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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Fred Wilson, City Administrator
Subject: Resolution of the Mayor and
Common Council of the City of San
Bernardino Approving Goals and Policies
for the Use of Community Facilities
Districts Pursuant to the Mello-Roos
Community Facilities District Act.
Dept: City Administrator
Date: April 2, 2004 \G\NAL
OR
Meeting Date: 4/19/2004
Synopsis of Previous Council Action:
09/02103 - Mayor and Common Council authorized staff to proceed with preparation of documents and
appropriate Municipal Code amendments to impose a special tax district for the operation and
maintenance of the proposed Verdemont Fire Stanton on new development only.
12/15/03 - Resolution was approved by of the Mayor and Common Council of the City of San Bernardino
declaring the intention to establish a community facilities district for the ongoing operation and
maintenance of a fire station for the Verdemont area.
Recommended motion:
Adopt Resolution.
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~~~~{&6)_
Contact person: Teri Baker
Phone:
5122
Supporting data attached: Staff Report, Resolution, Goals and Polices Ward: 5
FUNDING REQUIREMENTS:
Amount: None
Source: (Ace!. No.)
(Ace!. Description)
Finance:
Council Notes:
Qr.so~2ro4- \03
lJ /1!1/ oct
Agenda Item No. ~
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
Subiect:
Resolution of the Mayor and Common Council of the City of San Bernardino Approving
Goals and Policies for the Use of Community Facilities Districts Pursuant to the Mello-
Roos Community Facilities District Act.
Backl!round:
At this meeting the Mayor and Common Council will consider the formal initiation of the
formation proceedings for a Community Facilities District to pay of a portion of the
operations and maintenance costs of the Verdemont Fire Station.
Govemment Code Section 53312.7, a portion of the "Mello-Roos Community Facilities
District Act" (Govermnent Code Section 53311 et sea., the "Act"), provides that the City
must first consider and adopt local goals and policies concerning the use of the Act
before it may initiate proceedings to establish a Community Facilities District.
Accordingly, the Mayor and Common Council have been presented with a Resolution
which formally adopts such local goals and policies.
Fiscal ImDact:
None.
Recommendation:
Adopt Resolution.
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RESOLU~IfO\)@1f
A RESOLUTION OF THE MAYOR ~ ~JlON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING GOALS AND POLICIES FOR THE USE
OF COMMUNITY FACILITIES DISTRICTS PURSUANT TO THE MELLO-
ROOS COMMUNITY FACILITIES DISTRICT ACT
WHEREAS, the City of San Bernardino, California (the "City"), is a municipal
corporation and charter city, duly organized and existing pursuant to the provisions of
the Constitution of the State of California; and
WHEREAS, the City wishes to establish a community facilities district pursuant
to the terms and provisions of California Government Code Section 53311 et seq.,
sometimes commonly referred to as the "Mello-Roos Community Facilities District
Act" (the "Act"); and
WHEREAS, Section 53312.7 of the Act requires the Mayor and Common
Council to consider and adopt local goals and policies relative to the use of community
facilities districts before initiating proceedings to establish a community facilities
district; and
WHEREAS, it is the intention of the Mayor and Common Council to adopt such
local goals and policies in order to proceed with such community facilities district
formation proceedings pursuant to the Act.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, AS FOLLOWS:
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6 thereof, held on the _day of
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COUNCIL MEMBERS: AYES
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ESTRADA
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LONGVILLE
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MCGINNIS
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DERRY
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KELLEY
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JOHNSON
04 MC CAMMACK
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A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING GOALS AND POLICIES FOR THE USE
OF COMMUNITY FACILITIES DISTRICTS PURSUANT TO THE MELLO-
ROOS COMMUNITY FACILITIES DISTRICT ACT.
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
5 Mayor and Common Council of the City of San Bernardino at a
meeting
, 2004, by the following vote, to wit:
NAYS
ABSTAIN ABSENT
Rachel Clark, City Clerk
18 The foregoing Resolution is hereby approved this _ day of
,2004.
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JUDITH VALLES,
Mayor of the City of San Bernardino
23 Approved as to form
and legal content:
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25 JAMES . PENMAN
City tt rney
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12 wiJI be public welfare and education. The last category to receive priority will be those facilities
13 not necessary to assure public health, safety or welfare, such as landscaping and related
14 amenities.
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following:
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EXHIBIT "A"
GOALS AND POLICIES CONCERNING THE MELLO-ROOS
COMMUNITY FACILITIES ACT OF 1982, AS AMENDED
THIS POLICY of the City of San Bernardino concerning the Mello-Roos Community
Facilities Act of 1982, as amended, Government Code Section 53311 et seq. (the "Act"), is
hereby adopted pursuant to the requirements of Government Code Section 53312.7.
(1)
The priority for the financing of infrastructure and public facilities will be
determined at the sole discretion of the City. In general the highest priority will be placed on
infrastructure that provides for the health and safety of the public. The second level of priority
(2)
Maximum special taxes for Community Facilities Districts shall adhere to the
a.
The City shall require that the level of special taxes for different parcels within
each proposed community facilities district be allocated in an equitable manner
considering the general benefits to be realized by owners of the parcels as
demonstrated by the proposed rate and method of apportionment for the special
tax.
b.
The special tax shall include the annual administrative cost of the City to
administer the district.
The City may retain a special tax consultant to prepare a report which:
a.
Recommends a special tax for the proposed CFD.
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b. Evaluates the special tax proposed to determine its ability to adequately fund
identified public improvements, administrative costs and other related
expenditures.
(3) The City will not issue bond indebtedness relative to a community facilities
district unless this policy is amended by subsequent action of the Mayor and Common Council.
Such amendment will not affect any community facilities district for which a Resolution of
Intention has been adopted prior to the date of such amendment (e.g., Community Facilities
District No. 1033). The City may establish standards and criteria for the credit quality for
community facilities district bond issues at such time that this policy is amended.
(4) For new development, prior to approval of a community facilities district, the
applicant/developer may be required to submit a fmancial plan which demonstrates to the City's
satisfaction the applicant/developer's ability to pay all assessments and/or special taxes through
build out of the project. Such enhancements may, for example, be required in cases where the
value-to-lien ratio for property within the district is insufficient, and may take the form of letters
of credit, or policies of insurance, or other vehicles.
The district property value-to-lien ratio shall be at least 3:1 after calculating the value of
the financed infrastructure and public facilities to be installed (or, in the case of an acquisition
assessment district, which are installed and to be acquired), and considering any prior or pending
special taxes or improvement liens. The City may require a higher value-to-lien ratio in its
discretion, in consideration of current market and related conditions. The actual value-to-lien
ratio required will be established by the City. The value of the property within the district, for
purposes of establishing the value-to-lien ratio, shall be determined by an appraisal process,
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conducted by an MAl (Member, Appraisal Institute) appraiser under contract with the City. In
instances where the value-to-lien ratio is less than 3: 1, or less than some higher ratio selected by
the City in its discretion, credit enhancement will be required in accordance with the provisions
ofthis policy. The actual form of the credit enhancement shall be in the discretion of the City, in
consultation with financial advisors. In the event that the overall value-to-lien ratio for the
district is at least 3: I (or a higher ratio selected by the City), but as to one or more individual
properties is less than the required ratio, the City, at its discretion, may require a credit
enhancement for these properties.
The projected special assessment and/or special tax, when added to the ad valorem
property tax and other direct and overlapping debt for the proposed district (including other
projected benefit assessments, and any other anticipated special assessments, taxes or charges
which may be included on a property owner's annual property tax bill), shall not exceed two
percent (2.0%) of the projected assessed value of each improved parcel within the district. As it
pertains to commercial, industrial, or other parcels within the district, the City reserves the right
to exceed the two percent (2.0%) limit if, in the City's sole discretion, it is fiscally prudent. A
backup special tax shall be required to protect against changes in land use that may result in
insufficient annual special tax revenues.
(5) The City shall take the following steps to ensure that prospective property
purchasers are fully informed about their taxpaying obligations imposed under the Act:
The applicant/developer shall be responsible for compliance with all applicable federal and state
statutory disclosure requirements in transactions with purchasers of properties within the district.
Specifically, to ensure that prospective purchasers of property within a community facilities
district be fully informed, the applicant/developer shall disclose in writing all information
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