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.
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 facilities 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:
state that the proposed special tax to be levied within the district has not been precluded by majority protest; describes the services proposed to be funded with the special tax; 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. 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. 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. 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 for 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 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. 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 Clerk 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
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
Provide alternative direction to Staff.
ATTACHMENTS
Resolution Establishing the Formation of the CFD
Resolution Calling for a Special Election
Resolution Declaring the Results of a Special Landowner Election Ordinance Authorizing the Levy of Special Taxes in a Community Facilities District CFD Special Tax Report
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 Council Members
Adoption of Resolution of Formation for CFD 2021-1
February 15, 2022