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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES AND INFRASTRUCTURE MAY 17, 2022
SUBJECT: SETTING OF THE ANNUAL SPECIAL TAX RATE FOR FISCAL YEAR 2022-23 FOR COMMUNITY FACILITIES DISTRICT NO. 2014-01
FISCAL
IMPACT: REVENUE: $42,861.23 RECOUPED THROUGH ASSESSMENTS SUMMARY:
On February 18, 2014, the City Council adopted Resolution No. R-2014-10, establishing Community Facilities District No. ("CFD") 2014-01 ("Public Services CFD") to provide an ongoing sustainable funding source paid for by new developments to help fund the cost of public safety services. On March 4, 2014, the City Council adopted Ordinance No. 2014-03, authorizing the City Council to determine, by resolution, on or before August 1 of each year, the specific special tax to be levied on each parcel of land within the CFD.
The CFD is subject to an annual escalation factor beginning on July 1, 2015, which shall be the greater of five percent (5%) or the annual percentage increase, if any, of the Consumer Price Index ("CPI") — All Urban Consumers for the Los Angeles -Long Beach -Anaheim, California as determined by the Bureau of Labor Statistics for the 12 months ending the preceding December
31. RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution R-2022-32, a Resolution of the City Council of the City of Placentia, California, setting the levy of an Annual Special Tax for Community Facilities District No. 2014-01 (Public Services); and
2. Authorize inclusion of the Annual Special Tax for Community Facilities District No. 2014- 01 (Public Services) for Fiscal Year 2022-23 on the Orange County Secured Property Tax Roll.
1.g.
May 17, 2022
City Council Agenda
May 17, 2022
DISCUSSION:
In 2014, the City Council created CFD 2014-01 to provide a new revenue stream paid for by new residential developments to be used to help fund the cost of public safety services. This type of financing program, which is authorized under the Mello -Roos Community Facilities Act of 1982, envisioned the participation of all future additional new development projects, either by formation of new districts or annexation into the existing CFD.
The special tax that is currently being assessed on properties within the CFD is based upon a Fiscal Impact Analysis ("FIA") that was prepared for the intital formation of the CFD in 2014.
Based on the FIA, the tax rate needed to support public safety services for new residential developments was established at $225.00 for each single-family residential unit per year.
Therefore, the special tax rates for 2014-15 were $225.00 per residential unit for single-family residential property and $170.00 per residential unit for multi -family residential property.
The CFD is subject to an Annual Escalation Factor beginning on July 1, 2015, which shall be the greater of five percent (5%) or the annual percentage increase, if any, of the Consumer Price index for the twelve (12) months ending the preceding December 31. The index identified in the Rate and Method of Apportionment from 2014 was the All -Urban Consumers (CPI_U) for Los Angeles -Riverside -Orange County area. However, in January 2018 the Bureau of Labor and Statistics split the index geographically into a Los Angeles -Long Beach -Anaheim area and a Riverside -San Bernardino -Ontario area. The City has determined that the Los Angeles -Long Beach -Anaheim index is the most appropriate index as it includes both Los Angeles and Orange Counties. The CPI for the 12 months ending the preceding December 31 was 6.6%. Therefore, the special tax rates are being increased by 6.6% as allowed. The adjusted special tax rates for FY 2022-23 are $337.49 per residential unit for single-family residential property and $254.99 per residential unit for multi -family residential property.
FISCAL IMPACT:
For the tax to be applied to a parcel, either construction must be completed or a building permit for the home needs to be issued by the City by June 1 of the preceding fiscal year. Currently, a total of 129 parcels consisting of 127 single-family properties and two (2) multi -family properties have been annexed into CFD 2014-01 since it is creation. The two (2) multi -family properties annexed are The Herald apartment development by Integral/Lyon Living at 131 W Crowther Avenue and the JPI Luxury Apartments development project at 505 W. Crowther For FY 2022- 23, 127 parcels will be assessed at the adjusted special tax rate of $337.49 and one (1) parcel and at the special tax rate of $254.99. Currently, the construction of 54, detached single-family homes by Shea Homes located on the southeast corner of Alta Vista Street and Rose Drive is underway. These new parcels will not be annexed into CFD 2014-01 and levied until FY 2023- 24 when a Certificate of Occupancy has been issued. In addition, the JPI Luxury Apartments development project at 505 W. Crowther Avenue has been annexed into CFD 2014-01. This project is currently under construction and this property will not be assessed in FY 2022-23. The anticipated revenue from these assessments in FY 2022-23 is $42,861.23.
City Council Agenda
May 17, 2022
Prepared by:
7:; 44r�
Elsa Y. Robinson
Management Analyst
Reviewed and approved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Jenrfifer L'ampman
Director of Finance
Reviewed and approved:
Damien R. Arrula
City Administrator
Attachments:
1. Resolution R- 2022-32 — Annual Levy for CFD 2014-01 (Public Services)
2. Rate and Method of Apportionment of Special Tax