City of Hesperia
STAFF REPORT
DATE: May 17, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager SECOND READING AND ADOPTION BY: Rachel Molina, Assistant City Manager
Casey Brooksher, Director of Administrative Services
SUBJECT: Adoption of a Resolution Establishing the Formation and Certifying the Election Results of Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services)
RECOMMENDED ACTION
It is recommended that the City Council conduct the Public Hearing and after receiving public testimony and deliberation and: 1) Adopt a Resolution Establishing the Formation of the City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (“CFD 2022-1”) 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 property owner has filed a petition requesting the formation of the CFD.
During May 2021, the City and its consultant NBS completed the Fiscal Impact Analysis for Citywide Future Development (FIA). This analysis identified the fiscal impacts of new development to the City. Additionally, the study looked to determine a funding mechanism for enhanced police protection services as well as funding for enhanced roadway maintenance services for future non- residential development.
To mitigate the negative fiscal impacts associated with these enhanced services, the City is currently considering the formation of CFD 2022-1 to fund maintenance and associated services related to new non-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. The next step in in the process of forming CFD 2022-1 is to adopt the Resolution of Intention (the “ROI”).
Staff Report to the City Council
Adoption of Resolution of Establishing Formation and Certifying the Election Results for CFD 2022 -1 May 17, 2022
The ROI includes a description of the services to be provided, a map of the boundary of CFD 2022-1, 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 2022-1.
A Future Annexation Area allows future developments within the area to annex by unanimous written consent of the property owner.
ISSUES/ANALYSIS
Resolution of Intention
This action relates to the ROI, which formally states the City’s intent to form CFD 2022-1. The ROI does not actually form CFD 2022-1 or authorize the levy of the special taxes; rather, the ROI initiates proceedings. The ROI also approves the boundary map, including Future Annexation Area, for the proposed CFD 2022-1, which is attached hereto as Attachment B, and is on file with the City Clerk. The ROI includes the following information, as required by statute:
(a) declares the intention to form CFD 2022-1, and describes generally the boundaries;
(b) adopts the boundary map, including Future Annexation Area, for CFD 2022-1;
(c) states that the full name of CFD 2022-1 shall be “City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services).”
(d) describes the services to be funded;
(e) states that, except where funds are otherwise available, a special tax sufficient to pay for all services, secured by recordation of a continuing lien against all nonexempt real property in the district, will be annually levied within the area, and specifies the rate and method of apportioning the special tax, subject to voter approval;
(f) fixes a time and place for a public hearing on the establishment of the CFD, which is proposed to be May 17, 2022, at 6:30 pm;
(g) describes the proposed voting procedure; and
(h) describes future annexation by unanimous written consent of property owners in the future annexation area where applicable.
Rate and Method of Apportionment
The ROI includes a description of the rate and method of apportioning the special tax. The City has been working with its special tax consultant to prepare a Rate and Method of Apportionment (the “RMA”) setting forth a methodology for CFD 2022-1’s proposed special tax. The RMA is attached to the ROI as Exhibit “A” thereto.
Staff Report to the City Council
Adoption of Resolution of Establishing Formation and Certifying the Election Results for CFD 2022 -1 May 17, 2022
Pursuant to the RMA, the proposed special tax is to be levied on all taxable, non-exempt parcels within the District’s service area. Specifically, the RMA includes proposed special taxes for various land use categories as follows:
MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2022/23*
*On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.
The special taxes set forth in the table on the previous page are proposed to be levied within the boundaries of CFD 2022-1 alone. The RMA includes additional details on inflationary increases for special taxes, procedures for appeals, exemptions, and other relevant information.
Next Steps
Adopting the ROI is the first formal step in forming CFD 2022-1. This action only declares the intention to form CFD 2022-1, but additional steps will be required to form CFD 2022-1 and impose the special taxes.
At the May 17, 2022 meeting, the City will hold a joint public hearing and provide an opportunity for public testimony on the formation of CFD 2022-1 and the establishment of a future annexation area. Notice must be published prior to the date of that hearing. At the hearing, if oral or written protests are filed by 50% or more of the registered voters within CFD 2022-1 or Future Annexation Area or the owners of more than 50% of the property within the proposed CFD 2022-1 or Future Annexation Area, the City must terminate proceedings. If not, the City will adopt a resolution forming CFD 2022-1, and call a special election and the City will form the Future Annexation Area where property owners will be permitted to join the CFD by unanimous written consent to the special taxes. The Unanimous written consent essentially serves as an election for a limited number of property owners where it is applicable. The Future Annexation Area will affect new non-residential development within the City.
If two-thirds of the votes cast are in favor of imposing the special tax, CFD 2022-1 may begin to impose the tax, and will file forms with the County for collection of the tax.
FISCAL IMPACT
In order to provide enhanced law enforcement and roadway services, the Fiscal Impact Analysis identified the necessary funding amount of $371.44 per 1,000 building square feet, or $0.37 per building square foot. As a policy matter with a goal of not hindering new non-residential development, the City has determined to set an initial maximum special tax rate of $0.15 per building square foot for Industrial and Mixed-Use land uses. The following table includes the
Property Type
Maximum Special
Tax Rate
Per
Industrial Property $0.15 Building Square Foot
Industrial Parking Facility Property $0.15 Improved Square Foot Mixed Use Property $0.15 Building Square Foot
Staff Report to the City Council
Adoption of Resolution of Establishing Formation and Certifying the Election Results for CFD 2022 -1 May 17, 2022
estimated budget to fund the enhanced services as well as the costs to administer CFD 2022-1.
Description Value
Total Estimated Square Footage $3,745,429
Maximum Special Tax Rate Per Building Square Foot 0.15 $ 561,814
CFD Administration and County Collection Costs 5,509
Total Initial CFD Budget $567,323.55
The cost of formation of CFD 2022-1 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 owner of the property being annexed.
ALTERNATIVE(S)
1. The City Council may provide alternative direction to staff.
ATTACHMENT(S)
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. 2022-31
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. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)
WHEREAS, on April 5, 2022, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted Resolution No. 2022 -22 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. 2022 -1 (Non- Residential Maintenance and Services)” (the “District”) and “City of Hesperia Community Facilities District No. 2022 -1 (Non -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 Administrative Services 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 reasonabl e 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 May 17, 2022; 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 May 17, 2022, 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
Resolution No. 2022-31
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 Are a and not exempt from the proposed special taxes; and
WHEREAS, the special tax proposed to be levied in the District and Future Annexation Area 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 Council of the City of Hesperia as follows:
1. The foregoing recitals are true and correct.
2. The proposed special tax to be levied within the District and Future Annexation Area has not been precluded by majority protest pursuant to Section 53324, 53339.6 and/or other applicable provisions of the Act.
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.
4. The community facilities district designated as the “City of Hesperia, Community Facilities District No. 2022 -1 (Non -Residential Maintenance and Services)” and the future annexation area designated as “City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (Future Annexation Area)” of the City is hereby established pursuant to the Act.
5. The District Report is hereby approved.
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. 2022-1 (Non-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 April 19, 2022, in Book 90 at Page 18 as Document 2022 -0144920 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference, and shall be the boundaries of the District.
Resolution No. 2022-31
Parcels within the Future Annexation Area may be annexed to the District 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 or by annexation proceedings permitted by the Act.
7. The type of public services pr oposed 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 a re necessary to meet the increased demands as the result of development occurring in the District and Future Annexation Area.
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 ordin ary 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.
9. The Rate and Method of Apportionment of the special tax among the parcels of real property with in 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.
10. Territory in the Future Annexation Area wil l 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.
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 ann ually 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.
Resolution No. 2022-31
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.
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 $1,700,000 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 lim it 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.
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. This Resolution shall take effect upon its adoption.
ADOPTED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 17th day of May, 2022.
Ayes:
Noes:
Abstain:
Absent:
Brigit Bennington, Mayor
Attest:
Melinda Sayre, City Clerk
EXHIBIT A
CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(NON-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 2022-1
(NON-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
CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)
A Special Tax shall be levied and collected in City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (“CFD 2022-1”) each Fiscal Year, in an amount determined by the application of the procedures below. All of the Taxable Property (as defined below) in CFD 2022-1, 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:
"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 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 2022-1 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 2022-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD 2022-1 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 2022-1.
“Annual Special Tax Requirement” means that amount with respect to CFD 2022-1 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 2022-1, and (4) any reasonably anticipated delinquent Special Tax. “Assessor’s Data” means Building Square Footage, 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 April 19, 2022 in Book 90 at Page 18 as Document Number 2022-0144920.
“Building Square Foot(age)” means the structure square footage as shown on the building permit issued or as contained in the Assessor’s Data or in City building permit data. “CFD 2022-1” means the City of Hesperia Community Facilities District No. 2022-1 (Non-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.
“City Council” means the City Council of the City, acting as the legislative body of CFD 2022-1. “County” means the County of San Bernardino, California. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD 2022-1 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 2022-1 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.
“Improved Square Foot(age)” means, for Industrial Parking Facility Property, that paved square footage used for parking facilities plus the structure square footage associated with any office or building on the property, as shown in Assessor’s Data or in City building permit data. “Industrial Parking Facility Property” means all Assessor’s Parcels of Developed Property used for the temporary parking or storage of vehicles for a fee.
“Industrial Property” means all Assessor’s Parcels of Developed Property with an industrial use, according to Assessor’s Data or as otherwise known by the CFD Administrator. “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.
“Mixed Use Property” means all Assessor’s Parcels that have been classified by the City to allow multiple uses on each such Assessor’s Parcel. For an Assessor’s Parcel of Mixed Use Property, each property use
City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 2
thereon is subject to taxation pursuant to section C below. “Non-Residential Property” means all Assessor’s Parcels of Developed Property within the boundaries of CFD 2022-01 for which a building permit(s) has been issued for a non-residential structure(s). “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 2022-1 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 2022-1 each respective Tax Zone.
“Public Property” means any property within the boundaries of CFD 2022-1 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 2022-1.
“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 3% 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 2022-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD 2022-1, 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 2022-1 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 2022-1 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 CFD2022-1 that are not Developed Property.
City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 3
“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD 2022-1 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 2022-1. 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, Building Square Footage, or Acreage each Parcel contains; (iv) the property type, i.e., Industrial 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 within Tax Zone No. 1 shall be assigned according to the table below.
In some instances, an Assessor’s Parcel of Developed Property may contain more than one property land use. The Maximum Special Tax assigned to an Assessor’s Parcel of Mixed Use Property shall be the sum of the Maximum Special Tax for all property uses located on that Assessor’s Parcel.
TABLE 1
MAXIMUM SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2022/23*
Property Type
Maximum
Special Tax Rate
Per
Industrial Property $0.15 Building Square Foot
Industrial Parking Facility Property $0.15 Improved Square Foot Mixed Use Property $0.15 Building Square Foot
*On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.
On July 1 of each Fiscal Year, commencing on July 1, 2023, the Maximum Special Tax for Tax Zone No. 1 shall be increased by an amount equal to the Tax Escalation Factor.
A different Maximum Special Tax rate and Tax Escalation Factor may be identified in Tax Zones added to CFD No. 2022-1 as a result of future annexations.
City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 4
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 2022-1 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.
In some instances, an Assessor’s Parcel of Developed Property may be Mixed-Use Property. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Units and Building Square Feet of each property type on that Assessor’s Parcel.
E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on Agricultural Property, Property Owner Association Property or Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.
Welfare Exempt Property shall be exempt from the Special Tax in any Fiscal Year 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.
City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 5
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 2022-1, 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
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 6
RESOLUTION NO. 2022-32
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. 2022-1
(NON-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. 2022-1 (Non- Residential Maintenance and Services) (the “District”), defining the p ublic 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 Me llo-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 the City Council of the City of Hesperia as follows:
1. The foregoing recitals are true and correct.
2. Pursuant to the Act, the issues of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors (as defined below) of the District at a special election called therefor as provided below.
3. This 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.
4. This City Council hereby calls a special election to consider the issues described in Section 2, above, which special election shall be held on May 17, 2022, and the results thereof canvassed at the meeting of this City Council on May 17, 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.
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.
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 Formati on 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 Petition with Waivers 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.
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.
8. Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the operation and m aintenance 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 create d 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.
9. This Resolution shall take effect upon its adoption.
Resolution No. 2022-32
ADOPTED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 17th day of May, 2022, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Brigit Bennington, Mayor
Attest:
Melinda Sayre, City Clerk
EXHIBIT A
CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)
SPECIAL TAX ELECTION
(May 17, 2022)
This ballot is for a special, landowner election. You must return this ballot in the enclosed 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, May 17, 2022, either by mail or in person. A postmark is not sufficient. 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 $567,323.55 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. 2022-1 (Non-Residential Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $0.15 per building square foot (or improved square foot for industrial parking), other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $1,700,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on May 17, 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 analysis and arguments or form of ballot with respect to the ballot measure.
Number of Votes: 118
Property Owner: Main Hesperia LLC
By:
Property Owned by Property Owner: San Bernardino County Assessor’s Parcel Numbers:
3064-351-03-000, 3064-361-01-0000, 3064-401-02-0000, 117.73 Acres
RESOLUTION NO. 2022-33
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. 2022-1
(NON-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. 2022 -1 (Non- Residential Maintenance and Services) (the “District”), and the Future Annexation Area designated as the “City of Hesperia Community Facilities District No. 2022-1 (Non-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 reso lution 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 Council of the City of Hesperia 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 $1,700,000 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
Resolution No. 2022-33
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 b e 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.
6. This Resolution shall take effect upon its adoption.
ADOPTED AND APPROVED the City Council of the City of Hesperia at a public meeting of said City Council held on the 17th day of May, 2022, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Brigit Bennington, Mayor
Attest:
Melinda Sayre, City Clerk
EXHIBIT A
CITY OF HESPERIA
COMMUNITY FACILITIES
DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)
CANVASS AND STATEMENT OF RESULT OF
SPECIAL ELECTION
I hereby certify that on May 17, 2022, I canvassed the returns of the special election held on May 17, 2022, in the City of Hesperia Community Facilities District No. 2022 -1 (Non-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:
City of Hesperia
Community Facilities District No. 2022-1
(Non-Residential Maintenance and
Services) Special Tax Election, May 17,
2022
BALLOT MEASURE: Shall the measure authorizing the City of Hesperia Community Facilities District No. 2022 -1 (Non -Residential Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $0.15 per build ing square foot (or improved square foot for industrial parking), other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $1,700,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on May 17, 2022, commencing Fiscal Year 2022-23, be adopted?
Yes:
No:
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on May 17, 2022.
By:
City Clerk
City of Hesperia
Qualified
Landowner Votes Votes Votes
Votes Cast YES NO
_197
ORDINANCE 2022-06
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. 2022-1
(NON-RESIDENTIAL MAINTENANCE & SERVICES)
WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) on April 5, 2022 adopted Resolution No. 2022 -22 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. 2022-1 (Non-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 April 5, 2022, or as soon thereafter as the matter may be heard; and
WHEREAS, on April 5, 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 an d, 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) prelimin arily established an appropriations limit for the District, all pursuant to the Act; and
WHEREAS, on May 17, 2022, a special election was held among the landowner voters within the District at which the landowner voters approved the proposition relating t o 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”).
THE CITY COUNCIL OF THE CITY OF HESPERIA DOES ORDAIN AS FOLLOWS:
SECTION 1: 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 following such annexation for fiscal year 2022-2023 and in each fiscal year thereafter.
SECTION 2: 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 3: 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 4: 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 5: 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 ca ses 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 or designee or employee or consultant 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 6: 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 7: 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 8: This Ordinance shall become effective thirty (30) days following adoption.
City of Hesperia, a municipal corporation
MAYOR:
BRIGIT BENNINGTON, MAYOR
ATTEST:
MELINDA SAYRE, CITY CLERK
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO SS:
CITY OF HESPERIA
I, Melinda Sayre, City Clerk of the City of Hesperia, do hereby certify that the foregoing Ordinance had its first reading and was introduced during the public meeting of the City Council on the 5 day of April, 2022 and had its second reading and was adopted and passed during the public meeting of the City Council on the 17 day of May, 2022, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Attest:
Melinda Sayre, City Clerk
Prepared by:
Report for:
Community Facilities District No. 2022-1
(Non-Residential Maintenance &
Services)
Special Tax Report
May 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. 2022-1 (Non-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 April 5, 2022, adopted Resolution 2022-22 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. 2022-1 (Non-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 April 5, 2022 by the City Council.
NOW, THEREFORE, the Director of Administrative Services 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 April 5, 2022.
City of Hesperia
Community Facilities District No. 2022-1 (Non-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. 2022-1 (Non-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 for Fiscal Year 2022/23.
District Costs
2022/23 Maximum
Budget Amount
District Service Costs $561,814.35
District Administration Costs $5,509.00
Total: $567,323.55
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
Industrial Property $0.15 per Building
Square Foot $567,323.55
Industrial Parking Facility Property $0.15 per Improved Square Foot 0.00
Mixed Use Property $0.15 per Building
Square Foot 0.00
Total Anticipated Maximum Annual Special
Tax Revenue (1): $567,323.55
(1) Anticipated based upon expected development.
Fiscal Year 2022/23 Maximum Annual Special Tax Rate
The Fiscal Year 2022/23 maximum annual special tax rate for Industrial Property within the District is $0.15 per building square foot. The maximum annual special tax rate for Industrial Parking Facility Property is $0.15 per improved square foot and the maximum annual special tax rate for Mixed Use Property is $0.15 per building square foot.
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 (3%) of the maximum annual special tax rate in effect for the previous Fiscal Year.
City of Hesperia
Community Facilities District No. 2022-1 (Non-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. 2022-1 (Non-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 April 5, 2022.
City of Hesperia
STAFF REPORT
DATE: June 7, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Melinda Sayre, Director of Government Services/City Clerk Jacquelyn Castillo, Administrative Analyst
SUBJECT: Amendments to Title 5 of Hesperia Municipal Code - Self-Certification Component of the Rental Housing Business License and Inspection Program and Implementation of a Self-Certification Fee
RECOMMENDED ACTION
It is recommended that the City Council introduce and place on first reading Ordinance No. 2022-08, amending Title 5 of the Hesperia Municipal Code related to the Self-Certification component of the Rental Housing Business License a nd Inspection Progra m. It is also recommended that the Council adopt Resolution No. 2022-36, to implement a self -certification fee for the Rental Housing Business License and Inspection Program.
BACKGROUND
On January 5, 2021, the City Council approved Ordinance 2020-14, amending Title 5 of the Hesperia Municipal Code adding Chapter 5.72 creating a Rental Housing Business License and Inspection Program. This program is intended to ensure safe and healthy housing, protects vulnerable tenants, maintains neighborhood property values, and holds landlords accountable for the maintenance of their properties.
ISSUES/ANALYSIS
Rental Housing Compliance
As of May 26, 2022, a total of 2,368 properties have registered for the program, consisting of 2,077 Single Family Residences and 3,027 Multi-Family Units. Staff continues to conduct outreach and identify unregistered rental properties throughout the City to gain compliance with the program.
Rental Housing Inspections
The City achieved a baseline inspection for all new applicants of residential dwelling units to record the current state of rental properties. If code violations were noted, owners were instructed to cure them within reasonable timeframes. As of May 26, 2022, a total of 3,222 rental housing inspections have been performed and over 40% of rental properties passed on first inspection .
Of the nearly 60% of properties that failed on first inspection, a pproximately 10% of those failed inspections involved serious or hazardous conditions having no or non -functioning carbon monoxide detectors and/or smoke detectors in the residences, improperly strapped water heaters, hazardous electrical issues, dilapidated roofing, and improper occupancy. Less serious violations
Staff Report to the Mayor and Council Members
Rental Housing Business License and Inspection Regulations and Fees June 7, 2022
noted involved inoperative vehicles, trash and debris, water leaks, and broken or obstructed windows.
The inspection process has provided a mechanism for property owners to be accounta ble for maintaining their properties, while also ensuring that Hesperia renters have access to clean and safe rental properties.
Self-Certification Component for Year Two
Following an initial inspection, property owners who meet eligibility requirement s may be permitted to annually self-certify using a checklist and photographs of the property to demonstrate compliance, without the need for an annual physical inspection by staff . Staff anticipates that around 1,500 properties may qualify for self-certification.
As rental housing business licenses are up for renewal, the self-certification component of the program will commence, and staff recommends revising Title 5 of the Hesperia Municipal Code to specify qualific ations to participate in the self -certification program . Staff recommends amending section 5.72.130 Rental Housing Business License Renewal to add the following language:
Owners of well-maintained rental properties that have the following characteristics may apply to participate in the Self-Certification Program: no violations of the Hesperia Municipal Codes and/or California State Building, Housing and Health Safety Codes exist on the property at the time of the initial inspection; no outstanding citations, inspection or abatement fees, special assessment, and liens; and a current rental housing business license. If the application qualifies, the owner shall pay an annual non-refundable self-certification fee and renewal fees which must be paid in full at the time of self -certification and conduct an annual self-inspection of each residential dwelling unit as discussed below. If the City determines that a residential rental dwelling unit is not eligible to participate in the self-certification program, then the owner shall allow the City to conduct an inspection of their residential rental properties for compliance with all applicable codes and the City's housing and property maintenance standards and the owner shall be assessed the full annual inspection fees established by resolution of the City Council. For qualifying participants, the owner shall self-certify to the City on an annual basis that all units on each property are maintained in good order, have met all the requirements of this code and any other applicable state or local codes, and shall include photographs of good quality showing the frontage of the property, all side yards, parking areas, common areas, and any other areas that would normally be inspected as part of the annual maintenance inspection program.
The owner shall certify that the conditions at the property achieve the minimum standards listed on the self-certification program checklist.
Nothing in the self-certification program shall be construed or interpreted as limiting the City’s authority to investigate and compel the abatement of any building, housing, and sanitation codes or ordinance violations.
Any property that participates in the self -certification program may be removed from the program at any time if that property fails to meet all of the interior and exterior standards designated on the self -certification program checklist or fails t o meet building, housing and sanitation codes or ordinances as defined in this chapter. Upon removal from the program,
Staff Report to the Mayor and Council Members
Rental Housing Business License and Inspection Regulations and Fees June 7, 2022
the difference between the self-certification program fee and full annual program fee shall be due and payable.
The City will take appropriate measures to communicate any changes to the ordinance with affected residents.
Rental Housing Fee Assessment
Staff recommends keeping rental housing business license and inspection fees at the tier one rate, which is comprised of a $75 rental housing fee for single family residences and $50 per unit fee for multi-family residences in conjunction with business license and administrative costs as well as State SB1186 fees. Furthermore, as the program enters its second year, implementation of a self-certification fee is necessary as property owners who meet eligibility requirements can self-certify their properties without physical inspections by the City.
Proposed self-certification fees would fund code enforcement, business licensing and finance staff to monitor the self-certification process, which involves vetting the applicant for eligibility, processing business license renewals, invoicing, reviewing photos, self-certification checklists and affidavits, proactive drive-by exterior inspections, and conducting any necessary follow-ups and correspondence with the property owner by telephone, email, and/or mail. Proposed self- certification fees are $40 for single family residences, and $55 for the first two multi-family units and $10 for each additional unit thereafter. These fees will be charged in conjunction with business license renewal and administrative costs as well as State required SB1186 fees.
FISCAL IMPACT
Adoption of this resolution will allow the City to continue to collect fees that adequately recover costs based on services provided.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Ordinance 2022-08
2. Exhibit “A” – Title 5 – Business Licenses and Regulations Chapter 5.72 Rental Housing Business License and Inspection Program
3. Resolution No. 2022-36
4. Exhibit “A” – City Fee Schedule – Self-Certification Fees (Clean Copy)
5. Exhibit “B” – City Fee Schedule – Self-Certification Fees (Tracked Changes)
ORDINANCE NO. 2022-08
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, AMENDING TITLE 5 OF THE HESPERIA MUNCIPA L CODE , CHAPTER 5.72 TO UPDATE THE SELF -CERTIFICATION COMPONE NT OF THE
RENTAL HOUSING BUSINESS LICENSE AND INSPECTION PROGRAM
WHEREAS, the City of Hesperia has the authority and responsibility to protect the public health, safety, and welfare; and
WHEREAS, Title 5 of the Hesperia Municipal code contains regulations related to the registration, re-registration, licensing, inspection and re-inspection of rental properties within the City; and
WHEREAS, on January 5, 2021 the City Council adopted Ordinance No. 2020 -14 related to modifications to Title 5 of the Hesperia Municipal Code adding Chapter 5.72 creating a Rental Housing Business License and Inspection Program; and
WHEREAS, a baseline inspection for newly registered applicants of residential dwelling units was performed to record the current state of rental properties to ensure the health and safety of all residents; and
WHEREAS, property owners may be permitted to self -certify so long as their property meets eligibility requirements; and
WHEREAS, modifications to the program are necessary to specify eligibility requirements for participating in the self-certification program; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.
NOW THEREFORE, THE HESPERIA CITY COUNCIL DOES ORDAIN AS FOLLOWS:
Section 1. All of the facts set forth in the forgoing recitals are true, correct and are adopted as findings.
Section 2. Title 5, Chapter 5.72 of the Hesperia Municipal Code is hereby amended as set forth in Exhibit “A”, attached hereto.
Section 3. This Ordinance shall take effect on July 7, 2022.
Section 4. The City Council of the City of Hesperia hereby declares that should any provision, section, paragraph, sentence, or word of this Ordinance hereby adopted be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by any reason of any pree mptive legislation, the remaining provisions, sections, paragraphs, sentences, and words shall remain in full force and effect.
Section 5. The City Clerk shall certify to the adoption of the 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 93-78.
Ordinance No. 2022-08
01071.0011/473404.2
ADOPTED AND APPROVED this 7th day of June, 2022.
Brigit Bennington, Mayor
ATTEST
Melinda Sayre, City Clerk
Exhibit A - Title 5 - BUSINESS LICENSES AND REGULATIONS Chapter 5.72 RENTAL HOUSING BUSINESS LICENSE AND INSPECTION PROGRAM
Hesperia, California, Code of Ordinances Created: 2021-12-10 12:42:32 [EST] (Supp. No. 20, Update 1)
Chapter 5.72 RENTAL HOUSING BUSINESS LICENSE AND INSPECTION PROGRAM
5.72.010 Title.
This chapter shall be known as the rental housing business license program of the City of Hesperia, may be cited as such, and will be referred to herein as "this chapter." ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72-020 Purpose.
It is the purpose of this chapter to implement a rental housing business license program to provide a stable, more satisfied tenant base; increase demand for rental units with a reputation for active managemen t; lower maintenance and repair costs; increase property values, and improve the personal safety for tenants, landlords, and managers.
It is also the purpose of this chapter to identify the existence of substandard and unsanitary residential rental properties and rental units and to cause the owner thereof to cure such defects. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.030 Scope.
A. The provisions of this chapter shall apply to all residential rental properties in the City of Hesperia as defined by this code, and all accessory uses thereon, including parking lots, driveways, landscaping, accessory structures, fences, walls, interior and exterior common areas, swimming pools, hot tubs, and spas. This chapter shall not apply to:
1. Housing accommodations in hotels, motels, inns, or tourist homes. This exception does not apply to single room occupancy hotels or hotels in which more than fifty-one (51) percent of the rooms are offered for habitation for a duration of longer than thirty (30) consecutive days.
2. Housing accommodations in any hospital; convent, monastery, or other facility occupied exclusively by members of a religious order; extended medical care facility; asylum; on-campus fraternity or sorority houses; or on-campus housing accommodations owned, operated or managed by an institution of higher education, a high school, or an elementary school of occupancy by its students.
3. Mobile homes, or mobile home parks, or recreational vehicles as defined in Section 799.24 of the California Civil Code, or recreational vehicle parks.
4. Single family homes, which are owner-occupied and in which a single room is rented to a single person.
5. Accessory Dwelling Units which are part of a single family residence occupied by the owner.
B. The provisions of this chapter are supplementary and complementary to this code. Nothing in this chapter may be construed to: (i) excuse or modify any requirement or obligation in the Code or in any other laws or regulations, (ii) waive, limit or modify any prohibition thereof, or, (iii) limit any existing right of the city to abate nuisances or to enforce any provisions of applicable law, statute, or this code, in any manner allowed by law.
( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
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(Supp. No. 20, Update 1)
5.72.040 Fair housing.
Rental housing operators shall comply with federal fair housing laws and grant persons with disabilities the ability to make reasonable accommodation requests for equal opportunity use and enjoyment of a dwelling. The rental housing operator shall not refuse residency to persons with disabilities, or place conditions on their residency, on the basis of those persons requiring reasonable accommodation. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.050 Rental housing business license required.
Any person(s) intending to rent for any monetary or service in-kind any residential property as defined by this code shall register and obtain a rental housing business license within sixty (60) days of acquiring the property or within sixty (60) days of the adopted date of this code. That the property or portions of the property or any unit may be vacant from time to time shall have no bearing on the requirement to register or maintain registration.
Registration shall be completed annually.
( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.060 Sale of Rental Property.
1. Should the owner intend to sell any residential rental property, and during the process of sale, the registration for the rental property is due, the owner shall pay the registration fees and allow for the inspection if required. Should the sale occur, and the owner can provide factual proof of the sale of the property, a prorated refund of the rental registration business license fees shall be issued after a request in writing from the owner. Inspection fees are not refundable, if an inspection has taken p lace. i. The new owners of the residential property may prove to the city that they intend to use the dwelling as their primary dwelling in a form approved by the director, and shall be exempt from the program after approval of the property for removal from the program. Any future use of the dwelling as a rental property requires registration and inspection.
ii. If the new owners intend to use the property as rental property, they shall register and pay all fees and allow for an inspection of the property.
2. Apartments and duplexes shall not be eligible for Section 5.72.060.1(i). ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.070 Registration Requirements
A. Each owner or operator, on behalf of the owner, shall submit an application for a rental housing business license on a form provided by the director. Applications shall be subject to verification by the director. Any person who makes a false statement in the application shall be guilty of a misdemeanor.
1. Contents of Application. The application shall contain or be accompanied by the following information:
a. The type of ownership of the proposed residential rental property, i.e., whether by individual, partnership, corporation, or otherwise;
b. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation and the names and residence addresses of each of its current officers and directors, and each stockholder holding more than five percent of the stock of that
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(Supp. No. 20, Update 1)
corporation. If one or more of the officers, directors, or stockholders is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; c. If the applicant is a partnership, the application shall set forth the name and residence of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply; d. If the applicant is a limited liability company, the application shall set forth the name of the company exactly as shown in its articles of organization or operating agreement, together with the names and residence addresses of each of its officers, directors, and each member along with a description of the relative interests of each member. If one or more of the officers, directors, or members is a corporation, the provisions of this section pertaining to a corporate applicant shall apply;
e. If the applicant is the operator, then the application shall set forth or attach the information required by subsections (A)(1)(b) through (A)(1)(d) of this section with respect to the owner and shall be accompanied by evidence satisfactory to the director that the operator is authorized by the owner to submit the application;
f. The address of the residential rental property;
g. The name, address and telephone number for the operator or designated responsible person for the premises and any other person designated to be contacted in the event of emergency at the premises;
i. Authorization for the city, its employees and agents to seek information and conduct an investigation, including, but not limited to, a criminal background check, to verify the information contained within the application;
j. Authorization for the city, its employees and agents to inspect the property in accordance with this chapter;
k. Any application for a rental housing business license shall also accompany proof of current registration in the Hesperia Crime Free Housing Program as prescribed in Chapter 8.20 of this Code.
l. Such other identification and information as the director may require in order to discover the truth of the matters herein specified and as required to be set forth in the application. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.080 Rental housing business license.
A. A rental housing business license shall be issued for all residential rental units only upon completion of the following:
1. All fees have been paid in full, including any inspection or re-inspection fees.
2. The residential rental unit(s) and property has been fully inspected and approved by the director as required by this code, if required.
3. Any existing violations have been corrected and/or repaired with all required permits, approvals and inspections.
4. A properly completed and accepted self-certification for renewal of the business license has been received and approved.
5. A property with more than one set of duplexes shall comply with [Section] 5.72.110(6).
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(Supp. No. 20, Update 1)
B. Issuance of a rental housing business license shall not constitute a guarantee or warranty of the habitability or complete compliance with the city's housing and property maintenance standards or with the applicable codes, and the occupant of any residential rental unit shall not rely on the issuance of a business license as such a guarantee or warranty. The license shall contain a notice to this effect. The city shall not assume any liability to any person by reason of the inspections required by this chapter or the issuance of a rental housing business license. Rental Registration business licenses shall expire on the expiration date sh own on the certificate and shall be renewed prior to the expiration date. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.090 Rental housing business license fee.
A. The application for a rental housing business license including any renewal shall be accompanied by a nonrefundable fee in an amount established by a resolution of the city council.
B. The rental housing business license fee shall be for the license year and each applicant must pay the full fee for the license year upon submission of the application for the rental housing business license.
C. A separate residential rental inspection fee in the amount established by resolution of the city council shall be paid with the application at the same time as the license fee.
D. Penalty.
1. Failure to Pay Fee. Failure to pay all required fees shall be considered a public nuisance.
2. Failure to Obtain License. Failure to obtain a license shall be considered a public nuisance. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.100 Crime Free Program.
A. Hesperia's Crime Free Program was receded and made voluntary with the exception of registering the property. Any person(s) renting or intending to rent residential property within the City of Hesperia shall also register the property in the Crime Free Rental Housing Program as required by Chapter 8.20 of this code.
Failure to maintain both a rental housing business license and compliance with Chapter 8.20 shall constitute a public nuisance and grounds for withholding of the issuance of a rental business license. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.110 Maintenance requirements.
All rental properties within the city shall be maintained with a standard of maintenance including, but not limited to:
1. Property is maintained and kept in a neat, habitable condition, including the absence of trash and debris as defined by this code.
2. All trash receptacles are emptied on a basis frequent enough to prevent spillage and a contract for disposal is maintained with the city's franchise waste hauler. Trash receptacles and enclosures are maintained and free of defects.
3. Graffiti, broken windows, fencing, and any other broken or unmaintained property component is repaired within seventy-two (72) hours of notification to the owner or agent.
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4. Parking areas are maintained and adequate parking is provided to discourage street parking or off - property parking.
5. Common areas are maintained in a clean manner and residents are informed of rules designed to maintain the reasonable enjoyment of the property by all residents.
6. Residential rental properties with four or more residential rental units shall have a sign showing the owner or management company name, address, and phone number posted in the on -site manager unit or management office, if any, which shall be identified by a notice at the front entrance to the property and shall be posted in a manner approved by the director.
7. Landscape is maintained, is not dead, and is kept in a neat, orderly manner to add to the enjoyment and aesthetics of the property, including the proper care and trimming of any trees or bushes on the property. The removal of landscape without replacement is not considered maintenance.
8. Pools, spas and hot tubs are maintained pursuant to requirements of the San Bernardino County Department of Public Health.
9. Play yards, playgrounds, and other amenities are maintained and free from trash, debris, and broken components.
10. Mechanical components, including but not limited to, heating, screening, water and sewer or septic tank maintenance or service, and other required components is kept in working order.
11. Sidewalks and walking paths are maintained and are in good repair. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.120 Crime Prevention through Environmental Design (CPTED) Requirements.
1. All newly constructed rental properties shall incorporate CPTED design into the plan for development as required by the city.
2. Any rental property deemed by the city to perpetuate criminal activity, receive an inordinate number of calls for service, or present a threat to public health and safety may be required to submit a revised site plan and incorporate elements of CPTED modifications to their property for the purpose of creating a safe environment, identifying criminal activity or persons perpetuating criminal activity and lowering the likelihood of continuing criminal activity at the property. The cost for review of the plan and all modifications shall be the responsibility of the owner.
3. Failure to incorporate CPTED design if required, or modify the property as directed by the city is considered a public nuisance and may result in abatement measures as allowable by law.
4. All new multi-family construction with more than eight units will be required to install a recorded video surveillance system for the complex. The system data will be maintained for at least one month. The cameras must cover common areas, parking areas as well as vehicles entering and exiting the complex. Cameras should not cover or view areas that would be considered private such as inside individual units. The data and video are the sole property of the owners or operators. If law enforcement needs acce ss to the video, the city highly encourages the owners or operators to assist. Existing multi-family complexes with more than eight will have two years to install and operate the same system described in this section. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
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5.72.130 Rental Housing Business License Renewal.
A. Renewal of rental housing business licenses shall include at a minimum:
1. Payment of all fees.
2. A completed and approved inspection if required by this chapter.
3. A completed and accepted self-certification.
4. Update of any information, including ownership, partnership, change in board of directors or mailing address of owner.
5. Update of any property manager or agent information.
6. Proof that the updated property manager information has been posted at the property as required by this chapter.
B. Residential rental properties found to be kept in a substandard condition, receive a complaint of lack of maintenance, which are not properly self-certified, or which receive a disproportionate number of calls for service shall be subject to an inspection.
C. Self-Certification.
1. Annually, at the time of the rental housing business license renewal, each owner or agent shall complete a renewal form in a form approved by the director, and supply to the city updated contact information for all owners, and agents, and managers, as defined by this chapter.
2. Owners of well-maintained rental properties that have the following characteristics may apply to participate in the Self-Certification Program: no violations of the Hesperia Municipal Codes and/or California State Building, Housing and Health Safety Codes exist on the property at the time of the initial inspection; no outstanding citations, inspection or abatement fees, special assessment, and liens; and a current rental housing business license.
3. Upon receipt of the request to participate in the self-certification program, the city shall determine if the residential rental dwelling units have not had any code violations over the past year. If the application qualifies, the owner shall pay an annual non-refundable self-certification fee and renewal fees which must be paid in full at the time of self-certification and conduct an annual self-inspection of each residential dwelling unit as discussed below.
4. If the city determines that a residential rental dwelling unit is not eligible to participate in the self - certification program, then the owner shall allow the city to conduct an inspection of their residential rental properties for compliance with all applicable codes and the city's housing and property maintenance standards and the owner shall be assessed the full annual inspection fees established by resolution of the city council.
5. For qualifying participants, the owner shall self-certify to the city on an annual basis that all units on each property are maintained in good order, have met all the requirements of this code and any other applicable state or local codes, and shall include photographs of good quality showing the frontage of the property, all side yards, parking areas, common areas, and any other areas that would normally b e inspected as part of the annual maintenance inspection program. The photographs shall be taken during daylight hours, be time and date stamped and shall show all areas in context with enough physical landmarks to prove that the property is the property i n question and eligible for renewal. The owner shall certify that the conditions at the property achieve the minimum standards listed on the self-certification program checklist.
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6. Should the city review the self-certification and find deficiencies in quality of the photos, information provided or any other material fact, or deem the property to be a public nuisance, or not maintained according to the requirements of this code, the city shall, at its sole discretion, contact the owner or agent for more information, or perform an inspection of the property to confirm that the property is in compliance with all requirements of this chapter.
7. The city may request additional photographs or information at their sole discretion in order to properly self-certify the property.
8. Nothing in the self-certification program shall be construed or interpreted as limiting the city’s authority to investigate and compel the abatement of any building, housing, and sanitation codes or ordinance violations.
9. Any property that participates in the self-certification program may be removed from the program at any time if that property fails to meet all of the interior and exterior standards designated on the self- certification program checklist or fails to meet building, housing and sanitation codes or ordinances as defined in this chapter. Upon removal from the program, the difference between the self-certification program fee and full annual program fee shall be due and payable.
10. Any inspection performed by the city shall be paid for in full by the owner prior to issuance of a renewal license.
( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.140 Inspections.
A. Owners shall allow the city to conduct an inspection of their residential rental properties for compliance with all applicable codes and the city's housing and property maintenance standards. The director, in his or her discretion, may include inspections by other city departments including, but not limited to, fire, building and safety, code enforcement or public health.
B. Upon completion of the inspection, if no violations are identified, the director shall proceed with the issuance of a rental housing business license. If one or more violations are identified, then the director shall issue a notice of correction to the owner describing the violation and setting forth a time within which such violations shall be corrected. The owner shall pay a re-inspection fee in an amount established by resolution of the city council for each re-inspection following the issuance of notice of correction. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.150 Interior Inspections.
A. In accordance with this intent of this chapter, should the city determine that a property presents a public health risk, is improperly maintained, or has significant health and safety issues, the city may inspect the interior of any unit of the rental property, any interior common area or any other part of the property, and the owner shall fully cooperate in the process of gaining rightful access to the unit or property common area to facilitate the city's inspection.
B. The owner or agent shall accompany the city during the inspection and receive copies of all formal reports of violations.
C. Violations found during interior inspections shall be corrected in accordance with the notice by the city. Any permits, fees or costs required to abate violations and bring the property into compliance shall be the sole responsibility of the owner.
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( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.160 Complaints and violations.
Upon receipt of a complaint of violations of the housing and property maintenance standards, the code enforcement officer shall inspect the pertinent unit(s) and/or area(s) of the residential rental property. All violations shall be fully corrected with all city required permits, approvals and inspections and re -inspected within the time specified on the notice of the code enforcement officer in order to maintain a current Rental Registration Business License for a residential rental property.
Non-compliance with a notice to correct violations existing at the rental property shall constitute a public nuisance.
( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.170 Certificate of rental inspection compliance—Effect on remedies.
A. This chapter is not intended to, and shall not be construed to limit, in any way, the remedies available to the city to prosecute persons for violations of law or to abate public nuisances ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.180 Enforcement and penalties.
If, after notification of a violation, a property owner fails to correct a violation within the time allowed, the city may seek code compliance by any remedy allowed under this code or any other remedy allowed by law. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.190 Public nuisance.
Any residential rental property operated, conducted, or maintained contrary to the provisions, requirements, and regulations of the code shall be, and the same is declared to be harmful to the public health and safety, unlawful and a public nuisance.
( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
5.72.200 Conflicts.
If the provisions, requirements, or regulations of this chapter conflict with or contravene any other provision, requirement, or regulation of the code, the provisions, requirements, or regulations of this chapter shall prevail as to all matters and questions arising out of the subject matter of this chapter. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)
RESOLUTION NO. 2022-36
A RESOL UTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA,
CALIFORNIA, APPROVING THE IMPLEMENTATION OF A SELF-
CERTIFICATION FEE FOR THE RENTAL HOUSING BUSINESS LICENSE AND
INSPECTION PROGRAM
WHEREAS, Pursuant to Article XIII B of the California Constitution, it is the intent of the City Council to require the ascertainment and recovery of costs reasonably borne from fees and charges for services rendered; and
WHEREAS, the City Council heard and took action on Ordinance No. 2020 -14, adding Chapter
5.72 creating a Rental Housing Business License and Inspection Program; and
WHEREAS, Ordinance 2022-08 Amends Title 5 of the Hesperia Municipal Code, Chapter 5.72 updating t he self-certification component of the Rental Housing Business License and Inspection Program to specify eligibility requirements to self-certify; and
WHEREAS, Title 5 of the Hesperia Municipal Code, Chapter 5.72 authorizes the City Council to establish rental housing fees; and
WHEREAS, the City Council desires to fully recover the costs of processing rental housing business license and inspection application renewals for properties found to be eligible for self - certification; and
WHEREAS, the adoption of a self-certification fee will allow for cost recovery and create a reduced fee for those property owners with well-maintained properties.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HESPERIA AS FOLLOWS:
Section 1. In all respects, the facts as set forth in this resolution are true and correct.
Section 2. The fees and charges set forth in Exhibit “ A” are hereby adopted and shall be applied to the specified services. The effective date of this resolution shall be August 7, 2022.
Section 3. All fees described are for each identified process and additional fees shall be required for each additional process or service required.
Section 4. Interpretation of this resolution may be made by the City Manager or designee.
When there are conflicts between fees, the lower fee shall be applied.
Section 5. If any section, sub -section, sentence, clause, or word in the resolution is held to be invalid by decision of any court of competent jurisdiction or action of State legislation, such decision or legislation shall not affect the validity of the remaining portions of this resolution.
Section 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Resolution No. 2022-36
ADOPTED AND APPROVED this 7th day of June 2022.
______________________________
Brigit Bennington, Mayor
ATTEST:
____________________________
Melinda Sayre, City Clerk
Exhibit A – City Fee Schedule
18) Rental Housing Business License
E Self-Certification Fee for Single Family Residences $40 + Current Business License
Renewal Fees
F Self-Certification for Multi-Family Residences $55 for the first 2 units and $10 for
each additional unit
thereafter + Current
Business License
Renewal Fees
Exhibit B – City Fee Schedule
18) Rental Housing Business License
E Self-Certification Fee for Single Family Residences $40 + Current Business License
Renewal Fees
F Self-Certification for Multi-Family Residences $55 for the first 2 units and $10 for
each additional unit
thereafter + Current
Business License
Renewal Fees
THIS PAGE LEFT INTENTIONALLY BLANK
City of Hesperia
STA FF REPORT
RECOMMENDED ACTION
It is recommended that the City Council/Board ’s adopt the following Resolutions approving the FY 2022-23 Operating Budget f or the City of Hesperia, Hesperia Housing Authority , Hesperia Fire Protection District, and Hesperia Water District:
1) City of Hesperia Resolution No. 2022-40 adopting the Fiscal Year 2022-23 Budget
2) City of Hesperia Resolution No. 2022-41 adopting the GANN Appropriations Limit
3) Hesperia Housing Authority Resolution HHA 2022-02 adopting the Fiscal Year 2022-23 Budget
4) Hesperia Fire Protecti on District Resolution HFPD 202 2-02 adopting the Fiscal Year 2022-23 Budget
5) Hesperia Fire Protecti on District Resolution HF PD 2022-03 adopting the GANN Appropriations Limit
6) Hesperia Water District Resolution HWD 2022-06 adopting the Fiscal Year 2022-23 Budget
7) Joint Resolution No. 2022-42, HHA 202 2-03, HFPD 2022 -04, and HWD 2022-07 re-adopting the Financial Policies
BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2022-23 Operating Budget for the City of Hesperia, the Hesperia Housing Authority, Hesperia Fire Protection District, and the Hesperia Water District Board’s consideration and action. The information contained in this staff report follows two workshops regarding the City’s FY 2022-23 Operating Budget which began in May 2022.
DATE: June 7, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Housing Authority
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 SUBJECT: Fiscal Year (FY) 2022-23 Operating Budget Adoption
Staff Report to the Mayor and City Council/Board Members Fiscal Year 2022-23 Operating Budget Adoption
June 7, 2022
ISSUES/ANALYSIS
The City Council/Board’s expenditure plan and related resources to fund the Fiscal Year (FY) 2022-23 Operating Budget have been presented and staff is available to answer questions that the legislative bodies may have. Included with this staff report and attached resolutions is the FY 2022-23 combined operating budget of $79,502,455. The Capital Improvement Program (CIP) budget of $54,103,094 will also be presented for City Council consideration on June 21, 2022. With both items combined, the FY 2022-23 Budget is proposed to be $133,605,549.
Staff requests authority to make technical corrections, minor edits, etc. to the FY 2022-23 Proposed Budget document to be incorporated into the final FY 2022-23 Budget as approved by the City Council.
Financial Policies
Resolutions are included to re-adopt the annual Financial Policies for the Ci ty. These policies, which follow current practices, will serve as guidelines for the financial management of the City; particularly in the area of budgeting, accounting for capital improvement s, revenue, management of budgeted reserves, transfers of avail able budget within a fund, fiscal management, capital assets exceeding $5,000, and long-term debt management.
Gann Limit
Proposition 4, approved by the California voters in 1979, requires cities and special districts to calculate and establish an appropri ation limit each year. The limit is based on the actual appropriation in the fiscal year 1978-79 or year of incorporation, and increases with population growth and inflation. The FY 2022-23 Gann Limit for the City is $112,333,641 while the Fire District is $26,194,261.
FISCAL IMPACT
See Fiscal Year 2022-23 Proposed Budget.
ALTERNATIVE
Provide alternate direction to staff.
ATTACHMENTS
1. Resolution No. 2022-40
2. Resolution No. 2022-41
3. Resolution HHA 2022-02
4. Resolution HFPD 2022-02
5. Resolution HFPD 2022-03
6. Resolution HWD 2022-06
7. Joint Resolution No. 2022-42, HHA 2022-02, HFPD 2022-04, and HWD 2022-07 (Financial Policies)
8. Exhibit A Financial Policies clean and track changes
RESOLUTION NO. 2022-40
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2022-23 OPERATING BUDGET
W
HEREAS, the City Manager has prepared the proposed operating and capital budget for Fiscal Year 2022-23 for the City of Hesperia; and
W
HEREAS, the City Council has received the Fiscal Year 2022 -23 proposed operating budget and held a public workshop concerning its adoption; and WHEREAS, the final budget document will be the City’s official Program of Serv ices for the City of Hesperia for Fiscal Year 2022-23.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HESPERIA AS FOLLOWS:
S
ection 1. In all respects, the facts as set forth in this Resolution are true and correct.
S
ection 2. To accept, approve , and adopt the Fiscal Year 2022-23 Operating Budget (including transfers) as proposed and presented by staff and as adjusted by Council direction, as the official budget document and Program of Services for the City of Hesperia for Fiscal Year 2022-23, which includes:
S
ection 2a. City General Fund expenditures of $41,548,438.
S
ection 2b. Other City funds expenditures of $8,806,354 are from the following funds, exclusive of transfers:
Fund No. Fund Name Expenditure
251 CDBG Administration $ 84,087
256 Beverage Recycling Grant 66,156
263 Street Maintenance Fund 3,977,636
306 Development Impact Fee (DIF) 2018-Streets 2,270,250 309 DIF 2018-City Hall Facilities 85,000
402 Water Rights Acquisition 1,442,075
403 2013 Civic Plaza Refinancing 881,150
Total $8,806,354
S
ection 2c. Transfers Out of City and Other funds in the amount of $7,287,487 are from the following funds:
Fund No. Fund Name Amount
100 CDBG Administration $2,572,890
204 Beverage Recycling Grant 1,750,000
205 Street Maintenance Fund 1,400,000
206 Development Impact Fee (DIF) 2018-Streets 595,794
255 DIF 2018-City Hall Facilities 200,000
309 Water Rights Acquisition 768,803
Total $7,287,487
Resolution No. 2022-40
S ection 3. That the City Council approves the following pos ition classification changes included in the 2022-23 Budget as follows:
S
ection 3a. That the City Council approves the change of classification for the non- represented Economic Development Manager position from At -Will classification to Management classification.
S
ection 3b. That the City Council approves the increase in the salary range for the Assistant City Clerk position from range 35 to range 37 , which is a non-represented professional/supervisory classification.
S
ection 3c. That the City Council approves the increase in the salary range for the Code Enforcement Supervisor position from range 37 to range 39, which is a non- represented professional/supervisory classification.
S
ection 3d. That the City Council approves the increase in the salary r ange for the Maintenance Crew Supervisor position from range 37 to range 38, which is a non- represented professional/supervisory classification.
S
ection 3e. That the City Council approves the increase in the salary range for the Facilities Supervisor position from range 36 to range 38, which is a non -represented professional/supervisory classification.
S
ection 3f. That the City Council approves the increase in the salary range for the Fleet/Warehouse Supervisor position from range 36 to range 37, which is a non- represented professional/supervisory classification.
S
ection 3g. That the City Council approves the new position classification title of Traffic Signal Technician, which is a represented classification with a salary range of 14.
S
ection 4. That the City Council approves the increase of a 4.5% Cost of Living Adjustment (COLA), for all non- represented salaries to be effective the first full pay period of Fiscal Year 2020-23.
S
ection 5. That the City Manager and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2022-23 Budget and consistent with the policy adopted by the City Council.
S
ection 6. 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 7th day of June 2022.
ATTEST: Brigit Bennington, Mayor
Melinda Sayre, City Clerk
RESOLUTION NO. 2022-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2022-23 ARTICLE XIIIB LIMIT (GANN APPROPRIATIONS LIMITATION)
W
HEREAS, Article XIIIB of the California Constitution (Proposition 4) was passed by voters in 1979; and
WHEREAS, Article XIIIB sets a limit on the annual spending or appropriations levels of the state, local governments, and schools according to changes in inflation and population, the base year levels being set in Fiscal Year 1978-79; and
WHEREAS, said limit is known as the Gann Appropriations Limitation and must be adopted annually by the governing body of each jurisdiction; and WHEREAS, said annual limitation is established by multiplying either the increase of the jurisdictional change in per capita income or assessed valuation, whichever is greater, by the change in population; and multiplying the resulting figure by the previous fiscal year’s limitation; and
WHEREAS, upon incorporation, the Local Agency Formation Commission (LAFCO) set the base Gann Appropriations Limitation for the City of Hesperia at $12,000,000; and WHEREAS, said limitation has been properly adjusted for the City of Hesperia each fiscal year, including Fiscal Year 2022- 23, by the Finance Division according to the State’s formula as shown below; and
WHEREAS, it is required that each jurisdiction’s governing body adopt their adjusted Gann Appropriations Limitation on an annual fiscal year basis.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HESPERIA AS FOLLOWS:
S
ection 1. In all respects, the facts as set forth in this resolution are true and correct.
Section 2. A pproves the annual Fiscal Year 2022- 23 Article XIIIB Limit (Gann Appropriations Limitation) of $112,333,641 for the City of Hesperia.
Appropriations limit for fiscal year ended June 30, 2022 $104,343,438 Adjustment factors for the fiscal year ended June 30, 2023 Inflation
Factor
Population
Factor
Combined
Factor
1.0755 1.001 1.0766 x 0.076576
Adjustment for inflation and population 7,990,203 Appropriations limit for fiscal year ended June 30, 2023 $112,333,641
Reso. 2022-41
Section 3. 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 7th day of June 2022.
Cameron Gregg, Mayor
ATTEST:
Melinda Sayre, City Clerk
RESOLUTION HHA 2022-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA
HOUSING AUTHORITY, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2022-23 OPERATING BUDGET
WHEREAS, the Executive Director of the Hesperia Housing Authority has prepared the proposed operating budget for Fiscal Year 2022-23; and
WHEREAS, the Hesperia Housing Authority Board has received the Fiscal Year 2022- 23 proposed operating budget and held a public workshop concerning its adoption; and
WHEREAS, the final budget document will be the Board’s official Program of Services for the Housing Authority for Fiscal Year 2022-23.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING AUTHORITY OF THE CITY OF HESPERIA AS FOLLOWS:
Section 1. In all respects, the facts as set forth in this resolution are true and correct.
Section 2. To accept, approve, and adopt the Fiscal Year 2022-23 Budget as proposed and presented by staff and as adjusted by Board direction, as the official budget document and Program of Services for the Housing Authority for Fiscal Year 2022-23, which includes budgeted expenditures totaling $72,586.
Section 3. That the Board of Directors approves the follow ing position classification change included in the 2022-23 Budget as follows:
Section 3a. That the Board of Director s approves the change of classification for the non-represented Economic Development Manager position from At -Will classification to Management classification.
Section 4. That the Board of Directors approves the increase of a 4.5% Cost of Living Adjustment (COLA), for all non- represented salaries to be effective the first full pay period of Fiscal Year 2020-23.
Section 5. That the Board and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2022-23 Budget and consistent with the policy adopted by the Authority’s Board.
Section 6. That the Secretary of the Housing Authority shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
ADOPTED AND APPROVED this 7
th day of June 2022.
Brigit Bennington, Chair
ATTEST:
__
Melinda Sayre, Secretary to the Board
RESOLUTION HFPD 2022-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA FIRE
PROTECTION DISTRICT, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2022-23 OPERATING BUDGET
WHEREAS, the Executive Director has prepared the proposed operating budget for Fiscal Year 2022-23 for the Hesperia Fire Protection District; and
WHEREAS, the Board of Directors has received the Fiscal Year 2022-23 proposed operating budget and held a public workshop concerning its adoption; and
WHEREAS, the final budget document will be the District’s official Program of Services for the Hesperia Fire Protection District for Fiscal Year 2022-23.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA FIRE PROTECTION DISTRICT AS FOLLOWS:
Section 1. In all respects, the facts as set forth in this resolution are true and correct.
Section 2. To accept, approve and adopt the Fiscal Year 2022-23 Budget as proposed and presented by staff and as adjusted by Board direction, as the official budget document and Program of Services for the Hesperia Fire Protection District for Fiscal Year 2022-23 which includes budgeted expenditures totaling $1,130,815.
Section 3. That the Executive Director and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2022- 23 Budget and consistent with the policy adopted by the District’s Board of Directors.
Section 4. That the Secretary of the Board of Directors shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
ADOPTED AND APPROVED this 7
th day of June 2022.
Brigit Bennington, Chair
ATTEST:
Melinda Sayre, Secretary
RESOLUTION HFPD 2022-03
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA FIRE
PROTECTION DISTRICT, HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2022- 23 ARTICLE XIIIB LIMIT (GANN APPROPRIATIONS
LIMITATION)
WHEREAS, Article XIIIB of the California Constitution (Proposition 4) was passed by voters in 1979; and
WHEREAS, Artic le XIIIB sets a limit on the annual spending or appropriations levels of the state, local governments, and schools according to changes in inflation and population, the base year levels being set in Fiscal Year 1978-79; and
WHEREAS, said limit is known as the Gann Appropriations Limitation and must be adopted annually by the governing body of each jurisdiction; and
WHEREAS, said annual limitation is established by multiplying either the increase of the jurisdictional change in per capita income or assessed valuation, whichever is greater, by the change in population; and multiplying the resulting figure by the previous fiscal year’s limitation; and
WHEREAS, said limitation has been properly adjusted for the Hesperia Fire Protection District fiscal year, including Fiscal Year 2022 -23, by the Finance Division according to the State’s formula as shown below; and
WHEREAS, it is required that each jurisdiction’s governing body adopt their adjusted Gann Appropriations Limitation on an annual fiscal year basis.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF HESPERIA FIRE PROTECTION DISTRICT AS FOLLOWS:
Section 1. In all respects, the facts as set forth in this resolution are true and correct.
Section 2. Approves the annual Fiscal Year 2022-23 Article XIIIB Limit (Gann Appropriations Limitation) of $26,194,261 for the Hesperia Fire Protection District.
Appropriations limit for fiscal year ended June 30, 2022 $24,331,084
Adjustment factors for the fiscal year ended June 30, 2023 Inflation
Factor
Population
Factor
Combined
Factor
1.0755 1.0010 1.07657 x 0.076576
Adjustment for inflation and population 1,863,177
Appropriations limit for fiscal year ended June 30, 2023 $26,194,261
Section 3. That the Board Secretary shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
Resolution HFPD 2022-03
ADOPTED AND APPROVED this 7th day of June 2022.
Brigit Bennington, Chair
ATTEST:
Melinda Sayre, Secretary
RE
SOLUTION HWD 2022-06
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA
WATER DISTRICT, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2022-23 OPERATING BUDGET
WHEREAS, the General Manager has prepared the proposed operating and capital budget for Fiscal Year 2022-23 for the Hesperia Water District; and W
HEREAS, the Board of Directors has received the Fiscal Year 2022-23 proposed operating budget and held a public workshop concerning its adoption; and W
HEREAS, the final budget document will be the District’s official Program of Services for the Hesperia Water District for Fiscal Year 2022-23.
NO
W THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICT AS FOLLOWS:
Section 1. In all respects, the facts as set forth in this resolution are true and correct.
Section 2. To accept, approve , and adopt the Fiscal Year 2022-23 Operating Budget as proposed and presented by staff and as adjusted by Board direction, as the official budget document and Program of Services for the He speria Water District for Fiscal Year 2022 -23 which includes water operating expenditures of $21,620,365 , sewer operating expenditures of $6,068,241, and Reclaimed Water Operations of $255,656, for a Water District operating total of $27,944,262.
S
ection 2b. Transfers Out of Water District funds in the amount of $3,555,000 are from Fund 700.
S
ection 3. That the Board of Directors approves the following position classification changes included in the 2022-23 Budget as follows:
S
ection 3a. That the Board of Directors approves the increase in the salary range for the Customer Service Supervisor position from range 36 to range 37, which is a non - represented professional/supervisory classification.
S
ection 3b. That the Board of Directors approves the increase in the salary range for the Fleet/Warehouse Supervisor position from range 36 to range 37, which is a non-represented professional/supervisory classification.
S
ection 3c. That the Board of Directors approves the increase in the salary range for the Maintenance Crew Supervisor position from range 37 to range 38, which is a non - represented professional/supervisory classification.
S
ection 3d. That the Board of Directors approves the increase in the salary range for the Facilities Supervisor position from range 36 to range 38, which is a non- represented professional/supervisory classification.
Section 4. That the Board of Directors approves the increase of a 4.5% Cost of Living Adjustment (COLA), for all non- represented salaries to be effective the first full pay period of Fiscal Year 2020-23.
Resolution HWD 2022-06
S
ection 5. That the General Manager and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2022- 23 Budget and consistent with the policy adopted by the District’s Board of Directors.
S ection 6. That the Secretary of the Board of Directors shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
A
DOPTED AND APPROVED this 7th day of June 2022.
B rigit Bennington, Chair
ATTEST:
Melinda Sayre, Secretary
JOINT RESOLUTION NO. 2022-42
RESOLUTION HHA NO. 2022-03
RESOLUTION HFPD NO. 2022-04
RESOLUTION HWD NO. 2022-07
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA,
CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING
AUTHORITY, THE BOARD OF DIRECTORS OF THE HESPERIA FIRE
PROTECTION DISTRICT, AND THE BOARD OF DIRECTORS OF THE
HESPERIA WATER DISTRICT ADOPTING FINANCIAL POLICIES
WHEREAS, the City of Hesperia wishes to establish a comprehensive set of financial policies that will serve as a guideline for operational and strategic decision making related to financial matters; and
WHEREAS, financial policies are intended to establish guidelines for the City’s o verall planning and management; and
WHEREAS, such policies will allow the City to maintain and enhance a sound fiscal condition ; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HESPERIA, CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING
AUTHORITY, THE BOARD OF DIRECTORS OF THE HESPERIA FIRE PROTECTION
DISTRICT, AND THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICTS AS FOLLOWS:
Section 1. The recitals are true and correct and adopted as findings.
Section 2. That the City Council and Board of Directors approves the Financial Policies (Exhibit A).
Section 3. If any section, sub-section, sentence, clause, or word in the Resolution is held to be invalid by decision of any court of competent jurisdiction or action of State legislation, such decision or legislation shall not affect the validity of the remain ing portions of this Resolution.
Section 4. 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 7th day of June 2022.
_________________________________________
Brigit Bennington, Mayor/Chair
ATTEST:
________________________________
Melinda Sayre, City Clerk/Secretary
EX
HIBIT A
To Re
solutions:
Re
solution No. 2022-42, HHA 2022-03,
HFPD 2022-04 and HWD 2022-07
City of Hesperia
FINANCIAL POLICIES
FISCAL YEAR 2022/23
Attachment 8
Fiscal Year 2022/23 Adopted Budget
Financial Policies
1 CITY OF HESPERIA
Fiscal Year 2022/23 Adopted Budget
Financial Policies
I. BUDG ETING POLICY
The City will adopt an annual budget for the fiscal year beginning July 1st no later than June 30th of the same calendar year.
The adopted budget will be balanced with current year operating expenditures fully funded by current year revenues.
Fund balance reserves for the General Fund and Water District will be used only for non- recurring expenditures such as capital projects, studies, etc. and not for on- going operations. In the event that fund balance reserves are used for recurring (operational) expenditures, the City Council will be notified prior to adoption of the annual budget. The City Manager is authorized to implement programs as approved in the adopted budget. A First Quarter and Mid- Year budget review will be conducted for the City Council to determine the status of projected revenues, expenditures, and other financial situations, along with consideration of needed budget amendments. A Fourth Quarter appropriation review is conducted and budget amendments are presented to the City Council as needed. To ensure adequate funding for law enforcement services, the annual Police Department budget will comprise 53% of the General Fund operating expenditure budget. The General Fund operating budget is comprised of all expenditures less transfers out, debt service, and capital outlay. Should the Police Department budget exceed 53% of the General Fund operating budget, the City Manager is authorized by the City Council to negotiate with the County of San Bernardino Sherriff’s Department to identify cost savings to maintain the City Council approved percentage. In addition, should the annual Police Department budget be less than 53% of the General Fund operating budget, the City Manager will be authorized to add additional level of services, be that personnel, programs, or equipment.
II. C
APITAL IMPROVEMENT POLICY
The City will identify the estimated costs and potential funding sources for each capital project prior to its submittal to the City Council for approval. Capital projects involve the purchase or construction of major capital assets such as land; equipment; infrastructure; building or permanent improvements including additions, replacements, and major alterations; having a long life expectancy; and costing $5,000 or more.
Capital projects are funded by a variety of funding sources, which are often restricted for a specific purpose. Prior to a capital project being included in the annual budget, a determination must be made that the project is an appropriate use of the funds and that there is sufficient funding available.
Fiscal Year 2022/23 Adopted Budget
Financial Policies
2 III. REVENUE POLICY
Recurring expenditures will be funded by recurring revenue. Recurring expenditure increases that exceed recurring revenue growth should not be approved. Any new or expanded programs should be required to identify new funding sources and/or offsetting reductions in expenditures. In addition:
The City shall use a conservative approach in projecting revenues. One-time revenues may be used for one-time expenditures or enhancement of reserves. The City shall update its user fees and charges periodically to recover costs of providing that service for which a fee is charged.
All potential grants shall be carefully reviewed for matching requirements, maintenance of effort requirements, and on-going future expenditures requirements. Intergovernmental grants will be evaluated to determine the long term operating and maintenance costs associated with the grant.
The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self -supporting, including the costs of operation, capital replacement, cost allocation plan, and debt service.
IV. R
ESERVE POLICY
The cash reserve policies for the General Fund requires that a minimum of two (2) months of the annual expenditures be held in cash. It is the goal for the Hesp eria Water District (Enterprise Fund), which is in the process of building reserves, to have two (2) months of the annual expenditures held in cash. Cash reserves is a calculation of the ratio of cash and cash equivalents to the total individual annual expenditures. The specific purpose of the reserves is to provide funding to meet operational appropriation requirements in the event that either, the City or Water District experience shortfalls in the level of anticipated revenues or unanticipated expenses.
Adequate reserve levels are a necessary component of the City’s overall financial management strategy. It is the responsibility of the City Council to maintain a sufficient level of reserve funds to provide for the orderly provision of services to the citizens of the City of Hesperia. The City Council has the authority to decide the circumstances under which the reserves can be used.
The City Manager may, from time to time, make recommendations as to the level of reserve funds necessary for prudent fiscal management. Reserve levels shall be reviewed at least annually during the budget process to ensure that they are consistent with the conditions faced by the City. All uses of reserves require a resolution of the City Council or will be incorporated in the annual adopted budget.
If the rare situation arises where a portion of the City’s Reserves are to be utilized to fund operations, the equivalent amount will be returned as Reserves in the next available Budget.
Use of Reserves in this instance may impact the City’s ability to meet the Reserve Policy of holding (2) months of the annual expenditures in cash and requires City Council approval, as incorporated into the adopted budget.
V. T
RANSFER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.
Division Managers can make transfers between line items in the same program. Department Directors can make transfers between divisions within the same fund.
Fiscal Year 2022/23 Adopted Budget
Financial Policies
3 V. T RANSFER AUTHORITY (Continued)
Transfers between departments, within the same fund, will require the City Manager approval.
Transfers between the capital expenditure classification and the operating expenditure classifications will require the City Manager approval. Transfers between different funds can only be made with an approved City Council resolution.
The Finance Division will review all budget transfers and make recommendations to the City Manager.
VI. F
ISCAL MANAGEMENT
An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) that will be incorporated into the Annual Comprehensive Financial Report. Annually, the City will seek the Governmental Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting and the Certificate of Achievement for Distinguished Budget Presentation Awards.
VII. I
NVESTMENTS
The City will continue to have a written investment policy approved by City Council resolution annually. The policy for investments in priority order is safety, liquidity, and yield. The City Council will receive reports on the cash position and performance of City investments on a monthly basis.
VIII. C
APITAL ASSETS
Assets exceeding the value of $5,000 are considered capital assets. All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.
IX. D EBT MANAGEMENT
The City will not issue long-term debt to finance current operations. Debt financing should only be used for long-term capital improvement projects or purchases of capital assets, such as water rights, that have a useful life exceeding the term of the financing. In addition, identified revenue sources shall be identified to allow for the principal, interest, and other related payments (debt service) of the long-term debt.
The City will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.
The City will monitor all forms of debt. Annually, the status of all long -term debt will be reported to the City Council in the annual budget.
The City will diligently monitor its compliance with bond covenants and continuing disclosures.
Fiscal Year 2022/23 Adopted Budget
Financial Policies
4 PASSED, APPROVED and ADOPTED THIS 7th day of June 2022. ___________________________________
Brigit Bennington, Mayor
I
, Melinda Sayre, City Clerk of the City of Hesperia, California, do hereby certify that the foregoing Resolutions was duly passed, approved and adopted by the City Council of the City of Hesperia, California, at an adjourned meeting of said City Council held on the 7th day of June 2022, by the following vote:
AYES:
N
OES:
ABSEN
T:
ABST
AIN:
_________________
Melinda Sayre, City Clerk
EXHIBIT A
To Resolutions:
Resolution No.
2021-222022-42, HHA 20212022-03,
HFPD 2021-03,2022-04 and HWD 2021-082022-07
City of Hesperia
FINANCIAL POLICIES
FISCAL YEAR 20212022/232
Fiscal Year 20212022/232 Adopted Budget
Financial Policies
1 CITY OF HESPERIA
Fiscal Year 2021/222022/23 Adopted Budget
Financial Policies
I. BUD
GETING POLICY
The City will adopt an annual budget for the fiscal year beginning July 1 st no late r than June 30th of the same calendar year.
The adopted budget will be balanced with current year operating expenditures fully funded by current year revenues.
Fund balance reserves for the General Fund and Water District will be used only for non- recurring expenditures such as capital projects, studies, etc. and not for o n-going operations.
In the event that fund balance reserves are used for recurring (operat ional) expenditures, the City Council will b
e notified prior to adoption of the annual budget.
The City Manager is authorized to implement programs as approved in the adopted budget. A First Quarter and Mid-Year budget review will be conducted for the City Council to determine the status of projected revenues, expenditures, and other financial situations, along with consideration of needed budget amendments. A Fourth Quar ter appropriation review is conducted and
budget amendments are presented to the City Council as needed.
To ensure adequate funding for law enforcement services, the annual Police Department budget will comprise 53% of the General Fund operating expenditure budget. The General Fund operating budget is comprised
of all expenditures less transfers out, debt service, and capital outla
y. Should the Police Department budget exceed 53% of the General Fund operating b
udget, the City Manager is authorized by the City Council to negotiate wi th the County of San Bernardino Sherriff’s
Department to identify cost savings to maintain the City Council app
roved percentage. In addition, should the annual Police Department budget be less than 53
% of the Ge neral Fund operating budget, the City Manager will be authorized to add additional level of
services, be that personnel, programs, or equipment.
II.
CAPITAL IMPROVEMENT POLICY
The City will identify the estimated costs and potential funding sources for each capita l project prior
to its submittal to the City Council for approval.
Capital projects involve the purchase or construction of major capital assets such as land; equipment; infrastructure; building or permanent improvements including additions, replacements, and major alterations; having a long life expectancy; and costing $5,000 or more.
Capital projects are funded by a variety of funding sources, which are often restricte d for a
specific purpose. Prior to a capital project being inclu ded in the annual budget, a determination must be made that the project is an approp riate use of the funds a nd that
there is suff
icient funding available.
Fiscal Year 2021/222022/23 Adopted Budget
Financial Policies
2 III. REVENUE POLICY
Recurring expenditures will be funded by recurring revenue. Recurring expenditure increases that exceed recurring revenue gro
wth should not be approved. Any new or expanded
programs should be required to identify new funding sources and/or offsetting reductions in expenditures. In addition:
The City shall use a conservative approach in projecting revenues. One-time revenues may be used for one-time expenditures or enhancement of reserves.
The City shall update its user fees and charges periodically to recover costs of providing that service for which a fee is charged.
All potential grants shall be carefully reviewed for matching requirements, maintenan ce of effort requir
ements, and on-going future expenditures requirements.
Intergovernmental grants will be evaluated to determine the long term operating and maintenance costs associated with the grant.
The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self-supporting, including the costs of operation, capital replacement, cost allocation plan, and debt service.
IV. RESE
RVE POLICY
The cash reserve policies for the General Fund requires that a minimum of two (2) months of the annual
expenditures be held in cash. It is the goal for the Hesperia Water District (Enterprise Fund), which is in the process of bui lding reserves, to have two (2) months of the annual expenditures held in cash. Cash reserves is a calculation of the ratio of cash and cash equivalents to the total individual annual expenditures. The specific purpose of the reserves is to provide funding to meet operational appropri
ation requirements in the event that either,
the City or Water District experience shortfalls in the le vel of anticipated revenues or
unanticipated expenses.
Adequate re
serve levels are a necessary component of the City’s overall financial management strategy. It is the responsibility of the City Council to maintain a sufficient level of reserve funds to provide for the orderly provision of services to the citizen s of the City of Hesperia. The City
Council has the authority to decide the circumstances under which the reserves can be used.
The City Ma
nager may, from time to time, make recommendations as to the level o f reserve funds necessary for prudent fisca
l management. Reserve levels shall be reviewed at least annually during the budget process to ensure that they are consistent with the conditions faced by the City. All uses of reserves require a re
solution of the City Council or will be incorporated
in the annua
l adopted budget.
If the rare situation arises where a portion of the City’s Reserves are to be utilized to fund operations, t
he equivalent amount will be returned as Reserves in the next available Budget.
Use of Res
erves in this instance may impact th e City’s ability to meet the Reserve Policy of holding (2)
months of the annual expenditures in cash and requires City Council ap proval, as incorporated
into the adopted budget.
V. TRANSF
ER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.
Division Managers can make transfers between line items in the same program. Department Directors can make transfers between divisions within the same fund.
Fiscal Year 2021/222022/23 Adopted Budget
Financial Policies
3 V.
TRANSFER AUTHORITY (Continued)
Transfers between departments, within the same fund, will require the City Manager approval.
Transfers between the capital expenditure classification and the operating expenditure classifications will require the City Manager approval.
Transfers between different funds can only be made with an approved City Council resolution.
The Finance Division will review all budget transfers and make recommendations to the City Manager.
VI. FISCAL
MANAGEMENT
An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) that will be incorporated
into the Comprehensive Annual Comprehensive Financial Report. Annually, the City will seek the Governm ental Finance Officers Association (GFO A) Certificate of Achievement for Excellence in F
inancial Reporting and the Certificate of
Achievement for Distinguished Budget Presentation Awards.
VII. INVESTMENTS
The City will continue to have a written investment policy approved by City Council resolution annually. The policy for investments in priority order is safety, liquidity, and yield.
The City Council will receive reports on the cash position and performance of City investments on a monthly basis.
VIII. CAPITAL ASSETS
Assets exceeding the value of $5,000 are considered capital assets. All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.
IX. DEBT
MANAGEMENT
The City will not issue long-term debt to finance current operations. Debt financing should only be used for long-term capital improvement projects or purchases of capital assets, such as water rights, that have a useful life exceeding the term of the financing. In addition, identified revenue sources shall be identified to allow for the principal, interest, and other related payments (debt service) of t
he long-term debt.
The City will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.
The City will monitor all forms of debt. Annually, the status of all long-term debt will be reported to the City Council in the annual budget.
The City will diligently monitor its compliance with bond covenants and con tinuing disclo
sures.
Fiscal Year 2021/222022/23 Adopted Budget
Financial Policies
4 PASSED, APPROVED and ADOPTED THIS 15th 7th day of June 20212022. ___________________________________
Cameron GreggBrigit Bennington, Mayor
I, Melinda Sayre
, City Clerk of the City of Hesperia, California, do hereby certify that the foregoing Resolutions was duly passed, approved and adopted by the City Council of the City of Hesperia, California, at an adjourned meeting of said City Council held on the 15th 7th day of June 20212022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________
Melinda Sayre, City Clerk