REPORT TO COUNCIL
SUBJECT
Title
Action on Resolutions to Establish Community Facilities District (CFD) 2019-1 (Lawrence Station) to finance certain Public Services, Conduct a Special Election for the CFD Formation, and Introduce an Ordinance Ordering a Levy of Special Taxes for the CFD
Report
BACKGROUND
On November 29, 2016, the City Council adopted the Lawrence Station Area Plan (a Specific Plan) and Environmental Impact Report, along with the associated General Plan and Zoning Ordinance Amendments. The Plan features a transit-oriented development and provides needed public improvements and facilities for residents. To maintain the unique, high quality and non-standard facilities and avoid the potential impact on the City's General Fund, the Plan indicated an option for funding the long term maintenance of such improvements through a Community Facilities District (CFD), a land-secured financing mechanism.
On March 5, 2019, Council adopted a Resolution of Intention No. 19-8674 to form Community Facilities District 2019-1 (Lawrence Station) and Future Annexation Area to finance certain public services (Attachment 1). These services primarily include maintenance of roadways, parks, parking spaces and enforcement, landscaped parkways and medians, trails, a highway overpass, and a community clubhouse and garden to be located within the development, all as further described below.
DISCUSSION
Under the California Mello-Roos Community Facilities Act (Act) of 1982, once the proceedings are completed, the City will be authorized to annually levy a special tax on the property within the CFD, beginning in Fiscal Year 2019/20. The special taxes will be used to fund the authorized public services, and will maintain additional funds necessary in an operating and maintenance reserve of 20% for replacement and repair as facilities near end of service life (straight line depreciation of 15 years). A summary of the authorized public services to be funded is provided below.
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