MEETING DATE:
DECEMBER 14, 2021
SUBJECT:
Title
RESOLUTION NO. 2021-8966 AND 2021-8967 - AMENDING RESOLUTION NO. 2021-8945; AND ANNEXATION NO. 142, F-58 TO COMMUNITY FACILITIES DISTRICT 98-02 FOR LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE (CFD NO. 98-02) IMPROVEMENT AREA F-58 PUBLIC HEARING
Body
Recommendation
Recommendation
ADOPT a resolution amending Resolution No. 2021-8945 and a resolution declaring the annexation of territory to CFD 98-02 Improvement Area F-58 and authorizing submittal of levy of special taxes to the qualified electors.
Body
Board or Commission Action
On November 15, 2016, the City Council approved the entitlements for the San Marcos Highlands Project by KB Home California LLC, a Delaware Limited Liability Company. City Council’s approvals included a Specific Plan Amendment, Pre-zone, Tentative Subdivision Map, Ridgeline Development Permit, Conditional Use Permit, General Plan Amendment, and Final Environmental Impact Report (P13-0009: SP13-001, PZ 14-001, TSM 13-001, ROZ 14-001, CUP 13-010, GPA 15-002, and FEIR 15-001). On December 13, 2016, the City Council adopted the Amendment of the San Marcos Highlands Specific Plan (SP13-001).
Relevant Council Strategic Theme
Quality of Life
Good Governance
Economic Development
Planning for the Future
Relevant Department Goal
Not Applicable
Introduction
This is a public hearing for the annexation of the properties associated within the San Marcos Highlands Specific Plan (SP13-001) to the existing Community Facilities District (CFD) No. 98-02 for Lighting, Landscaping, Open Space and Preserve Maintenance and for the authorization to levy a special tax. The parcels to be annexed will become the new Improvement Area within the existing CFD 98-02 known as Improvement Area F-58.
Discussion
The City Council adopted a Resolution of Intention (“Resolution No. 2021-8945”) on October 26, 2021, to annex property to CFD 98-02 and form Improvement Area F-58 pursuant to the Mello-Roos Community Facilities Act of 1982, as amended. This public hearing will provide for public input on the formation of Improvement Area F-58 and on the annexation of the properties. The Notice of Intention to annex territory to the CFD and authorization to levy the special tax was published in The Paper, adjudicated to be a newspaper of general circulation for San Marcos in accordance with the Government Code, on December 6, 2021. The boundary of the territory to be annexed to the CFD, the public services proposed to be financed, and the rate and apportionment formula for the special tax are contained in the Special Tax Report.
The Rate and Method of Apportionment of Special Tax was adopted with the resolution of Intent during the October 26, 2021 City Council meeting (the “Initial RMA”). The RMA establishes the means and methods by which the City administers the special tax. Based on additional information regarding the median square footage, the City Council will consider an amendment to the RMA to incorporate the change (the “Amended RMA”) and adoption of Resolution No. 2021-8966 amending Resolution No. 2021-8945 to replace the Initial RMA with the Amended RMA. Such modification will reduce the maximum special tax and does not increase the maximum special tax or add territory to CFD 98-02 F-58.
If there is not a majority protest at this hearing, an election will be held by the property owners within the area to be annexed regarding the levy of the special taxes. This election will be held by mail ballot on December 15, 2021. The results of the election will be reported to the City Council at the January 11, 2021 City Council meeting and the City Council will be asked to (a) adopt a resolution declaring the results of such election and declaring the annexation of the properties to CFD No. 98-02 and Improvement Area F-58 thereto and (b) introduce and waive the first reading of an ordinance authorizing the levy of the special taxes within Improvement Area F-58.
Fiscal Impact
The CFDs provide ongoing funding for city services. The funds levied will fund the ongoing maintenance of various elements of city infrastructure and provide critical revenues in ensuring a well-maintained city making them consistent with the City Council’s Strategic Themes.
The maximum special tax for Special Improvement Area F-57 per the Amended RMA will be $1,474.46 per equivalent dwelling unit ($1,476.03 under the Initial RMA) in 2021 dollars, a total of $275,724.02 for the full development of 187 residential units. The anticipated maximum tax for the development includes City-wide services and special improvement area services. The maximum tax is defined as the maximum tax that can be assessed in any given tax year and escalated every fiscal year based on the Consumer Price Index (“CPI”). A detailed description of the rate and method of apportionment of the special tax for the Improvement Area is included as Exhibit A of the Special Tax Report.
Attachment(s)
Attachment A: Resolution No. 2021-8966
Attachment B: Resolution No. 2021-8967
Attachment C: Boundary Map
Attachment D: Rate and Method of Apportionment
Attachment E: Special Tax Report
Prepared by: Donna Apar, Assistant Finance Director
Submitted by: Lisa Fowler, Finance Director
Reviewed by: Michelle Bender, Assistant City Manager
Approved by: Jack Griffin, City Manager