STAFF REPORT
City of Lancaster
CC 24
3/26/2024
JC
Date:March 26, 2024
To: Mayor Parris and City Council Members
From:Larissa De La Cruz, Director – Community Development Nicole Jones, Senior Analyst – Community Development
Subject:Adopt Resolution of Intent For Annexation No. 1 into Community Facilities District No. 2021-1 (Public Services)
Recommendation:
Adopt Resolution No. ____ for the intention to annex territory to Community Facilities District No. 2021-1 (Public Services), and to authorize the levy of special taxes.
Fiscal Impact:
The 2024/2025 Fiscal Year Community Facilities District No. 2021-1 (“CFD 2021-1”) special tax rate for Single-Family Residential Outer Zone is approximately $932.31 per residential unit. Based on this figure, the estimated annual revenue that will be received by the City of Lancaster (the “City”) for all 157 residential units in Annexation No. 1 will be $146,372.67. CFD 2021-1 includes an annual Consumer Price Index (“CPI”) adjustment; therefore, this amount will escalate over time. The process for annexation is funded by the developer and no General Fund monies are used for this effort.
Background:
By Resolution No. 22-60, the City Council established CFD 2021-1, a Mello-Roos Community Facilities District with the intention that future development within the City would annex into this district. The special taxes collected from the property owners within the district are to be used for the funding maintenance and operation of public safety services, fire services, lighting, parkways, streets, roads, open space, and any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.
The annexation territory, Tract Map No. 061248 (the “Project”) proposed for annexation is owned by KB Home Greater Los Angeles, Inc. and is generally located south of Avenue J, north of Avenue J-4, west of 35th Street East, and east of 32nd Street East. The Project includes the development of one hundred and fifty-seven (157) single-family residential and one (1) public basin. The boundary of the annexation includes the area within the assessor’s parcel map 1 5
9 5
3150-081 and 3150-082 as depicted on Exhibit A.
Willdan Financial Services completed a comprehensive special tax analysis that took into account the types of properties proposed for inclusion in the CFD currently, and in the future through annexations, and the City’s maintenance budgets to arrive at the proposed levels of special tax amounts on the various land uses and created CFD 2021-1 in 2023. As part of the annexation process, the City contracts with Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation.
The Resolution of Intention is the first step in the process of annexing new developments into CFD 2021-1. This will be the 1st annexation into the CFD. The resolution also establishes May 7, 2024, as the public hearing date for the final consideration of the annexation of the property into CFD 2021-1. Once the annexation is complete, the property owner of the Project will be required to pay annual special taxes for CFD 2021-1, beginning in Fiscal Year 2024/2025 as itemized on their property tax bill under the rate outlined in the Rate and Method of Apportionment of Special Tax.
The CFD 2021-1 Rate and Method of Apportionment was established as part of the formation of the district and fixed Fiscal Year 2021/2022 as the base year for the annual special tax rate as shown in Exhibit B. The special tax rates will increase based on a cost inflator allowed in the original formation documents beginning July 1, 2024.
NJ/hb
Attachment:
Resolution No. ___