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Community Facilities District Report
City of Victorville
Community Facilities District No. 2024-01
(Municipal Services)
November 2024
Table of Contents
Sections
Section 1. Introduction _______________________________________________________ 1 Section 2. Description of Services _______________________________________________ 2 Section 3. Cost Estimate ______________________________________________________ 3 Section 4. Proposed Development ______________________________________________ 4 Section 5. Rate and Method of Apportionment ____________________________________ 5 Appendices
Appendix A. Rate and Method of Apportionment
Appendix B. Boundary Map & Future Annexation Area Boundary Map City of Victorville Community Facilities District Report CFD No. 2024-01 1
1. Introduction
AGENCY: CITY OF VICTORVILLE
PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES) TO: CITY COUNCIL
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
Whereas, the City Council of the CITY OF VICTORVILLE, SA N BERNARDINO COUNTY, CALIFORNIA (hereinafter referred to as the “City Council”), did, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, (the “Act”) expr essly order the filing of a written Public Report (the “Report”) for a proposed Community Facilities District No . 2024-01 of the City of Victorville. This Community Facilities District shall be referred to as COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES) OF THE CITY OF VICTORVILLE (hereinafter referred to as the “District” and “CFD No. 2024-01”); and,
Whereas, on October 15, 2024, the City Council adopted Resolution No. 24-092 (the “Resolution”), and the Resolution ordering said Report, did direct that said Report generally contain the following:
x A brief description of the services to be financed by Community Facilities District No. 2024-01;
x An estimate setting forth costs of providing such services;
NOW, THEREFORE, the undersigned, authorized representative of Webb Municipal Finance, LLC, the appointed Special Tax Consultant and responsible officer or person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:
City of Victorville Community Facilities District Report CFD No. 2024-01 2
2. Description of Services
Pursuant to Section 53313 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2024-01 may be used only to pay for the cost of providing services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual cost associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District.
A general description of the estimated proposed services and incidental expenses for the District is as follows (actual costs of services may change and are eligible to be funded in their entirety):
City of Victorville Services
The types of Services that are proposed to be funded with the proceeds of special taxes levied by CFD No. 2024- 01 consist of services permitted to be financed unde r the Mello-Roos Community Facilities Act of 1982, as amended, including, without limitation maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of st reets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements, pub lic safety services including but not limited to police, fire protection, fire suppression, and code enforcement. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2024-01.
Administrative Expenses
The administrative expenses to be paid from the Special Taxes include but are not limited to, the cost of computing of the amount of Special Taxes to be levied and preparing the Annual Special Tax collection schedule, the costs of collecting the Special Taxes, annual report ing requirements associated with applicable federal and state laws and of the Act; the costs associated with resp onding to public inquiries regarding Special Taxes; the costs associated with the City's annual administration fees and otherwise incurred in order to carry out the authorized purposes of CFD No. 2024-01.
Based upon the preceding, it is my opinion that the services being funded are those that are necessary to meet certain increased demands placed upon the CITY OF VICTORVILLE, as a result of development and/or rehabilitation occurring within the boundaries of the District.
DATED November 19, 2024 WEBB MUNICIPAL FINANCE, LLC
By:
SPECIAL TAX CONSULTANT FOR
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
City of Victorville Community Facilities District Report CFD No. 2024-01 3
3. Cost Estimate
1. The initial cost estimate of the Public Safety Services (Special Tax A), including administrative expenses, to be funded through the Special Tax levied and collected for CFD 2024-01 is estimated to be approximately $163,909 based upon current dollars (Fiscal Year 2024-25).
This initial annual cost estimate is also based on the estimated cost per acre of Non-Residential Property – as d e f i n e d i n t h e R a t e a n d M e t h o d o f A p p o r t i o n m e n t . A s p r o p e r t y i s a n n e x e d t o C F D N o . 2 0 2 4 - 0 1 , i t i s expected that the annual cost of providing services will increase proportionately based on the number Units/Acres which will be included in the annexed property. The annual cost of providing such services will also increase by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
2. The initial cost estimate of the Maintenance Services (Special Tax B), including administrative expenses, to be funded through the Special Tax levied and collected for CFD 2024-01 is estimated to be approximately $51,627 based upon current dollars (Fiscal Year 2024-25).
3. Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD 2024-01 may be used only to pay for the cost of the services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, th e annual costs associated with determination of the amount of special taxes, collection of special taxes, pa yment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Di strict. The incidental expenses associated with the annual administration of CFD 2024-01 are estimated to b e $ 3 0 , 0 0 0 . H o w e v e r , i t i s a n t i c i p a t e d t h a t t h e incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.
DATED November 19, 2024 WEBB MUNICIPAL FINANCE, LLC
By:
SPECIAL TAX CONSULTANT FOR
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
City of Victorville Community Facilities District Report CFD No. 2024-01 4
4. Proposed Development
1. The boundaries of CFD No. 2024-01 Tax Zone 01 are those properties and parcels where services are authorized to be provided and upon which special taxes may be levied in order to pay for the costs and expenses of said services. A general description of the area within the boundaries of CFD No. 2024-01 is shown on the “Proposed Boundary Map” attached as hereto as Appendix B.
2. Additional properties that are within the boundaries of the annexation map may annex into CFD No. 2024- 01 subsequent to formation of CFD No. 2024-01. The owner of the property to be annexed shall submit a written consent for said annexation to CFD No. 2024-01 and the Council, acting ex-officio as the legislative body of CFD No. 2024-01, shall call a special election as to the imposition of the special tax on said property as required by law. A general description of the boundaries of the territory within which any property may annex to CFD No. 2024-01 and shown on that certai n map entitled “Boundaries – Potential Annexation Area of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville, County of San Bernardino, State of California,” is attached.
The “Proposed Boundary Map” and “Boundaries – Potential Annexation Area Map” for CFD No. 2024-01 are attached hereto as Appendix B.
City of Victorville Community Facilities District Report CFD No. 2024-01 5
5. Rate and Method of Apportionment
1. The Rate and Method of Apportionment allows each property owner within the proposed District to estimate the annual amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). Special Tax A and Special Tax B will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, Special Tax A and Special Tax B may be collected at a different time or in a different manner if necessary for CFD No. 2024-01 to meet its financial obligations and may foreclose on delinquent parcels as permitted by the Act.
2. All of the property located within CFD 2024-01, unless exempted by law or by the Rate and Method proposed for CFD 2024-01, shall be taxed for the purpose of providing necessary services to serve the District. The Boundary Map for CFD 2024-01 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The special tax may be based on the benefit received by property, the cost of making authorized services available or other reasonable basis as determined by the City Council, although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.
3. For particulars as to the Rate and Method for CFD 2024-01, see the attached and incorporated Appendix A.
It is my opinion that the Rate and Method, as described above and set forth in Appendix A is fair and reasonable.
This Report has been prepared and consolidated by the Special Tax Consultant, Webb Municipal Finance, LLC, and is herewith submitted to the City Council pursuant to the applicable provisions of the Mello-Roos Community Facilities Act of 1982.
DATED November 19, 2024 WEBBMUNICIPAL FINANCE, LLC
By:
SPECIAL TAX CONSULTANT FOR
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
APPENDIX A
Rate and Method of Apportionment
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 7 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
OF THE CITY OF VICTORVILLE
The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax A and Special Tax B of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville (“CFD No. 2024-01”). A Special Tax A and Special Tax B shall be levied on and collected in CFD No. 2024-01 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All real property within CFD No. 2024-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
“Accessory Dwelling Unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary re sidence pursuant to California Government Code Section 65852 et seq.
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2024-01 including, but not limited to: the costs of computing Special Tax A and Special Tax B and preparing the annual collection schedules (whether by the City or designee thereof or both) for Special Tax A and Special Tax B; the costs to the City, CFD No. 2024-01, or any designee thereof associated with fulfilling the CFD No. 2024-01 disclosure requirements; the costs associated with responding to public inquiries regarding Special Tax A and Special Tax B; the costs of the City, CFD No. 2024-01 or any designee thereof related to an appeal of Special Tax A or Special Tax B; and the City's an nual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2024-01 for any other administrative purposes of CFD No. 2024-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Victorville, or his or her designee. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year.
“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st of preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied, and (ii) that have not been issued a Building Permit on or before June 1 st
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 8 preceding the Fiscal Year in which the Special Taxes are to be levied. “Assessor’s Parcel” means a lot or parcel of land that is iden tifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Boundary Map” means a recorded map of the CFD No. 2024-01 which indicates the boundaries of CFD No. 2024-01.
“Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction Building Permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a Building Permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2024-01” means the City of Victorville Commun ity Facilities District No. 2024-01 (Municipal Services).
“City” means the City of Victorville, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2024-01, or its designee.
“Commercial Property” means all Assessor’s Parcels of Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: retail commercial, service commercial, and office commercial activities, as well as large-scale planned shopping districts serving the local and regional area and population, “big box” retailers, motels/hotels, and public assembly uses, or for any other uses that are consistent with commercial land use designation as determined by the City or Administrator.
“Consumer Price Index” or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reason ably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.
“County” means the County of San Bernardino, California. “Developed Property” means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to January 1st precedin g the Fiscal Year in which the Special Taxes are to be levied, and (ii) for which a Building Permit fo r new construction has been issued on or prior to June 1
st preceding the Fiscal Year in which Specia l Tax A or Special Tax B is being levied.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 9 “Exempt Property” means all Assessors’ Parcels designated as being exempt from Special Tax A or Special Tax B as provided for in Section K.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots that do not need, and are not expected, to be further subdivided prior to the issue of a Building Permit.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following
June 30th.
“Heavy Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for intense indust rial activities, such as manufacturing, materials processing, and any related industrial activities th at generate significant impacts such as excessive noise, dust, and other nuisances or for any other uses that are consistent with heavy industrial use designation as determined by the City or Administrator. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1
st preceding the Fiscal Year in which Special Tax A or
Special Tax B is being levied.
“Light Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for industrial , service-commercial, and related uses including warehousing/distribution, research and developmen t, assembly and light manufacturing, repair facilities, and supporting retail uses either locate d in industrial and/or business parks or in mixed industrial/business park use areas or for any other uses that are consistent with light industrial use designation as determined by the City or Administrator. The main feature of industrial activities in this category is that they do not require any signific ant site or structure requirements that are so specialized that would limit future use of the structures and/or site by another industrial activity. “Maintenance Services” means the services permitted under the Act and the formation proceedings with respect to CFD No. 2024-01 including, but not limited to, maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of streets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements contained within the boundaries of CFD No. 2024-01 and the City. “Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Taxable Property, the maximum amount of Special Tax B, determined in accordance with Section F that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential Property” means any Assessor’s Parcel of Residential Property that consists of a building or buildings comprised of attached Residential Units available for rental, but not for purchase, by the general public and under common management. “Mixed-Use 1 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 10 mixed use, stand-alone commercial, and stand-alone residential with a density of 1 to 15 dwelling units per acre for residential and a FAR of 0.5 for non-residential, or for any other uses that are consistent with a Mixed-Use 1 land use designation as determined by the City or Administrator. “Mixed-Use 2 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 15.1 to 30 dwelling units per acre for residential and a FAR of 1.0 for non-residential, or for any other uses that are consistent with a Mixed-Use 2 land use designation as determined by the City or Administrator. “Non-Residential Property” means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Other Non-Residential Property” means an Assessor’s Parcel of Non-Residential Property that is not classified as Commercial Proper ty, Mixed-Use 1 Property, Mixed-Use 2 Property, Public Institution Property, Light Industrial Property or Heavy Industrial Property. “Proportionately” means for Taxable Property that is: (i) De veloped Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximu m Special Tax A or Maximum Special Tax B is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax Levy A or Special Tax Levy B per acre to the Maximum Special Tax A or Maximum Special Tax B per acre is the same for all Parcels of Undeveloped Property. “Public Institution Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: land uses and activities that are predominately used for public purposes or owned or operated by a public entity. Activities within this category include City and Co unty buildings, public and private schools, colleges, and public utilities and city yards, or for any other uses that are consistent with a Public Institution Property land use designation as determined by the City or Administrator. “Public Safety Services" means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services, and code enforcement provided within the boundaries of CFD No. 2024-01 and the City.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "R/U" means a residential unit that is used or intended to be used as a domicile by one or more persons, excluding Accessory Dwelling Units, as determined by the Administrator. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
"Special Tax(es)" means, individually and collectively, Spec ial Tax A and Special Tax B authorized to be levied within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement and the Special Tax B Requirement.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 11 “Special Tax A” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement. “Special Tax B” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax B Requirement. "Special Tax A Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Public Safety Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Public S a f e t y S e r v i c e s , ( i i ) a m o u n t n e c e s s a r y t o f u n d a n operating reserve for the costs of Public Safety Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Public Safety Services. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
"Special Tax B Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Maintenance Services. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2024-01, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax B rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax B. Appendix A identifies the Tax Zone in CFD No. 2024-01 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2025 -26, each Assessor’s Parcel within CFD No. 2024-01 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, or Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Single Family Residential Proper ty, Multifamily Residential Property, Commercial Property, Mixed-Use 1 Property, Mixed-Use 2 Property , Public Institution Property, Light Industrial Property, Heavy Industrial Property or Other Non-Residential Property.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 12 C. MAXIMUM SPECIAL TAX A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Land Use Category Rate
Single Family Residential Property $525.35 per Taxable Unit Multifamily Residential Property $394.00 per Taxable Unit Commercial Property $0.058 per BSF
Mixed-Use 1 Property $0.049 per BSF
Mixed-Use 2 Property $0.040 per BSF
Public Institution Property $0.012 per BSF
Light Industrial Property $0.029 per BSF
Heavy Industrial Property $0.012 per BSF
Other Non-Residential Property $0.042 per BSF
(ii) O n e a c h J u l y 1 , c o m m e n c i n g J u l y 1 , 2 0 2 6 , t h e M a x i m u m S p e c i a l T a x A f o r D e v e l o p e d Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year or (ii) five percent (5%). b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax that can be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes that can be levied for each Land Use Types located on that Assessor’s Parcel. c. Approved Property
No Special Tax A shall be levied on Approved Property.
d. Undeveloped Property
No Special Tax A shall be levied on Undeveloped Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX A
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City shall levy Special Tax A at up to 100% of the applicable Maximum Special Tax A, Proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax A equals the Special Tax A Requirement.
E. PREPAYMENT OF SPECIAL TAX A
Special Tax A cannot be prepaid.
F. MAXIMUM SPECIAL TAX B
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 13 For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Pe rmit(s) issued or Final Map as determined by the Administrator. For Parcels of Undeveloped Property zoned for development of single family attached or multifamily units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multifamily building or buildin gs have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Un its contained within the building or buildings, and the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax B per Residential Unit identified for the Tract in Table 2 below or as included in Appendix A as each Annexation occurs.
For purposes of determining the applicable Ma ximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcel, the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax B per Taxable Unit identified for the Tax Zone in Table 2 below or as included in Appendix A as each Annexation occurs. a. Developed Property
(i) Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property is shown in Table 2 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zones annexed and included in Appendix A.
The Maximum Special Tax for Fiscal Year 2025-2026 within Tax Zone 1 is identified in Table 2 below:
TABLE 2
MAXIMUM SPECIAL TAX B RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(ii) Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed Property for the prior Fiscal Year shall be adju sted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
(iii) Multiple Land Use Categories
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 14 In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B for each Assessor’s Pa rcel of Approved Property shown in Table 3 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL B TAX RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Approved Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%). c. Undeveloped Property
The Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shown in Table 4 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax B
1 14525 Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 15 G. METHOD OF APPORTIONMENT OF SPECIAL TAX B
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City Council shall determine the Special Tax B Requirement and shall levy the Special Tax B on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax B equals the Special Tax B Requirement.
The Special Tax B shall be levied for each Fiscal Year as follows:
First: The Special Tax B shall be levied Proporti onately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maxi mum Special Tax B to satisfy the Special Tax B Requirement;
Second: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B for Approved Property; Third: I f additional monies are needed to satisfy the Special Tax B Requirement after the first two steps has been completed, the Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B for Undeveloped Property.
H. PREPAYMENT OF SPECIAL TAX B
Special Tax B cannot be prepaid.
I. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Maintenance Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate(s) for the Tax Zone when annexed and included in Appendix A.
J. TERMINATION OF SPECIAL TAX A AND SPECIAL TAX B
Special Tax A shall be levied as long as needed to meet the Special Tax A Requirement as determined at the sole discretion of the City Council. Special Tax B shall be levied as long as needed to meet the Special Tax B Requirement as determined at the sole discretion of the City Council.
K. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2024-01, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in us e by any public entity; (ii) Assess or’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.
L. APPEALS
Any property owner claiming that the amount or application of the Special Tax A or the Special Tax B are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Specia l Tax A or Special Tax B that is disputed. A City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 10 representative(s) of CFD No. 2024-01 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax A or the Special Tax B, and rule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax A or Special Tax B on that Assessor’s Parcel in subsequent Fiscal Year(s).
M. MANNER OF COLLECTION
The Special Tax A or Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2024-01 may collect the Special Tax A or Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 11 APPENDIX A
CITY OF VICTORVILLE
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF DEVELOPED PROPERTY
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF APPROVED PROPERTY
Tax
Zone
Year
Included
Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF UNDEVELOPED PROPERTY
Tax
Zone
Year
Included
Tract
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Acre $1,311.46
ESCALATION OF MAXIMUM SPECIAL TAX B
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed, Approved and Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
Tax
Zone
Year
Included
Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
APPENDIX B
Boundary Map & Future Annexation Area Boundary Map
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PROPOSED BOUNDARY MAP
SHEET 1 OF 1
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I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE
PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
NO. 2024-01 (MUNICIPAL SERVICES), TAX ZONE 01 OF THE
CITY OF VICTORVILLE, COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA, WAS APPROVED BY THE CITY
COUNCIL OF THE CITY OF VICTORVILLE AT A REGULAR
MEETING THEREOF, HELD ON THE I':>.,.,._ DAY
OF Oc,i-o)?cc 2024, BY ITS RESOLUTION
NO. 2'-/- oqz..
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES), TAX ZONE 01, CITY OF VICTORVILLE
COUNTY OF SAN BERNARDINO
STATE OF CALIFORNIA
SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER
2-ol--'j-O'l-!aOl..'BI THIS DAYOF
Oct.lee..- 2024 AT M.
IN BOOK C\'l.- OF ,01.JM{ f..t..p
AT PAGE t "t-- AT THE REQUEST OF
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AMOUNT OF$--- -------
CITY CLER--::S-<......; ... "' N
CITY OF VICTORVILLE
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FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF
VICTORVILLE THIS 2 DAY OF QC,-fOl'.)e,--
2024.
CITYCL--::S-c:...., ..
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VICINITY,MAP
NOT TO s·cALE
Victorville
CHRIS WILHITE
ASSESSOR-RECORDER-COUNTY CLERK
SAN BERNARDINO COUNTY
BY: AwM ------------ -
DEPUTY RECORDER
APNUST
0473-163-12-0000
0473-181-27-0000
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PROPOSED CFO BOUNDARY
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CITY CLERK w,-.i\ -
CITY OF VICTORVILLE , ', ""
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I HEREBY CERTIFY THAT THE WITHIN MAP
SHOWING THE PROPOSED BOUNDARIES
OF THE POTENTIAL ANNEXATION AREA OF
COMMUNITY FACILITIES DISTRICT NO.
2024-01 (MUNICIPAL SERVICES) OF THE
CITY OF VICTORVILLE, COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA,
WAS APPROVED BY THE CITY COUNCIL OF THE
CITY OF VICTORVILLE AT A REGULAR
MEETING THEREOF, HELD ON THE J
DAY OF OG-h.)\.:;,e-- 2024,
BOUNDARIES - FUTURE ANNEXATION AREA
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
CITY OF VICTORVILLE
COUNTY OF SAN BERNARDINO
STATE OF CALIFORNIA
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SHEET 1 OF 1
SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER
'?-c1--':{-o-z..(OUO THIS DAYOF
or,.l:Ur:,-c 2024 AT M.
IN BOOK G\1.-. OF :i31,1,4"J."t"-/ t1f,-e
AT PAGE J:f AT THE REQUEST OF
Cd:i D ,1 I"'+,,...-11·1 lle:. IN THE
AMOUNT OF$. -++------------
CHRIS WILHITE
ASSESSOR-RECORDER-COUNTY CLERK
SAN BERNARDINO COUNTY
BY: p
DEPUTY RECORDER
BY ITS RESOLUTION NO. 2L/ lRZ. ,----
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CITY CLER ,
CITY OF VICTORVILLE
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ANNEXATION AREA BOUNDARY
SURROUNDING CITY BOUNDARIES
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8,000 16,000 24,000
Feet
M: GIS-Assessment Victorville Cit CFD2024-01 Future Annex Area.mxd i
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3788 McCray St.
Riverside, CA 92506
951.200.8600
www.webbmfinance.com
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Community Facilities District Report
City of Victorville
Community Facilities District No. 2024-01
(Municipal Services)
November 2024
Table of Contents
Sections
Section 1. Introduction _______________________________________________________ 1 Section 2. Description of Services _______________________________________________ 2 Section 3. Cost Estimate ______________________________________________________ 3 Section 4. Proposed Development ______________________________________________ 4 Section 5. Rate and Method of Apportionment ____________________________________ 5 Appendices
Appendix A. Rate and Method of Apportionment
Appendix B. Boundary Map & Future Annexation Area Boundary Map City of Victorville Community Facilities District Report CFD No. 2024-01 1
1. Introduction
AGENCY: CITY OF VICTORVILLE
PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES) TO: CITY COUNCIL
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
Whereas, the City Council of the CITY OF VICTORVILLE, SAN BERNARDINO COUNTY, CA LIFORNIA (hereinafter referred to as the “City Council”), did, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, (the “Act”) expr essly order the filing of a written Public Report (the “Report”) for a proposed Community Facilities District No . 2024-01 of the City of Victorville. This Community Facilities District shall be referred to as COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES) OF THE CITY OF VICTORVILLE (hereinafter referred to as the “District” and “CFD No. 2024-01”); and,
Whereas, on October 15, 2024, the City Council adopted Resolution No. 24-092 (the “Resolution”), and the Resolution ordering said Report, did direct that said Report generally contain the following:
x A brief description of the services to be financed by Community Facilities District No. 2024-01;
x An estimate setting forth costs of providing such services;
NOW, THEREFORE, the undersigned, authorized representative of Webb Municipal Finance, LLC, the appointed Special Tax Consultant and responsible officer or person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:
City of Victorville Community Facilities District Report CFD No. 2024-01 2
2. Description of Services
Pursuant to Section 53313 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2024-01 may be used only to pay for the cost of providing services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual cost associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District.
A general description of the estimated proposed services and incidental expenses for the District is as follows (actual costs of services may change and are eligible to be funded in their entirety):
City of Victorville Services
The types of Services that are proposed to be funded with the proceeds of special taxes levied by CFD No. 2024- 01 consist of services permitted to be financed unde r the Mello-Roos Community Facilities Act of 1982, as amended, including, without limitation maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of st reets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements, pub lic safety services including but not limited to police, fire protection, fire suppression, and code enforcement. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2024-01.
Administrative Expenses
The administrative expenses to be paid from the Special Taxes include but are not limited to, the cost of computing of the amount of Special Taxes to be levied and preparing the Annual Special Tax collection schedule, the costs of collecting the Special Taxes, annual report ing requirements associated with applicable federal and state laws and of the Act; the costs associated with resp onding to public inquiries regarding Special Taxes; the costs associated with the City's annual administration fees and otherwise incurred in order to carry out the authorized purposes of CFD No. 2024-01.
Based upon the preceding, it is my opinion that the services being funded are those that are necessary to meet certain increased demands placed upon the CITY OF VICTORVILLE, as a result of development and/or rehabilitation occurring within the boundaries of the District.
DATED November 19, 2024 WEBB MUNICIPAL FINANCE, LLC
By:
SPECIAL TAX CONSULTANT FOR
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
City of Victorville Community Facilities District Report CFD No. 2024-01 3
3. Cost Estimate
1. The initial cost estimate of the Public Safety Services (Special Tax A), including administrative expenses, to be funded through the Special Tax levied and collected for CFD 2024-01 is estimated to be approximately $163,909 based upon current dollars (Fiscal Year 2024-25).
This initial annual cost estimate is also based on the estimated cost per acre of Non-Residential Property – as defined in the Rate and Method of Apportionment. As property is annexed to CFD No. 2024-01, it is expected that the annual cost of providing services will increase proportionately based on the number Units/Acres which will be included in the annexed property. The annual cost of providing such services will also increase by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
2. The initial cost estimate of the Maintenance Services (Special Tax B), including administrative expenses, to be funded through the Special Tax levied and collected for CFD 2024-01 is estimated to be approximately $51,627 based upon current dollars (Fiscal Year 2024-25).
3. Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD 2024-01 may be used only to pay for the cost of the services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, th e annual costs associated with determination of the amount of special taxes, collection of special taxes, pa yment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Di strict. The incidental expenses associated with the annual administration of CFD 2024-01 are estimated to b e $ 3 0 , 0 0 0 . H o w e v e r , i t i s a n t i c i p a t e d t h a t t h e incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.
DATED November 19, 2024 WEBB MUNICIPAL FINANCE, LLC
By:
SPECIAL TAX CONSULTANT FOR
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
City of Victorville Community Facilities District Report CFD No. 2024-01 4
4. Proposed Development
1. The boundaries of CFD No. 2024-01 Tax Zone 01 are those properties and parcels where services are authorized to be provided and upon which special taxes may be levied in order to pay for the costs and expenses of said services. A general description of the area within the boundaries of CFD No. 2024-01 is shown on the “Proposed Boundary Map” attached as hereto as Appendix B.
2. Additional properties that are within the boundaries of the annexation map may annex into CFD No. 2024- 01 subsequent to formation of CFD No. 2024-01. The owner of the property to be annexed shall submit a written consent for said annexation to CFD No. 2024-01 and the Council, acting ex-officio as the legislative body of CFD No. 2024-01, shall call a special election as to the imposition of the special tax on said property as required by law. A general description of the boundaries of the territory within which any property may annex to CFD No. 2024-01 and shown on that certain map entitled “Boundaries – Potential Annexation Area of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville, County of San Bernardino, State of California,” is attached.
The “Proposed Boundary Map” and “Boundaries – Potential Annexation Area Map” for CFD No. 2024-01 are attached hereto as Appendix B.
City of Victorville Community Facilities District Report CFD No. 2024-01 5
5. Rate and Method of Apportionment
1. The Rate and Method of Apportionment allows each property owner within the proposed District to estimate the annual amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). Special Tax A and Special Tax B will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, Special Tax A and Special Tax B may be collected at a different time or in a different manner if necessary for CFD No. 2024-01 to meet its financial obligations and may foreclose on delinquent parcels as permitted by the Act.
2. All of the property located within CFD 2024-01, unless exempted by law or by the Rate and Method proposed for CFD 2024-01, shall be taxed for the purpose of providing necessary services to serve the District. The Boundary Map for CFD 2024-01 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The special tax may be based on the benefit received by property, the cost of making authorized services available or other reasonable basis as determined by the City Council, al though the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.
3. For particulars as to the Rate and Method for CFD 2024-01, see the attached and incorporated Appendix A.
It is my opinion that the Rate and Method, as described above and set forth in Appendix A is fair and reasonable.
This Report has been prepared and consolidated by the Special Tax Consultant, Webb Municipal Finance, LLC, and is herewith submitted to the City Council pursuant to the applicable provisions of the Mello-Roos Community Facilities Act of 1982.
DATED November 19, 2024 WEBBMUNICIPAL FINANCE, LLC
By:
SPECIAL TAX CONSULTANT FOR
CITY OF VICTORVILLE
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
APPENDIX A
Rate and Method of Apportionment
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 7 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
OF THE CITY OF VICTORVILLE
The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax A and Special Tax B of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville (“CFD No. 2024-01”). A Special Tax A and Special Tax B shall be levied on and collected in CFD No. 2024-01 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All real property within CFD No. 2024-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
“Accessory Dwelling Unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary re sidence pursuant to California Government Code Section 65852 et seq.
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2024-01 including, but not limited to: the costs of computing Special Tax A and Special Tax B and preparing the annual collection schedules (whether by the City or designee thereof or both) for Special Tax A and Special Tax B; the costs to the City, CFD No. 2024-01, or any designee thereof associated with fulfilling the CFD No. 2024-01 disclosure requirements; the costs associated with responding to public inquiries regarding Special Tax A and Special Tax B; the costs of the City, CFD No. 2024-01 or any designee thereof related to an appeal of Special Tax A or Special Tax B; and the City's an nual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2024-01 for any other administrative purposes of CFD No. 2024-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Victorville, or his or her designee. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year.
“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st of preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied, and (ii) that have not been issued a Building Permit on or before June 1 st
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 8 preceding the Fiscal Year in which the Special Taxes are to be levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Boundary Map” means a recorded map of the CFD No. 2024-01 which indicates the boundaries of CFD No. 2024-01.
“Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction Building Permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a Building Permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2024-01” means the City of Victorville Community Facilities District No. 2024-01 (Municipal Services).
“City” means the City of Victorville, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2024-01, or its designee.
“Commercial Property” means all Assessor’s Parcels of Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: retail commercial, service commercial, and office commercial activities, as well as large-scale planned shopping districts serving the local and regional area and population, “big box” retailers, motels/hotels, and public assembly uses, or for any other uses that are consistent with commercial land use designation as determined by the City or Administrator.
“Consumer Price Index” or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reason ably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.
“County” means the County of San Bernardino, California. “Developed Property” means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to January 1st precedin g the Fiscal Year in which the Special Taxes are to be levied, and (ii) for which a Building Permit for new construction has been issued on or prior to City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 9 June 1st preceding the Fiscal Year in which Specia l Tax A or Special Tax B is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from Special Tax A or Special Tax B as provided for in Section K.
“Final Map” means a subdivision of property by recordatio n of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots that do not need, and are not expected, to be further subdivided prior to the issue of a Building Permit.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following
June 30th.
“Heavy Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for intense indust rial activities, such as manufacturing, materials processing, and any related industrial activities th at generate significant impacts such as excessive noise, dust, and other nuisances or for any other uses that are consistent with heavy industrial use designation as determined by the City or Administrator. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1
st preceding the Fiscal Year in which Special Tax A or
Special Tax B is being levied.
“Light Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for industrial , service-commercial, and related uses including warehousing/distribution, research and developmen t, assembly and light manufacturing, repair facilities, and supporting retail uses either locate d in industrial and/or business parks or in mixed industrial/business park use areas or for any other uses that are consistent with light industrial use designation as determined by the City or Administrator. The main feature of industrial activities in this category is that they do not require any signific ant site or structure requirements that are so specialized that would limit future use of the structures and/or site by another industrial activity. “Maintenance Services” means the services permitted under the Act and the formation proceedings with respect to CFD No. 2024-01 including, but not limited to, maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of streets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements contained within the boundaries of CFD No. 2024-01 and the City. “Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Taxable Property, the maximum amount of Special Tax B, determined in accordance with Section F that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential Property” means any Assessor’s Parcel of Residential Property that consists of a building or buildings comprised of attached Residential Units available for rental, but not for purchase, by the general public and under common management.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 10 “Mixed-Use 1 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 1 to 15 dwelling units per acre for residential and a FAR of 0.5 for non-residential, or for any other uses that are consistent with a Mixed-Use 1 land use designation as determined by the City or Administrator. “Mixed-Use 2 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 15.1 to 30 dwelling units per acre for residential and a FAR of 1.0 for non-residential, or for any other uses that are consistent with a Mixed-Use 2 land use designation as determined by the City or Administrator. “Non-Residential Property” means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Other Non-Residential Property” means an Assessor’s Parcel of Non-Residential Property that is not classified as Commercial Property, Mixed-Use 1 Pr operty, Mixed-Use 2 Property, Public Institution Property, Light Industrial Property or Heavy Industrial Property. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximu m Special Tax A or Maximum Special Tax B is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax Levy A or Special Tax Levy B per acre to the Maximum Special Tax A or Maximum Special Tax B per acre is the same for all Parcels of Undeveloped Property. “Public Institution Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: land uses and activities that are predominately used for public purposes or owned or operated by a public entity. Activities within this category in clude City and County buildings, public and private schools, colleges, and public utilities and city yards, or for any other uses that are consistent with a Public Institution Property land use designation as determined by the City or Administrator. “Public Safety Services" means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services, and code enforcement provided within the boundaries of CFD No. 2024-01 and the City.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "R/U" means a residential unit that is used or intended to be used as a domicile by one or more persons, excluding Accessory Dwelling Units,as determined by the Administrator. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
"Special Tax(es)" means, individually and collectively, Spec ial Tax A and Special Tax B authorized to be levied within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement and the Special Tax B Requirement.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 11 “Special Tax A” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement. “Special Tax B” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax B Requirement. "Special Tax A Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Public Safety Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Public S a f e t y S e r v i c e s , ( i i ) a m o u n t n e c e s s a r y t o f u n d a n operating reserve for the costs of Public Safety Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Public Safety Services. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
"Special Tax B Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Maintenance Services. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CF D No. 2024-01, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax B rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax B. Appendix A identifies the Tax Zone in CFD No. 2024-01 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2025 -26, each Assessor’s Parcel within CFD No. 2024-01 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, or Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Single Family Residential Proper ty, Multifamily Residential Property, Commercial Property, Mixed-Use 1 Property, Mixed-Use 2 Property , Public Institution Property, Light Industrial Property, Heavy Industrial Property or Other Non-Residential Property.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 12 C. MAXIMUM SPECIAL TAX A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Land Use Category Rate
Single Family Residential Property $525.35 per Taxable Unit Multifamily Residential Property $394.00 per Taxable Unit Commercial Property $0.058 per BSF
Mixed-Use 1 Property $0.049 per BSF
Mixed-Use 2 Property $0.040 per BSF
Public Institution Property $0.012 per BSF
Light Industrial Property $0.029 per BSF
Heavy Industrial Property $0.012 per BSF
Other Non-Residential Property $0.042 per BSF
(ii) On each July 1, commencing July 1, 2026, the Maximum Special Tax A for Developed Property for the prior Fiscal Year shall be ad justed by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year or (ii) five percent (5%). b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax that can be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes that can be levied for each Land Use Types located on that Assessor’s Parcel. c. Approved Property
No Special Tax A shall be levied on Approved Property.
d. Undeveloped Property
No Special Tax A shall be levied on Undeveloped Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX A
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City shall levy Special Tax A at up to 100% of the applicable Maximum Special Tax A, Proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax A equals the Special Tax A Requirement.
E. PREPAYMENT OF SPECIAL TAX A
Special Tax A cannot be prepaid.
F. MAXIMUM SPECIAL TAX B
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 13 For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Pe rmit(s) issued or Final Map as determined by the Administrator. For Parcels of Undeveloped Property zoned for development of single family attached or multifamily units, the number of Residential Units shall be determin ed by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multifamily building or buildin gs have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Un its contained within the building or buildings, and the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax B per Residential Unit identified for the Tract in Table 2 below or as included in Appendix A as each Annexation occurs.
For purposes of determining the applicable Ma ximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcel, the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax B per Taxable Unit identified for the Tax Zone in Table 2 below or as included in Appendix A as each Annexation occurs. a. Developed Property
(i) Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property is shown in Table 2 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zones annexed and included in Appendix A.
The Maximum Special Tax for Fiscal Year 2025-2026 within Tax Zone 1 is identified in Table 2 below:
TABLE 2
MAXIMUM SPECIAL TAX B RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(ii) Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed Property for the prior Fiscal Year shall be adju sted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
(iii) Multiple Land Use Categories
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 14 In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B for each Assessor’s Pa rcel of Approved Property shown in Table 3 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL B TAX RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Approved Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%). c. Undeveloped Property
The Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shown in Table 4 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax B
1 14525 Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 15 G. METHOD OF APPORTIONMENT OF SPECIAL TAX B
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City Council shall determine the Special Tax B Requirement and shall levy the Special Tax B on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax B equals the Special Tax B Requirement.
The Special Tax B shall be levied for each Fiscal Year as follows:
First: The Special Tax B shall be levied Proporti onately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maxi mum Special Tax B to satisfy the Special Tax B Requirement;
Second: If additional moneys are needed to sa tisfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B for Approved Property; Third: I f additional monies are needed to satisfy the Special Tax B Requirement after the first two steps has been completed, the Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B for Undeveloped Property.
H. PREPAYMENT OF SPECIAL TAX B
Special Tax B cannot be prepaid.
I. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Maintenance Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate(s) for the Tax Zone when annexed and included in Appendix A.
J. TERMINATION OF SPECIAL TAX A AND SPECIAL TAX B
Special Tax A shall be levied as long as needed to meet the Special Tax A Requirement as determined at the sole discretion of the City Council. Special Tax B shall be levied as long as needed to meet the Special Tax B Requirement as determined at the sole discretion of the City Council.
K. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2024-01, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in us e by any public entity; (ii) Assess or’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.
L. APPEALS
Any property owner claiming that the amount or application of the Special Tax A or the Special Tax B are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Specia l Tax A or Special Tax B that is disputed. A City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 10 representative(s) of CFD No. 2024-01 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax A or the Special Tax B, and rule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax A or Special Tax B on that Assessor’s Parcel in subsequent Fiscal Year(s).
M. MANNER OF COLLECTION
The Special Tax A or Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2024-01 may collect the Special Tax A or Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.
City of Victorville
Community Facilities District No. 2024-01 (Municipal Services) 11 APPENDIX A
CITY OF VICTORVILLE
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF DEVELOPED PROPERTY
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF APPROVED PROPERTY
Tax
Zone
Year
Included
Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF UNDEVELOPED PROPERTY
Tax
Zone
Year
Included
Tract
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Acre $1,311.46
ESCALATION OF MAXIMUM SPECIAL TAX B
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed, Approved and Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
Tax
Zone
Year
Included
Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
APPENDIX B
Boundary Map & Future Annexation Area Boundary Map
\n
I
PROPOSED BOUNDARY MAP
SHEET 1 OF 1
Q_;\,\ O\.> \ \ '!<,
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE
PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
NO. 2024-01 (MUNICIPAL SERVICES), TAX ZONE 01 OF THE
CITY OF VICTORVILLE, COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA, WAS APPROVED BY THE CITY
COUNCIL OF THE CITY OF VICTORVILLE AT A REGULAR
MEETING THEREOF, HELD ON THE I':>.,.,._ DAY
OF Oc,i-o)?cc 2024, BY ITS RESOLUTION
NO. 2'-/- oqz..
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES), TAX ZONE 01, CITY OF VICTORVILLE
COUNTY OF SAN BERNARDINO
STATE OF CALIFORNIA
SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER
2-ol--'j-O'l-!aOl..'BI THIS DAYOF
Oct.lee..- 2024 AT M.
IN BOOK C\'l.- OF ,01.JM{ f..t..p
AT PAGE t "t-- AT THE REQUEST OF
e,,"<'-( of ,I wh,,,-11 i tl<- IN THE
AMOUNT OF$--- -------
CITY CLER--::S-<......; ... "' N
CITY OF VICTORVILLE
A'\ \l \4_ c\-o: o\ \."\
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF
VICTORVILLE THIS 2 DAY OF QC,-fOl'.)e,--
2024.
CITYCL--::S-c:...., ..
CITY OF VICTORVILLE
"-""9/ --------------------------- ,
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VICINITY,MAP
NOT TO s·cALE
Victorville
CHRIS WILHITE
ASSESSOR-RECORDER-COUNTY CLERK
SAN BERNARDINO COUNTY
BY: AwM ------------ -
DEPUTY RECORDER
APNUST
0473-163-12-0000
0473-181-27-0000
I
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I
LEGEND
PROPOSED CFO BOUNDARY
SURROUNDING CITY BOUNDARIES
Victorville Apple Valley
N
500 1,000 1,500
Feet
M: GIS-Assessment Victorvifle Cit CFD2024-01 Tax Zone 01 Boundar .mxd \
.
I
.
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FILED IN THE OFFICE OF THE cnY CLERK OF
THE CITY OF VICTORVILLE THIS
DAY oF Oc-;J:n\;::e::- 2024.
CITY CLERK w,-.i\ -
CITY OF VICTORVILLE , ', ""
C: ) -,, \'¥-.\ (:)\,ti. o\- \
I HEREBY CERTIFY THAT THE WITHIN MAP
SHOWING THE PROPOSED BOUNDARIES
OF THE POTENTIAL ANNEXATION AREA OF
COMMUNITY FACILITIES DISTRICT NO.
2024-01 (MUNICIPAL SERVICES) OF THE
CITY OF VICTORVILLE, COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA,
WAS APPROVED BY THE CITY COUNCIL OF THE
CITY OF VICTORVILLE AT A REGULAR
MEETING THEREOF, HELD ON THE J
DAY OF OG-h.)\.:;,e-- 2024,
BOUNDARIES - FUTURE ANNEXATION AREA
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
CITY OF VICTORVILLE
COUNTY OF SAN BERNARDINO
STATE OF CALIFORNIA
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SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
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City of Victorville 1
Community Facilities District No. 2024-01 (Municipal Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
OF THE CITY OF VICTORVILLE
The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax A and Special Tax B of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville (“CFD No. 2024-01”). A Special Tax A and Special Tax B shall be levied on and collected in CFD No. 2024-01 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All real property within CFD No. 2024-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
“Accessory Dwelling Unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence pursuant to California Government Code Section 65852 et seq. “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably esti mated costs directly related to the formation, annexation, and administration of CFD No. 2024-01 including, but not limited to: the costs of computing Special Tax A and Special Tax B and preparing the annual collection schedules (whether by the City or designee thereof or both) for Special Tax A and Special Tax B; the costs to the City, CFD No. 2024-01, or any designee thereof associated with fulfilling the CFD No. 2024-01 disclosure requirements; the costs associated with responding to public inquiries regarding Special Tax A and Special Tax B; the costs of the City, CFD No. 2024-01 or any designee thereof related to an appeal of Special Tax A or Special Tax B; and the City's an nual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2024-01 for any other administrative purposes of CFD No. 2024-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Victorville, or his or her designee. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year.
“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st of preceding the Fiscal Year in which Special Tax A or City of Victorville 2
Community Facilities District No. 2024-01 (Municipal Services) Special Tax B is being levied, and (ii) that have not been issued a Building Permit on or before June 1st preceding the Fiscal Year in which the Special Taxes are to be levied. “Assessor’s Parcel” means a lot or parcel of land that is id entifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number a ssigned to a parcel by the County Assessor of the County.
“Boundary Map” means a recorded map of the CFD No. 2024-01 which indicates the boundaries of CFD No. 2024-01.
“Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction Building Permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a Building Permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2024-01” means the City of Victorville Comm unity Facilities District No. 2024-01 (Municipal Services).
“City” means the City of Victorville, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2024-01, or its designee.
“Commercial Property” means all Assessor’s Parcels of Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: retail commercial, service commercial, and office commercial activities, as well as large-scale planned shopping districts serving the local and regional area and population, “big box” retailers, motels/hotels, and public assembly uses, or for any other uses that are consistent with commercial land use designation as determined by the City or Administrator.
“Consumer Price Index” or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reason ably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.
“County” means the County of San Bernardino, California.
City of Victorville 3
Community Facilities District No. 2024-01 (Municipal Services) “Developed Property” means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to January 1st precedin g the Fiscal Year in which the Special Taxes are to be levied, and (ii) for which a Building Permit for new construction has been issued on or prior to June 1st preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from Special Tax A or Special Tax B as provided for in Section K.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots that do not need, and are not expected, to be further subdivided prior to the issue of a Building Permit.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following
June 30th.
“Heavy Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for intense indust rial activities, such as manufacturing, materials processing, and any related industrial activities th at generate significant impacts such as excessive noise, dust, and other nuisances or for any other uses that are consistent with heavy industrial use designation as determined by the City or Administrator. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1
st preceding the Fiscal Year in which Special Tax A or
Special Tax B is being levied.
“Light Industrial Property” means an Assessor’s Parcel of No n-Residential Property for which a Building Permit(s) has been issued for industrial , service-commercial, and related uses including warehousing/distribution, research and developmen t, assembly and light manufacturing, repair facilities, and supporting retail uses either locate d in industrial and/or business parks or in mixed industrial/business park use areas or for any other us es that are consistent with light industrial use designation as determined by the City or Administrator. The main feature of industrial activities in this category is that they do not require any signific ant site or structure requirements that are so specialized that would limit future use of the structures and/or site by another industrial activity. “Maintenance Services” means the services permitted under the Act and the formation proceedings with respect to CFD No. 2024-01 including, but not limited to, maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of streets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements contained within the boundaries of CFD No. 2024-01 and the City. “Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Taxable Property, the maximum amount of Special Tax B, determined in accordance with Section F that can be levied in any given Fiscal Year on such Assessor’s Parcel.
City of Victorville 4
Community Facilities District No. 2024-01 (Municipal Services) “Multifamily Residential Property” means any Assessor’s Parcel of Residential Property that consists of a building or buildings comprised of attached Re sidential Units available for rental, but not for purchase, by the general public and under common management. “Mixed-Use 1 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alon e residential with a density of 1 to 15 dwelling units per acre for residential and a FAR of 0.5 for non-residential, or for any other uses that are consistent with a Mixed-Use 1 land use designation as determined by the City or Administrator. “Mixed-Use 2 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 15.1 to 30 dwelling units per acre for residential and a FAR of 1.0 for non-residential, or for any other uses that are consistent with a Mixed-Use 2 land use designation as determined by the City or Administrator. “Non-Residential Property” means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Other Non-Residential Property” means an Assessor’s Parcel of Non-Residential Property that is not classified as Commercial Property, Mixed-Use 1 Pr operty, Mixed-Use 2 Property, Public Institution Property, Light Industrial Property or Heavy Industrial Property. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximu m Special Tax A or Maximum Special Tax B is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax Levy A or Special Tax Levy B per acre to the Maximum Special Tax A or Maximum Special Tax B per acre is the same for all Parcels of Undeveloped Property. “Public Institution Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: land uses and activities that are predominately used for public purposes or owned or operated by a public entity. Activities within this category include City and Co unty buildings, public and private schools, colleges, and public utilities and city yards, or for any other uses that are consistent with a Public Institution Property land use designation as determined by the City or Administrator. “Public Safety Services" means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services, and code enforcement provided within the boundaries of CFD No. 2024-01 and the City.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "R/U" means a residential unit that is used or intended to be used as a domicile by one or more persons, excluding Accessory Dwelling Units, as determined by the Administrator.
City of Victorville 5
Community Facilities District No. 2024-01 (Municipal Services) “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
"Special Tax(es)" means, individually and collectively, Spec ial Tax A and Special Tax B authorized to be levied within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement and the Special Tax B Requirement.
“Special Tax A” means the special tax authorized to be le vied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement. “Special Tax B” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax B Requirement. "Special Tax A Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Public Safety Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Public S a f e t y S e r v i c e s , ( i i ) a m o u n t n e c e s s a r y t o f u n d a n operating reserve for the costs of Public Safety Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Public Safety Services. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
"Special Tax B Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the Admi nistrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Maintenance Services. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2024-01, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax B rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax B. Appendix A identifies the Tax Zone in CFD No. 2024-01 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
City of Victorville 6
Community Facilities District No. 2024-01 (Municipal Services) B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2025 -26, each Assessor’s Parcel within CFD No. 2024-01 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, or Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Single Family Residential Property, Multifamily Residential Property, Commercial Property, Mixed-Use 1 Property, Mi xed-Use 2 Property, Public Institution Property, Light Industrial Property, Heavy Industrial Property or Other Non-Residential Property.
C. MAXIMUM SPECIAL TAX A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Land Use Category Rate
Single Family Residential Property $525.35 per Taxable Unit Multifamily Residential Property $394.00 per Taxable Unit Commercial Property $0.058 per BSF
Mixed-Use 1 Property $0.049 per BSF
Mixed-Use 2 Property $0.040 per BSF
Public Institution Property $0.012 per BSF
Light Industrial Property $0.029 per BSF
Heavy Industrial Property $0.012 per BSF
Other Non-Residential Property $0.042 per BSF
(ii) On each July 1, commencing July 1, 2026, the Maximum Special Tax A for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year or (ii) five percent (5%). b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax that can be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes that can be levied for each Land Use Types located on that Assessor’s Parcel. c. Approved Property
No Special Tax A shall be levied on Approved Property.
d. Undeveloped Property
No Special Tax A shall be levied on Undeveloped Property.
City of Victorville 7
Community Facilities District No. 2024-01 (Municipal Services) D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX A
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City shall levy Special Tax A at up to 100% of the applicable Maximum Special Tax A, Proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax A equals the Special Tax A Requirement.
E. PREPAYMENT OF SPECIAL TAX A
Special Tax A cannot be prepaid.
F. MAXIMUM SPECIAL TAX B
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which ar e classified as Resident ial Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Permit(s) issued or Final Map as determined by the Administrator. For Parcels of Undeveloped Property zoned for development of single family attached or multifamily units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multifamily building or buildi ngs have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Un its contained within the building or buildings, and the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax B per Residential Unit identified for the Tract in Table 2 below or as included in Appendix A as each Annexation occurs.
For purposes of determining the applicable Ma ximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcel, the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax B per Taxable Unit identified for the Tax Zone in Table 2 below or as included in Appendix A as each Annexation occurs. a. Developed Property
(i) Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property is shown in Table 2 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zones annexed and included in Appendix A.
The Maximum Special Tax for Fiscal Year 2025-2026 within Tax Zone 1 is identified in Table 2 below:
City of Victorville 8
Community Facilities District No. 2024-01 (Municipal Services) TABLE 2
MAXIMUM SPECIAL TAX B RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(ii) Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed Property for the prior Fiscal Year shall be adju sted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B for each Assessor’s Pa rcel of Approved Property shown in Table 3 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL B TAX RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Approved Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%). c. Undeveloped Property
City of Victorville 9
Community Facilities District No. 2024-01 (Municipal Services) The Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shown in Table 4 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax B
1 14525 Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
G. METHOD OF APPORTIONMENT OF SPECIAL TAX B
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City Council shall determine the Special Tax B Requirement and shall levy the Special Tax B on all Assessor’s Parcels of Taxable Property until the aggregate amount of Spec ial Tax B equals the Special Tax B Requirement.
The Special Tax B shall be levied for each Fiscal Year as follows:
First: The Special Tax B shall be levied Proporti onately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maxi mum Special Tax B to satisfy the Special Tax B Requirement;
Second: If additional moneys are needed to sati sfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B for Approved Property;
Third: If additional monies are needed to sati sfy the Special Tax B Requirement after the first two steps has been completed, the Special Tax B sh all be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B for Undeveloped Property.
H. PREPAYMENT OF SPECIAL TAX B
Special Tax B cannot be prepaid.
I. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Maintenance Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate(s) for the Tax Zone when annexed and included in Appendix A.
J. TERMINATION OF SPECIAL TAX A AND SPECIAL TAX B
City of Victorville 10
Community Facilities District No. 2024-01 (Municipal Services) Special Tax A shall be levied as long as needed to meet the Special Tax A Requirement as determined at the sole discretion of the City Council. Special Tax B shall be levied as long as needed to meet the Special Tax B Requirement as determined at the sole discretion of the City Council.
K. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2024-01, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in us e by any public entity; (ii) Assess or’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.
L. APPEALS
Any property owner claiming that the amount or application of the Special Tax A or the Special Tax B are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Specia l Tax A or Special Tax B that is disputed. A representative(s) of CFD No. 2024-01 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax A or the Special Tax B, and rule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax A or Special Tax B on that Assessor’s Parcel in subsequent Fiscal Year(s).
M. MANNER OF COLLECTION
The Special Tax A or Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2024-01 may collect the Special Tax A or Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.
City of Victorville 11
Community Facilities District No. 2024-01 (Municipal Services)
APPENDIX A
CITY OF VICTORVILLE
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF DEVELOPED PROPERTY Tax
Zone
Year
Included Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF APPROVED PROPERTY Tax
Zone
Year
Included Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF UNDEVELOPED PROPERTY Tax
Zone
Year
Included Tract
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Acre $1,311.46
ESCALATION OF MAXIMUM SPECIAL TAX B
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed, Approved and Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
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City of Victorville 1
Community Facilities District No. 2024-01 (Municipal Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
OF THE CITY OF VICTORVILLE
The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax A and Special Tax B of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville (“CFD No. 2024-01”). A Special Tax A and Special Tax B shall be levied on and collected in CFD No. 2024-01 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All real property within CFD No. 2024-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
“Accessory Dwelling Unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence pursuant to California Government Code Section 65852 et seq. “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably esti mated costs directly related to the formation, annexation, and administration of CFD No. 2024-01 including, but not limited to: the costs of computing Special Tax A and Special Tax B and preparing the annual collection schedules (whether by the City or designee thereof or both) for Special Tax A and Special Tax B; the costs to the City, CFD No. 2024-01, or any designee thereof associated with fulfilling the CFD No. 2024-01 disclosure requirements; the costs associated with responding to public inquiries regarding Special Tax A and Special Tax B; the costs of the City, CFD No. 2024-01 or any designee thereof related to an appeal of Special Tax A or Special Tax B; and the City's an nual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2024-01 for any other administrative purposes of CFD No. 2024-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Victorville, or his or her designee. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year.
“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st of preceding the Fiscal Year in which Special Tax A or City of Victorville 2
Community Facilities District No. 2024-01 (Municipal Services) Special Tax B is being levied, and (ii) that have not been issued a Building Permit on or before June 1st preceding the Fiscal Year in which the Special Taxes are to be levied. “Assessor’s Parcel” means a lot or parcel of land that is id entifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number a ssigned to a parcel by the County Assessor of the County.
“Boundary Map” means a recorded map of the CFD No. 2024-01 which indicates the boundaries of CFD No. 2024-01.
“Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction Building Permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a Building Permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2024-01” means the City of Victorville Comm unity Facilities District No. 2024-01 (Municipal Services).
“City” means the City of Victorville, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2024-01, or its designee.
“Commercial Property” means all Assessor’s Parcels of Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: retail commercial, service commercial, and office commercial activities, as well as large-scale planned shopping districts serving the local and regional area and population, “big box” retailers, motels/hotels, and public assembly uses, or for any other uses that are consistent with commercial land use designation as determined by the City or Administrator.
“Consumer Price Index” or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reason ably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.
“County” means the County of San Bernardino, California.
City of Victorville 3
Community Facilities District No. 2024-01 (Municipal Services) “Developed Property” means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to January 1st precedin g the Fiscal Year in which the Special Taxes are to be levied, and (ii) for which a Building Permit for new construction has been issued on or prior to June 1st preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from Special Tax A or Special Tax B as provided for in Section K.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots that do not need, and are not expected, to be further subdivided prior to the issue of a Building Permit.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following
June 30th.
“Heavy Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for intense indust rial activities, such as manufacturing, materials processing, and any related industrial activities th at generate significant impacts such as excessive noise, dust, and other nuisances or for any other uses that are consistent with heavy industrial use designation as determined by the City or Administrator. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1
st preceding the Fiscal Year in which Special Tax A or
Special Tax B is being levied.
“Light Industrial Property” means an Assessor’s Parcel of No n-Residential Property for which a Building Permit(s) has been issued for industrial , service-commercial, and related uses including warehousing/distribution, research and developmen t, assembly and light manufacturing, repair facilities, and supporting retail uses either locate d in industrial and/or business parks or in mixed industrial/business park use areas or for any other us es that are consistent with light industrial use designation as determined by the City or Administrator. The main feature of industrial activities in this category is that they do not require any signific ant site or structure requirements that are so specialized that would limit future use of the structures and/or site by another industrial activity. “Maintenance Services” means the services permitted under the Act and the formation proceedings with respect to CFD No. 2024-01 including, but not limited to, maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of streets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements contained within the boundaries of CFD No. 2024-01 and the City. “Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Taxable Property, the maximum amount of Special Tax B, determined in accordance with Section F that can be levied in any given Fiscal Year on such Assessor’s Parcel.
City of Victorville 4
Community Facilities District No. 2024-01 (Municipal Services) “Multifamily Residential Property” means any Assessor’s Parcel of Residential Property that consists of a building or buildings comprised of attached Re sidential Units available for rental, but not for purchase, by the general public and under common management. “Mixed-Use 1 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 1 to 15 dwelling units per acre for residential and a FAR of 0.5 for non-residential, or for any other uses that are consistent with a Mixed-Use 1 land use designation as determined by the City or Administrator. “Mixed-Use 2 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 15.1 to 30 dwelling units per acre for residential and a FAR of 1.0 for non-residential, or for any other uses that are consistent with a Mixed-Use 2 land use designation as determined by the City or Administrator. “Non-Residential Property” means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Other Non-Residential Property” means an Assessor’s Parcel of Non-Residential Property that is not classified as Commercial Property, Mixed-Use 1 Pr operty, Mixed-Use 2 Property, Public Institution Property, Light Industrial Property or Heavy Industrial Property. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax Levy A or Special Tax Levy B per acre to the Maximum Special Tax A or Maximum Special Tax B per acre is the same for all Parcels of Undeveloped Property. “Public Institution Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: land uses and activities that are predominately used for public purposes or owned or operated by a public entity. Activities within this category include City and Co unty buildings, public and private schools, colleges, and public utilities and city yards, or for any other uses that are consistent with a Public Institution Property land use designation as determined by the City or Administrator. “Public Safety Services" means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services, and code enforcement provided within the boundaries of CFD No. 2024-01 and the City.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "R/U" means a residential unit that is used or intended to be used as a domicile by one or more persons, excluding Accessory Dwelling Units, as determined by the Administrator.
City of Victorville 5
Community Facilities District No. 2024-01 (Municipal Services) “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
"Special Tax(es)" means, individually and collectively, Spec ial Tax A and Special Tax B authorized to be levied within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement and the Special Tax B Requirement.
“Special Tax A” means the special tax authorized to be le vied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement. “Special Tax B” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax B Requirement. "Special Tax A Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Public Safety Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Public S a f e t y S e r v i c e s , ( i i ) a m o u n t n e c e s s a r y t o f u n d a n operating reserve for the costs of Public Safety Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Public Safety Services. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
"Special Tax B Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the Admi nistrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Maintenance Services. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2024-01, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax B rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax B. Appendix A identifies the Tax Zone in CFD No. 2024-01 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
City of Victorville 6
Community Facilities District No. 2024-01 (Municipal Services) B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2025 -26, each Assessor’s Parcel within CFD No. 2024-01 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, or Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Single Family Residential Property, Multifamily Residential Property, Commercial Property, Mixed-Use 1 Property, Mi xed-Use 2 Property, Public Institution Property, Light Industrial Property, Heavy Industrial Property or Other Non-Residential Property.
C. MAXIMUM SPECIAL TAX A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Land Use Category Rate
Single Family Residential Property $525.35 per Taxable Unit Multifamily Residential Property $394.00 per Taxable Unit Commercial Property $0.058 per BSF
Mixed-Use 1 Property $0.049 per BSF
Mixed-Use 2 Property $0.040 per BSF
Public Institution Property $0.012 per BSF
Light Industrial Property $0.029 per BSF
Heavy Industrial Property $0.012 per BSF
Other Non-Residential Property $0.042 per BSF
(ii) On each July 1, commencing July 1, 2026, the Maximum Special Tax A for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year or (ii) five percent (5%). b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax that can be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes that can be levied for each Land Use Types located on that Assessor’s Parcel. c. Approved Property
No Special Tax A shall be levied on Approved Property.
d. Undeveloped Property
No Special Tax A shall be levied on Undeveloped Property.
City of Victorville 7
Community Facilities District No. 2024-01 (Municipal Services) D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX A
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City shall levy Special Tax A at up to 100% of the applicable Maximum Special Tax A, Proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax A equals the Special Tax A Requirement.
E. PREPAYMENT OF SPECIAL TAX A
Special Tax A cannot be prepaid.
F. MAXIMUM SPECIAL TAX B
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which ar e classified as Resident ial Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Permit(s) issued or Final Map as determined by the Administrator. For Parcels of Undeveloped Property zoned for development of single family attached or multifamily units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multifamily building or buildi ngs have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Un its contained within the building or buildings, and the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax B per Residential Unit identified for the Tract in Table 2 below or as included in Appendix A as each Annexation occurs.
For purposes of determining the applicable Ma ximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcel, the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax B per Taxable Unit identified for the Tax Zone in Table 2 below or as included in Appendix A as each Annexation occurs. a. Developed Property
(i) Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property is shown in Table 2 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zones annexed and included in Appendix A.
The Maximum Special Tax for Fiscal Year 2025-2026 within Tax Zone 1 is identified in Table 2 below:
City of Victorville 8
Community Facilities District No. 2024-01 (Municipal Services) TABLE 2
MAXIMUM SPECIAL TAX B RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(ii) Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B for each Assessor’s Pa rcel of Approved Property shown in Table 3 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL B TAX RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Approved Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%). c. Undeveloped Property
City of Victorville 9
Community Facilities District No. 2024-01 (Municipal Services) The Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shown in Table 4 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax B
1 14525 Acre $1,311.46
(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
G. METHOD OF APPORTIONMENT OF SPECIAL TAX B
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City Council shall determine the Special Tax B Requirement and shall levy the Special Tax B on all Assessor’s Parcels of Taxable Property until the aggregate amount of Spec ial Tax B equals the Special Tax B Requirement.
The Special Tax B shall be levied for each Fiscal Year as follows:
First: The Special Tax B shall be levied Proporti onately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maxi mum Special Tax B to satisfy the Special Tax B Requirement;
Second: If additional moneys are needed to sati sfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B for Approved Property;
Third: If additional monies are needed to sati sfy the Special Tax B Requirement after the first two steps has been completed, the Special Tax B sh all be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B for Undeveloped Property.
H. PREPAYMENT OF SPECIAL TAX B
Special Tax B cannot be prepaid.
I. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Maintenance Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate(s) for the Tax Zone when annexed and included in Appendix A.
J. TERMINATION OF SPECIAL TAX A AND SPECIAL TAX B
City of Victorville 10
Community Facilities District No. 2024-01 (Municipal Services) Special Tax A shall be levied as long as needed to meet the Special Tax A Requirement as determined at the sole discretion of the City Council. Special Tax B shall be levied as long as needed to meet the Special Tax B Requirement as determined at the sole discretion of the City Council. <͘ EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2024-01, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; ;ŝŝŝͿ Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator
;ŝǀͿ APPEALS
Any property owner claiming that the amount or application of the Special Tax A or the Special Tax B are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Speci al Tax A or Special Tax B that is disputed. A representative(s) of CFD No . 2024-01 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax A or the Special Tax B, and rule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax A or Special Tax B on that Assessor’s Parcel in subsequent Fiscal Year(s).
M. MANNER OF COLLECTION
The Special Tax A or Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2024-01 may collect the Special Tax A or Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.
City of Victorville 11
Community Facilities District No. 2024-01 (Municipal Services)
APPENDIX A
CITY OF VICTORVILLE
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF DEVELOPED PROPERTY Tax
Zone
Year
Included Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF APPROVED PROPERTY Tax
Zone
Year
Included Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46
MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF UNDEVELOPED PROPERTY Tax
Zone
Year
Included Tract
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Acre $1,311.46
ESCALATION OF MAXIMUM SPECIAL TAX B
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed, Approved and Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
Revision to Agenda Item #6
x Revising Page No. 25 of Attachment A.
Slide No. 25 is being replaced in its
entirety with the attached and revised
slide.
PROJECTS IN DESIGN PHASE
ESTIMATED
CONSTRUCTION
START DATE
1MG Recycled Water Storage Tank Project FY 2024/2025
Block Wall Project - La Mesa Arsenic Treatment Plant FY 2024/2025 Mojave Drive Street Improvement Project from Amargosa to Condor Rd FY 2024/2025 Sewer Capacity Improvement Project C2&C3 FY 2024/2025
Pipeline Replacement Project – Area 7 FY 2024/2025
Solitude Circle Pavement Repair Project FY 2024/2025
Block Wall Project – El Evado Arsenic Treatment Plant FY 2024/2025 Block Wall Project - VWD Well Site 203 FY 2024/2025
Rectangular Rapid Flashing Beacons Project FY 2024/2025 Old Town Sidewalk Project – Phase II FY 2024/2025
Village Drive Sidewalk Project FY 2024/2025
Doris Davies Park Oro Grande Channel Repair Project FY 2024/2025 Pipeline Replacement Project – Area 28 FY 2024/2025
Installation of Street Lights (Old Town, Bear Valley Road) FY 2024/2025 Pipeline Replacement Project – Area 6 FY 2025/2026
La Paz Drive Project from I-15 NB ramp to 7th Street FY 2025/2026 Bear Valley Road Street Improvements Project from Bellflower to Monte Vista Rd FY 2025/2026 Mojave Drive Reconstruction Project
from Amargosa Road to Highway 395 FY 2025/2026
Pipeline Replacement Project – Area 5 FY 2026/2027
Santa Fe Wash Sewer Relocation Project FY 2026/2027
Ridgecrest Street Improvements Project from BVR to Pahute Ave FY 2026/2027 Revision to Agenda Item #18
• Revising the 6th paragraph under the
discussion section of the staff report to
update the cost limitation from $0 to
$1,305,000. It was expected that the
Gaskell West 2 LLC PPA contract price
would be less than alternative market
prices and VMUS purchased all its
available generation. Pursuant to the
methodology for calculating the cost
limitation for Compliance Period 4,
established above, the cost limitation for
Compliance Period 4 is determined to be
$1,305,000.
REDLINE
Item Number: {{item.number}}
City Council / Board of Directors
Written Communications
Meeting of: November 19, 2024
Submitted By:
Brenda Hampton, Director of Electric Utility Services
Subject:
Updated VMUS Renewable Energy Resources Procurement Plan
Recommendation:
That the Honorable City Council adopt Resolution No. 24-097 the Renewable Energy Resources Procurement Plan, Compliance Period 4 (2021-2024) (Attachment B) and authorizing certain other actions in connection therewith.
Fiscal Impact:
There is no fiscal impact associated with the adoption of resolution No. 24 -097.
Resolution No. 11 -051 established a limitation on the procurement expenditures for all Renewable Portfolio Standards (“RPS”) eligible resources used to comply with the RPS Enforcement Program. VMUS will apply the Cost Limitations and Delay of Timely Compliance, as described in Sections 9 and 10 of the RPS Procurement Plan and is not obligated to incur additional expenditures for Compliance Period 4 RPS procurement resources.
Strategic Plan Goal:
This item aligns with Strategic Plan Goal E – Invest in Infrastructure. VMUS must comply with the state’s mandate related to the procurement of renewable energy resources. The goal of the initiative is to support the reduction of greenhouse gas emissions, create a diverse energy supply, promote clean energy, ensure grid reliability and promote affordability.
Background:
California Public Utilities Code (PUC) § 399.30(a) requires all publicly owned electric utilities (POUs), to “adopt and implement a renewable energy resources procurement plan” that requires the POU to procure a minimum quantity of electricity and/or renewable energy credits (“RECs”) from eligible renewable energy resources, as a percentage of total retail sales.
As directed by PUC § 399.30(e), the City Council adopted the Renewable Energy Resources Enforcement Program (“RPS Enforcement Program”) on February 9, 2012.
Through the RPS Enforcement Program, the City Council established the initial compliance periods, a dopted RPS -eligible procurement targets, and described the framework for how VMUS would implement its RPS program. Section 10 of the RPS Enforcement Program directed the City Manager to develop and present a Renewable Energy Resources Procurement Plan (“RPS Procurement Plan”) to the City Council.
Discussion:
Consistent with the RPS Enforcement Program and PUC § 399.30(a), the City Council adopted RPS Procurement Plan, Compliance Period 1 (2011 -2013), Compliance Period 2 (2014-2016) and Compliance Period 3 (2017-2020) on November 18, 2013, October 6, 2015, and December 1, 2020, respectively. For each compliance period the RPS Procurement Plan described VMUS’ intended strategy to comply with the RPS requirements. The California Energy Commission deemed VMUS in compliance with the RPS procurement requirements for Compliance Periods 1, 2 and 3.
On October 7, 2015, Governor Brown signed SB 350 into law, adopting an RPS procurement target of 50 percent by 2030 and making various other changes to the RPS Program. On September 10, 2018, Governor Brown signed SB 100 into law, which increased the 2030 RPS target to 60 percent and set a statewide goal of meeting all electric load with carbon free resources by 2045. The specific RPS procurement targets set by SB 100 are the following: at least 44 percent by December 31, 2024, 52 percent by December 31, 2027, and 60 percent by December 31, 2030.
PUC Code § 399.30(d)(2)(B) and PUC § 399.30(d)(2)(A) gives the governing board of each publicly owned electric utility (POU) the authority to establish a cost limitation and Delay of Timely Compliance Rule, which serves as alternative mechanisms for complying with the RPS procurement requirements. Pursuant to this authority, the POU governing board can set a dollar amount limit on RPS procurement expenditures that is set at a level that prevents disproportionate rate impacts for the POU’s customers. For a POU that sets a cost limitation, once that POU has spent the amount of the cost limitation, the POU is in compliance with the RPS program.
The attached VMUS RPS Procurement Plan for compliance period 4 adopts procurement requirements consistent with SB 350 and SB 100, provides more recent forecast data, and updates the description of VMUS’ intended strategy to comply with the RPS Program requirements. This RPS Procurement Plan also provides a methodology for determining a cost limitation and specifies the dollar amount the VMUS’ cost limitation for the fourth compliance period.
VMUS’ largest renewable energy power purchase agreement was intended to cover a significant portion of the RPS requirements in Compliance Period 4. The project was scheduled to be completed by January 1, 2022. The current forecast for project completion is January 1, 2025, due to major permitting and materials delays related to COVID-19. Additional unanticipated interconnection issues delayed the project even
further. The continuous and unanticipated delays associated with this project were outside VMUS’ control, and VMUS was not able to meet the RPS plan requirements for compliance period 4 (2021-2024).
For Compliance Period 4, VMUS will apply the Cost Limitation Rule per PUC § 399.30(d)(2)(B), and consistent with Section 9 of the RPS Enforcement Program, and Delay of Timely Compliance Rules per PUC § 399.30(d)(2)(A) and consistent with Section 7 of the R PS Enforcement Program. To avoid disproportionate rate impacts during the fourth compliance period, during the annual budget approval process, VMUS will calculate the revenues less expenses and the cumulative operating deficit (before the incremental cost of procuring electricity products to satisfy the RPS requirements) and identify the funds available from such amount to concurrently satisfy the applicable RPS requirement and maintain prudent reserves (Cost Limitation Guideline). VMUS shall not be obligat ed to expend funds on RPS procurement greater than the Cost Limitation Guideline or RPS procurement targets. VMUS is forecasted to have a cumulative operating deficit through December 31, 202 4, and the cost of procuring electricity products to satisfy RPS requirements is greater than zero, . Tthe cost limitation for Compliance Period 4 is determined to be $ 01,305,000. Once VMUS’ largest renewable energy power purchase agreement achieves commercial operation, VMUS will comply with future short-term and long-term RPS procurement requirements.
Staff remains available for any questions you may have.
Attachments: A. Resolution No. 24-097
B. VMUS Renewable Energy Resources Procurement Plan
CLEAN
Item Number: {{item.number}}
City Council / Board of Directors
Written Communications
Meeting of: November 19, 2024
Submitted By:
Brenda Hampton, Director of Electric Utility Services
Subject:
Updated VMUS Renewable Energy Resources Procurement Plan
Recommendation:
That the Honorable City Council adopt Resolution No. 24-097 the Renewable Energy Resources Procurement Plan, Compliance Period 4 (2021-2024) (Attachment B) and authorizing certain other actions in connection therewith.
Fiscal Impact:
There is no fiscal impact associated with the adoption of resolution No. 24 -097.
Resolution No. 11 -051 established a limitation on the procurement expenditures for all Renewable Portfolio Standards (“RPS”) eligible resources used to comply with the RPS Enforcement Program. VMUS will apply the Cost Limitations and Delay of Timely Compliance, as described in Sections 9 and 10 of the RPS Procurement Plan and is not obligated to incur additional expenditures for Compliance Period 4 RPS procurement resources.
Strategic Plan Goal:
This item aligns with Strategic Plan Goal E – Invest in Infrastructure. VMUS must comply with the state’s mandate related to the procurement of renewable energy resources. The goal of the initiative is to support the reduction of greenhouse gas emissions, create a diverse energy supply, promote clean energy, ensure grid reliability and promote affordability.
Background:
California Public Utilities Code (PUC) § 399.30(a) requires all publicly owned electric utilities (POUs), to “adopt and implement a renewable energy resources procurement plan” that requires the POU to procure a minimum quantity of electricity and/or renewable energy credits (“RECs”) from eligible renewable energy resources, as a percentage of total retail sales.
As directed by PUC § 399.30(e), the City Council adopted the Renewable Energy Resources Enforcement Program (“RPS Enforcement Program”) on February 9, 2012.
Through the RPS Enforcement Program, the City Council established the initial compliance periods, a dopted RPS -eligible procurement targets, and described the framework for how VMUS would implement its RPS program. Section 10 of the RPS Enforcement Program directed the City Manager to develop and present a Renewable Energy Resources Procurement Plan (“RPS Procurement Plan”) to the City Council.
Discussion:
Consistent with the RPS Enforcement Program and PUC § 399.30(a), the City Council adopted RPS Procurement Plan, Compliance Period 1 (2011 -2013), Compliance Period 2 (2014-2016) and Compliance Period 3 (2017-2020) on November 18, 2013, October 6, 2015, and December 1, 2020, respectively. For each compliance period the RPS Procurement Plan described VMUS’ intended strategy to comply with the RPS requirements. The California Energy Commission deemed VMUS in compliance with the RPS procurement requirements for Compliance Periods 1, 2 and 3.
On October 7, 2015, Governor Brown signed SB 350 into law, adopting an RPS procurement target of 50 percent by 2030 and making various other changes to the RPS Program. On September 10, 2018, Governor Brown signed SB 100 into law, which increased the 2030 RPS target to 60 percent and set a statewide goal of meeting all electric load with carbon free resources by 2045. The specific RPS procurement targets set by SB 100 are the following: at least 44 percent by December 31, 2024, 52 percent by December 31, 2027, and 60 percent by December 31, 2030.
PUC Code § 399.30(d)(2)(B) and PUC § 399.30(d)(2)(A) gives the governing board of each publicly owned electric utility (POU) the authority to establish a cost limitation and Delay of Timely Compliance Rule, which serves as alternative mechanisms for complying with the RPS procurement requirements. Pursuant to this authority, the POU governing board can set a dollar amount limit on RPS procurement expenditures that is set at a level that prevents disproportionate rate impacts for the POU’s customers. For a POU that sets a cost limitation, once that POU has spent the amount of the cost limitation, the POU is in compliance with the RPS program.
The attached VMUS RPS Procurement Plan for compliance period 4 adopts procurement requirements consistent with SB 350 and SB 100, provides more recent forecast data, and updates the description of VMUS’ intended strategy to comply with the RPS Program requirements. This RPS Procurement Plan also provides a methodology for determining a cost limitation and specifies the dollar amount the VMUS’ cost limitation for the fourth compliance period.
VMUS’ largest renewable energy power purchase agreement was intended to cover a significant portion of the RPS requirements in Compliance Period 4. The project was scheduled to be completed by January 1, 2022. The current forecast for project completion is January 1, 2025, due to major permitting and materials delays related to COVID-19. Additional unanticipated interconnection issues delayed the project even
further. The continuous and unanticipated delays associated with this project were outside VMUS’ control, and VMUS was not able to meet the RPS plan requirements for compliance period 4 (2021-2024).
For Compliance Period 4, VMUS will apply the Cost Limitation Rule per PUC § 399.30(d)(2)(B), and consistent with Section 9 of the RPS Enforcement Program, and Delay of Timely Compliance Rules per PUC § 399.30(d)(2)(A) and consistent with Section 7 of the R PS Enforcement Program. To avoid disproportionate rate impacts during the fourth compliance period, during the annual budget approval process, VMUS will calculate the revenues less expenses and the cumulative operating deficit (before the incremental cost of procuring electricity products to satisfy the RPS requirements) and identify the funds available from such amount to concurrently satisfy the applicable RPS requirement and maintain prudent reserves (Cost Limitation Guideline). VMUS shall not be obligat ed to expend funds on RPS procurement greater than the Cost Limitation Guideline or RPS procurement targets. VMUS is forecasted to have a cumulative operating deficit through December 31, 2024.The cost limitation for Compliance Period 4 is determined to be $1,305,000. Once VMUS’ largest renewable energy power purchase agreement achieves commercial operation, VMUS will comply with future short-term and long-term RPS procurement requirements.
Staff remains available for any questions you may have.
Attachments: A. Resolution No. 24-097
B. VMUS Renewable Energy Resources Procurement Plan