Citywide Community Facilities District
Funding City Public Safety and Maintenance Services
President/Managing
Director
Webb Municipal Finance, LLC
Heidi Schoeppe
Finance Manager
Webb Municipal Finance, LLC
Brent Howard
Introductions
Matt Chesney
Senior Finance Manager
Webb Municipal Finance, LLC
City of Victorville Needs
Agenda
Next Steps
Q&A
Community Facilities Dis trict
Overview
04 03
02 01 Introductions
05 06
Citywide Community Facilities
Dis trict Project
4 Background
Proposition 13
• Approved by California voters in 1978
• Limited revenues available to public agencies
collected from ad valorem property taxes
• Limited municipalities’ ability to issue general
obligation bonds without a vote from all
constituents
Mello-Roos Community Facilities Act of 1982
• Authorized by the State in response to the
limitations of Proposition 13
• CA Government Code 53311 et. Seq.
• Provides long-term financing for public agencies
• Allows the formation of a Community Facilities
District (CFD)
• Also known as a “Mello-Roos District”
5 Community Facilities Dis tricts (CFD)
Separate legal entity
May be formed by any public agency with authority to provide public services/facilities
Requires 2/3rd approval of registered landowners within proposed CFD • Vote usually occurs when developer is the sole landowner (one vote per acre or portion thereof) • 12 or more registered voters requires a registered voter election • Not affected by Proposition
Purpose of a CFD
• Provides versatile and flexible funding
mechanism
• Places the cost burden for new
services solely on newly developing
property and its owners
• New homeowners, for example, pay for
new services — not existing residents
7 CFD Special Taxes
• Levied in accordance with the
methodology approved by voter(s) in the
Rate and Method of Apportionment (RMA)
• Paid for by property owners within the CFD
• Special Taxes
• Not a special assessment
• No requirement for “special benefit”
• May be allocated on any reasonable
basis
• Cannot be an ad valorem tax
• Cannot be based on the value of the
parcels in the CFD
• Services must be NEW SERVICES to be provided within the boundaries of the CFD • Police and fire protection for raw land is considered a different service than police protection services for a newly built-out neighborhood • Police protection
services
• Fire protection
and suppression
services
• Ambulance and
paramedic
services
• Maintenance
and lighting of
parks, parkways,
streets, roads,
and open space
• Services for
hazardous waste
cleanup
• Flood and storm
protection
services
• Operation and
maintenance of
museums and
cultural facilities
• Library services
• Recreation
program
services
• Maintenance
services for
elementary and
secondary
school sites and
structures
W hat Services can be funded?
9 • Public Safety
• Operations and Maintenance
Types of Services
• Requirement of Development
Agency-wide Annexable
• Separate Buckets
• Varying Escalators
Multiple Special Taxes
Services Cons iderations
Other Agencies with Citywide CFD’s
A gencies with Services CFD s
City of Victorville Needs - Re cap
Factors
• Increase in City
Provided/Outsourced
Services
• Population Growth
• Increase in Costs of
Services
Services Impacted
• Public Safety
• Operations and
Maintenance
• Code Compliance
City of Victorville Citywide Annexable CFD
Project
2 Separate Special
Taxes
Res idential and
Non-Res idential
Participation
Citywide Annexable
CFD
Highest L evel of
Safety
Special Taxes
• Based Upon Development
Specific Services
Special Tax for
Operations and
Maintenance
• Level of Public Safety
• Allocation to Residential vs.
Non-Residential
Special Tax for
Public Safety
Services
D iscussion of Analysis Related Assumptions
Public Safety Tax
• Includes Allocation to Non-Residential and
Residential
• Allocation Derived for Non-Residential by Use
Type
• 80% to 100% allocated to Residential Based
upon use of service
• Escalation at greater of CPI or 5%
• High Level of Public Safety
Operations & Maintenance
Special Tax
• Assumes each development or project pays for
its own Operations and Maintenance
Requirements
Allocation of Each Special Tax to Residential
• Affordable Housing Exempted
• MFR/SFR Separate Rates
Proposed RatesProposed Rates
• Includes rate for Non-
Residential property
• 80% of Public Safety Special
Tax Requirement is allocated
to Residential Property, 20%
allocated to Non-Residential
Public Safety
Special Tax
• Overall costs are determined
on a per development basis
• Per unit costs are updated
periodically
• Sample tax bill is based on
proposed development:
• 319 housing units
• Landscaping
• Street maintenance
• Small neighborhood park
• Grafitti abatement
Maintenance
Special Tax
Projected Sample Tax Bill
Including Proposed Services CFDs
Average Home Value(1) $423,000
General Property Tax (1.0000%) $4,230.00
Victoville Community College Measure JJ (0.0250%) $105.75 Victor Valley Union HS Bond (0.0480%) $203.04
Mojave Water Bond Debt #1(2) (0.1125%) $114.37
Mojave Water Bond Debt #2 (0.0550%) $232.64
Victor Elementary Bond (0.0544%) $230.11
Subtotal Ad-Valorem Taxes $5,115.91
Victorville Citywide SLAD $19.46
Proposed Victorville Public Safety CFD Tax $525.35
Proposed Victorville Maintenance CFD Tax $689.79
Subtotal Special Assessment and Taxes $1,234.60
Total Annual Property Taxes $6,350.51
Annual Property Tax Rates as % of Home Price 1.50%
(1) Average Home Value is based on the median sales price per Redfin.com. (2) Mojave Water Bond Debt #1 is assessed at 0.1125% of land assessed value only.
Maintenance Tax Rates for other L ocal
A gencies
Agency: Agency 1 Agency 2
Single Family
Residential (per
Unit)
Non-Residential
(per Acre)
Single Family
Residential (per Unit)
Non-Residential (per
Acre)
Minimum Maintenance Services Tax Rate $79.23 $1,041.28 $283.51 $1,620.43 Maximum Maintenance Services Tax Rate $413.47 $17,798.45 $1,320.28 $7,018.18 Average Maintenance Services Tax Rate $335.88 $4,007.57 $937.38 $4,806.98 Allowable Annual Increase >2% or CPI >2% or CPI >2% or CPI; Max of 6% >2% or CPI; Max of 6% Next Steps for CFD Formation
Form the Community Facilities District
Initiation of Formation
• Petition
Initial Council Meeting
• Resolution(s) of Intention
• Rate and Method of Apportionment & Boundary Map
Second Council Meeting
• Public Hearing & Written protests
• Resolution of Formation
• CFD Election
Annexations