CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: July 17, 2024
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Joshua Dramitinos, Deputy Director of Economic Development Department: Economic Development
Subject: Resolution Declaring Intent to Amend Special Tax Rates:
Community Facilities District No. 2019-1 (Maintenance
Services): Annexation No. 28, Tax Zone No. 29
(Verdemont Ranch) (Ward 5)
Recommendation:
It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2024-152 of the Mayor and City Council of San Bernardino, California, declaring its intention to amend the Special Tax rates for Annexation No. 28 into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, and authorizing the levy of a special taxes therein.
Executive Summary
The recommended actions are the first step of the Special Tax rates amendment process for the proposed development into Community Facilities District (“CFD”) No. 2019-1 (Maintenance Services). The property owner has petitioned the City to amend the Special Tax rates for Tax Zone No. 29 of the City’s CFD No. 2019-1 to mitigate its impacts for maintenance service of public facilities as a result of the new development.
The special taxes will be levied annually to offset general fund expenditures related to maintenance of public improvements within and for the benefit of the development. At build out, the development will include 20 detached single-family homes located at N Little League Drive north of W Meyers Road.
Background
On June 5, 2019, the Mayor and City Council approved Resolution No. 2019-81 initiating the formation of Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the "CFD No. 2019-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.
On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019-178, establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). CFD No. 2019-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.
Discussion
On December 7, 2022, the City Council adopted Resolution No. 2022-263, a Resolution of Intention to add Annexation Area No. 28 into CFD 2019-1, to authorize the levy of special tax therein and to finance certain services.
On July 17, 2024, the City Council is being presented with a request to amend Resolution No. 2022-263 and adjust the rates previously approved. The amended rates will now include the maintenance of a Geogrid wall.
Development projects are subject to conditions of approval that require projects to form/annex a maintenance district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development. The Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.
The public facilities and services proposed to be financed within the territory to be annexed to the District are the following:
1. Maintenance of median landscaping and other public improvements installed within the public rights-of-way; and
2. Public lighting and appurtenant facilities, including street lights within public rights-of-way and traffic signals; and
3. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds.
The proposed development includes approximately 24.83 gross acres of a vacant residential lot. The property is located at N Little League Drive north of W Meyers Road. At build out, this development will include 20 detached single family residential properties as a new Tax Zone No. 29 within CFD No. 2019-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019-1, a Resolution of Intention to annex property must be approved to identify the facilities to be maintained and establish the maximum special tax for this Tax Zone. The Resolution of Intention shall also set the date and time for the public hearing.
The rate and method of apportionment of the special tax for this Tax Zone, (Tax Zone No. 29), is included as Exhibit “C” to the Resolution of Intention. The amended maximum annual special tax for this development has been calculated to be $954 per unit for FY 2024/25. Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. Exhibit “H”, attached to the staff report is a maintenance exhibit to illustrate which services are being maintained by the CFD.
In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring City intent to amend the Special Tax rates for Annexation No. 28 of Community Facilities District No. 2019-1 including the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area).
Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien.
Amend the Ordinance and order the levy and collection of special taxes in the District.
The individual property owners in the CFD will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $19,064 to be used to pay for maintenance costs.
On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.
With the adoption of the Resolution of Intention, the Public Hearing would be scheduled for September 4, 2024.
2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No 4. Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth.
Fiscal Impact
The cost of the annexation is approximately $19,064 which will be used to pay for maintenance costs. All costs associated with the annexation will be paid by the developer. There is no net impact to the City’s General Fund.
Conclusion
It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2024-152 of the Mayor and City Council of San Bernardino, California, declaring its intention to amend the Special Tax rates for Annexation No. 28 into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, and authorizing the levy of a special taxes therein.
Attachments
Attachment 1 – Resolution 2024-152 - Resolution of Intention Attachment 2 – Exhibit A - Description of Territory
Attachment 3 – Exhibit B - Description of Services
Attachment 4 – Exhibit C - Amended Rate and Method of Apportionment Attachment 5 – Exhibit D - Recorded Boundary Maps
Attachment 6 – Exhibit E - Signed Petition and Waiver
Attachment 7 – Exhibit F - Notice of Public Hearing
Attachment 8 – Exhibit G - Special Election Ballot
Attachment 9 – Exhibit H - Maintenance Exhibit
Attachment 10 – Project Map
Ward:
Fifth Ward
Synopsis of Previous Council Actions:
June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San
Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”.
July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019- 179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No.
MC-1522 levying special taxes to be collected during FY 2019- 20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1.
August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to
Community Facilities District No. 2019-1.
December 7, 2022 Mayor and City Council adopted Resolution No. 2022-263, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”.
January 18, 2023 Mayor and City Council adopted Resolution No. 2023-001 calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1
(Annexation No. 28), and adopted Resolution No. 2023-002 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 28); and introduced Ordinance No.
MC-1608 amending No. MC 1522.