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 additional 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 current 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
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)
Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and City Council Members
Amendment to the Contract with NBS for a Fiscal Impact Analysis Report February 15, 2022