Item Number: {{item.number}}
City Council / Board of Directors
Consent Calendar
Meeting of: December 19, 2023
Submitted By:
Sophie Smith, Deputy City Manager/City Treasurer
Carmen Cun, Assistant Finance Director
Subject:
Fiscal Year 2023-2024 Senate Bill 165 Annual Report for Community Facilities District No. 2018-001 (Victorville Lead Track)
Recommendation:
That the Honorable City Council receive and file the Fiscal Year ("FY") 2023-2024 Senate Bill 165 Annual Report for Community Facilities District ("CFD") No. 2018-001 (Victorville Lead Track) pursuant to the Local Agency Special Tax and Bond Accountability Act.
Fiscal Impact:
There is no fiscal impact associated with this item.
Strategic Plan Goal:
This item reflects Goal A: Financial Sustainability, Strategy 5 of the FY 2024-2026 Strategic Plan through the prior creation of the CFD to cover costs for the investment in their infrastructure through our oversight and upkeep of the rail spur used by these parcel owners.
Background:
In the late 1980s, the former Victorville Redevelopment Agency (“RDA”) funded the construction of rail track, known as Victorville Lead Track, from the Burlington Northern and Santa Fe (“BNSF”) railroad’s main line to facilitate an on-site rail spur belonging to a glass manufacturing facility that was in operation at the time. The former RDA funded the construction to entice industrial development in the City. Overtime, the Victorville Lead Track was extended to accommodate additional manufacturing and distribution facilities. However, as a result of the dissolution of redevelopment agencies throughout the State of California, the City formed Community Facilities District No. 2018-001 (Victorville Lead Track) in 2018 to fund all direct and incidental costs of maintenance, 3 4
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repair and replacement of the Victorville Lead Track, and related appurtenances within or adjacent to the District.
Discussion:
The Local Agency Special Tax and Bond Accountability Act (the “Act”), enacted by Senate Bill 165 in California Government Code (GC) Sections 50075 through 50077 and 53410 through 53412, requires:
• that any local special tax measure subject to voter approval contain a statement indicating the specific single purpose of the special tax • that the proceeds of the special tax be applied to that purpose • the creation of an account into which the proceeds shall be deposited • an annual report containing specified information concerning the use of the proceeds.
The Act also requires, under GC Section 50075.3 and Section 53411, that an annual report shall be filed with the governing body containing (a) the amounts collected and expended, and (b) the status of any project required or authorized to be funded. The purpose of this staff report is to satisfy the reporting requirement pursuant to the Government Codes referenced above.
In summary, the report states that as of June 30, 2022, a fund balance of $416,679.29 remained in CFD No. 2018-001 (Victorville Lead Track). During Fiscal Year 2022-2023, a total of $140,236.96, respectively, was collected from the five (5) parcels, and $57,230.90 was expensed as a result of maintenance and repair costs associated to the Lead Track. As of June 30, 2023, CFD No. 2018-001 had a fund balance of $499,685.35.
Lastly, for Fiscal Year 2023-2024, approximately $116,368.00 will be levied as total special tax for the same parcels. Most of the FY 2023-2024 special tax levy was under Class 1 Usage Category where more than 100 rail car deliveries were made on three of the five parcels.
Staff remains available for any questions or comments.
Attachments: A.Fiscal Year 2023-24 Annual Report for CFD No. 2018-001 (Victorville Lead Track).