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-Reside ntial 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, an y 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 Serv ices of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions o f 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-Reside ntial 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 Gove rnment Code, including, but not be limited to, poli ce protection services, maintenance and lighting of pa rks, parkways, streets, roads, storm drains, and op en space. (the "Services"). The Services include all d irect 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 follow ing related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities rela ted to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be ma intained, paying the salaries and benefits of perso nnel 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 H esperia (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 l evy 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 collectio n of special taxes, an allocable share of the salar ies of the City staff directly related thereto and a proportio nate amount of the City’s general administrative ov erhead 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 expens es incurred by the City in undertaking action relat ed to properties for which the payment of special taxes i s delinquent, and all other costs and expenses of t he City in any way related to the District.
Incidental Expenses:
The incidental expenses that may be funded by the D istrict include, in addition to the administrative expenses identified above, the payment or reimburse ment 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-Reside ntial 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
202 2/2 3 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
20 22/23
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-Reside ntial 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-Reside ntial 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.