City Council and Concurrent Authorities
September 23, 2025

City of Stockton
CFD No. 2025-1
(Cannery Park East)
Resolution of Formation Meeting
City Council Meeting
September 23, 2025
Agenda Item 15.1
BackgroundCFD No. 2019-1 (Cannery Park II) formed in May 2019 Fixed annual special tax of $1,600 per year on single-family residential unitsCity can recover administrative costs as part of the special taxesA services tax is also paid each year by the property ownersTotal bonded indebtedness of $15 millionIssued two series of bonds in 2022 ($9.915 million) and 2024 ($1.525 million) 2 The Proposed ProjectThe initial boundary of the CFD will include just the portion of property originally acquired by Jen California 31, LLC (the “Developer”). The portion acquired is already in CFD No. 2019-1 (Cannery Park II). The special taxes payable by the property owners will be in addition to the fixed $1,600 per year of facilities special tax and the services special tax already collected from CFD No. 2019-1. The CFD will consist of 311 single-family residential units The Developer sold 64 lots to Richmond American on October 25, 2024The Developer sold 267 lots to Century Communities on May 19, 2025. If formed, the CFD will help fund the acquisition of authorized facilities and the payment of fees. FY 2026-27 Facilities tax rates ranging from $922 (<1,800 SF) to $2,386 (>3,400 SF) annually2% escalation of facilities taxTotal tax rate of 1.80% consistent with other CFDs in the region 3 Proposed Boundary4

Financial SummaryThere is no financial impact to the City for the formation of the proposed CFDThe estimate cost to form the CFD is $39,500. Expenses for the Special Tax Consultant (Willdan Financial Services), Bond Counsel (Jones Hall) and the City’s Municipal Advisor (Del Rio Advisors, LLC) are included in the estimated cost. The Developer has deposited $39,500 with the City to cover these estimated costs of formation.Ultimately, when bonds are issued, the City will receive an administrative fee based on a sliding scale of the issuance size. The City’s Administration Fee is a component of the cost of issuance and is paid from bond proceeds. If the CFD is approved and when one or more series of bonds are contemplated, the bonds will be brought back to the City Council for consideration and approvalThe bonds will not be a debt of the City and will only be paid through the special taxes levied in the CFD. 5 Items for ConsiderationStaff recommends the City Council approve the following four resolutions:A resolution of formation establishing Community Facilities District No. 2025-1 (Cannery Park East) authorizing the levy of a special tax within the CFD and establishing an appropriations limit for the CFD.A resolution determining the necessity to incur bonded indebtedness in an amount not to exceed $15,000,000. A resolution calling for an election for the purpose of submitting the levy of the special tax and the establishment of the appropriations limit to the qualified electors of the CFD.A resolution declaring the results of the election and directing the recording of a notice of special tax lien.Staff also recommends the City Council adopt an ordinance authorizing the levy of a special tax within the CFD 6 Questions ? 7