Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION OF INTENTION TO FORM A COMMUNITY FACILITIES DISTRICT, ESTABLISH A FUTURE ANNEXATION AREA AND TO LEVY A SPECIAL TAX IN SUCH DISTRICT TO FINANCE PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH DISTRICT Under the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), this City Council (the “Council”) of the City of Stockton (the “City”) is authorized to establish a community facilities district and to act as the legislative body for such community facilities district; and The Council, having received indications of interest on behalf of the owners of the areas of land proposed to be included in a proposed community facilities district, desires to proceed with the establishment of a community facilities district and a future annexation area, all in order to finance costs of public infrastructure and services necessary or incidental to new development in the City; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. It is proposed to establish a community facilities district and establish a future annexation area related thereto, within the City of Stockton under the terms of the Act to finance costs of public services and facilities necessary or incidental to new development in the City.
2. The name proposed for the community facilities district is “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services)” (the “CFD”). The name proposed for the future annexation area is the City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (Future Annexation Area) (the “Future Annexation Area”).
3. The proposed boundaries of the CFD and Future Annexation Area are shown on the Map of Proposed Boundary of a Proposed Community Facilities District to be Known as Community Facilities District No. 2024-1 (South Stockton Facilities and Services), City of Stockton, San Joaquin County, California, on file with the City Clerk, which the Council hereby approves as the map describing the extent of the territory included in the proposed CFD and Future Annexation Area. The Council finds that the map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code. The Council hereby adopts such map as the Map of Proposed Boundary of the CFD and Future Annexation Area and directs the City Clerk to certify the adoption of this resolution on the face of the map, and to file a copy of the map in the office of the City Clerk in accordance with Section 3111 of the California Streets and Highways Code and within 15 days of the date of adoption of this resolution but in no event later than 15 days prior to the public hearing provided for herein, transmit the map to the County Recorder for recording in the Book of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of San Joaquin.
Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings.
All or any portions of territory that annexes into the CFD from the Future Annexation Area may annex into the CFD as an improvement area (an “Improvement Area”) to be designated at the time of such annexation and no additional hearings, resolutions of the City Council or other procedures are required.
The Unanimous Approval shall specify annexation into the CFD or into a newly established Improvement Area or an Improvement Area then in existence pursuant to the Unanimous Consent. After the designation of a parcel or parcels as an Improvement Area, all proceedings for approval of an appropriations limit, the rate and method of apportionment and manner of collection of special taxes, and the authorization to incur bonded indebtedness may differ from the CFD or any other Improvement Areas, all as set forth in the Unanimous Approval, and shall apply only to the parcel or parcels within such Improvement Area. Likewise, all or any portions of territory that annex into the CFD from the Future Annexation Area or otherwise may be annexed into a separate zone of the CFD or any Improvement Area then in existence or to be designated at the time of such annexation, and no additional hearings or procedures are required and the rate and method of apportionment applicable to such zone may differ from other areas of the CFD as set forth in the Unanimous Approval and shall apply only to the parcel or parcels within such zone, al as provided in the Unanimous Consent.
4. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities (as defined below), and/or the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and/or acquire the Facilities, a special tax (the “Facilities Special Tax”) sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as the Council or its designee shall determine, including direct billing of the affected property owners.
In addition, an annual special tax (the “Services Special Tax” and together with Facilities Special Tax, the “Special Taxes”) will also be levied within the CFD for authorized services and which tax component may provide additional security for debts of the CFD.
The proposed rate and method of apportionment of the Special Taxes among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the CFD to estimate the maximum amount such owner will have to pay and the length of time such amount may be levied, are described in the Rate and Method of Apportionment attached hereto as Exhibit 1 hereto and hereby incorporated herein (the “Rate and Method”), provided that as set forth in section 53321(d) of the Act, under no circumstances will the Facilities Special Tax levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the district by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
At such time as territory within the Future Annexation Area is annexed into the CFD pursuant to the Unanimous Consent, if such annexation is into or establishing an Improvement Area, approval of a rate and method of apportionment for such territory may differ from that of the CFD or other Improvement Areas as set forth in the Unanimous Approval, and shall provide sufficient detail to allow each landowner within the annexed territory to estimate the maximum amount such owner will have to pay.
A Facilities Special Tax shall not be levied after the fiscal year identified in the Rate and Method, except that a Facilities Special Tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years.
As required by section 53339.3(d) of the Act, as to annexed property, the City Council hereby determines that the Facilities Special Tax proposed to pay for public facilities financed with bonds that have already been issued shall be the same for parcels annexed as the tax levied in the existing CFD (or Improvement Area, if applicable) for that purpose, except that a higher Special Tax may be levied for that purpose within the territory proposed to be annexed or to be annexed in the future to compensate for the interest and principal previously paid by the CFD (or such existing Improvement Area, if applicable) less any depreciation allocable to the public facility. In so finding, the City Council does not intend to limit its ability to levy a Facilities Special Tax within territory to be annexed or to be annexed in the future to pay for new or additional public facilities, with or without bond financing.
The Services Special Tax proposed to pay for Services to be supplied within territory annexed in the future shall be equal to any Services Special Tax levied to pay for the same Services in the CFD, except that a higher or lower tax may be levied within the territory to be annexed in the future to the extent that the actual cost of providing the Services in that territory is higher or lower than the cost of providing those Services in the existing CFD. The foregoing shall not be construed to limit the levy of the Services Special Tax within the territory to be annexed in the future to provide new or additional Services beyond those supplied within the existing territory of the CFD, or to pay for new or additional Facilities, with or without bond financing.
The Council hereby finds that the provisions of sections 53313.6, 53313.7, and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD.
5. The type of public services and facilities proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as Facilities (the “Facilities”) and Services (the “Services”) on Exhibit 2 hereto and hereby incorporated herein.
The Council hereby determines that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring within the CFD and the Future Annexation Area. The financing of the costs of Facilities may include, without limitation, the payment of principal of and interest on bonds together with all direct, indirect periodic, and/or other related costs (including, without limitation, costs of administering the CFD, levying the Special Tax and administering the bonds, and establishing and replenishing reserve funds). Land annexed into the CFD pursuant to a Unanimous Approval may specify additional facilities and services to be financed by the Special Taxes levied on such annexed land, as set forth in the Unanimous Consent, without additional proceedings, provided the conditions set forth in this Section with respect to the original Facilities and Services are met.
The City Council hereby finds and determines that section 53329.5(a) of the Act relating to the City calling for bids for construction of the Facilities are inapplicable to the CFD in that the City will acquire but not construct the Facilities. To that end, City may enter into one or more contracts directly with any owner or developer of land within the CFD for acquisition of Facilities.
The Council hereby determines that the Services are necessary to meet increased demands for such services placed upon the City as the result of development occurring within the area of the CFD and the Future Annexation Area. The Services are in addition to those provided in the territory of the CFD as of the date hereof and will not supplant services already available within the territory of the CFD as of the date hereof. Similarly, services to be financed by special taxes upon territory within the Future Annexation Area shall be in addition to those provided in such territory of the CFD as of the date hereof and will not supplant services already available within the territory of the CFD as of the date hereof.
6. Except as may otherwise be provided by law or by the Rate and Method, all lands owned by any public entity, including the United States, the State of California and the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Taxes. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, the Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the Rate and Method. It is anticipated that the Special Taxes will be billed as a separate line item on the regular property tax bill. However, the Council reserves the right, under Section 53340 of the Act, to utilize any method of collecting the Special Taxes which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.
7. The levy of the Special Taxes shall be subject to the approval of the qualified electors within the CFD at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the CFD, with each owner having one vote for each acre or portion of an acre such owner owns in the CFD. The Council hereby determines that the Facilities and Services are necessary to meet increased demands placed upon local agencies as the result of development occurring within the CFD. The Council hereby further determines the Services are in addition to those provided in the territory of the CFD as of the date hereof and will not supplant services already available within the territory of the CFD as of the date hereof.
8. It is the intention of the Council, acting as the legislative body for the CFD, to cause bonds of the City to be issued for the CFD pursuant to the Act to finance in whole or in part the construction and/or acquisition of the Facilities. The bonds issued in these proceedings shall be callable in accordance with the provisions of the Act, and shall be issued in such series and bear interest payable semi-annually or in such other manner as the Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, shall mature not to exceed 40 years from the date of the issuance thereof and shall be as more specifically set forth in any resolution authorizing the issuance of such bonds.
9. The City Chief Financial Officer, as the officer having charge and control of the Facilities and Services in and for the CFD, or the designee of such official, is hereby directed to cause and direct a study of said proposed CFD and the Facilities and Services, and to cause to be prepared for filing at the public hearing the report required by Section 53321.5 of the Act (the “CFD Report”) presenting at least the following:
(a) A brief description of the Facilities and Services by type which will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Facilities and Services, including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in section 53345.3 of the Act.
The CFD Report shall be made a part of the record of the public hearing specified below.
10. The Council hereby sets Tuesday, November 12, 2024, at 5:30 p.m., at the City of Stockton City Council Chambers located at 425 N. El Dorado Street, Stockton, California 95202, as the time and place when and where the Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and the Future Annexation Area, and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the Future Annexation Area and the levy of the Special Taxes within the CFD. At the hearing, testimony concerning the CFD and the Future Annexation Area, the extent of the CFD and the Future Annexation Area or the furnishing of the particular types of public facilities and services will be heard, and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the land which would be subject to special taxation within the CFD will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing. If such protests are directed only against certain elements of the proposed improvements or proposed special tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings.
11. The City Clerk is hereby directed to cause notice of the public hearing, attached hereto as Exhibit 3, to be given by one-time publication in a newspaper of general circulation in the area of the CFD and the Future Annexation Area. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in section 53322 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved.
12. This Resolution shall take effect immediately upon its adoption.
13. The City Manager is authorized to take such other actions as are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED September 17, 2024 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton