For and on behalf of the Director of Public Works of the City of Manteca

Transcription

1 City of Manteca Community Facilities District No (Crivello Estates) Special Tax Report June 2015 Prepared by For and on behalf of the Director of Public Works of the City of Manteca Main Office Temecula Parkway, Suite 100 Temecula, CA Toll free: Fax: Regional Office 870 Market Street, Suite 1223 San Francisco, CA Toll free: Fax:

2 TABLE OF CONTENTS INTRODUCTION 1 DISTRICT INFORMATION 2 Background...2 Proposed Land Use...2 District Boundaries...2 DESCRIPTION OF SERVICES 3 COST ESTIMATE 4 Initial Maximum Amount Proposed to be Expended...4 Anticipated Fiscal Year 2015/16 Maximum Special Tax Revenue...4 Fiscal Year 2015/16 Maximum Annual Special Tax Rate...4 Anticipated Fiscal Year 2015/16 Special Tax Revenue...5 RATE AND METHOD OF APPORTIONMENT 6 Term of Special Tax...6 Manner of Collection...6 APPENDICES 7 APPENDIX A BOUNDARY MAP APPENDIX B RATE AND METHOD OF APPORTIONMENT A B

3 INTRODUCTION The City Council (the City Council ) of the City of Manteca (the City ) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections and following, California Government Code; hereafter referred to as the Act ), on May 5, 2015, adopt a resolution entitled the Resolution of the City Council of the City of Manteca Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes (the Resolution of Intention ). In the Resolution of Intention, the City Council directed the study and filing of a public hearing report (the Report ) required by Section of the Act for the proposed City of Manteca Community Facilities District No (Crivello Estates) (the District ). Section of the Act provides that the Report containing the following: 1. A brief description of the services to be provided by the District; and 2. An estimate of the fair and reasonable initial annual cost of providing the services, including the incidental expenses in connection therewith, any City administration costs, and all other related costs. For particulars, reference is made to the Resolution of Intention for the District, as previously adopted on May 5, 2015 by the City Council. NOW, THEREFORE, the Director of Public Works of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit the this Report containing the following information: DISTRICT INFORMATION. Information related to the District, including background information, land use plans, and the proposed boundaries that include those properties on which special taxes may be levied to pay for the costs and expenses of the services. DESCRIPTION OF SERVICES. A description of the services that the City Council has determined to be eligible to be funded by the District. COST ESTIMATE. The initial maximum cost estimate for the District services and the anticipated initial maximum special tax revenue. RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax which was included in the Resolution of Intention and approved by the City Council. Community Facilities District No (Crivello Estates) 1 Special Tax Report Prepared by NBS on behalf of the City of Manteca June 2015

4 DISTRICT INFORMATION Background The District is located on the south side of Louise Avenue, north and east of the current City limits and includes three different properties covering over 18 acres. The proposed project includes the development of 65 single-family, detached residential units spread over two phases. Proposed Land Use At build out, there is anticipated to be 65 single-family, detached residential units within the District. Of the 65 units, there are 29 units planned for Phase 1 and 36 units planned for Phase II. District Boundaries The proposed boundaries of the District are those parcels in which special taxes may be levied and collected to pay for the costs and expenses of the District services. The proposed boundaries of the District are identified on the map of the District recorded on May 13, 2015, in Book 6 at Page 64 of Maps of Assessment and Community Facilities Districts as Document No in the office of the County Recorder for the County of San Joaquin. The District map is on file with the City Clerk, to which reference is hereby made and a reduced copy of such map is set forth in Appendix A of this Report. Community Facilities District No (Crivello Estates) 2 Special Tax Report Prepared by NBS on behalf of the City of Manteca June 2015

5 DESCRIPTION OF SERVICES It is intended that the District will be eligible to fund all or a portion of the direct and incidental costs of the maintenance of parks, streetscapes and streetlights, and related appurtenances within or adjacent to the District. The District may fund any of the following related to the maintenance of the services described in the preceding paragraph: obtaining, constructing, reconstructing, furnishing, and operating and maintaining equipment, apparatuses or facilities related to providing the services; equipment, apparatuses, facilities, or fixtures in areas to be maintained; paying the salaries and benefits of personnel necessary or convenient to provide the services; payment of insurance costs and other related expenses; and the provision of reserves for repairs, replacements, and for the future provision of services. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. The District may also fund administrative fees of the City related to the District. The services to be financed by the District are in addition to those provided in the territory of the District before the date of creation of the District, and will not supplant services already available within that territory when the District is created. Community Facilities District No (Crivello Estates) 3 Special Tax Report Prepared by NBS on behalf of the City of Manteca June 2015

6 COST ESTIMATE Initial Maximum Amount Proposed to be Expended The annual budget presented below represents the initial maximum costs for providing the District services as well as the estimated costs for Fiscal Year 2015/16. District Costs 2015/16 Maximum Amount 2015/16 Estimated Amount District Services Costs $33, $5, District Administration Costs 7, , Total District Costs $41, $12, Anticipated Fiscal Year 2015/16 Maximum Special Tax Revenue The initial maximum annual special tax rates are set forth in the Rate and Method of Apportionment for the District. Based upon anticipated development, the initial maximum annual special tax revenue is as follows: Property Land Use Residential Property 65 Residential Lots 2015/16 Maximum Annual Special Tax Rate $ per Residential Lot 2015/16 Total Maximum Annual Special Tax $41, Non-Residential Property 0.00 Acres $ Undeveloped Property 0.00 Acres $ Total Anticipated Maximum Annual Special Tax Revenue $41, Fiscal Year 2015/16 Maximum Annual Special Tax Rate The Fiscal Year 2015/16 maximum annual special tax rate for Residential Property within the District is $ per residential lot. On July 1 of each Fiscal Year, commencing on July 1, 2016, the maximum annual special tax rate shall be increased by an amount equal to three percent (3%) of the maximum annual special tax rate in effect for the previous Fiscal Year. Community Facilities District No (Crivello Estates) 4 Special Tax Report Prepared by NBS on behalf of the City of Manteca June 2015

7 Anticipated Fiscal Year 2015/16 Special Tax Revenue Based upon anticipated development, the estimated special tax revenue for Fiscal Year 2015/16 is as follows: Property Land Use Residential Property 29 Residential Lots 2015/16 Anticipated Special Tax Rate $ per Residential Lot 2015/16 Total Anticipated Special Tax $12, Non-Residential Property 0.00 Acres $ Undeveloped Property 0.00 Acres $ Total Anticipated Annual Special Tax Revenue $12, Community Facilities District No (Crivello Estates) 5 Special Tax Report Prepared by NBS on behalf of the City of Manteca June 2015

8 RATE AND METHOD OF APPORTIONMENT All of the property located within the District, unless exempted by law or by the Rate and Method of Apportionment, shall be taxed for the purpose of providing necessary services for the District. Pursuant to Section 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 benefit received by parcels of real property, the cost of making facilities or authorized services available to each parcel, or other reasonable basis as determined by the legislative body," although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. As shown in Appendix B, the adopted Rate and Method of Apportionment provides information sufficient to allow each property owner within the District to estimate the maximum special tax that he or she will be required to pay. Term of Special Tax The District special tax shall be levied commencing in Fiscal Year 2015/16 and shall be levied until such time the City determines that revenues are no longer needed to pay the annual special tax requirement. Manner of Collection The annual special tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the District, may directly bill the special tax, and may collect special taxes at a different time or in a different manner as necessary to meet its financial obligations. Community Facilities District No (Crivello Estates) 6 Special Tax Report Prepared by NBS on behalf of the City of Manteca June 2015

9 APPENDICES Boundary Map A Rate and Method of Apportionment B Community Facilities District No (Crivello Estates) 7 Special Tax Report Prepared by NBS on behalf of the City of Manteca June 2015

10 APPENDIX A BOUNDARY MAP The boundary map for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this report was prepared, and are incorporated by reference herein and made part of this Report.

11

12 APPENDIX B RATE AND METHOD OF APPORTIONMENT The following pages provide a copy of the District s Rate and Method of Apportionment included in the Resolution of Intention and approved by the City Council on May 5, 2015.

13 RATE AND METHOD OF APPORTIONMENT FOR CITY OF MANTECA COMMUNITY FACILITIES DISTRICT NO (CRIVELLO ESTATES) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Manteca Community Facilities District No (Crivello Estates) ( CFD No ) and collected each Fiscal Year commencing in Fiscal Year in an amount determined by the City Council through the application of the appropriate Special Tax for Taxable Property as described below. All of the real property in CFD No , unless exempted by law or by the provisions hereof, shall be taxed for purposes of CFD No , to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: Act means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, 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 administration of CFD No including, but not limited to, the following: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City, the CFD Administrator, or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs to the City, CFD No , or any designee thereof of complying with disclosure requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; and the costs of the City, CFD No , or any designee thereof related to any appeal of the levy or application of the Special Tax. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No for any other administrative purposes, including, but not limited to, attorney s fees. Assessor s Parcel means a lot or parcel shown on an Assessor s Parcel Map with an assigned Assessor s Parcel number. Assessor s Parcel Map means an official map of the County Assessor of the County designating Assessor s Parcels by an Assessor s Parcel number. CFD Administrator means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. CFD No means the City of Manteca Community Facilities District No (Crivello Estates). City means the City of Manteca. Council means the City Council of the City, acting as the legislative body of CFD No County means the County of San Joaquin. Exempt Property means all Assessors Parcels that are exempt from the Special Tax pursuant to Section E. Fiscal Year means the period starting July 1 and ending on the following June 30. City of Manteca Community Facilities District No (Crivello Estates) Page 1

14 Maximum Annual Special Tax means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor s Parcel of Taxable Property. Non-Residential Property means all Assessor s Parcels of Taxable Property within the boundaries of CFD No for which a map has been recorded designating property for which a building permit could be issued and the property can not be classified as a Residential Lot. Open Space Property means property within the boundaries of CFD No which ( i) has been designated with specific boundaries and acreage on a final subdivision map as open space, (ii) is classified by the County Assessor as open space, (iii) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or ( iv) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. Proportionately means for Taxable Property that the ratio of the Special Tax levy to the Maximum Annual Special Tax is equal for all Assessors Parcels of Taxable Property within CFD No Public Property means any property within the boundaries of CFD No which ( i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, or any other public agency. Residential Lot(s) means an individual lot of land for which a building permit could be issued to construct one or more residential dwelling units. Residential Property means all Assessor s Parcels of Taxable Property within the boundaries of CFD No for which a map has been recorded designating individual Residential Lots. Special Tax means the annual special tax to be levied in each Fiscal Year on each Assessor s Parcel of Taxable Property to fund the Special Tax Requirement. Special Tax Requirement means that amount of Special Tax revenue required in any Fiscal Year for CFD No to: (i) pay directly for the costs of maintenance of parks, streetscapes, and streetlights; (ii) p ay Administrative Expenses; (iii) pay any amounts required to establish or replenish any repair and contingency funds, capital improvement replacement funds, or reserve funds for CFD No ; (iv) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; and (v) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator. State means the State of California. Taxable Property means all of the Assessor s Parcels within the boundaries of CFD No that are not exempt from the Special Tax pursuant to law or Section E below. Undeveloped Property means all of the Assessor s Parcels of Taxable Property within the boundaries of CFD No not classified as Residential Property or Non-Residential Property. City of Manteca Community Facilities District No (Crivello Estates) Page 2

15 B. ASSIGNMENT TO LAND USE CATEGORIES On, or around, July 1 of each Fiscal Year, all Assessor s Parcels of Taxable Property within CFD No shall be classified as Residential Property, Non-Residential Property, or Undeveloped Property and shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. C. MAXIMUM ANNUAL SPECIAL TAX RATE The Maximum Annual Special Tax for each Assessor s Parcel of Taxable Property shall be assigned according to the table below: Property Land Use Residential Property Non-Residential Property Undeveloped Property Maximum Annual Special Tax Amount $ per Residential Lot $0.00 per Assessor s Parcel $0.00 per Assessor s Parcel On July 1 of each Fiscal Year, commencing on July 1, 2016, the Maximum Annual Special Tax shall be increased by an amount equal to three percent (3%) of the Maximum Annual Special Tax amount in effect for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year and for each subsequent Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property at a rate up to 100% of the applicable Maximum Annual Special Tax to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor s Parcel of Residential Property be increased by more than ten percent (10%) above what it would have been levied had there been no delinquencies. E. EXEMPTIONS The CFD Administrator shall classify the following as Exempt Property: Public Property, Open Space Property, and Assessor s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth above that would make such Assessor's Parcel eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. City of Manteca Community Facilities District No (Crivello Estates) Page 3

16 F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor s Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor s Parcel. If following such consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still exists, such person may file a written notice with the City appealing the amount of the Special Tax levied on such Assessor's Parcel. The City may establish such procedures, as it deems necessary to undertake the review of any such appeal. The City shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the City shall be final and binding as to all persons. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No , may directly bill the Special Tax, and may collect Special Taxes at a different time or in a different manner as necessary to meet its financial obligations. H. PREPAYMENT OF SPECIAL TAX The Special Tax may not be prepaid. I. TERM OF SPECIAL TAX The Special Tax shall be levied, commencing in Fiscal Year , as long as necessary to satisfy the Special Tax Requirement. City of Manteca Community Facilities District No (Crivello Estates) Page 4