ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STOCKTON LEVYING SPECIAL TAXES WITHIN CITY OF STOCKTON COMMUNITY FACILITIES DISTRICT NO. 2024-1 (SOUTH STOCKTON FACILITIES AND SERVICES) On September 17, 2024, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), this City Council adopted Resolution No. 2024-09-17-1502-01 (the “Resolution of Intention”), stating its intention to form the “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services)” (the “CFD”), and to establish a future annexation area related thereto entitled “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (Future Annexation Area) (the “Future Annexation Area”); and Notice was published as required by the Act relative to the intention of this City Council to form the CFD, to establish the Future Annexation Area, to provide for certain public facilities and public services to be financed through the CFD, and to incur bonded indebtedness for the CFD; and On November 12, 2024, this City Council held noticed public hearings as required by the Act relative to (i) the determination to proceed with the formation of the CFD, the establishment of the Future Annexation Area and the approval of the rate and method of apportionment of the special tax to be levied within the CFD to finance a portion of the costs of the public facilities and public services and (ii) the issuance of bonded indebtedness and other debt for the CFD; At said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD, the establishment of the Future Annexation Area and the levy of said special taxes were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; On November 12, 2024, subsequent to the hearing, this City Council adopted its “RESOLUTION TO FORM A COMMUNITY FACILITIES DISTRICT AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH DISTRICT” (the “Resolution of Formation”), its “RESOLUTION DETERMINING NECESSITY TO INCUR BONDED INDEBTEDNESS FOR A COMMUNITY FACILITIES DISTRICT” (the “Resolution Determining Necessity”) and its “RESOLUTION CALLING SPECIAL ELECTION FOR A COMMUNITY FACILITIES DISTRICT” (the “Election Resolution”), which resolutions defined the public facilities to be financed by the CFD (the “Facilities”) and the public services to be financed by the CFD (the “Services”), established the CFD and the Future Annexation Area, authorized the levy of special taxes within the CFD, including for parcels that annex to the CFD from the Future Annexation Area, determined the necessity to incur bonded indebtedness in the CFD and called an election within the CFD on the propositions of incurring indebtedness for the CFD, levying special taxes within the CFD, and establishing an initial appropriations limit for the CFD, subject to escalation, respectively; and On November 12, 2024, a special election was held with respect to the CFD at which the eligible landowner-electors of the CFD approved such propositions by the two-thirds vote required by the Act; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, as follows:
Section 1. By the passage of this Ordinance, this City Council hereby authorizes and levies special taxes for Facilities and for Services within the CFD, including costs related to administering the CFD, pursuant to the Act. The City shall levy the special taxes at the rates and in accordance with the methodology set forth in the Resolution of Formation (the “Rate and Method”), which Rate and Method is by this reference incorporated herein and as the Rate and Method may be amended in accordance with the Act. The special taxes are hereby authorized to be levied commencing in Fiscal Year 2024-25 and in each fiscal year thereafter, as contemplated by the Resolution of Formation and the Resolution of Necessity. Parcels that annex into the CFD in the future, including from the Future Annexation Area, shall be subject to the levy of the special taxes in accordance with the formation proceedings for the CFD and the Act, as may be supplemented by the unanimous consent(s) of landowner(s) annexing from the Future Annexation Area to the CFD as contemplated thereby.
Section 2. The Chief Financial Officer of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the CFD.
Section 3. Except as provided in the Rate and Method or the Act, properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes. In no event shall the special taxes be levied on any parcel within the CFD in excess of the maximum tax authorized.
Section 4. All of the collections of the special taxes shall be used as provided for in the Act and in the Resolution of Formation including, but not limited to, the payment of principal and interest on bonds issued by the City for the CFD (the “Bonds”), the replenishment of the reserve fund for the Bonds, the payment of the costs of the Facilities and the Services, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special taxes.
Section 5. The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that special taxes may be directly billed by the City and/or this City Council may provide for other appropriate methods of collection by resolutions of this City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The Chief Financial Officer of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Joaquin in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of San Joaquin for Fiscal Year 2024-25 and for each fiscal year thereafter in which a special tax shall be levied.
Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special taxes are found inapplicable to any particular parcel within the CFD, by a court of competent jurisdiction, the balance of this Ordinance and the levy of the special taxes on the remaining parcels within the CFD shall not be affected.
Section 7. The Mayor shall sign this Ordinance, and the City Clerk shall cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated in the City.
Section 8. Pursuant to Section 508 of the Charter of the City, this Ordinance shall become effective immediately upon passage by the City Council.
INTRODUCED: ____________________
ADOPTED: ____________________
EFFECTIVE: ____________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton