City of Montclair
COMMUNITY FACILITIES DISTRICT NO. 2025–2
ALEXAN–KENDRY EXPANSION
JUNE 16, 2025
1 Mello–Roos Community Facilities Act
•The Mello–Roos Community Facilities Act of 1982 (ACT) provides an alternative financing method for local governments.
•The Act allows local government agencies to finance public improvements through bond indebtedness. •The Act allows local government agencies to also finance maintenance of improvements and charge for certain community services like police and fire protection services. •A Community Facilities District (CFD) is created by a local government agency within defined property boundaries.
2 Mello–Roos Community Facilities Act cont.
•Formation of a CFD requires a two–thirds majority vote from registered voters in the proposed CFD boundaries.
• If fewer than 12 registered voters exist, current landowners vote, with each landowner receiving one vote per acre owned.
• Often approved by a single property owner.
•Once approved, a special tax lien is placed on each property in the CFD. •Property owners pay the special tax annually on their property tax bill. •Special taxes imposed by a CFD cannot be based on property value. •Special taxes are calculated using formulas that consider property characteristics such as use, square footage of units, or parcel size, and include a maximum rate. 3 Adoption of Local Goals and Policies for
Community Facilities Districts
•The Act requires a local agency forming a CFD to establish local goals and policies regarding CFDs. •The City of Montclair's statement of local goals and policies related to CFDs was adopted by the City Council on January 3, 2011 pursuant to Resolution No. 11–2872. •As of today, the City has formed three CFDs:
• CFD 2011–1 (Paseos, Vista Court, Alexan–Kendry)
• Special Tax A – Maintenance of Public Right of Way
• Special Tax B – Public Safety Services
• CFD 2011–2 (Arrow Station)
• Special Tax A – Maintenance of Public Right of Way
• Special Tax B – Public Safety Services
• CFD 2025–1 (Village at Montclair)
• Special Tax A – Maintenance of Public Right of Way
• Special Tax B – Public Safety Services
4 The Alexan–Kendry Expansion
•The Alexan–Kendry Expansion received approval from both the Planning Commission and the Montclair City Council, with final approval by the City Council occurring on July 18, 2022. •The project is a residential development on approximately 2.85 acres, located at the intersection of Monte Vista Avenue and Arrow Highway.
•The project is the sixth residential project within the boundaries of the North Montclair Downtown Specific Plan (NMDSP).
•The project will provide an urban–styled community with onsite amenities and it is designed to operate in conjunction with the existing Alexan–Kendry apartment community located immediately south of the project site, which was completed in 2020.
•The project will feature 137 apartment units.
5 Proposed Community Facilities District No. 2025–2
•The City Council has directed staff to finance maintenance of public improvements and a portion of public safety costs for NMDSP projects via CFDs.
•This action initiates proceedings to form City of Montclair CFD No. 2025–2 (Alexan–Kendry Expansion) (CFD No. 2025–2).
•The Property Owners have submitted a written petition requesting CFD formation:
• Kendry Addition PS Venture, L.L.C. (5.05% interest
• Kendry Addition Venture, L.L.C. (4.95% interest)
• Kendry Addition Investor, L.L.C. (90% interest)
•Resolution No. 25–3478 declared the City's intention to form CFD No. 2025–2. • Set a Public Hearing date: June 2, 2025, at 7:00 p.m. in City Council Chambers. 6 Proposed Community Facilities District No. 2025–2
Services to be Funded
•Proposed CFD No. 2025–2 will pay the cost of the following services serving the property within the CFD boundaries:
• Maintenance Services:
• Street sweeping, storm drain maintenance, sidewalk maintenance, curb and gutter, street signs, street maintenance, street replacement, trash removal, sewer and water line maintenance, streetlight maintenance, and electric for street lights.
• Public Safety Services:
• Police protection services.
• Fire protection suppression services.
• Emergency vehicle apparatus maintenance.
7 Proposed Community Facilities District No. 2025–2
Boundary Map
8 Proposed Community Facilities District No. 2025–2
Cost Services
9 Proposed Community Facilities District No. 2025–2
Cost Services cont.
10 •Estimated annual costs for these services are approximately $56,162. •Maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year.
•The special tax will be levied starting Fiscal Year 2025–26.
Proposed Community Facilities District No. 2025–2
Cost Services cont.
11 Proposed Community Facilities District No. 2025–2
Staff Recommendations
12 •Adopt Resolution No. 25–3471 establishing Community Facilities District (CFD) No. 2025–2 and the boundaries thereof;
•Adopt Resolution No. 25–3472 calling a Special Election and submitting to the voters of CFD 2025–2 a proposition for the annual levy of special taxes within said CFD to pay the costs of certain services to be provided by the CFD and establishing an appropriations limit for said CFD; •Adopt Resolution No. 25–3473 declaring the results of the Special Election for CFD No. 2025–2 for the propositions concerning (I) the annual levy of special taxes to pay the costs of certain services to be provided by the CFD and (II) establishing an appropriations limit; •Conduct first reading of Ordinance No. 25–1012 levying special taxes to be collected during Fiscal Year 2025–26 to pay the annual costs of the maintenance and lighting of parks, parkways, streets, roads, and open space and the operation and maintenance of storm drainage systems and public safety services including fire protection and suppression services and police protection with respect to CFD No. 2025–2; and
•Set a public hearing to conduct second reading and consider adoption of Ordinance No. 25–1012 on Monday, July 21, 2025, at 7:00 p.m. in the City Council Chambers.
City of Montclair
QUESTIONS
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