City of Montclair
COMMUNITY FACILITIES DISTRICT NO. 2026–2
MONTCLAIR STATION
SEPTEMBER 8, 2026
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 four 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
• CFD 2025–2 (Alexan–Kendry Expansion)
• Special Tax A – Maintenance of Public Right of Way
• Special Tax B – Public Safety Services
4 Montclair Station “the Clara”
•The Montclair Station project is the seventh residential development within the boundaries of the North Montclair Downtown Specific Plan (NMDSP).
•The project is located adjacent to the Montclair Metrolink station, bounded by the Pacific Electric Trail, Monte Vista Avenue, and the Metrolink rail corridor.
•The project is being developed by Montclair Station Apartments, L.L.C., a Delaware limited liability company, also known as Trammell Crow Residential.
•The Property Owner holds a 100 percent interest in approximately 9.96 acres comprising the proposed CFD.
•The development includes public improvements such open space, landscaping, a trail along the San Antonio Creek Channel, and a dog park that the City will be responsible for maintaining. •The project will feature 302 residential units.
5 Proposed Community Facilities District No. 2026–2
•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. 2026–2 (Montclair Station) (CFD No. 2026–2).
•The Property Owner has submitted a written petition requesting CFD formation:
• Montclair Station Apartments, L.L.C., a Delaware limited liability company (100% interest in approximately 9.96 acres).
•Resolution No. 26–3526 declared the City’s intention to form CFD No. 2026–2. • Set a Public Hearing date: September 8, 2026, at 7:00 p.m. in City Council Chambers. •The CFD boundary map was recorded July 28, 2026, as Document No. 2026–0193472 in the Official Records of the County of San Bernardino.
6 Proposed Community Facilities District No. 2026–2
Services to be Funded
•Proposed CFD No. 2026–2 will pay the cost of the following services serving the property within the CFD boundaries:
• Maintenance Services:
• Maintenance and lighting of parks, parkways, streets, roads, and open space; street sweeping; graffiti removal; tree trimming; landscape, dog park, and fence maintenance; sidewalk and street/asphalt maintenance and replacement; trash removal; water expenses; streetlight maintenance; and the operation and maintenance of storm drainage systems.
• Public Safety Services:
• Police protection services.
• Fire protection suppression services.
• Emergency vehicle apparatus maintenance.
7 Proposed Community Facilities District No. 2026–2
Boundary Map
8 Proposed Community Facilities District No. 2026–2
Cost Services
9 Proposed Community Facilities District No. 2026–2
Cost Services cont.
10 •Estimated annual costs for these services are approximately $127,910, inclusive of $10,000 annually for administrative expenses.
•Special taxes will escalate in future fiscal years as set forth in the Rate and Method of Apportionment with a not to exceed annual max adjustment of 6%.
•The special tax will be levied starting Fiscal Year 2027–28. •An appropriations limit of $3,000,000 has been proposed for the CFD. •Administrative costs related to the formation of CFD No. 2026–2 are the responsibility of the developer and are paid directly by the developer through a reimbursement agreement with the City.
Proposed Community Facilities District No. 2026–2
Cost Services cont.
11 Public Hearing Procedures
•On July 20, 2026, the City Council adopted Resolution No. 26–3526, a Resolution of Intention to establish CFD No. 2026–2 (Montclair Station).
•Resolution No. 26–3526 set September 8, 2026, at 7:00 p.m. in the City Council Chambers as the date, time, and place for this public hearing.
•The Resolution of Intention also set forth the parameters for establishing the proposed CFD:
• The proposed description and map of boundaries.
• The types of services to be financed by the CFD.
• The method and apportionment of the Special Tax.
• The description of voting procedures for the CFD.
12 Public Hearing Procedures cont.
•Certain procedures dictated by law must be followed when forming a CFD:
• Open the public hearing and receive public testimony. • Receive any written protests.
• Determine if there are registered voters within the boundaries of the proposed CFD. If not, the election is conducted with the owners of all taxable property within the boundaries. • Determine if the property owners have consented to a special election. • Close the public hearing.
• Consider a Resolution establishing the CFD and a Resolution calling for a special election regarding the levy of taxes and appropriations limit.
• Conduct the special election by the City Clerk and canvass the votes cast. • Consider a Resolution declaring the results of the special election. • Conduct first reading of the Ordinance authorizing the levy of special taxes within the CFD. 13 Resolutions and Ordinance for Consideration
•Resolution No. 26–3536 – Establishing Community Facilities District No. 2026–2. • Establishes the boundaries of CFD No. 2026–2, the rate and method of apportionment of the special taxes to be levied, and the services to be funded by the CFD.
•Resolution No. 26–3537 – Calling a special election and submitting a proposition to the voters of CFD No. 2026–2 with respect to the annual levy of special taxes. • Sets out the terms and conditions for an election conducted by the City Clerk as the election official, for a vote to be taken by the landowner of record.
• Submits a second proposition establishing an appropriations limit of $3,000,000 for the CFD. 14 Resolutions and Ordinance for Consideration cont.
•Resolution No. 26–3538 – Declaring the results of the special election for Community Facilities District No. 2026–2.
• Declares the results of the special election and authorizes the City Council to annually levy special taxes on taxable property within the newly formed CFD.
•Ordinance No. 26–1019 – Levying special taxes to be collected for Community Facilities District No. 2026–
2. • Authorizes the City Council to levy special taxes within the newly formed CFD to pay for the identified maintenance costs and public safety costs.
• Requires a first reading on September 8, 2026, and a second reading and adoption on October 5, 2026. 15 Proposed Community Facilities District No. 2026–2
Staff Recommendations
16 •Adopt Resolution No. 26–3536 establishing Community Facilities District (CFD) No. 2026–2 (Montclair Station) and the boundaries thereof;
•Adopt Resolution No. 26–3537 calling a Special Election and submitting to the voters of CFD No. 2026–2 a proposition with respect to the annual levy of special taxes within said CFD to pay the costs of certain services to be provided by the CFD, and a proposition with respect to establishing an appropriations limit for said CFD; •Adopt Resolution No. 26–3538 declaring the results of the Special Election for CFD No. 2026–2 on the propositions with respect to (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 the first reading of Ordinance No. 26–1019 authorizing the levy of a special tax for CFD No. 2026–2 (Montclair Station); and
•Set a public hearing to conduct the second reading and to consider adoption of Ordinance No. 26–1019 on Monday, October 5, 2026, at 7:00 p.m. in the City Council Chambers.
City of Montclair
QUESTIONS
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