STAFF REPORT
City of Lancaster
PH 1
5/7/2024
JC
Date: May 7, 2024
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director – Community Development Nicole Jones, Senior Analyst – Community Development
Subject: Annexation No. 1 Into Community Facilities District No. 2021-1 (Public Services) Recommendations:
Open the public hearing and receive public testimony and property owner protests for the proposed annexation territory into Community Facilities District No. 2021-1 (Public Services) and the authorization to levy a special tax within the proposed territory.
Adopt Resolution No. _______ annexing territory to Community Facilities District No. 2021-1 (Public Services), authorizing the levy of special taxes and submitting levy of tax to qualified electors.
Adopt Resolution No. _______ declaring results of a special annexation election, determining validity of prior proceedings, and directing recording of amended Notice of Special Tax Lien.
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, 1 6
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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 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.
Resolution No. 24-14 was adopted on March 26, 2024 and set the public hearing for May 7, 2024.
The adoption of the attached resolutions annexes the territory into CFD 2021-1, submits the levy of the special tax to the qualified electors, and declares the results of the special election. This is the final step in the annexation process; and since the conditions of approval for the development require it to annex into CFD 2021-1 and KB Home Greater Los Angeles, Inc owns the parcel, a majority protest of the annexation is not anticipated.
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 in accordance with the rate set forth in the Rate and Method of Apportionment of Special Tax.
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Attachments:
Resolution No:
Exhibit A: Boundary Map
Exhibit B: Services
Exhibit C: Rate and Method of Attachment of Special Tax Zone Map (Attachment A)