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AGENDA REPORT
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| | | | | | | | DATE:
| September 3, 2024
| TO:
| Mayor and City Council
| FROM:
| David Gassaway, City Manager
| | SUBJECT: | Resolution 2024-217 of the City Council of the City of Fairfield Declaring Its Intention to Annex Territory (Green Valley III Apartments) to Community Facilities District No. 2012-2 and Authorizing the Levy of Special Taxes Therein for Annexation No. 69 |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | The adoption of the attached resolution will begin the proceedings for the annexation of certain property, known as Green Valley III Apartments, to Community Facilities District 2012-2 (CFD 2012-2 or District). CFD 2012-2 was established as an annexable district to provide funding to offset the increased cost for public safety services, open space operation, and park maintenance created by new development. |
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| | | | | | | | | DISCUSSION | By Resolution No. 2012-233, the City Council established CFD 2012-2, a MelloRoos community facilities district, with the intention that future development within the City of Fairfield would annex to this District. The special taxes collected from the property owners within the District are used to fund public safety services, open space operation, and park maintenance.
The property proposed for annexation is owned by Green Valley III Apartments, LLC and is located north-east of Green Valley Road and north-west of Business Center Drive within the boundary of assessor’s parcel number (APN) 0148-540-350, as depicted on Exhibit A. The development on the property will be a 185-unit Multi-Family Residential development (Green Valley III Apartments). Development of this property will change the property’s characteristics and manner in which the property will be used, thereby creating a need for more services funded by CFD 2012-2.
The City contracts with Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation process. This process is a specialty service that the City has contracted out since 1995, on an individual consultant services basis for each development requiring annexation into a MelloRoos community facilities district.
The council declared its intention to annex this property to CFD 2012-2 on June 4, 2024, with the adoption of Resolution 2024-131. However, the annexation process was delayed at the developer’s request. Once the City clarified any special taxes under CFD 2012-2 would only be applied after the property is developed (specifically, following the issuance of a Certificate of Occupancy), the developer chose to resume the annexation process. Since the council took no further action and a public hearing regarding the annexation of this territory was not conducted in accordance with Government Code Section 53339, et al., the annexation process must be restarted.
Adoption of the Resolution of Intention is the first step to annex this property to CFD 2012-2. This will be the 69th annexation to the District. The resolution also establishes October 15, 2024, as the public hearing date for the final consideration of the annexation of the property to CFD 2012-2. Once the annexation is complete, the property owners will be required to pay annual special taxes for the property beginning in fiscal year (FY) 2025-2026, as itemized on their property tax bill in accordance with the rate set forth in the CFD 2012-2 Rate and Method of Apportionment of Special Tax.
The CFD 2012-2 Rate and Method of Apportionment was established as part of the formation of the District and fixed FY 2012-2013 as the base year for the annual special tax rate as shown in Exhibit B. Since the formation, special taxes have increased based on a cost inflator allowed in the original formation documents. Exhibit C shows the special tax rate for the District for FY 2024-2025.
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| | | | | | | | | FINANCIAL IMPACT | | The anticipated annual revenue to be received by the City (CFD 2012-2 Fund 332) for this annexation is estimated to be $131,621.49, which is based on the FY 2024-2025 maximum special tax rate of $711.46 per unit for 185 units for a High-Density Residential property. The CFD 2012-2 maximum special tax rates include an automatic annual consumer price index (CPI) adjustment. The process for the annexation is funded by the Developer and no general fund monies are used for this effort. |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
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| | | | | | | | | ALTERNATIVE ACTION | | If the council has any questions concerning the required annexation of this development, this item may be rescheduled until the next council meeting to allow staff to provide the necessary background information. However, if the annexation is not approved, the conditions of approval for this development would not be fulfilled and the development process would cease. |
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| | | | | | | | | STAFF CONTACT | Valerie Standfill, Management Analyst
(707) 428-7055
vstandfill@fairfield.ca.gov
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| REVIEWERS: | | Reviewer | Action | Date | | Panganiban, Ryan | Approved | 8/19/2024 - 8:13 PM | | Chaudhary, Savita | Approved | 8/19/2024 - 9:52 PM | | Beavers, Esther | Approved | 8/20/2024 - 10:51 AM | | Beavers, Esther | Approved | 8/20/2024 - 10:52 AM |
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