STAFF REPORT
City of Lancaster
PH 1
1/28/2025
TN
Date: January 28, 2025
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development
Nicole Jones, Senior Analyst – Community Development
Subject: Annexation No. 2 Into Community Facilities District No. 2021-1 (Public Services) Recommendations:
1. Conduct public hearing and receive public testimony and property owner protests for (i) the proposed annexation OF territory into Community Facilities District No. 2021-1 (Public Services) and (ii) the authorization to levy a special tax within the proposed territory.
2. 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.
3. 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.
G.C. Section 84308: No
Fiscal Impact:
The 2024/2025 Fiscal Year Community Facilities District No. 2021-1 (“CFD 2021-1”) special tax rate for Multi-Family Residential Inner Zone is approximately $395.27 per residential unit. Based on this figure, the estimated annual revenue that will be received by the City of Lancaster (the “City”) for all 420 residential units in Annexation No. 2 will be $166,015.97. 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.
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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, Desert Meadows Apartments and Townhomes (the “Project”) proposed for annexation is owned by DMA Lancaster and DMT Lancaster. and is generally located south of West Avenue I, north of West Lancaster Blvd, west of 27th Street West, and east of 30 th Street West. The Project includes the development of four hundred and twenty (420) multi-family residential units. The boundary of the annexation includes the area within the assessor’s parcel numbers 3153-034-088 and 3153-034-089 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. 24-66 was adopted on December 10, 2024, and set the public hearing for January 28, 2025. 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 DMA Lancaster and DMT Lancaster own the parcels, 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 2025/2026 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: ____
Resolution No: ____
Exhibit A: Boundary Map
Exhibit B: Services
Exhibit C: Rate and Method of Attachment of Special Tax Zone Map (Attachment A)