HomeMy WebLinkAbout11-07-2017 Item 10 Public Hearing - Implementing Actions for the Avila Ranch Community Facilities District No. 2017-1
Meeting Date: 11/7/2017
FROM: Greg Hermann, Acting Assistant City Manager
Prepared By: Lee Johnson, Economic Development Manager
SUBJECT: IMPLEMENTING ACTIONS FOR THE AVILA RANCH COMMUNITY
FACILITIES DISTRICT NO. 2017-1
RECOMMENDATION
Advance the formation of the Avila Ranch Community Facilities District (CFD) by taking the
following actions:
1. Approve the Avila Ranch Resolution Certifying the Canvass of Election Results (Attachment
A); and
2. Introduce the Ordinance establishing the Avila Ranch Special Tax (Attachment B).
DISCUSSION
Background
Adoption of the Avila Ranch Resolution Certifying the Canvass of Election Results and the
introduction of the Ordinance Establishing the Avila Ranch Special Tax furthers the Community
Facilities District (“CFD”) formation process that began on September 19, 2017 with the
adoption of the Resolution of Intention. The Resolution of Formation was approved by the City
Council on October 24th and the election was held on October 26th. Following the Certification of
the Canvass of Election, the City Council will adopt a Special Tax Ordinance as is specified in
the Avila Ranch Rate and Method of Apportionment (Exhibit A, Attachment C).
CONCURRENCES
The Community Development Director concurs that the proposed CFD is consistent with the
entitlements granted for the project. The Public Works Director concurs that the revenue
generated by the CFD will be sufficient to cover the costs and obligations associated with City
services to be provided, and that the mechanism exists to adjust those costs and revenues
accordingly.
FISCAL IMPACT
The Avila Ranch CFD provides fiscal mitigation to the City for its revenue shortfall associated
with the existing property tax exchange agreement with San Luis Obispo County. Accordingly, it
facilitates a positive fiscal impact for the City from the Avila Ranch Project.
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ENVIRONMENTAL REVIEW
In accordance with Sections 15162 & 15163 of the CEQA Guidelines, an Addendum to the
certified Final Environmental Impact Report (EIR) prepared for the Avila Ranch project has
been prepared to address the formation of a CFD, a funding mechanism intended to implement
development under the Avila Ranch project (Attachment B). The Addendum did not find that the
CFD would introduce new or modified environmental impacts that were not already previously
disclosed and analyzed through the certified Final EIR. All mitigation measures prescribed for
the approved development project would still apply with the implementation of the CFD, and no
new mitigation measures would be required. Further, on October 24, the City determined that the
formation of a CFD for the Avila Ranch project is categorically exempt from CEQA review
pursuant to Section 15306 and 15061(b)(3) of the CEQA Guidelines.
NEXT STEPS
Following certification of the Avila Ranch CFD Election results by Resolution and the
introduction of the Ordinance establishing the Avila Ranch CFD Special Tax, the City Council
will conduct a second reading and adoption of the Special Tax Ordinance. This action is
anticipated to occur at the November 21, 2017 City Council meeting.
Within 15 days of adoption of the Special Tax Ordinance the City Clerk is obligated by the
Statute to post the Ordinance with the names of Council members voting for and against the
Ordinance, and within 90 days, prepare and record a Notice of Special Tax Lien with the County
Recorder.
Attachments:
a - Resolution Certifying Results of Election
b - Ordinance Levying Special Tax
c - Exhibit A to Attachment B - Avila Ranch Rate and Method of Apportinment
d - Exhibit B to Attachment B - Avila Ranch CFD List of Services
e - Exhibit A to Attachment A - Certificate of Canvass and Results of Election and related
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Avila Ranch Community Development Plan175 Venture DrivePublic Hearing for the IMPLEMENTING ACTIONS FOR THE AVILA RANCHCOMMUNITY FACILITIES DISTRICT NO. 2017-1November 7th, 2017Applicant: Avila Ranch, LLCRepresentative: Stephen Peck11-07-2017 Item 10 - Staff Presentation
Recommendation1. Approve the Avila Ranch Resolution Certifying the Canvass of Election Results2. Introduce the Ordinance establishing the Avila Ranch Special Tax 211-07-2017 Item 10 - Staff Presentation
Background3Community Facilities District Formation- September 19th: Resolution of Intention- October 24th: Resolution of Formation- October 26th: CFD Election- November 7th: Certification of the Election- November 7th: Introduction of the Ordinance- November 21st : 2ndReading of the Ordinance11-07-2017 Item 10 - Staff Presentation
Certification of the Election4After public comment the City Clerk will “Certify the Election”152 Votes cast (based on acreage)100% Yes Votes11-07-2017 Item 10 - Staff Presentation
Introduction of the Ordinance5Based on Rate and Method of Apportionment as previously reviewedEstablishes maximum tax rates Actual Special Tax schedule adopted by Resolution of the City Council each fiscal year (prior to August)First fiscal year special tax is authorized is FY 2018/19 11-07-2017 Item 10 - Staff Presentation
Recommendation1. Approve the Avila Ranch Resolution Certifying the Canvass of Election Results2. Introduce the Ordinance establishing the Avila Ranch Special Tax 611-07-2017 Item 10 - Staff Presentation
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RESOLUTION NO. ____ (2017 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, IN ITS CAPACITY AS LEGISLATIVE BODY
OF THE AVILA RANCH COMMUNITY FACILITIES DISTRICT NO.
2017-1, CERTIFYING THE RESULTS OF THE OCTOBER 26, 2017
SPECIAL ELECTION OF THE DISTRICT, ESTABLISHING AN
APPROPRIATIONS LIMIT FOR THE DISTRICT, AND MAKING
FINDINGS PURSUANT TO SECTION 53328 AND 53328.3 OF THE
CALIFORNIA GOVERNMENT CODE
WHEREAS, the City Council of the City of San Luis Obispo has established Avila
Ranch Community Facilities District No. 2017-1 (the “District”) pursuant to the Mello-Roos
Community Facilities Act of 1982 (Section 53311 et seq. of the California Government Code)
(the “Act”); and
WHEREAS, by its Resolution No. 1844 (2017 Series,) the City Council, in its capacity
as legislative body of the District, submitted the levy of a special tax and the establishment of an
appropriations limit to the qualified electors of the District at a special election called for
October 26, 2017 (the “Special Election”); and
WHEREAS, the City Clerk of the City of San Luis Obispo, as elections official,
distributed the ballots for the Special Election by personal service pursuant to Section 53326 of
the Act, and
WHEREAS, the City Clerk closed the Special Election after all qualified election voters
cast their ballots; and
WHEREAS, the canvassing board of the election, appointed by the City Clerk,
canvassed the ballots cast in the Special Election and submitted the certificate of canvass which
is attached hereto as Exhibit “A” and incorporated herein by reference.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, IN ITS CAPACITY AS LEGISLATIVE BODY OF AVILA RANCH
COMMUNITY FACILITIES DISTRICT NO. 2017-1, DOES HEREBY RESOLVE,
DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The recitals stated above are true and correct.
SECTION 2. The City Council certifies that the qualified electors of the District
unanimously approved the special tax submitted to the electorate at the October 26, 2017 Special
Election for Avila Ranch Community Facilities District No. 2017-1.
SECTION 3. An appropriations limit, pursuant to Article XIIIB, Section 8(h) of the
California Constitution, is hereby established for the District at $3,000,000. Such limit shall be
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adjusted for changes in the cost of living, or changes in population, pursuant to Section 53325.7
of the Act.
SECTION 4. Pursuant to Section 53328 and 53328.3 of the Act, the City Council
determines that the requisite two-thirds of votes cast in the Special Election were in favor of
levying the Special Tax, and orders the City Clerk to record the notice of special tax lien
provided for in Section 3114.5 of the California Streets and Highways Code, whereupon the lien
of the special tax shall attach as provided in Section 3115.5 of the Streets and Highways Code.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2017.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
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Resolution No. _____ (2017 Series) Page 3
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____________________________________
Carrie Gallagher
City Clerk
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ORDINANCE NO. ____ (2017 Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AS LEGISLATIVE BODY OF AVILA RANCH
COMMUNITY FACILITIES DISTRICT NO. 2017-1, LEVYING A
SPECIAL TAX AGAINST NONEXEMPT REAL PROPERTY WITHIN
THE DISTRICT TO FINANCE CERTAIN FACILITIES, SERVICES AND
INCIDENTAL EXPENSES
WHEREAS, the City Council of the City of San Luis Obispo has established Avila
Ranch Community Facilities District No. 2017-1 (the “District”) pursuant to the Mello-Roos
Community Facilities Act of 1982 (Section 53311 et. seq. of the California Government Code)
(the “Act”); and
WHEREAS, by Resolution No. 10844 (2017 Series), the City Council of the City of San
Luis Obispo, in its capacity as legislative body of the District, submitted the levy of a special tax
(“Special Tax”) to the qualified electors of the District at a special election called for October 26,
2017 (the “Special Election”); and
WHEREAS, by its Resolution No. ____ (2017 Series), the City Council of the City of
San Luis Obispo, in its capacity as legislative body of the District, certified that more than two-
thirds of the votes cast at the Special Election were in favor of levying the Special Tax.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, IN ITS CAPACITY AS LEGISLATIVE BODY OF AVILA RANCH
COMMUNITY FACILITIES DISTRICT NO. 2017-1, ORDAINS AS FOLLOWS:
SECTION 1. The recitals stated above are true and correct.
SECTION 2. The Special Tax is levied pursuant to Section 53340 of the Act against all
non-exempt parcels of real property within the District at the Rate and Method of Apportionment
set forth in Exhibit A, which is incorporated by reference.
SECTION 3. Except where funds are otherwise available, the Services Component of
the Special Tax shall be levied annually, for an indefinite period, with no expiration or sunset,
for the purpose of funding the facilities, services, and incidental expenses described in Exhibit
B, which is incorporated by reference (the “Authorized Services and Facilities”). Such annual
levies shall be ordered by resolution of the City Council at the same rate or a lower rate than the
rate provided by this Ordinance. Notwithstanding the foregoing, no Special Tax to pay for
public facilities will be levied against any parcel after Fiscal Year 2035-2036. For the purposes
of this Section, “public facilities” does not include services described in Section 53313 of the
Act.
SECTION 4. The Special Tax is secured by a continuing lien, imposed pursuant to
Sections 3114.5 and 3115.5 of the California Streets and Highways Code. This lien is a
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continuing lien against all nonexempt real property in the District, and shall secure each levy of
the Special Tax.
SECTION 5. The Special Tax shall be collected in the same manner as ordinary ad
valorem property taxes are collected and shall be subject to the same penalties and the same
procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.
SECTION 6. Proceeds of the Special Tax will be deposited in a special account and
used only for the purpose of financing Authorized Expenses.
SECTION 7. An annual report will be filed by the Finance Officer of the City at least
once a year containing a description of the amount of funds and the status of any project that is
an Authorized Expense.
SECTION 8. The City does not, solely by virtue of this Ordinance, or solely by virtue of
the levy or collection of the Special Tax, assume any obligation to provide any particular service
or to purchase, construct, expand, improve, or rehabilitate any property of any particular kind.
SECTION 9. The City’s Department of Finance, which is located which is located at
990 Palm Street, San Luis Obispo, CA and whose telephone number is (805) 781-7124 (the
“Finance Department”), will be responsible for preparing the annual roll of Special Tax
obligations with respect to the District and for estimating future tax levies pursuant to Section
53340.2 of the Act.
SECTION 10. The City Council has not specified conditions under which the obligation
to pay the Special Tax against a particular parcel of land may be prepaid and permanently
satisfied.
SECTION 11. If any section, subsection, sentence, clause, phrase or portion of this
Ordinance is for any reason held to be invalid or unconstitutional by any court of competent
jurisdiction, such decision shall not affect the validity of the remainder of the Ordinance. The
City Council hereby declares that it would have adopted this Ordinance, and each section,
subsection, sentence, clause, phrase or portion hereof, irrespective of that fact that any one or
more sections, subsections, sentences, clauses, phrases or portions be declared invalid or
unconstitutional.
SECTION 12. The City Clerk shall certify to the adoption of this Ordinance and shall
cause this ordinance, or a summary thereof, to be published as required by law.
INTRODUCED on the ____ day of ____, 2017, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 2017, on the following vote:
AYES:
NOES:
ABSENT:
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____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Carrie Gallagher
City Clerk
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EXHIBIT A
City of San Luis Obispo
Avila Ranch Community Facilities District No. 2107-1 (Services)
San Luis Obispo County, California
AMENDED RATE, METHOD OF APPORTIONMENT, AND
MANNER OF COLLECTION OF SPECIAL TAX
1. Basis of Special Tax Levy
A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 (Act) applicable
to the land in the Avila Ranch Community Facilities District No.2017-1 (Services) (CFD) of the
City of San Luis Obispo (City) shall be levied and collected according to the tax liability
determined by the City through the application of the appropriate amount or rate, as described
below.
2. Definitions
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and
following of the California Government Code.
“Administrative Expenses” means the actual or estimated costs incurred by the City to form
the CFD and to determine, levy, and collect the Special Taxes, including compensation of City
employees for administrative work performed in relation to the CFD, the fees of consultants and
legal counsel, the costs of collecting installments of the Special Taxes on the general tax rolls,
preparation of required reports, and any other costs required to administer the CFD as
determined by the City.
“Administrator” means the City Manager of the City, or her or his designee.
“Affordable Unit” means a Unit built on a Parcel of Single-Family Parcel for which an Affordable
Housing Agreement has been entered into for the property designating the Unit as affordable.
The City Manager, or its designee, shall determine which Units are designated as Affordable Units
and maintain an Affordable Unit Listing, which shall contain all designated buildable parcels by
tract and lot number, and in the case of Large Lots Parcels remaining before May 1 of the
preceding Fiscal Year, the number of designated Affordable Units for each such Large Lot Parcel;
all entries shall indicate the effective date of designation. The Affordable Unit Listing also shall
be updated to reflect those Units no longer qualifying as Affordable Units, also known as Market-
Rate Units. The Affordable Unit Listing, which shall contain all qualifying Affordable Units as of
April 30, shall be made available to the Administrator by July 1 of each year for purposes of
determining the Maximum Special Tax for Parcels pursuant to Section 4.
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“Annual Infrastructure Costs” means for each Fiscal Year, the total cost of (1) Authorized
Facilities and (2) any amounts needed to cure actual or estimated delinquencies in Special Taxes
for the current or previous Fiscal Year.
“Annual Services Costs” means for each Fiscal Year, the total cost of (1) Authorized Services,
(2) Administrative Expenses, and (3) any amounts needed to cure actual or estimated
delinquencies in Special Taxes for the current or previous Fiscal Year.
“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by
Assessor’s Parcel Number.
“Assessor's Parcel Number” means the Parcel and Parcel number as recorded by the County
Assessor on the equalized tax roll.
“Authorized Facilities” means those facilities, as listed in the resolution forming the CFD.
“Authorized Services” mean those services, as listed in the resolution forming the CFD.
“Base Year” means the Fiscal Year beginning July 1, 2018 and ending June 30, 2019.
“Building Permit” means a permit issued by the City for the construction of a Residential Use
structure.
“Building Square Foot(age)” has the same meaning as that defined for the School Mitigation
Fee by California Government Code Section 65995 for “Assessable Space,” which is “all of the
square footage within the perimeter of a residential structure, not including any carport,
walkway, garage, overhang, patio, enclosed patio, detached accessory structure, or similar area”
as determined upon issuance of the initial Building Permit.
“CFD” means the Avila Ranch Community Facilities District No. 2017-1 (Services) of the City of
San Luis Obispo, San Luis Obispo County, California.
“City” means the City of San Luis Obispo in San Luis Obispo County, California.
“Council” means the City Council of the City of San Luis Obispo acting for the CFD under the
Act.
“County” means the County of San Luis Obispo, California.
“County Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number
in the maps used by the County Assessor in the preparation of the tax roll.
“Developed Parcel” means any Taxable Parcel with a Building Permit issued for Residential
Uses.
“Development Plan” means a condominium plan, apartment plan, site plan, or other
development plan that identifies such information as the type of structure, acreage, square
footage, or number of Units that are approved to be developed on Single Family Parcels and
Multifamily Residential Use Parcels.
“Final Map Parcel” means a Parcel designated for development as a single-family residence
which is part of a Final Subdivision Map.
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“Final Subdivision Map” means a recorded map designating the final Parcel Subdivision for
individual single family residential Parcels.
“Fiscal Year” means the period starting July 1 and ending the following June 30.
“Infrastructure Special Tax” means the Special Tax identified in Attachment 1 for each Land
Use Category identified to fund the costs of Authorized Facilities. The Infrastructure Special Tax
is increased by the Infrastructure Special Tax Escalation Factor in each Fiscal Year following the
Base Year.
“Infrastructure Special Tax Escalation Factor” means a factor of 2 percent in any Fiscal Year
following the Base Year by which the Special Tax for the previous Fiscal Year will be increased for
the current Fiscal Year.
“Land Use Category” means the categories of taxable land uses shown in Attachment 1.
“Large Lot Parcel” means a Parcel created by a Large Lot Subdivision Map.
“Large Lot Subdivision Map” means a recorded subdivision map creating Parcels by land use.
However, the Large Lot Subdivision Map does not delineate Single-Family Parcels. A Final
Subdivision Map will create individual Single Family Parcels.
“Market-Rate Unit” means a Unit that is not an Affordable Unit.
“Maximum Annual Special Tax” means the greatest amount of Special Tax that can be levied
against a Parcel in a given Fiscal Year. The Maximum Annual Special Tax is the sum of the Fiscal
Services Special Tax and Infrastructure Special Tax assigned to each Taxable Parcel.
“Maximum Annual Special Tax Revenue” means the greatest amount of revenue that can be
collected in total from a group of Parcels (such as Developed Parcels) by levying the Special Tax.
“Multifamily” or “Multifamily Residential Use” means any Parcel or Development Project
designated or developed for more than one residential dwelling unit per parcel. Such uses may
consist of apartments, condominiums, townhomes, time-share units, row houses, duplexes, or
triplexes.
“Municipal Costs Index” means the index published by American City & County.
“Other Land Use” means a Parcel with land uses other than Residential Uses. Such Parcels are
Tax-Exempt Parcels
“Parcel” means any County Assessor’s Parcel in the CFD based on the equalized tax rolls of the
County.
“Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in
any final map that is normally exempt from the levy of general ad valorem property taxes under
California law, including public streets; schools; parks; and public drainageways, landscaping,
wetlands, greenbelts, and open space.
“Remainder Parcel” means a Parcel that is created as the result of the recordation of a Large
Lot Parcel Map or Final Small Lot Subdivision Map, which results in a Parcel within the boundaries
of a Large Lot Parcel, that has not been mapped for final development approval. Such a
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Remainder Parcel may contain taxable and tax-exempt uses, such as Residential Uses, and Public
Parcels, such as school or park sites. Once designated as a Remainder Parcel, such Parcel will be
considered a Large Lot Parcel for the purposes of future Subdivision s and for the provisions of
Sections 4 through 6.
“Residential Use” means a Parcel designated for residential use, such as single family
residential units, residential condominiums, townhouses, Multifamily Residential Uses, or
apartments.
“RMA” means the Rate and Method of Apportionment of the Special Tax.
“Services Special Tax” means the Special Tax identified in Attachment 1 for each Land Use
Category identified to fund the costs of Authorized Services. The Services Special Tax is
increased by the Services Special Tax Escalation Factor in each Fiscal Year following the Base
Year.
“Services Special Tax Escalation Factor” an annual percentage increase in the Fiscal
Mitigation Special Tax and Local Area Special Tax based upon the Consumer Price Index (CPI)
(prior calendar year annual average, San Francisco, All Urban Consumers (CPI-U) Index), the
CPI (prior calendar year annual average, Pacific West Cities, All Urban Wage Earners and Clerical
Workers), or the Municipal Cost Index annual average, whichever is greater, but not exceeding
four (4) percent.
“Single Family Parcel” means, in any Fiscal Year, all Parcels in the CFD for which a building
permit was issued or may be issued for construction of a Unit that is a single family residential,
residential condominium, or townhouse Unit.
“Special Tax(es)” mean(s) any tax levy under the Act in the CFD.
“Subdivision” or “Subdivided” means a division of a Parcel into two or more Parcels through
the Subdivision Map Act process. A Subdivision may also include the mer ging of two or more
Parcels to create new Parcels.
“Tax Collection Schedule” means the document prepared by the Administrator for the County
Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year.
“Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel.
“Tax-Exempt Parcel” means a Parcel not subject to the annual Special Tax. Tax-Exempt
Parcels include Public Parcels, Undeveloped Parcels, and Other Use Parcels.
Certain privately-owned Parcels also may be exempt from the levy of annual Special Taxes
including common areas owned by homeowner’s associations or property owner associations,
wetlands, detention basins, water quality ponds, and open space, as determined by the
Administrator.
“Undeveloped Parcel” means a Parcel that is a Large Lot Parcel or Remainder Parcel.
“Unit” means (a) for Single Family Parcel dwelling unit; and (b) for Multifamily Residential Use
Parcel, such as an individual residential unit in an apartment building.
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3. Duration of the Special Tax
Parcels in the CFD will remain subject to the Services Special Tax in perpetuity.
Parcels in the CFD will be subject to the Infrastructure Special Tax through FY 2035-36.
If the Special Tax ceases to be levied, the City will direct the County Recorder to record a Notice
of Cessation of Special Tax. Such notice will state that the obligation to pay the Special Tax has
ceased and that the lien imposed by the Notice of Special Tax Lien is extinguished. The Notice of
Cessation of Special Tax, in addition, will identify the book and page of the Book of Maps of
Assessment and Community Facilities Districts where the map of the boundaries of the CFD is
recorded.
4. Administrative Tasks
Administrative tasks required of the Administrator are discussed below:
A. Annual Special Tax Escalation. The Administrator shall increase the Fiscal Mitigation Special
Tax and Local Area Special Tax by the Services Special Tax Escalation Factor in each Fiscal
Year following the Base Year. The Administrator shall increase the Infrastructure Special Tax
Infrastructure Special Tax Escalation Factor in each Fiscal Year following the Base Year.
B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. As Taxable Parcels are
Subdivided or combined, the Administrator will assign the Maximum Annual Special Tax to
each new Taxable Parcel based on the records of the City:
1. Assignment of the Maximum Annual Special Tax to Developed Parcels. The Services
Special Tax and Infrastructure Special Tax are assigned to Developed Parcels using the
following procedures.
a. Identify the Building Square Footage for the Residential Use for the Taxable
Parcel, as identified in the Building Permit.
b. Identify the Land Use Category for the Taxable Parcel based upon the Residential
Use type and Building Square Footage in Attachment 1.
c. Assign the Services Special Tax for the Taxable Parcel based upon the Land Use
Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and as
increased by the Services Special Tax Escalation Factor and Infrastructure Special
Tax Escalation Factor.
d. Assign the Infrastructure Special Tax for the Taxable Parcel based upon the Land
Use Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and
as increased by the Infrastructure Special Tax Escalation Factor.
e. Sum the Services Special Tax and Infrastructure Special Tax to determine the
Maximum Annual Special Tax for the Taxable Parcel.
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2. Assignment of the Maximum Annual Special Tax to Final Map Parcels. The Services
Special Tax and Infrastructure Special Tax are assigned to Final Map Parcels using the
following procedures.
a. Assign the Services Special Tax for the Final Map Parcel, as shown in Attachment
1, and as increased by the Services Special Tax Escalation Factor.
b. Assign the Infrastructure Special Tax for the Final Map Parcel, as shown in
Attachment 1, and as increased by the Infrastructure Special Tax Escalation
Factor.
c. Sum the Services Special Tax and Infrastructure Special Tax to determine the
Maximum Annual Special Tax for the Taxable Parcel.
3. Assignment of the Maximum Annual Special Tax to Undeveloped Parcels. Undeveloped
Parcels are not subject to the Maximum Annual Special Tax.
C. Affordable Units that Become Market Rate Units. If, in any Fiscal Year, a Unit that
previously had been designated as an Affordable Unit no longer qualifies as such, the City
shall update the Affordable Unit Listing by denoting the change in status of the Unit,
together with the effective date thereof. The Maximum Annual Special Tax on the Unit
that no longer qualifies as an Affordable Unit shall be increased to double the amount
that would have applied in that Fiscal Year if the Unit had remained as an Affordable Unit.
In subsequent Fiscal Years, this increased Maximum Annual Special Tax shall continue to
escalate by the Tax Escalation Factor.
D. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not
needed for public use and is converted to a taxable use or transferred to a private owner,
it shall become subject to the Special Tax. The Maximum Annual Special Tax for such a
Parcel will be assigned according to the provisions of Section 4.A and 4.B.
E. Taxable Parcel Acquired by a Public Agency. A Taxable Parcel acquired by a public
agency shall be reclassified as a Tax-Exempt Parcels and is no longer subject to the
Special Tax levy.
F. Maintenance of Parcel Records. The Administrator will maintain a development status for
each Parcel within the CFD as Parcels are Subdivided and developed. The record will
contain the Assessor’s Parcel Number, Land Use Category, number of Units per Taxable
Parcel, the Fiscal Mitigation Special Tax, Local Area Special Tax, Infrastructure Special
Tax, and Maximum Annual Special Tax for each Taxable Parcel.
5. Assignment of the Maximum Annual Special Tax
A. Classification of Parcels. By June 30 of each Fiscal Year, using the Definitions in Section 2,
the Administrator shall cause:
1. Each Parcel to be classified as a Taxable Parcel or Tax-Exempt Parcel.
2. Each Parcel to be classified as a Developed Parcel, Final Map Parcel, or an Undeveloped
Parcel.
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Rate and Method of Apportionment and Manner of Collerciton of Special Tax
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B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. The Maximum Annual
Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures
(not all steps may be applicable for each such Parcel) in Section 4.
6. Calculating Annual Special Taxes
The Administrator will compute the Annual Costs and determine the annual Special Tax levy for
each Taxable Parcel based on the assignment of the Special Tax in Section 5. The Administrator
will then determine the tax levy for each Taxable Parcel using the following process:
A. Compute the Annual Services Costs using the definition of Annual Services Costs in Section
2.
B. Calculate the Services Special Tax levy for each Taxable Parcel by the following steps:
Step 1: Compute 100 percent of the Services Special Tax revenue for all Developed Parcels.
Step 2: Compare the Annual Services Costs with the amount calculated in the previous
step.
Step 3: If the Annual Services Costs are lower than the amount calculated in Step 1,
decrease proportionately the Services Special Tax levy for each Developed Parcel
until the revenue from the Special Tax levy equals the Annual Services Costs.
Step 4: If the Annual Services Costs are greater than the amount calculated in Step 1,
increase proportionately the Services Special Tax levy for each Final Map Parcel
until the revenue from the Special Tax levy equals the Annual Services Costs, or
100 percent of the Services Special Tax for all Final Map Parcels, if needed to fund
Annual Services Costs.
C. Compute the Annual Infrastructure Costs using the definition of Annual Infrastructure Costs
in Section 2
D. Calculate the Infrastructure Special Tax levy for each Taxable Parcel by the following steps:
Step 1: Compute 100 percent of the Infrastructure Special Tax revenue for all Developed
Parcels.
Step 2: Compare the Annual Infrastructure Costs with the amount calculated in the previous
step.
Step 3: If the Annual Infrastructure Costs are lower than the amount calculated in Step 1,
decrease proportionately the Infrastructure Special Tax levy for each Developed
Parcel until the revenue from the Special Tax levy equals the Annual Infrastructure
Costs.
Step 4: If the Annual Infrastructure Costs are greater than the amount calculated in Step 1,
increase proportionately the Infrastructure Special Tax levy for each Final Map
Parcel until the revenue from the Special Tax levy equals the Annual Services Costs,
or 100 percent of the Services Special Tax for all Final Map Parcels, if needed to
fund Annual Infrastructure Costs.
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E. Sum the amount determined in Sections 6.B and 6.D above.
F. Levy on each Taxable Parcel the amount calculated in Section 6.E above.
G. Prepare the Tax Collection Schedule and, unless an alternative method of collection has been
selected pursuant to Section 9, send it to the County Auditor requesting that it be placed on
the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule will
not be sent later than the date required by the Auditor for such inclusion.
The Administrator will make every effort to correctly calculate the Special Tax for each
Parcel. It will be the burden of the taxpayer to correct any errors in the determination of the
Parcels subject to the tax and their Special Tax assignments.
7. Interpretation, Application and Appeal of Special
Tax Formula and Procedures
Any taxpayer who feels that the amount of the Special Tax assigned to a Parcel is in error may
file a notice with the Administrator appealing the levy of the Special Tax. The Administrator will
then promptly review the appeal, and if necessary, meet with the applicant. If the Administrator
verifies that the tax should be modified or changed, the Special Tax levy will be corrected and, if
applicable in any case, a refund will be granted.
Interpretations may be made by Resolution of the Council for purposes of clarifying any
vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the
classification of properties, or any definition applicable to the CFD.
Without Council approval, the Administrator may make minor, non-substantive administrative
and technical changes to the provisions of this Exhibit that do not materially affect the rate,
method of apportionment, and manner of collection of the Special Tax for purposes of the
administrative efficiency or convenience or to comply with new applicable federal, state or local
law.
8. Prepayment of the Special Tax Obligation
The Special Tax for a Taxable Parcel may not be prepaid. The Special Tax is collected to fund
Authorized Services in perpetuity, or until the Council determines that the Special Tax should no
longer be collected.
9. Manner of Collection
The Special Tax will be collected in the same manner and at the same time as ad valorem
property taxes, provided, however, that the Administrator or its designee may directly bill the
Special Tax and may collect the Special Tax at a different time, such as on a monthly or other
periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations.
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Attachment 1
Avila Ranch CFD No. 2017-1 (Services)
Maximum Annual Special Tax - Base Year of FY 2018-19
No. of Services Infrastructure Maximum Annual
Land Use Category Units Special Tax Special Tax Special Tax
[1][2] [3][4]
Single Family Residential - ≥ 1,500 Sq. Ft.322 $2,749.80 $300.00 $3,049.80
Single Family Residential - <1,500 Sq. Ft.76 $1,832.86 $200.00 $2,032.86
Multifamily Residential - ≥ 1,500 Sq. Ft.38 $2,749.80 $300.00 $3,049.80
Multifamily Residential - < 1,500 Sq. Ft.252 $1,832.86 $200.00 $2,032.86
Affordable Multifamily Residential 32 $916.43 $100.00 $1,016.43
Undeveloped Parcels [5]
Other Land Uses $0.00 $0.00 $0.00
Public and Deed Restricted Land $0.00 $0.00 $0.00
"att1"
[1] This Special Tax rate will be increased by the Services Special Tax Escalator in each Fiscal Year following the Base
Year of FY 2018-19.
[2] This Special Tax rate will be increased by the Infrastructure Special Tax Escalator in each Fiscal Year following the Base
Year of FY 2018-19.
[3] This Special Tax may be collected in each Fiscal Year through FY 2035-36. This Special Tax will no longer be collected
following FY 2035-36.
[4] Beginning with FY 2035-39, the Maximum Annual Special Tax will be equal to the Services Special Tax as the
Infrastructure Special Tax will no longer be collected beyond FY 2035-36..
[5] Undeveloped Parcels are Final Map Parcels without a Building Permit.
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Exhibit B
City of San Luis Obispo CFD No. 2017 -1 (Services )
Draft List of Authorized Services
List of Authorized Services
The authorized services to be funded from the levy and collection of annual special taxes include
those set forth below in addition to the costs associated with collecting and administering the
special taxes, annually administering the District, and costs associated with forming the District.
The authorized services to be funded include:
1. Maintenance and lighting of parks, parkways, streets, roads, and open space.
2. Flood and storm protection services, including, but not limited to, the operation and
maintenance of storm drainage systems.
3. Police protection services, including, but not limited to, criminal justice services. However,
criminal justice services shall be limited to providing services for jails, detention facilities, and
juvenile halls.
4. Fire protection and suppression services, and ambulance and paramedic services.
5. Maintenance and operation of any real property or other tangible property with an estimated
useful life of five or more years that is owned by the local agency or by another local agency
pursuant to an agreement entered into under Section 53316.2.
List of Authorized Facilities
The authorized facilities to be funded from the levy and collection of annual special taxes include:
1. Local park, recreation, parkway, and open-space facilities.
2. The district may also finance the construction or undergrounding of water transmission and
distribution facilities, natural gas pipeline facilities, telephone lines, facilities for the
transmission or distribution of electrical energy, and cable television lines to provide access
to those services to customers who do not have access to those services or to mitigate
existing visual blight.
3. The district may also finance the acquisition, improvement, rehabilitation, or maintenance of
any real or other tangible property, whether privately or publicly owned, for flood and storm
protection services, including, but not limited to, storm drainage and treatment systems and
sandstorm protection systems.
4. A community facilities district may also finance the purchase, construction, expansion,
improvement, or rehabilitation of any real or other tangible property with an estimated useful
life of five years or longer or may finance planning and design work that is directly related to
the purchase, construction, expansion, or rehabilitation of any real or tangible property. The
facilities need not be physically located within the Dstrict.
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