Agenda — Hesperia City Council, June 20, 2023 (part 3 of 3)

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 5 association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s associa tion, master or sub -association or non -residential owner’s association.
“Property Owner’s Association Property” means any property within the boundaries of CFD No. 2023-1 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. “Property Type” means any of the classes listed in Table 1 and Table 2. “Proportionately” means, in any Fiscal Year , that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Parcels of Developed Property. “Public Property” means any property within the boundaries of CFD No. 2023-1 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 No. 2023-1.
“Retail/Restaurant Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) was issued for construction of a non -residential structure(s) which has retail food (with beverages) service facilities, or in which general merc handise, hard goods, and other items are sold directly to consumers, or in which services other than professional, clerical, or medical are provided directly to consumers, according to Assessor’s Data or as otherwise known to the CFD Administrator.
“Residential Property ” means Assessor’s Parcels of Developed Property that are Non -Age Qualified Apartment Property, Non -Age Qualified Single -Family Attached Property, Non -Age Qualified Single-Family Detached Property, Age Qualified Single -Family Attached Property, Age Qualified Single-Family Detached Property, or an Accessory Dwelling Unit. “Special Tax(es)” means the annual special tax to be levied by CFD No. 2023-1 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 the percentage change in the Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) measured from March of the second preceding Fiscal Year to March of the preceding Fiscal Year (e.g., March 2023 to March 2024 for Fiscal Year 2024/25) that will be applied on July 1 of each Fiscal Year after Fiscal Year 2023/24 to increase the Maximum Special Tax shown in Section C. Should the foregoing CPI 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

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 6 No. 2023-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD No. 2023-1, 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 Par cels are annexed to CFD No. 2023-1 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 No. 2023-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Transition Event” means the Fiscal Year in which the CFD Administrator determines that all CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023 -11 on property within the applicable Tax Zone have been fully repaid and CMFA CFD No. 2023 -11 provides written confirmation that no additional CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023 -11 on property within the applicable Ta x Zone are to be issued. Prior to the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 1. After the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 2. “Transition Year” means the first Fiscal Year in which the CFD Administrator determines that the Transition Event occurred in the prior Fiscal Year.
“Undeveloped Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that are not classified as Developed Property.
“Unit” means (i) for Non-Age Qualified Single-Family Detached Property and Age Qualified Single- Family Detached Property, an individual single family detached residential unit, (ii) for Non-Age Qualified Single-Family Attached Property and Age Qualified Single-Family Attached Property, an individual single family attached residential unit, (iii) for Non-Age Qualified Apartment Property, an individual apartment unit, and (iv) an ADU. The number o f Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2023-1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.

B. DETERMINATION OF TAXABLE PARCELS
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2023-1 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 Parcel 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; ( iii) the number of Units or Building Square Footage

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 7 each Parcel contains; ( iv) the Property Type (e.g., Non-Age Qualified Apartment Property, Hotel Property, ADU, etc.); and (v) the Annual Special Tax Requirement for the Fiscal Year.

C. MAXIMUM ANNUAL SPECIAL TAX RATES
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.

TABLE 1
MAXIMUM SPECIAL TAX RATES – PRIOR TO THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $340.00 Unit
Non-Age Qualified Single-Family Attached Property 360.00 Unit Non-Age Qualified Single-Family Detached Property 400.00 Unit Age Qualified Single-Family Attached Property 360.00 Unit Age Qualified Single-Family Detached Property 380.00 Unit Hotel Property 0.09 BSF
Retail/Restaurant Property 0.14 BSF
Office Property 0.23 BSF
Mixed-Use Property See Below Unit/BSF
Accessory Dwelling Unit See Below Unit
*On each July 1, commencing on July 1, 202 4, the Maximum Special Tax Rate s shown in Table 1 shall be increased by the Tax Escalation Factor.

TABLE 2
MAXIMUM SPECIAL TAX RATES – COMMENCING IN THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $510.00 Unit
Non-Age Qualified Single-Family Attached Property 540.00 Unit Non-Age Qualified Single-Family Detached Property 600.00 Unit Age Qualified Single-Family Attached Property 540.00 Unit Age Qualified Single-Family Detached Property 570.00 Unit

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 8 Property Type
Maximum
Special Tax Rate Per
Hotel Property 0.13 BSF
Retail/Restaurant Property 0.21 BSF
Office Property 0.34 BSF
Mixed-Use Property See Below Unit/BSF
Accessory Dwelling Unit See Below Unit
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate s shown in Table 2 shall be increased by the Tax Escalation Factor.

1. Mixed-Use Property
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Property Type. 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.

2. Accessory Dwelling Unit
The Maximum Special Tax for an Accessory Dwelling Unit shall be calculated as a percentage of the Maximum Special Tax shown in Table 1 prior to the Transition Year or in Table 2 commencing in the Transition Year for the primary Unit to which the ADU is an accessory, based on Building Square Footage. For example, if a primary Unit of Non -Age Qualified Single-Family Detached Property of 2,000 BSF has an ADU of 800 BSF, the Maximum for the ADU Special Tax in Tax Zone No. 1 shall be calculated by the following steps:

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $600 Maximum Special Tax per Unit x 40% = $240 Maximum Special Tax for such ADU

3. Maximum Special Tax Increase
On July 1 of each Fiscal Year, commencing on July 1, 202 4, the Maximum Special Tax shall be increased by an amount equal to the Tax Escalation Factor.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to an annual Special Tax as follows.

The Special Tax shall be levied each Fiscal Year as calculated by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel of Taxable Property within CFD No. 2023-1 by the method shown below.

First: Determine the Annual Special Tax Requirement.

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 9 Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the applicable Maximum Special Tax.

Notwithstanding the foregoing, under no circumstances will the Special Tax on any Assessor’s Parcel used for private residential purposes be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2023-1.

E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment, no Special Tax shall be levied on (i) Property Owner’s Association Property, (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, (iii) Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act, (iv) Undeveloped Property.

No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified 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 decis ion relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.

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

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City 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

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 10 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 No. 2023- 1, and may collect delinquent Special Taxes through available methods.

A Special Tax shall be levied commencing in Fiscal Year 202 3/24 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.

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PROPOSED BOUNDARIES OF

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF HESPERIA THIS ____ DAY OF _________, 20____. ________________________________________

CITY CLERK

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2023-1 (SILVERWOOD MAINTENANCE AND SERVICES), CITY OF HESPERIA, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF HESPERIA AT A REGULAR MEETING THEREOF, HELD ON THE ______ DAY OF _____________, 20____, BY ITS RESOLUTION NO. ______________________________.
________________________________________

CITY CLERK
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER ______________________, THIS __________ DAY OF ________________, 202____, AT ____________ M, IN BOOK_________ OF _______________________ AT PAGE ___________, AT THE REQUEST OF _____________________________________________________ IN THE AMOUNT OF $ __________.

CHRIS WILHITE

ASSESSOR-RECORDER-CLERK

SAN BERNARDINO COUNTY
BY:_____________________________________________

DEPUTY RECORDER

FOR PARTICULARS OF THE LINES AND DIMENSIONS OF ASSESSOR PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ASSESSOR, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA.

CITY OF HESPERIA

COUNTY OF SAN BERNARDINO

STATE OF CALIFORNIA
3 21
2 3
8 6
4 24
5 7
12 25
18 17
22 16
15 23
19 20
13 26
3 1 14 10
11 9
Sheet 1 of 1
Source: San Bernardino County GIS
Geographic Coordinate Reference: GCS North American 1983 Projection: NAD 1983 StatePlane California V FIPS 0405 Feet

C I T Y O F H E S P E R I AC I T Y O F H E S P E R I A

RANCHERO RD

MAIN ST
¬«173
¬«138
I AVE

PEACH AVE

SEVENTH AVE

MESA ST
C AVE

COTTONWOOD AVE

HESPERIA RD

RANCHERO RD

ARROWHEAD LAKE RD

DANBURY AVE

MAIN ST
§¨¦15
£¤395
CFD Boundary
Future Annexatrion Area Boundary
City of Hesperia
Centerlines
Rail Roads
CFD Boundary
Future Annexatrion Area Boundary
CFD Parcels
Future Annexation Area Parcels
Parcels 0 0.25 0.50.125 Miles
O

CITY OF HESPERIA CERTIFICATION

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
ID APN
1 0357-141-08-0000
2 0357-161-21-0000
3 0357-161-22-0000
4 0357-171-22-0000
5 0357-171-23-0000
6 0357-191-15-0000
7 0357-201-08-0000
8 0357-201-12-0000
9 0357-211-13-0000
10 0357-211-58-0000
11 0357-211-59-0000
12 0357-211-61-0000
13 0357-211-62-0000
14 0357-221-59-0000
15 0357-231-35-0000
16 0397-012-36-0000
17 0397-031-49-0000
18 0397-031-50-0000
19 0397-041-25-0000
20 0397-041-26-0000
21 0397-041-28-0000
22 0397-041-29-0000
23 0397-041-30-0000
24 0397-052-17-0000
25 0397-082-69-0000
26 0397-161-63-0000
Attachment 4

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Attachment 5

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City of Hesperia

STAFF REPORT

RECOMMENDED ACTION
It is recommended that the City Council/Board ’s adopt the following Resolutions approving the FY 2023-24 Operating Budget for the City of Hesperia, Hesperia Housing Authority , Hesperia Fire Protection District, and Hesperia Water District:

1) City of Hesperia Resolution No. 2023-37 adopting the Fiscal Year 2023-24 Budget
2) City of Hesperia Resolution No. 2023-38 adopting the GAN N Appropriations Limit
3) Hesperia Housing Authority Resolution HHA 2023-06 adopting the Fiscal Year 2023-24 Budget
4) Hesperia Fire Protecti on District Resolution HFPD 202 3-06 adopting the Fiscal Year 2023-24 Budget
5) Hesperia Fire Protecti on District Resolution HFPD 2023-07 adopting the GANN Appropriations Limit
6) Hesperia Water District Resolution HWD 2023-11 adopting the Fiscal Year 2023-24 Budget
7) Joint Resolution No. 2023-34, HHA 202 3-05, HFPD 2023-04, and HWD 2023-09 re-adopting the Financial Policies

BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2023-24 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 2023-24 Operating Budget which began in May 2023.

DATE: June 20, 2023
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: Rachel Molina, City Manager
BY: Casey Brooksher, Director of Administrative Services SUBJECT: Fiscal Year (FY) 2023-24 Operating Budget Adoption

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Staff Report to the Mayor and City Council/Board Members Fiscal Year 2023-24 Operating Budget Adoption
June 20, 2023

ISSUES/ANALYSIS

The City Council/Board’s expenditure plan and related resources to fund the Fisc al Year (FY) 2023-24 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 2023-24 combined operating budget of $ 87,506,252, made up of: operating expenditures of $77,429, 556, expenditures from non -operating funds of $3,677,153, capital outlay in operating funds of $1,404,494, and debt service of $4,995,049 . The Capital Improvement Program (CIP) budget of $49,490,312 will also be presented for City Council consideration on June 20, 2023. With both items combined, the FY 2023-24 Budget is proposed to be $136,996,564.

Staff requests authority to make technical corrections, minor edits, etc. to the FY 2023-24 Proposed Budget document to be incorporated into the final FY 2023-24 Budget as approved by the City Council.

Financial Policies
Resolutions are included to re-adopt the annual Financial Policies for the City. 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, reserves, transfers of available budget within a fund, fiscal management, capital assets, long-term debt management, and Section 115 Trusts to address unfunded liabilities.

Gann Limit
Proposition 4, approved by the California voters in 1979, requires cities and special districts to calculate and establish an appropriation 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 2023-24 Gann Limit for the City is $117,544,125 while the Fire District is $27,409,256.

FISCAL IMPACT

See Fiscal Year 2023-24 Proposed Budget.

ALTERNATIVE

Provide alternate direction to staff.

ATTACHMENTS

1. Resolution No. 2023-37

2. Resolution No. 2023-38

3. Resolution HHA 2023-06

4. Resolution HFPD 2023-06

5. Resolution HFPD 2023-07

6. Resolution HWD 2023-11

7. Joint Resolution No. 2023-34, HHA 2023-05, HFPD 2023-04, and HWD 2023-09 (Financial Policies)

8. Exhibit A Financial Policies clean and track changes

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RESOLUTION NO. 2023-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2023-24 OPERATING BUDGET

WHEREAS, the City Manager has prepared the proposed operating and capital budget for Fiscal Year 2023-24 for the City of Hesperia; and

WHEREAS, the City Council has received the Fiscal Year 2023-24 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 2023-24.

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. To accept, approve, and adopt the Fiscal Year 2023-24 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 2023-24, which includes:

Section 2a. City General Fund expenditures of $45,131,664.

Section 2b. Other City funds expenditures of $10,777,587 are from the following funds, exclusive of transfers:

Fund No. Fund Name Expenditure
251 CDBG Administration $ 100,932
256 Beverage Recycling Grant 90,928
261 American Rescue Plan Act (ARPA) 1,491,200
262 SB 1383 88,556
263 Street Maintenance Fund 4,245,558
306 Development Impact Fee (DIF) 2018-Streets 2,251,488 309 DIF 2018-City Hall Facilities 160,000
402 Water Rights Acquisition 1,447,475
403 2013 Civic Plaza Refinancing 901,450

Total $10,777,587

Section 2c. Transfers Out of City and Other funds in the amount of $7,348,531 are from the following funds:

Fund No. Fund Name Amount
100 General Fund $2,385,133
204 Measure I Renewal 1,750,000
205 Gas Tax 1,400,000
206 Gas Tax Swap 600,000
207 Local Transport-Sb 325 226,883
255 AB 3229 Supplemental Law 200,000
309 DIF 2018-City Hall Facilities 786,515

Total $7,348,531

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Resolution No. 2023-37

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Section 3. That the City Council approves the following position classification changes included in the 2023-24 Budget as follows:

Section 3a. That the City Council approves the retitling of the Director of Government Services/City Clerk (range 50) position to the new title of Deputy City Manager/City Clerk position, which is an Unclassified/At-Will Senior Management classification, non-represented, as well as having an Employment Agreement, with a salary range of 52.

Section 3b. That the City Council appr oves the retitling of the Construction Inspector position to the Public Works Inspector position, which is a non -represented general classification, with a salary range of 35.

Section 3c. That the City Council approves the new position classification tit le of Engineering Specialist, which is a general classification, non-represented, with a salary range of

32. Section 3d. That the City Council approves the new position classification title of Project Manager, which is a management classification and is non-represented with a salary range of

40. Section 3e. That the City Council approves the new position classification title of Assistant Project Manager , which is a professional/supervisory classification and is non - represented with a salary range of 38.

Section 4. That the City Manager and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2023-24 Budget and consistent with the policy adopted by the City Council.

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

ADOPTED AND APPROVED this 20th day of June 2023.

ATTEST: Brigit Bennington, Mayor

Erin Baum, Assistant City Clerk

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RESOLUTION NO. 2023-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2023-24 ARTICLE XIIIB LIMIT (GANN APPROPRIATIONS LIMITATION)

WHEREAS, 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 (LAFC O) 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 Ye ar 2023-24, 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:

Section 1. In all respects, the facts as set forth in this resolution are true and correct.

Section 2. Approves the annual Fiscal Year 2023-24 Article XIIIB Limit (Gann Appropriations Limitation) of $117,544,125 for the City of Hesperia.

Appropriations limit for fiscal year ended June 30, 2023 $112,333,641

Adjustment factors for the fiscal year ended June 30, 2024 Inflation
Factor
Population
Factor
Combined
Factor

1.0444 1.0019 1.0464 x 0.046384
Adjustment for inflation and population 5,210,484 Appropriations limit for fiscal year ended June 30, 2024 $117,544,125

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Reso. 2023-38

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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 20th day of June 2023.

Brigit Bennington, Mayor
ATTEST:

Erin Baum, Assistant City Clerk

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RESOLUTION HHA 2023-06

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA

HOUSING AUTHORITY, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2023-24 OPERATING BUDGET

WHEREAS, the Executive Director of the Hesperia Housing Authority has prepared the proposed operating budget for Fiscal Year 2023-24; and

WHEREAS, the Hesperia Housi ng Authority Board has received the Fiscal Year 2023-24 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 2023-24.

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 2023-24 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 2023-24, which includes budgeted expenditures totaling $75,781.

Section 3. That the Board and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2023-24 Budget and consistent with the policy adopted by the Authority’s Board.

Section 4. 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 20th day of June 2023.

Brigit Bennington, Chair

ATTEST:

__
Erin Baum, Secretary to the Board

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RESOLUTION HFPD 2023-06

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA FIRE

PROTECTION DISTRICT, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2023-24 OPERATING BUDGET

WHEREAS, the Executive Director has prepared the proposed operating budget for Fiscal Year 2023-24 for the Hesperia Fire Protection District; and

WHEREAS, the Board of Directors has received the Fiscal Year 2023-24 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 2023-24.

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 2023-24 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 2023-24 which includes budgeted expenditures totaling $937,658.

Section 3. That the Executive Director and department he ad staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2023-24 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 th e passage and adoption of this Resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 20th day of June 2023.

Brigit Bennington, Chair

ATTEST:

Erin Baum, Secretary

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RESOLUTION HFPD 2023-07

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA FIRE

PROTECTION DISTRICT, HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2023-24 ARTICLE XIIIB LIMIT (GANN APPROPRIATIONS

LIMITATION)

WHEREAS, Article XIIIB of the California Constitution (Propositio n 4) was passed by voters in 1979; 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 limitation has been properly adjusted fo r the Hesperia Fire Protection District fiscal year, including Fiscal Year 2023-24, 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 2023-24 Article XIIIB Limit (Gann Appropriations Limitation) of $27,409,256 for the Hesperia Fire Protection District.

Appropriations limit for fiscal year ended June 30, 2023 $26,194,261

Adjustment factors for the fiscal year ended June 30, 2024 Inflation
Factor
Population
Factor
Combined
Factor

1.0444 1.0019 1.04638 x 0.046384
Adjustment for inflation and population 1,214,995
Appropriations limit for fiscal year ended June 30, 2024 $27,409,256

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.

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Resolution HFPD 2023-07

Page 2 ends

ADOPTED AND APPROVED this 20th day of June 2023.

Brigit Bennington, Chair
ATTEST:

Erin Baum, Secretary

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RESOLUTION HWD 2023-11

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA

WATER DISTRICT, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2023-24 OPERATING BUDGET

WHEREAS, the General Manager has pre pared the proposed operating and capital budget for Fiscal Year 2023-24 for the Hesperia Water District; and

WHEREAS, the Board of Directors has received the Fiscal Year 2023-24 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 Water District for Fiscal Year 2023-24.

NOW 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 2023-24 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 Hesperia Water District for Fiscal Year 2023-24 which includes water operating expenditures of $ 23,341,831, sewer operating expenditures of $6,952,615, and Reclaimed Water Operations of $289,116, for a Water District operating total of $30,583,562.

Section 2b. Transfers Out of Water District funds in the a mount of $ 1,900,000 from Fund 700, and $1,200,000 from Fund 710, for a District total of $3,100,000.

Section 3. That the Board of Directors approves the following position classification changes included in the 2023-24 Budget as follows:

Section 3a. That the Board of Directors approves the retitling of the Director of Government Services/City Clerk (range 50) position to the new title of Deputy City Manager/City Clerk position, which is an Unclassified/At -Will Senior Management classification, non - represented, as well as having an Employment Agreement, with a salary range of 52.

Section 3b. That the Board of Directors approves the retitling of the Cons truction Inspector position to the Public Works Inspector position, which is a non -represented general classification, with a salary range of 35.

Section 3c. That the Board of Directors approves the new position classification title of Engineering Specialist, which is a general classification, non-represented, with a salary range of

32. Section 3d. That the Board of Directors approves the new position classification title of Project Manager, which is a management classification and is non -represented with a salary range of 40.

Section 3e. That the Board of Directors approves the new position classification title of Assistant Project Manager , which is a professional/supervisory classification and is non - represented with a salary range of 38.

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Resolution HWD 2023-11

Page 2 ends

Section 4. That the General Manager and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2023-24 Budget and consistent with the policy adopted by the District’s Board of Directors.

Section 5. 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 20th day of June 2023.

Brigit Bennington, Chair
ATTEST:

Erin Baum, Secretary

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JOINT RESOLUTION NO. 2023-34
RESOLUTION HHA NO. 2023-05
RESOLUTION HFPD NO. 2023-04
RESOLUTION HWD NO. 2023-09

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 20th day of June 2023.

_________________________________________
Brigit Bennington, Mayor/Chair

ATTEST:

__________________________________
Erin Baum, Assistant City Clerk/Secretary

Page 295 ends

EXHIBIT A

To Resolutions:

Resolution No. 2023-34, HHA 2023-05,
HFPD 2023-04 and HWD 2023-09

City of Hesperia

FINANCIAL POLICIES

FISCAL YEAR 2023/24

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Fiscal Year 2023/24 Adopted Budget
Financial Policies
1 CITY OF HESPERIA
Fiscal Year 2023/24 Adopted Budget
Financial Policies

I. BUDGETING POLICY
 The City will adopt an annual budget for the fiscal year beginning July 1 st 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 equal or exceed 53% of a three-year average of the General Fund audited operating expenditures. The General Fund operating budget is comprised of all expenditures less transfers out, debt service, and capital outlay. Furthermore, the actual expenditures will be comprised of an average of the three most recently audited fiscal years.

Should the Police Department budget exceed 53% of the General Fund operating budget and the City is unable to balance the budget without the use of reserves, the City Manager is authorized by the City Council to negotiate with the County of San Bernardino Sheriff’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. CAPITAL 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.

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Fiscal Year 2023/24 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. RESERVE 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 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 th e 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. TRANSFER 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.

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Fiscal Year 2023/24 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 Annual Comprehensive Financial Report.  Annually, the City will seek the Governm ental Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial 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 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.

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Fiscal Year 2023/24 Adopted Budget
Financial Policies

4 VI. UNFUNDED LIABILITY
The City maintains three Section 115 Trusts to address the unfunded liability for the CalPERS – Miscellaneous Plan or the City of Hesperia, CalPERS – Safety Plan for the Hesperia Fire Protection District (HFPD), and the other postemployment benefits (OPEB) of the City. The Section 115 Trust plans allow the City to safely and securely set aside funds, separate and apart from the state retirement system, in a tax-exempt irrevocable trust to reduce pension and other postemployment liabilities and stabilize these costs. In addition to potential investment earnings, annual funding of the plans allows the City to maximize the benefits of the trust plans.

The following policies indicate the annual funding provisions:
 The City will annually contribute a minimum of five percent (5%) of the annual CalPERS required employer unfunded liability payment into the 115 Trust for the City miscellaneous and safety plan. The City will review the annual CalPERS actuarial valuation report and include into the budget the 5% calculation as transfer to the 115 pension plans.  The City will annually review the OPEB billing from CalPERS and contribute a minimum 15% to the 115 Trust of OPEB. The City will use the current year OPEB billing to be included in the next year budget. For example, the FY 2022-23 billing will be used for the FY 2023-24 Budget.

PASSED, APPROVED, and ADOPTED THIS 20
th day of June 2023.

___________________________________
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 20 th day of June 2023, by the
following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________
Melinda Sayre, City Clerk

Page 300 ends

EXHIBIT A

To Resolutions:

Resolution No. 2023-302023-34, HHA 2023-042023-05,
HFPD 2023-022023-04 and HWD 2023-062023-09

City of Hesperia

FINANCIAL POLICIES

FISCAL YEAR 20222023/2324

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Fiscal Year 20222023/23 24 Adopted Budget
Financial Policies
1 CITY OF HESPERIA
Fiscal Year 20222023/23 24 Adopted Budget
Financial Policies

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Fiscal Year 20222023/243 Adopted Budget
Financial Policies

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.

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Fiscal Year 20222023/243 Adopted Budget
Financial Policies

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Fiscal Year 20222023/243 Adopted Budget
Financial Policies

PASSED, APPROVED and ADOPTED THIS 7
th 20th day of June 20222023.

___________________________________
Brigit Bennington, Mayor

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________
Melinda Sayre, City Clerk

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Hesperia City CouncilJune 20, 2023

Hesperia City Council
June 20, 2023