 919,313 Sub-total 131,534,779 40,143,633 31% 132,079,405 544,626 American Rescue Plan Grant 0 11,704,022 n/a 11,701,844 11,701,844 Total All Funds 131,534,779$ 51,847,655$ 39% 143,781,249$ 12,246,470$

MAJOR FUNDS REVENUE SUMMARY

2021-22 MID-YEAR BUDGET REVIEW REPORT
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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments:

General Fund Revenue – Through December 2021, YTD revenue is $ 12,731,763 which is $ 274,152 or 2% less than December 20 20 YTD revenue of $13,005,915 . This de crease in YTD revenue received is related to the combined $2.1 million CARES Act and Coronavirus Funds received during the first six months of 2020-21, which is ‘one-time’ grant specific to that fiscal year. Evaluating the change in revenue , without the CARES/Coronavirus funds , results in a mid - year FY 2021-22 revenue increase of $1,820,381 or 17% more than the prior fiscal year. Contributing to the increase is mainly due to a combination of development related revenue , sales and use tax, and property transfer tax. The City is recommending to increase the FY 2021 -22 General Fund revenue by $250,572 to include the increase in development related revenue received year-to-date.

Sales and Use Tax – The collections received through December 2021 of $4.5 million is $0.7 million or 19% more than the December 2020 YTD of $3.8 million. This increase is largely due to the December 2021 quarterly being more than the December 2020 quarterly, due to a growing economy and higher fuel prices. Due to timing of receiving revenue, the State has remitted tax payments through October 2021. This revenue source will continue to be monitored.

Vehicle License Fee (VLF) – This revenue is based on the City’s assessed valuation. As the assessed valuation changes from the prior year, this revenue ch anges by the same percentage. There is no revenue reported through December 2021, as the first installment of the VLF is expected to be received in January and May 2022.

Franchise Fees – Franchise fees for Cable TV, Advance Disposal, Southwest Gas, Southern California Edison, and Water for December 2021 YTD total $745,759, which is $24,877 or a 3% increase over December 2020 $720,882 YTD.

Please note that the majority of franchise fees are received in the second half of the fiscal year.

Transient Occupancy Tax (TOT) – Through December 2021, YTD revenue is $ 705,198, which is $ 75,829 more than the December 2020 YTD of $629,369. This 12% increase is due to increased hotel occupancy.

December Change From
2021-22 2021-22 Percent 2021-22 Budget To
Budget Actual Received Revised Revised
Sales and Use Tax 11,333,000$ 4,540,748$ 40% 11,333,000$ 0$ Vehicle License Fee (VLF) 9,856,916 0 0% 9,856,916 0 Franchise Fees 3,757,723 745,759 20% 3,757,723 0 Sub-Total Top Three Revenues 24,947,639 5,286,507 21% 24,947,639 0 General & Administrative Recovery 2,768,055 1,384,028 50% 2,768,055 0 Transient Occupancy Tax 1,300,000 705,198 54% 1,300,000 0 Property Transfer Tax 301,000 238,848 79% 301,000 0 Secured Property Tax 989,036 517,553 52% 989,036 0 Business License 530,789 324,841 61% 530,789 0 Commercial Cannabis Tax 700,000 294,382 42% 700,000 0 Community Facilities District 2005-1 310,000 157,592 51% 310,000 0 Leased Water Rights 2,219,295 0 0% 2,219,295 0 Development Related Revenues
Planning 209,747 352,362 168% 352,362 142,615 Building & Safety 1,886,167 1,329,219 70% 1,886,167 0 Engineering 456,220 564,177 124% 564,177 107,957 Sub-Total Development Related Revenues 2,552,134 2,245,758 88% 2,802,706 250,572 Sub-Total Top 12 Revenue Sources 36,617,948 11,154,707 30% 36,868,520 250,572 All Other General Fund Revenues 2,624,482 1,577,056 60% 2,624,482 0 Total General Fund Revenues 39,242,430$ 12,731,763$ 32% 39,493,002$ 250,572$

GENERAL FUND REVENUES

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F
ISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued) G
eneral Fund Revenue Comments (Continued):

Property Transfer Tax – This revenue reflects the change in property valuation upon change of ownership within the City. The December 2021 YTD total of $238,848, represents an increase of $111,856 from the December 2020 YTD of $126,992. This 88% increase is due to receiving five receipts compared to the four receipts received December 2020 YTD. When comparing the first four installments through December 2021 to the four received through December 2020, the FY 2021-22 is $59,419 more or 47%, representing an increase in home values.

Secured Property Tax – Through December 2021, YTD revenue is $517,553 , which is $ 28,134 more tha n the December 2020 YTD $489,419.

Business License – This revenue is paid by each business operating in the City. YTD December 20 21 collections of $324,841 is 34% more than the December 2020 YTD. There were 2,209 new business licenses issued during the first six months of FY 20 21-22, compared to the 968 issued December 2020 YTD . This increase is a result of the adopted increases to business license fees in December 2020, that took effect March 2021 and a 128% rise in the combined number of “New” business licenses and “Home Occupancy” licenses issued and renewed during the first half of the fiscal year as opposed to the previous year.

C
ommercial Cannabis Tax – All commercial cannabis businesses operating within the City pay a 4% tax on gross receipts from business operations. The December 2021 YTD receipts of $294,382 are 17% less than the December 2020 YTD of $353,296, which is due to the timing of receiving receipts. The City currently has twenty -one (21 ) businesses operating within the City compared to the twenty (20) through December 2020.

C
ommunity Facilities District 2005-1 – This special assessment district, (generally west of Maple Avenue and south of Main Street), was formed to refinance the bonds of CFD 91 -3, and assesses the properties within the district to repay the bonds. Part of the annual assessment includes a public safety portion to offset some of the costs that residential development places on the City’s public safety providers. The December 2021 YTD is $157,592, which is 3% more than December 2020 YTD of $153,000.

L
eased Water Rights – The permanent water rights owned by the General Fund can be leased annually and the lease revenue is used to pay for the 2012 Bonds, which financed the purchase of the water rights. The leasing of water rights revenue is always collected at the end of the year and will be recorded in June.

D
evelopment Related Revenue – The FY 2021- 22 Budget anticipated issuing 300 new single- family residential building permits (SFR’s). Through December 2021, 78 residential permits have been issued, which is 26% of the budget. This is a 37% de crease compared to 125 permits issued through December 2020. Staff anticipates that an additional 222 residential building permits will be issued during the current fiscal year. T he year-to-date revenue is $2,245,758 or 33% more than the December 2020 YTD of $1,693,221. This increase is mainly due to building plan check fees and home occupant review fees . In addition, 13,361 total commercial square feet was added with new businesses that included a Raising Cane Restaurant, a gas station at the Wal -Mart Center, and Dollar General Store.

This is a 29% increase when compared to the December 2020 of 10,389 square feet which included the development of Quick Quack Car Wash, Wendy’s Restaurant, and smaller buildings. The chart below exhibits the overall increase from the prior fiscal year through December 31, 2021. Staff is recommending to revise the FY 2021 -22 revenue by an additional $250,572.

FY 2020-21 FY 2021-22
Div
ision December 2020 December 2021 Amount Percentage
Planning 111,811$ 352,362$ 240,551$ 215% Building & Safety 971,666 1,329,219 357,553 37% Engineering 609,744 564,177 (45,567) -7% Total 1,693,221$ 2,245,758$ 552,537$ 33% Change

2021-22 MID-YEAR BUDGET REVIEW REPORT
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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments (Continued):

All Other General Fund Revenue – The numerous all other general fund revenue accounts are $1,577,056 or 60% collected through December 2021. Compared to the December 2020 YTD of $1,648,466 collected, this revenue is showing a $71,410 or 4% decrease, which is due to the Commercial Cannabis Tax revenue being shown as a separate revenue source. Removing the impact of Commercial Cannabis Ta x, the All Other General Fund Revenue is higher than the previous year-to-date revenue of $1,295,170 by $281,886 or 22%.

Community Development Block Grant Revenue Comments:

These revenues are grant reimbursements for projects designed to benefit the City and must be spent prior to submitting for reimbursements. The FY 2021-22 Budget revenue estimates represent anticipated reimbursements are expected to be received during the third and fourth quarter of the fiscal year.

CDBG Neighborhood Stabilization Program (NSP) – This represents interest income and 2% was received during the second quarter.

CDBG-CV Cares Act – The CDBG-CV Cares Act is grant reimbursement funds from Housing and Urban Development (HUD) to address the COVID -19 pandemic. Applications were solicited for CDBG-CV purposes to provide emergency housing and utility assistance to individuals, as well as emergency bu siness assistance to partners serving the needs of low- and moderate-income in the community; however the number of responses were low. Due to the lack of interest from applicants, the funds from HUD were declined. Pre-existing funding was available under the CDBG Administration program to fulfill the constituent application requests received. During the First Quarter Budget Review, this revenue was revised to $0.

All Other CDBG Revenues – This revenue includes CDBG program income and interest revenue for the HOME Grant fund and the CDBG Revolving Loan fund. These revenues are more one -time in nature and are not received on a time schedule as other revenue. The FY 2021- 22 Budget has been revised to include an additional $40, 450 that has been received through the second quarter. This unanticipated revenue is for loan repayments related to the Housing Rehabilitation Loan Program and 1999 HOME repayment program.

December Change From
2021-22 2021-22 Percent 2021-22 Budget To
Budget Actual Received Revised Revised
CDBG Administration Reimbursement 2,303,429$ 0$ 0% 2,303,429$ 0$ CDBG Neighborhood Stabilization Prog. (NSP) 8,931 217 2% 8,931 0 Sub-Total 2,312,360 217 0% 2,312,360 0$ CDBG-CV Cares Act 989,947 0 -100% 0 (989,947) All Other CDBG Revenues 2,460 40,843 1660% 42,910 40,450 Total CDBG Revenues 3,304,767$ 41,060$ 1% 2,355,270$ (949,497)$

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVENUE

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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued)

Hesperia Housing Authority (HHA) Revenue Comments:

Interest and loan repayments are 99% of the HHA’s FY 2021 -22 B udget and 272% has been collected through December 2021. The FY 2021- 22 Budget has been revised to include an additional $288,000 that has been received due to the sale of vacant land. VVEDA Housing Authority revenue is being collected as expected.

Street Related Funds Revenue Comments:

Measure I - Renewal – This fund is used to account for the renewed Measure I sales tax based on revenue generated from the ½ cent added tax on sales tax. Measure I Renewal is received from San Bernardino County Transportation Authority (SBCTA). At this time, there are no revisions to this revenue source.

Gas Tax – The City’s apportionments through December 20 21 total $613,880, which is 7% less than the December 2020 total of $658,022. Monthly apportionments are received throughout the fiscal year and vary from year -to-year due to timing differences by the State schedule of monthly apportionments.

Gas Tax S wap – Through December 202 1, the total apportionments of $ 350,952 are $32,108 or 10% more than the December 2020 YTD of $318,844.

December Change From
2021-22 2021- 22 Percent 2021-22 Budget To
Budget Actual Received Revised Revised
Interest Income 49,120$ 11,455$ 23% 49,120$ 0$ Loan Repayments 90,178 78,255 87% 90,178 0 Miscellaneous Income 3,000 296,845 9895% 291,000 288,000 Sub-Total HHA Revenue 142,298 386,555 272% 430,298 288,000 VVEDA Housing Authority Revenue 10,000 1,033 10% 10,000 0 Total HHA Revenues 152,298$ 387,588$ 254% 440,298$ 288,000$

HESPERIA HOUSING AUTHORITY (HHA) REVENUE
December Change From
2021-22 2021- 22 Percent 2021-22 Budget To
Budget Actual Received Revised Revised
204 Measure I - Renewal 3,588,247$ 1,003,472$ 28% 3,588,247$ 0$ 205 Gas Tax Fund 1,551,911 613,880 40% 1,551,911 0 206 Gas Tax Swap Fund 851,256 350,952 41% 851,256 0 207 Local Transportation Fund 879,515 83,731 10% 879,515 0 209 Gas Tax - RMRA 1,885,558 656,750 35% 1,885,558 0 254 AQMD Fund 87 13 15% 87 0 263 Public Works Street Maintenance Fund 2,157 36,666 1700% 38,395 36,238 Sub-Total 8,758,731 2,745,464 31% 8,794,969 36,238 DIF Streets & Storm Drain
300 Development Impact Fee-Streets 89,109 10,106 11% 89,109 0 301 Development Impact Fee-Storm Drain 21,429 2,867 13% 21,429 0 306 Development Impact Fee 2018-Streets 10,562,071 3,330,735 32% 10,562,071 0 307 Development Impact Fee 2018-Drainage Facilities 905,656 816,278 90% 905,656 0 313 Development Impact Fee-A-04 Drainage 316,339 21,436 7% 316,339 0 Sub-Total DIF Streets & Storm Drain 11,894,604 4,181,422 35% 11,894,604 0 504 City Streets CIP 34,090,574 13,690 0% 34,090,574 0 Total Street Related Funds 54,743,909$ 6,940,576$ 13% 54,780,147$ 36,238$

STREET RELATED FUNDS REVENUE

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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued)

Streets Related Funds Revenue Comments (Continued):

Local Transportation – The December 2021 YTD of $83,731 includes an apportionment from SBCTA and a portion of interest income received. As reported in the First Quarter Budget Review, the City received its annual apportionment of $82,465 from SBCTA, and VVTA is anticipating to end FY 2021 -22 with a surplus and in turn, share a portion with the City. It is anticipated that the remaining $788,800 will be received from VVTA at the end of the fiscal year. This revenue source will decrease in future years due to the importance placed and funding reserved for public transportation.

Gas Tax RMRA – This source of revenue is mainly State-funded and took effect in November 2017 during FY 2017 -18, along with some interest income. This revenue is used to repair and maintain roads, freeways, and bridges. SB 1, the Road Repair and Accountability Act of 2017, increased the gas tax by 12 cents and 20 cents for diesel. The vehicle registration fee also increased depending on the value of the vehicle. As of December 2021, revenue received from the State is $656,750, which reflects four installment payments . Comparing the December 2021 to December 202 0, the current fiscal year is 9% more, or $56,272.

AQMD (AB2766 Transit) – The revenue in this fund is interest earnings from retained cash.

Public Works -Street Maintenance – The estimated revenues are primarily interest earnings. This fund will occasionally receive miscellaneous reimbursements on an inconsistent basis, making comparisons to prior years meaningless. The revenue received YTD of $36,666, includes $36,238 proceeds from sale of equipment and reimbursement for the replacement of a damaged hydrant, city property, and damaged equipment. The year -end revised amount has been increased by $36,238 to a total $38,397 to reflect the unanticipated revenue.

Development Impact Fee s for Streets and Storm Drain – Through December 2021 YTD, the combined revenue received of $4.2 million is showing an increase of $ 2.6 million or 157% more than the December 2020 YTD of $1.6 million. This increase is due to fees paid for new commercial development on the Westside of Interstate 15 and residential development. The budget assumes the completion of 186 single family residential (SFR) permits, 72 multi - family residential permits, and 1,145,737 square feet of commercial/industrial. While through December 2021, 78 SFR permits, and permits for 13,361 square feet of commercial/industrial have been issued, DIF is not due to the City until just prior to receiving a final approval. In some cases, the timing of General Fund Building Permit revenue (page 10) to DIF for streets and storm drain revenue is a matter of months; while in other instances, the timing can span a fiscal year.

City Streets CIP – This fund tracks grant and developer funded projects such as the Ranchero Road Improvements (7 th
Avenue to Mariposa Road), E Avenue Street Improvements, the Traffic Signal at Main Street and Sultana Street/Timberlane Avenue, Ranchero Aqueduct crossing, and the Park and Ride facility. Through December 2021 YTD, $13,690 has been received, of which 96% is a portion of grant reimbursement for the Park and Ride facility , and an additional $102,000 was received in January 2022 . The bulk of the budgeted revenue is for the reimbursement of Ranchero Road with construction slated to start in December 2021 but has been delayed until after February 2022, and reimbursement will start to be received 60 to 90 days after the commencement date. Staff will continue to monitor this revenue throughout the second half of the fiscal year.

2021-22 MID-YEAR BUDGET REVIEW REPORT
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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued)

Other City Funds Revenue Comments: Many of these funds only receive interest income during the fiscal year.

AB3229 Supplemental Law Fund – The passage of Senate Bill (SB) 89 allowed for the continued funding of the Supplemental Law Enforcement Funding (SLESF), and through December 2021 $144,912 or 72% has been received.

Environmental Programs Grant – This fund tracks grant reimbursements for various environmental events and the December 2021 YTD of $15,699 or 36% has been received.

Disaster Preparedness Grant – The revenue in this fund is interest earnings from retained cash.

Development Impact Fee s-Fire, Police, Public Services, City Hall, Animal Control , and Records Storage – The combined total of $ 2,167,358 for the first six months of FY 2021-22 is $1,930,580 or 815% more than the same time period for FY 2020-21 of $236,778. This increase is mainly due to fees paid for new commercial development on the West Side of Interstate 15 and residential development. As mentioned prior, the budget assumed the total collections of permit fees from 186 single family residences , 72 multi-housing units , and 1,145,737 square feet of commercial/industrial. The timing of General Fund Building Permit revenue to DIF revenue is a matter of months; while in other instances, the timing can span a fiscal year.

2012 Water Rights and 2013 Refunding Debt Service – The revenue in these fund s is interest earnings from cash held with the fiscal agent.

American Rescue Plan A ct Grant – Coronavirus State and Local Fiscal Recovery Funds – This revenue is the Coronavirus State and Local Fiscal Recovery Funds and the City anticipates receiving approximately $23.4 million in total. During the First Quarter Budget Review, this revenue was revised to include the $11.7 million that the City received to date. This funding must be spent on eligible costs incurred during the period that began on March 3, 2021 and ending on December 31, 2024. Eligible costs include expenditures for necessary improvements to water infrastructure to improve access to clean drinking water, wastewater treatment infrastructure, projects that address the impacts of climate change, and projects for managing and treating stormwater or subsurface drainage wat er, facilitating water reuse, and securing publicly-owned treatment works.

December Change From
2021-22 2021- 22 Percent 2021-22 Budget To
Budget Actual Received Revised Revised
210 HFPD (PERS) Interst Income 0$ 1,255$ n/a 0$ 0$ 255 AB3229 Supplemental Law Fund 200,549 144,912 72% 200,549 0 256 Environmental Programs Grant 43,414 15,699 36% 43,414 0 260 Disaster Preparedness Grant 160 25 16% 160 0 DIFs 302-304, 308-312
302 Development Impact Fee-Fire 16,528 2,099 13% 16,528 0 303 Development Impact Fee-Police 3,368 386 11% 3,368 0 304 Development Impact Fee-Public Services 8,794 1,002 11% 8,794 0 308 Development Impact Fee 2018-Fire Suppression 1,146,074 1,076,044 94% 1,146,074 0 309 Development Impact Fee 2018-City Hall Facilities 1,041,753 980,951 94% 1,041,753 0 310 Development Impact Fee 2018-Animal Control 62,057 40,101 65% 62,057 0 311 Development Impact Fee 2018-Records Storage 50,920 48,032 94% 50,920 0 312 Development Impact Fee 2018-Police Facilities 19,681 18,743 95% 19,681 0 Sub-Total DIFs 302-304, 308-312 2,349,175 2,167,358 92% 2,349,175 0 402 2012 Water Rights Debt Service 500 738 148% 500 0 403 2013 Refunding Debt Service 400 996 249% 400 0 261 American Rescue Plan Act Grant 0 11,704,022 n/a 11,701,844 11,701,844 Total Other City Funds 2,594,198$ 14,035,005$ 541% 14,296,042$ 11,701,844$

OTHER CITY FUNDS REVENUE

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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued)

Water District Revenue Comments:

Overall Water District Revenue – Revenue through December 2021, is $17,711,664, which is $1,178,957 or 7% more than December 2020 YTD of $16,532,707. The increase can be attributed to a combination of overall Water Sales, Capital Facilities Surcharge, and Sewer Billing. In January 2022, the District received notification that $795,807 of the Water Arreages Grant would be received; more detail is available on the next page. Staff is recommending to revise the FY 2021-22 Budget to $32.4 million, to include the Water Arreages Grant and increase in sewer connection fees.

Water Sales – Through December 2021, water sales revenue amounts to $13.0 million, which is $1.1 million, or 9% higher than the December 2020 YTD of $11.9 million . Comprised of both consumption based charges and a bi -monthly charge, the increased revenue is reflective of the ongoing effects from the implementation of the new water rates structure. However, the impact of the pandemic has affected actual collections, which are being monitored. The State’s Water Arrearages Grant (described on the following page) will help to mitigate a significant amount of these delinquencies. Remaining delinquencies will be pursued.

Property Taxes – Property tax revenue is normally received from November 2021 through July 20 22. Through December 2021, the YTD of $302,137 is $29,753 or 11% more than the December 2020 YTD of $272,384.

All Other Water Operating Reven ue – Through December 2021, $557,314 or 63% has been received, which is 27 % less than December 2020 YTD of $ 763,813. This decrease in revenue received during the second quarter of FY 2021-22 is related to unanticipated proceeds from two land sales and the County of San Bernardino Coronavirus Relief funds that were paid for and received in the second quarter of FY 2020-21.

December Change From
2021-22 2021- 22 Percent 2021-22 Budget To
Budget Actual Received Revised Revised
Water Operating Revenue
Water Sales 22,913,192$ 13,083,682$ 57% 22,913,192$ 0$ Interest Income 20,050 3,613 18% 20,050 0 Property Taxes 504,525 302,137 60% 504,525 0 Sub-Total 23,437,767 13,389,432 57% 23,437,767 0 All Other Water Operating Revenues 889,814 557,314 63% 889,814 0 Water Arrearages Grant 0 0 n/a 795,807 795,807 Total Water Operating Revenues 24,327,581$ 13,946,746$ 57% 25,123,388$ 795,807$ Capital Facilities Charges 1,300,000 854,013 66% 1,300,000 0 Grant Reimbursement 75,000 0 0% 75,000 0 Total Water Capital Revenues 1,375,000 854, 013 62% 1,375,000 0 Reclaimed Water 300,000 0 0% 300,000 0 All Other Water Reserves Revenues 9,600 1, 397 15% 9,600 0 Total Water Operating & Capital Revenues 26,012,181$ 14,802,156$ 57% 26,807,988$ 795,807$ Sewer Operating Revenue
Sewer Billing 5,097,874$ 2,502,467$ 49% 5,097,874$ 0$ All Other Sewer Operating Revenues 179,640 81,943 46% 179,640 0 Total Sewer Operating Revenue 5,277,514 2,584,411 49% 5,277,514 0 Sewer Connections 200,000 323,506 162% 323,506 123,506 All Other Sewer Capital Revenues 6,632 1,281 19% 6,632 0 Total Sewer Capital Revenue 206,632 324,787 157% 330,138 123,506 All Other Sewer Reserves Revenues 850 310 36% 850 0 Total Sewer Operating & Capital Revenues 5,484,996$ 2,909,508$ 53% 5,608,502$ 123,506$ Total Hesperia Water District Revenue 31,497,177$ 17,711,664$ 56% 32,416,490$ 919,313$

WATER DISTRICT REVENUE

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FISCAL YEAR 2021-22 DECEMBER 31, 2021 YEAR-TO-DATE REVENUE REVIEW (Continued)

Water District Revenue Comments (Continued):

Water Arreages Grant – During August 2021, the California Water Boards (State Water Resource Control Board and nine regional boards) created the ‘California Water and Wastewater Arrearage Payment Program’ that allows the Water District to recoup missing utility payments from Mar ch 4, 2020 through June 15, 2021. This Program will allow the District to collect on past -due accounts and bring the customer current to June 15, 2021. There are 1,942 accounts (1,891 residential and 51 commercial) with balances during this period and this program is intended only for water payments and cannot include penalty and interest. It is anticipated that this program will be extended to sewer accounts sometime during Spring 2022. The District applied for the program in November 2021, and on January 10, 2022 received approval notification that the District would receive the full award amount of $795,807.

Capital Facilities Surcharge – Revenue through December 2021 YTD is $ 854,013, which is $ 126,290 or 17% more than December 2020 YTD of $727,723. The increase in revenue received during the second quarter of 2021 is related to the large commercial project on the west side of Interstate 15 and residential development.

Reclaimed Water – In FY 2021-22, the District began budgeting for the use of reclaimed (recycled) water to be used at the Golf Course. Once the system is fully operational, revenue will be reflected in this account. The District anticipates that in the future other City facilities, the Park District, and School District, will become recycled water customers.

Sewer Billing revenue through December 2021 is $ 2,502,467, which is $ 223,694 or 10% more than the revenue received in the Second Quarter of FY 2020-21. This increase is associated with the 6% sewer rate increase, which took effect in December 2020, along with the addition of new sewer residential and commercial customers over the past year.

Sewer Connections revenue through December 2021 YTD is $ 323,506, which is $216,352 or 202% more than the $107,154 received through December 2020 YTD. The increase between the two periods is mainly due to increased development activity in areas served by Sewer.

2021-22 MID-YEAR BUDGET REVIEW REPORT
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DEPARTMENT FY 2021-22 BUDGET EXPENDITURE STATUS SUMMARY

Total City Expenditures – With the exception of the eight (8) mid-year budget amendments totaling $339,0 55, t he overall assessment of the City’s expenditures through mid-year of the fiscal year is that expenditures are exp ected to stay within the FY 2021-22 Amended Budget.

TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS

The City Council Department budget is 58 % expended through December 202 1. The City Council Division has expended 35%, which is due to budgeted items that are typically expended later during the fiscal year, such as $ 50,000 for the Community Assistance Program, annual memberships, and community outreach programs and events. The City Attorney Division is higher than expected, with 76% expended. This is mainly due to the unanticipated increase in legal fees pertaining to litigation matters. Staff will continue to monitor the program and if needed will request an amendment during the FY 2021-22 Fourth Quarter Budget Review.

The City Manager Department expenditures are on track staying within the 202 1-22 Budget at 52% expended. Overall, both the City Manager and the Information Technology Divisions are proceeding as expected.

December Amended
2021-22 2021-22 2021 Y TD Percent
Department Expenditure Summary Budget Amended Expenditures Expended City Council 796,307$ 796,307$ 459,860$ 58% City Manager 3,199,571 3, 199,571 1,656,069 52% Management Services 4,899,737 4, 899,937 2,822,642 58% Economic Development 3,682,258 2, 692,311 637,250 24% Development Services - Community Development 2,073,652 2,138,652 1,060,061 50% Development Services - Code Compliance 3,647,425 3,759,159 1,895,856 50% Development Services - Public Works 5,386,861 5, 416,661 2,517,273 46% Streets Capital Improvement Project (CIP) Funds 54,150,411 54,235,156 511,406 1% Other City Related Funds 2,452,615 2,482,834 1,755,409 71% Development Services - Water 22,235,452 22,337,812 7,101,832 32% Development Services - Sewer 7,950,277 7, 950,277 2,342,235 29% Police 19,260,786 19,277,217 9,530,067 49% Fire District 1,042,420 1,042,420 1,007,746 97% TOTAL CITY EXPENDITURES 130,777,772$ 130, 228,314$ 33,297,706$ 26% December Amended
2021-22 2021-22 2021 Y TD Percent
City Council Budget Amended Expenditures Expended
100 100 City Council 346,307$ 346,307$ 119,557$ 35% 100 102 City Attorney 450,000 450,000 340,303 76% Total City Council 796,307$ 796,307$ 459,860$ 58% December Amended
2021-22 2021-22 2021 Y TD Percent
City Manager Budget Amended Expenditures Expended
100 200 City Manager 1,423,865$ 1,423,865$ 745,776$ 52% 100 215 Information Technology 1,775,706 1,775,706 910,293 51% Total City Manager 3,199,571$ 3,199,571$ 1,656,069$ 52%

2021-22 MID-YEAR BUDGET REVIEW REPORT
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TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Management Services Department is currently at 58 % expended. The Finance Division is 52 % expended and proceeding as planned. The Human Resources Division is 77% expensed due to the lump sum payment to CalPERS for the unfunded accrued liability and annual insurance premiums that were paid at the beginning of the fiscal year.

Non-Departmental is 25% expended, with the majority of replacement water obligation occurring later in the fiscal year.

As a whole, the Economic Development Department is 24% expended through the Second Quarter. T his department consists of four (4) Divisions, Economic Development, Community Development Block Grant (CDBG), the CDBG -CV Cares Act, and Hesperia Housing Authority (HHA).

The Economic Development Department performs the economic development functions for the City and is proceeding as expected, with 53% expensed through December 2021.

Fund 251 Community Development Block Grant has expended 20 % of the amended budget. This fund administers the City’s CDBG program and related activities which includes $1,830,152 in budgeted funds for t hree street improvement projects. Through the second quarter, $340,911 has been expended on these Capital Improvement Projects (CIP), and it is anticipated that the majority of expenditures will occur during the third and fourth quarters. Also included is th e Microenterprise Assistance Program (MAP), which provides financial assistance, in the form of a grant, to businesses owned by low - or moderate- income individuals with five (5) or fewer employees, including the owner(s) who have recently been economically impacted by the pandemic.

The CDBG -CV Cares Act Fund 258 accounts for CDBG grant funding allocated to help mitigate the impact o f the COVID-19 Pandemic for low - and moderate-income residents through the following programs: 1) Emergency Business Assistance Program and 2) Emergency Housing and Utility Assistance Program; which were designed to assist the Hesperia residents and businesses that have been impacted by the pandemic. Applications were solicited for CDBG - CV purposes; however the number of responses were low. The lack of interest from applicants was due in part, to the availability of other programs that potentially offered greater resource to those impacted by the COVID -19 pandemic, thereby rendering the program somewhat ineffective for Hesperia . T herefore, the funds from HUD were declined , and the budget was revised to $0 during the First Quarter Budget review.

The Hesperia Housing Authority (HHA) funds oversee the affordable housing activities within the City. Through the end of December, the HHA funds are 16% expended, with the majority of the budgeted expenditures for affordable housing monitoring and annual financial audit reporting anticipated to occur later in the fiscal year.

December Amended
2021-22 2021-22 2021 YTD Percent
Management Services Budget Amended Expenditures Expended 100 220 Finance 1,780,689$ 1,780,689$ 928,593$ 52% 100 225 Human Resources/ Risk Mgmt. 2,131,430 2,131,430 1,643,320 77% 100 229 Non-Departmental 987,618 987,818 250,729 25% Total Management Services 4,899,737$ 4,899,937$ 2,822,642$ 58% December Amended
2021-22 2021-22 2021 YTD Percent
Economic Development Budget Amended Expenditures Expended 100 Economic Development 322,232$ 322,232$ 170,010$ 53% 251 Community Development Block Grant (CDBG) 2,303,429 2,303,429 456,728 20% 258 CDBG-CV Cares Act 989,947 0 0 n/a 370 Hesperia Housing Authority 66,650 66,650 10,512 16% Total Economic Development 3,682,258$ 2,692,311$ 637,250$ 24%

2021-22 MID-YEAR BUDGET REVIEW REPORT
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TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Community Development Division is 50% expended overall through the Second Quarter. Planning is 5 3% expended and Building & Safety is 47% expended, both proceeding as expected . During the November 2, 2021 First Quarter Budget Review, the budget was amended by $65,000 for additional contract inspection services due to the high demand in development.

The Code Compliance Division expenditures are trending as expected at 50% through mid -year. As shown by the table above, Code Enforcement is 56% expended, while Animal Control is 46 % expended. The Code Compliance budget was amended by $111,734 (At the July 20, 2021 and November 2, 2021 Council Meetings) for the carryover purchase of two Ford Ranger XL’s and 1.46 FTE positions added.

As shown by the table above, th e overall Public Works Division is 46% expended through December 2021 and trending as expected . The Traffic program is 37% expended due in large part to invoices pending for street sweeping and striping services for the end of the calendar year 2021. At the November 2, 2021 Council Meeting, the budget was amended to include $30,000 for the installation of eighty -five (85) feet of new guardrail. There are four (4) budget amendments totaling $169,054 that are included in this report [$67,054 for City Hall Tenant improvements, $56,000 Vactor Truck Engine Replacement, $ 16,000 for operating repairs and vehicle retrofit, and $30,000 for Plan Review & Inspection Services (split-funded with Water Operations)].

Streets Capital Improvement Project (CIP) related expenditures is 1% expended through December 2021. Expenditures will increase a s progress continues on projects such as the FY 2021- 22 Street Improvement Project, Ranchero Road Improvements and Aqueduct Crossing , and other streets related projects. As these projects move forward, the percentage of actual expenses to budget will increase. Please note that at the December 21, 2021 Council Meeting the budget was amended to appropriate an additional $84,745 in Measure I Funds to the Capital Improvement Program for the Traffic Signal at Main Street & Sultana Street/Timberlane Avenue Project C.O. 7159.

December Amended
2021-22 2021-22 2021 Y TD Percent
D. S. - Community Development Budget Amended Expenditures Expended 100 3000 Planning 888,065$ 888,065$ 472,107$ 53% 100 3020 Building & Safety 1,185,587 1,250,587 587,954 47% Total D. S. - Community Development 2,073,652$ 2,138,652$ 1,060,061$ 50% December Amended
2021-22 2021-22 2021 YTD Percent
D. S. - Code Compliance Budget Amended Expenditures Expended 100 3010 Code Enforcement 1,728,671$ 1,780,405$ 995,180$ 56% 100 5000 Animal Control 1,918,754 1,978,754 900,676 46% Total D. S. - Code Compliance 3,647,425$ 3,759,159$ 1,895,856$ 50% December Amended
2021-22 2021-22 2021 Y TD Percent
D. S. - Public Works Budget Amended Expenditures Expended 100 3100 Engineering 864,415$ 864,415$ 398,376$ 46% 100 3110 Building Maintenance 1,133,713 1,133,513 594,856 52% 263 3150 Street Maintenance 2,021,138 2,017,426 1,003,637 50% 263 3170 Traffic 1,367,595 1,401,307 520,404 37% Total D.S. Public Works 5,386,861$ 5,416,661$ 2,517,273$ 46% December Amended
2021-22 2021-22 2021 Y TD Percent
Budget Amended Expenditures Expended
Streets Capital Improvement Project (CIP) Funds 54,150,411$ 54,235,156$ 511,406$ 1%

2021-22 MID-YEAR BUDGET REVIEW REPORT
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TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

A large portion of this classication is the budgeting of the principal and interest payments for the 2012 Water Rights Acquisition and 2013 Refunding Lease Revenue Bonds. Principal payments occur in October of each fiscal year, explaining the 7 1% expended percentage through December 2021. During the first quarter budget review, the development impact fees budget for funds 303 and 312 were amended by $30,219 for the Off -Highway Motor Vehicle (OHV) Grant match ($6,282) and the purchase of seven Automated License Plate Reader (ALPR) fixed cameras and equipment ($23,937).

Overall, the Water Operating and Capital funds are 32% expended through December 31, 2021. The following narrative details the progression of each program.
• The primary responsibility of Source of Supply is to secure make- up water lease rights to remedy overproduction.

At Mid-Year, Source of Supply is only 3 % expended. Expenditures will increase significantly in the later part of the fiscal year due to the recording of leased water rights to offset the Alto and Centro Subarea replacement obligation. • Production, which is responsible for drawing the groundwater, has expended 53% of the budget by the end of the Second Quarter and is proceeding as expected. An amendment for $102,360 was approved at the October 5, 2021 Council Meeting for the purchase of a service truck to replace one that suffered an engine failure. Additionally, two budget amendments totaling $65,500 are being requested (more information is provided on page 23). • Distribution has utilized 45% of its allocated budget and is proceeding as planned. • Through December 31, 2021, Pipeline Maintenance has expended 34% of the budget and will increase as material (pipe) is purchased for the pipeline replacement program, as identified in the FY 2021 -22 Budget. A previously approved staff report to purchase a backhoe was approved and $34,501 is included as an amendment. • Engineering is currently 41% expended, which is primarily due to the timing of invoices. Expenditures are expected to increase in the second part of the fiscal year, as invoices are received for contractual professional engineering services, and annual storm water program expenses.
• Customer Service is 51% expended and proceeding as planned, with the Advanced Metering Infrastructure (AMI) programs progress on schedule.

December Amended
2021-22 2021-22 2021 Y TD Percent
Budget Amended Expenditures Expended
Other City Related Funds 2,452,615$ 2,482,834$ 1,755,409$ 71% December Amended
2021-22 2021-22 2021 Y TD Percent
D.S. Water Operating & Capital Budget Amended Expenditures Expended 4010 Source of Supply 4,232,272$ 4,232,272$ 123,600$ 3% 4020 Production 3,730,996 3,833,356 2,021,261 53% 4030 Distribution 1,623,578 1, 623,578 726,872 45% 4035 Pipeline Maintenance 1,044,150 1, 043,122 355,553 34% 4040 Engineering 1,002,956 1, 002,956 412,372 41% 4050 Customer Service 2,000,669 1, 998,669 1,016,993 51% 4060 Utility Billing 1,027,781 1,027,781 514,074 50% 4070 Administration 3,525,442 3, 528,470 1,796,477 51% 4080 Property Management 455,052 455,052 131,585 29% Total Water Operations 18,642,896$ 18,745,256$ 7,098,787$ 38% 701 Water Capital 3,330,000 3, 330,000 1,720 0% 720 Reclaimed Water Operations 262,556 262,556 1,325 1% Total D.S. Water Operating & Capital 22,235,452$ 22,337,812$ 7,101,832$ 32%

2021-22 MID-YEAR BUDGET REVIEW REPORT
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TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued) Water Operating and Capital Comments (Continued):
• Utility Billing is proceeding as expected with 50% expended. • Administration is 51% expended and proceeding as planned. • P
roperty Management is at 29% e xpended at mid-year. Facility maintenance costs are expected to increase as maintenance projects are completed throughout the fiscal year. • Expenditures for Water Capital are 0% expended and will increase as projects such as the I -15 Corridor, G Avenue Water Line Repair, Plant 14A & 25 Roof Replacement and Repair, and the FY 2019- 20 Water Service Line Relocation projects progress.
• Reclaimed Water Operations expenditures will increase later in the second half of the fiscal year when Debt Service payment is due.

The Sewer Funds overall are 29% expended.
• Sewer Operating expenditures are 44 % expended, which is primarily due to receiving invoices for Victor Valley Wastewater Reclamation Authority (VVWRA) sewer treatment fees through November 2021. An amendment fo r $
70,000 is being requested for the preparation of a Sewer Feasibility Study. • Sewer Capital has $2.6 million allocated for projects, such as the Maple Avenue Sewer Line Replacement and I-15 C
orridor sewer project. Capital expenditures will increase as progress is made on the projects.

The Police Department budget is 4 9% expended, which is expected for the first half of the fiscal year with the County contract invoices paid through December 2021. During the July 1, 2021 Council Meeting, an amendment of $16,431 was approved to include the Department of Justice (DOF) grant, which is a reimbursable grant.

During FY 2018- 19, the City transferred all Hesperia Fire Protection District (Fire District) assets and liabilities to San Bernardino County Fire, with the exception of the former personnel obligations, for which the Fire District will continue to function with dedicated funding. The Fire District is 97 % expended, which is due to paying the annual contractual retirement obligations related to the former Fire District employees at the beginning of the fiscal year.

December Amended
2021-22 2021-22 2021 YTD Percent
D. S. - Sewer Operating & Capital Budget Amended Expenditures Expended 4200 Operations 4,206,706$ 4,206,706$ 1,840,597$ 44% 4240 Engineering 204,341 204,341 79,536 39% 4260 Utility Billing 215,444 215,444 100,174 46% 4270 Administration 633,786 633,786 317,182 50% Total Sewer Operating 5,260,277 5,260,277 2,337,489 44% 711 Sewer Capital Projects 2,690,000 2,690,000 4,746 0% Total D.S. Sewer Operating & Capital 7,950,277$ 7,950,277$ 2,342,235$ 29% December Amended
2021-22 2021-22 2021 YTD Percent
Budget Amended Expenditures Expended
Police 19,260,786$ 19,277,217$ 9,530,067$ 49% December Amended
2021-22 2021-22 2021 YTD Percent
Budget Amended Expenditures Expended
Fire District 1,042,420$ 1,042,420$ 1,007,746$ 97%

2021-22 MID-YEAR BUDGET REVIEW REPORT
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PROPOSED BUDGET AMENDMENTS – SUMMARY

The FY 2021-22 Mid-Year Budget Review includes eight (8) budget amendments totaling $339,055. The following listing categorizes the proposed budget amendments, with the following pages providing detail on each request:

PROPOSED BUDGET AMENDMENTS – NARRATIVE

Development Services
 Operating Repairs & Vehicle Retrofit – Building Maintenance $16,000 (100-29-310-3110) – Unanticipated The City has two ice machines that are inoperable and due to the age are unable to be repaired, therefore an amendment to purchase new machines is requested. In addition, during Fiscal Year (FY) 2020 -21, the servic e vehicle that was being used for facility maintenance was in a collision and deemed a total loss. Staff decided that the warehouse van would be more effective for facility maintenance but would need to be retrofitted. In order to perform the retrofit, staff is requesting an amendment for the purchase of supplies and materials. A budget amendment of $16,000 is being requested for the unanticipated purchases and repairs.

 City Hall Tenant Improvements – Building Maintenance $67,054 (100-29-310-3110) – Previous Staff Report On August 17, 2021, the City Council authoriz ed the construction of additional office space for the current tenant within the City Hall expansion area. As identifi ed in the staff report, a budget amendment would be presented with the Mid-Year report.

 Vactor Truck Engine Replacement – Public Works Street Maintenance $56,000 ( 263-29-310-3150) – Previous Staff Report
The current vactor truck that is utilized to perform proactive and reactive maintenance to the storm drain system became inoperable. After inspection, it was determined that the engine is damaged and a new engine is required.

As identified in the February 1, 2022 staff report, a budget amendment would be presented with the Mid -Year report.

 Plan Review and Inspection Services – Engineering $30,000 ( 100-29-310-3100 & 700- 29-400-4040) – Previous Staff Report
In order to keep pace with development in the City, staff has elected to seek engineering contract plan review and inspection services. This would ensure that the City would maintain an acceptable schedule for development project approval, construction finalization, and certificate of occupancy’s (C of O). As identified in January 18, 2022 the staff report, an amendment would be presented with the Mid-Year report.

General Other
F
Y 2021-22 Mid-Year Budget Requests Fund Funds Totals
Operating Repairs & Vehicle Retrofit $ 16,000 $ 0 16, 000$ City Hall Tenant Improvements 67,054 0 67, 054 Vactor Truck Engine Replacement 0 56, 000 56,000 Plan Review and Inspection Services 12,000 18, 000 30,000 Plant 19 HVAC Unit & Plant 14A Electric Motor 0 57, 000 57,000 State Water Resources Control Board (SWRCB) Annual
Connection Fees
0 8,500 8, 500
Backhoe Purchase 0 34, 501 34,501 Sewer Feasibility Study 0 70, 000 70,000 Total Mid-Year Amendment Requests $ 95,054 $ 244,001 339, 055$

2021-22 MID-YEAR BUDGET REVIEW REPORT
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PROPOSED BUDGET AMENDMENTS – Narrative (Continued)

Water District

 Plant 19 Heating, Ventilation, and Air Conditioning (HVAC) Unit & Plant 14A Electric Motor – Production $57,000 (700-29-400-4020) – Unanticipated
The HVAC unit ensures that the electrical equipment maintains an optimal temperature to prevent overheating during operation. Unfortunately, the current HVAC unit at Plant 19 is in need of substantial repair, and based on the age, a new unit is recommended. Recently, the electric motor failed leaving Plant 14A inoperable. The repair is necessary in order for the well to continue to pump and distribute water to residents throughout the City. During their evaluation of the needed repairs , staff realized that the protective coating around the electrical wiring is cracking causing a potential safety hazard. Replacing the electrical wiring is optimal to ensure all components are functioning properly. Therefore, an amendment of $56,000 is requested to purchase a new HVAC unit ($15,000) at Plant 19 and to repair the motor and electrical wiring at Plant 14A ($42,000).

 State Water Resources Control Board (SWRCB) Annual Connection Fees – Production $8,500 (700-29-400- 4020) – Unanticipated
SWRCB establishes a fee schedule to support the Drinking Water Program based on the number of water service connections. On September 22, 2021, the State Water Board adopted emergency regulations that adjusted water fees by approximately 26.6%. This adjusted fee caused an $8,500 or 12% increase over the FY 2021-22 Budget amount of $70,000. An amendment for the increase is being requested.

 Backhoe Purchase – Pipeline $34,501 (700-29-400-4035) – Previous Staff Report The current backhoe has been in service since 2006 , has required numerous repairs to remain in service, and recently broke down. After receiving the cost estimate to repair, staff has decided to sell the backhoe in its current condition and to purchase a new one. As identified in the staff report, the purchase amount for a new backhoe is $129,301, but staff has identified $94,800 in program savings, therefore only requesting the difference of $34,501 for the purchase.

 Sewer Feasibility Study – Engineering $70,000 (710-29-420-4240) – Unanticipated A Sewer Feasibility Study is needed due to the increase in new residential and commercial/industrial development to evaluate possible sewer conveyance systems and the resulting annual cost per resident once the system is constructed. The alternate conveyance systems that w ill be evaluated are a low pressure system and a conventional gravity sewer/pump station system. Therefore, a budget amendment is being requested to perform the study.

2021-22 MID-YEAR BUDGET REVIEW REPORT
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PROPOSED BUDGET AMENDMENTS – Narrative (Continued)

General Other
R
equested: Fund Funds Totals
Development Services
Operating Repairs & Vehicle Retrofit $ 16,000 0$ 16,000$ City Hall Tenant Improvements 67,054 0 67,054 Vactor Truck Engine Replacement 0 56,000 56,000 Total Development Services 83,054$ 56,000$ 139,054$ Water District
Plan Review and Inspection Services 12,000$ 18,000$ 30,000$ Plant 19 HVAC Unit & Plant 14A Electric Motor 0 57, 000 57,000 State Water Resources Control Board (SWRCB) Annual Connection Fees 0 8, 500 8,500 Backhoe Purchase 0 34, 501 34,501 Sewer Feasibility Study 0 70,000 70, 000 Total Water District 12,000$ 188,001$ 200,001$ Total City Expenditures 95,054$ 244,001$ 339,055$ Source of Funds:

General Fund - 100 95,054$
Street Maintenance - 263 56,000
Water - 700 118,001
Sewer - 710 70,000
Total Source of Funds 339,055$

2021-22 MID-YEAR BUDGET REVIEW REPORT
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2021-22 Mid-Year Budget Salaries and Positions

The following position title and salary changes are proposed for more effective management City operations. If approved by the City Council, these changes will also be included in the 2022 -23 Proposed Budget. The proposed changes are summarized as follows:

Development Services Department
• Deputy Development Services Director (Senior Management) – Eliminate one Principal Planner position, which is a Management Classification at a salary range 44 and add one new Deputy Development Services Director position, which is a Senior Management Classification with a salary range of 45 and will not receive automobile allowance monthly payment.
• Senior Management Analyst (Non -Represented) – Add one Senior Management Analyst position, which is a Management Classification at a salary range of 40.

Community Development Division
• Community Development Supervisor (Non-Represented) – Eliminate one Community Development Coordinator position at a range 34, and add one Community Development Supervisor which is a Professional/Supervisory Classification with a salary range of 37.
• Senior Office Specialist (Non -Represented) – Eliminate one Office Assistant position at a range 26, and add one Senior Office Specialist position, which is a General Classification with a salary range of 28. • Assistant Planner ( Non-Represented) – Eliminate one Senior Engineering Technician position, which is a General Classification and add one Assistant Planner position, which is a Professional/Supervisory Classification at the same salary range of 35.
• Office Assistant (Part -time) – Add one (0.46 FTE) part -time Office Assistant , Non -Represented position at salary range 26.

Code Compliance Division – Animal Control Program
• Eliminate the Animal Services Manager, which is a Management Classification, Non-Represented position, and salary range 41.
• Animal Services Supervisor (Non -Represented) – Add a new position classification title of Animal Services Supervisor, which will be a Professional/Supervisory Classification with a salary range of 37 and eliminate one Animal Services Coordinator (Non-Represented, range 30). • Field Services Supervisor (Non -Represented) – Add a new position classification title of Field Services Supervisor, which will be a Professional/Supervisory Classification and salary range of 37. • Animal Services Specialist (Non -Represented) – Add a new position classification title of Animal Services Specialist, which will be a Professional/Supervisory Classification and salary range of 34. • Receptionists (Non-Represented) – Add two (0.92 FTE) part-time receptionist positions, with a salary range 6. • Animal Care Technician (Represented) – Add one Animal Care Technician position at a salary range 8.

2021-22 MID-YEAR BUDGET REVIEW REPORT
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2022-23 Tentative Budget Calendar

While the Mid-Year report is a gauge of the current year’s activity, it does serve as the official start for planning the next year’s budget. Below is the tentative calendar for the FY 2022-23 Budget.

Council FY 2021-22 Mid-Year Budget Review February 15, 2022 2022-22 Budget Instructions (Intranet) February 25, 2022 2022-23 Draft Division and/or Program Narratives March 10, 2022 FY 2021-22 Revised Expenditure Estimates, 2022-23 Current Level Proposed Budget Expenditures and Expenditure Detail Narrative forms
March 17, 2022
2022-23 Budget Increments-“Requested Expenditures Above Current Level” March 18, 2022 FY 2021-22 Revised Revenue and 2022-23 Proposed Budget Revenue Estimates to Departments for Review (07/01/2021 thru 02/29/2022)
April 12, 2022 (Review)
April 18, 2022 (Due)
Budget Review with Departments/Divisions (Finance) Mid-April 2022-23 Final Proposed Budget Division and/or Program Narratives completed End of April Workshop #1 – Current Level Budget to Council (Operating) May 3, 2022 Capital Improvement Program (CIP) Due from Department to Finance May 6, 2022 Workshop #2 – Above Current Levels to Council May 17, 2022 2022-23 Proposed Budget completed May 27, 2022
Council Budget Workshop June 7, 2022
Council Adopts Operating Budget June 7, 2022
Council Adopts CIP Budget June 21, 2022

With this calendar, there are two planned budget workshops prior to requesting the City Council to adop t the operating budget on June 7, 2022 and the CIP Budget on June 21, 2022. • Budget Workshop #1 will highlight the current-level operating budget. • Budget Workshop #2 will highlight the use of reserves for major purchases, as well as the capital improvement program budget.

RESOLUTION NO. 2022-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE 2021-22 MID-YEAR BUDGET REVIEW AND AMENDING THE 2021-22 CITY OF HESPERIA BUDGET TO FUND CERTAIN

RELATED EXPENDITURES

WHEREAS, the City Council of t he City of Hesperia adopted the Fiscal Year (FY) 2021-22 Budget on June 15, 2021; and

WHEREAS, the City Council of the City of Hesperia was presented the 2021-22 Mid-Year Budget Review by staff; and

WHEREAS, the City Council of the City of Hesperia has reviewed the 2021-22 Mid-Year Budget Review information and analysis and has found it acceptable; and

WHEREAS, the City Council of the City of Hesperia has reviewed and approves the budget amendments included in the 2021-22 Mid-Year Budget Review.

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

Section 1. That the recitals above are true and correct and adopted as findings.

Section 2. That the City Council of the City of Hesperia receives the 2021-22 Mid-Year Budget Review.

Section 3. That the City Council approves the 2021-22 Mid-Year Budget Review expenditure amendments by making appropriations for:

 Operating Repairs & Vehicle Retrofit (100-29-310) $ 16,000  City Hall Tenant Improvements (100-29-310) 67,054
 Plan Review and Inspection Services (100-29-310) 12,000  Vactor Truck Engine Replacement (263-29-310) 56,000 Total $151,054

Section 4. That the City Council approves the following position classification changes included in the 2021-22 Mid-Year Budget Review as follows:

Section 4a. That the City Council approves the new position classification title of Deputy Development Services Director, which is a senior management classification, non-represented, with a salary range of 45.

Section 4b. That the C ity Council approves the new position classification title of Animal Services Supervisor, which is a non -represented position in the professional/supervisory classification, with a salary range of 37.

Section 4c. That the City Council approves the new pos ition classification title of Field Services Supervisor, which is a non -represented position in the professional/supervisory classification, with a salary range of 37.

Resolution No. 2022-09

Section 4d. That the City Council approves the new position classification title of Ani mal Services Specialist, which is a non -represented position in the professional/supervisory classification, with a salary range of 34.

Section 5. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 15th day of February 2022.

_________________________________________
Brigit Bennington, Mayor
ATTEST:

___________________________________
Melinda Sayre, City Clerk

RESOLUTION NO. HWD 2022-02

A RESOLUTION OF THE HESPERIA WATER DISTRICT OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE 2021-22 MID-YEAR BUDGET REVIEW AND AMENDING THE 2021-22 HESPERIA WATER DISTRICT

BUDGET TO FUND CERTAIN RELATED EXPENDITURES

WHEREAS, the Board of Directors of the Hesperia Water District adopted the Fiscal Year (FY) 2021-22 Budget on June 15, 2021; and

WHEREAS, the Board of Directors of the Hesperia Water District was presented the 2021-22 Mid-Year Budget Review by staff; and

WHEREAS, the Board of Directors of the Hesperia Water District has reviewed the 2021-22 Mid-Year Budget Review information and analysis and has found it acceptable; and

WHEREAS, the Board of Directors of the Hesperia Water District has reviewed and approves budget amendments included in the 2021-22 Mid-Year Budget Review.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS O F THE HESPERIA WATER DISTRICT AS FOLLOWS:

Section 1. That the recitals above are true and correct and adopted as findings.

Section 2. That the Board of Directors of the Hesperia Water District receives the 2021-22 Mid-Year Budget Review.

Section 3. That the Board of Directors of the Hesperia Water District approves the 2021-22 Mid -Year Budget Review expenditure amendments by making appropriations for:

 Plant 19 HVAC Unit & Plant 14A Electric Motor (700-29-4020) $ 57,000  State Water Resources Control Board (SWRCB) Annual
Connection Fees (700-29-4020)
8,500
 Backhoe Purchase (700-29-4035) 34,501
 Inspection Services (700-29-4040) 18,000
 Sewer Feasibility Study (710-29-4240) 70,000
Total $188,001

Section 4. That the Board of Directors of the Hesperia Water District approves the following position classification change included in the 2021 -22 Mid -Year Budget Review as follows:

Section 4a. That the Board of Directors of the Hesperia Water District approves the new position classification title of Deputy Development Services Director, which is a senior management classification, non -represented, with a salary range of

45.

Resolution HWD 2022-02

Section 5. That the Board Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 15th day of February 2022.

_________________________________________
Brigit Bennington, Chair
ATTEST:

_______________________________
Melinda Sayre, Secretary to the Board

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City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager

SUBJECT: Discussion on Opposition to Vaccine and Mask Mandates

RECOMMENDED ACTION

It is recommended that the City Council discuss and provide staff with direction on vaccine verification and mask mandates for local business.

BACKGROUND

During the October 5, 2021 City Council meeting it was requested that staff agendize a discussion item on Council opposition of mask mandates and proof of vaccination policies by local businesses as a requirement for patronage.

ISSUES/ANALYSIS

On September 20, 2021 the State of California mandated the requirement of proof of vaccination or a negative COVID-19 test prior to admitting entry of one -thousand (1,000) or more people to indoor gatherings, and ten -thousand (10,000) or more people to o utdoor gatherings. Since that mandate a number of cities in California have implemented similar proof of vaccination and/or test requirements prior to entry into restaurants, bars, gyms, and retail establishments of all types.

Most recently, on December 15, 2021, the State of California reinstituted a statewide indoor mask mandate for businesses and places of employment. It was announced on February 7, 2022 that the statewide indoor mask mandate will expire for vaccinated individuals on February 15, 2022.

FISCAL IMPACT

There is no fiscal impact attached to this item.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

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City of Hesperia

STAFF REPORT

DATE: February 15, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager

SUBJECT: Discussion on Supporting Legislation that Limits Gubernatorial Emergency Orders Authority to a Designated Timeframe Unless Extended by an Act of the Legislature

RECOMMENDED ACTION

It is recommended that the City Council discuss supporting legislation that limits gubernatorial emergency orders authority to a designated timeframe unless that timeframe is extended by an act of the legislature.

BACKGROUND

At the October 5, 2021 , City Council Meeting, Mayor Pro Tem Holland requested a discussion item be agendized regarding supporting legislation that limits Gubernatorial authority to issue Emergency Orders.

ISSUES/ANALYSIS

In response to the COVID -19 pandemic, Governor Newsom issued a stay-at-home order and designated certain businesses and faith -based organizations as non-essential, prohibiting them from normal operations. Those businesses deemed essential by the State of California were allowed to operate with modifications that provide for social distancing and increased disinfection procedures, as appropriate. Additionally, emergency orders were issued mandating facial masks be worn and stipulations issued on capacity limits for all organizations and events in California.

Numerous modifications to these emergency orders have been made since March 2020.

In California, there is currently no legislation in place to terminate Gube rnatorial Emergency Orders or otherwise restrict a Governor’s authority to regulate County/City public health decisions.

As a result, these orders can be extended and modified indefinitely.

FISCAL IMPACT

None

ALTERNATIVES

1. The City Council may provide alternative direction to Staff.

ATTACHMENTS

Staff Report to the Mayor and Council Members
Adoption of Resolution of Formation for CFD 2021-1
February 15, 2022
None.