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HomeMy WebLinkAbout2026/04/28 City Council Resolution 2026-028 RESOLUTION NO. 2026-028 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ESTABLISHING CITY OF ROHNERT PARK COMMUNITY FACILITIES DISTRICT NO. 2026-01 (REDWOOD CROSSINGS),AUTHORIZING THE LEVY OF SPECIAL TAXES, CALLING AN ELECTION WITHIN THE DISTRICT AND APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED THERETO WHEREAS, on March 24, 2026, the City Council (the "City Council") of the City of Rohnert Park(the"City")adopted a Resolution No.2026-26(the"Resolution of Intention")stating its intention to establish City of Rohnert Park Community Facilities District No. 2026-01 (Redwood Crossings) ("Community Facilities District No. 2026-01" or the"District")pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California(the "Act"); and WHEREAS, a copy of the Resolution of Intention setting forth a description of the proposed boundaries of Community Facilities District No. 2026-01, the services and administrative expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2026-01 and to levy a special tax within the District; and WHEREAS, on April 28, 2026, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2026-01 and the rate and method of apportionment of the special tax proposed for the District; and WHEREAS, at or before the April 28, 2026, public hearing there was filed with this City Council a report containing a description of the services necessary to meet the needs of the District and an estimate of the cost of such services as required by Section 53321.5 of the Act (the "CFD Report"); and WHEREAS, at the April 28, 2026, public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2026-01 and the rate and method of apportionment of the special tax proposed for the District were heard, and a full and fair hearing was held; and WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of services (the "Services") and administrative expenses to be incurred in connection with financing the Services and forming and administering the District(the"Incidental Expenses") set forth in Attachment"B"hereto, which are described in more detail in the CFD Report; and WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed special tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District and the levy of a special tax within the District; and WHEREAS, this City Council has determined, based on information provided by the Registrar of Voters on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of the District for each of the 90 days prior to April 28, 2026, and that the qualified electors in the District are the landowners within the District as of April 28, 2026; and WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2026-01 and to call an election within the District to authorize (i) the levy of special taxes within the District pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment "A" attached hereto, and(ii)the establishment of an appropriations limit for the District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby find, determine, resolve and order as follows: Section 1. Each of the above recitals is true and correct. Section 2. A community facilities district to be designated "City of Rohnert Park Community Facilities District No. 2026-01 (Redwood Crossings)" is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act. Section 3. The boundaries of Community Facilities District No. 2026-01 are established as shown on the map designated "City of Rohnert Park Community Facilities District No. 2026-01 (Redwood Crossings), County of Sonoma, State of California", which map was recorded pursuant to Sections 3111 and 3112 of the Streets and Highways Code in the Office of the County Clerk-Recorder of the County of Sonoma, State of California, in Book 865 of Maps and Assessment and Community Facilities Districts at Page 22, on March 27, 2026, as Instrument No. 2026014616. Section 4. The types of Services and Incidental Expenses authorized to be provided for Community Facilities District No. 2026-01 are those set forth in Attachment"B" attached hereto. The estimated cost of the Services and Incidental Expenses to be financed is set forth in the CFD Report. The City is authorized by the Act to contribute revenue to, or to provide the Services, all in accordance with the Act. The City Council finds and determines that the proposed Services are necessary to meet the increased demand that will be placed upon local agencies and public services as a result of new development within the District, and that the Services to be financed would benefit residents of the City and the future residents of the District. Resolution 2026-028 Page 2 of 8 Section 5. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within the District,to levy annually a special tax at the rates set forth in Attachment "A" hereto on all non-exempt property within the District, sufficient to pay for (i) the Services and Incidental Expenses to be financed by the District. The rate and method of apportionment of the special tax for the District is described in detail in Attachment "A" hereto and incorporated herein by this reference, and the City Council hereby finds that Attachment"A"contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the CFD Report,which is incorporated by reference herein, the special tax to be levied within the District is based on the expected demand that each parcel of real property within the District will place on the Services and, accordingly, is hereby determined to be reasonable. The special tax within the District shall be levied on each assessor's parcel so long as is required to pay for the Services,as described in Attachment"A"hereto. The special tax is apportioned to each parcel within the District on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property or the assessed value of real property. The District expects to incur,and in certain cases has already incurred,Incidental Expenses in connection with the creation of the District, the levying and collecting of the special taxes and the annual administration of the District. If special taxes are levied against any parcel used for private residential purposes, (i)the maximum special tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the special tax because of its use for private residential purposes and shall,beginning June 1,2027 and each June 1 thereafter, be increased at a rate equal to the percentage increase, if any, in the consumer price index from June 1 of the prior fiscal year to June 1 of the current fiscal year to the extent permitted in the rate and method of apportionment of special tax as described in Attachment"A" hereto; (ii) such special tax shall be levied indefinitely so long as is required to pay for the Services, as described in Attachment"A" hereto, and (iii) under no circumstances will the special tax levied against any such parcel in the District used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The City Manager of the City of Rohnert Park, or his or her authorized designee, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor's parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act. Section 6. In the event that a portion of the property within the District shall become for any reason exempt, wholly or partially, from the levy of the special tax applicable thereto, or in the event of delinquencies in the payment of special taxes levied therein,the City Council shall, on behalf of Community Facilities District No. 2026-01, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within the District which is not exempt or delinquent in order to prevent the District from defaulting on any other obligations or liabilities payable from the special taxes; provided, however, under no circumstances will the special tax levied against any parcel used for private residential uses be increased as a consequence Resolution 2026-028 Page 3 of 8 of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any delinquencies or defaults in special tax payments. The amount of the special tax for parcels within the District will be set in accordance with the rate and method of apportionment of the special tax attached hereto as Attachment "A." The obligation of parcels within the District to pay special taxes may not be prepaid. Section 7. Upon recordation of a notice of special tax lien for the District pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the lien is canceled in accordance with law or until collection of the special tax ceases. Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2026-01, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2026-01 and will be benefited by the Services proposed to be provided within Community Facilities District No. 2026-01. Section 9. Written protests against the establishment of the District have not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one-half(1/2) or more of the area of land within the District. The City Council hereby finds that the proposed special tax for the District has not been precluded by a majority protest pursuant to Section 53324 of the Act. Section 10. The District may accept advances of funds or work-in-kind from any source,including,but not limited to,private persons or private entities,for any authorized purpose, including,but not limited to,paying any cost incurred in establishing Community Facilities District No. 2026-01. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest. Section 11. An election is hereby called for the District on the propositions of levying the special tax on the property within the District and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act. The language of the propositions to be placed on the ballot for the election within the District is attached hereto as Attachment"C." Section 12. The date of the election for the District on the propositions of authorizing the levy of the special taxes and establishing an appropriations limit for the District shall be April 28, 2026,or such later date as is consented to by the City Clerk;provided that, if the election is to take place sooner than 90 days after April 28, 2026, then the unanimous written consent of the qualified electors within the District to such election date must be obtained. If held on April 28, 2026,the polls shall be open for said election immediately following the adoption of this Resolution and until the close of Public Hearing,and between the hours of 8:00 a.m. and 5:00 p.m. if held on a later date. The elections shall be conducted by the City Clerk or Designee. Except as otherwise provided by the Act,the elections shall be conducted in accordance with the provisions of law regulating elections of the City of Rohnert Park insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the elections following Resolution 2026-028 Page 4 of 8 the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the elections the close of the Public Hearing on the election day; provided an election shall be closed at such earlier time as all qualified electors in such election have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2026-01. The Registrar of Voters has provided written confirmation, on file with the City Clerk, that there were no registered voters within the District as of April 7, 2026. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding April 28, 2026, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within the District, as provided in Section 53326 of the Act. Section 13. The preparation of the CFD Report is hereby ratified. The CFD Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2026-01. The CFD Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection. Section 14. This Resolution shall be effective upon its adoption. DULY AND REGULARLY ADOPTED BY THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ON this 28th day of April, 2026. C Y OF ROHNERT PARK ily Sanborn, Mayor ATTEST: Sylvia Lopez Cuevas, City Clerk RO FORM: i h le M. Kenyon, City Attorney Attachments: Exhibit A, Exhibit B and Exhibit C ADAMS: GIUDICE: RODRIGUE �LWARD:A SANBORN: e, OYES: ( ) OES: ) ABSENT:( � ) 4BSTAIN:( ) I Resolution 2026-028 Page 5 of 8 ATTACHMENT "A" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR CITY OF ROHNERT PARK COMMUNITY FACILITIES DISTRICT NO. 2026-01 (REDWOOD CROSSINGS) A-1 4931-4626-6525v2/024675-0016 City of Rohnert Park CFD No. 2026-01 1 January 30, 2026 CITY OF ROHNERT PARK COMMUNITY FACILITIES DISTRICT NO. 2026-01 (REDWOOD CROSSINGS) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Special Taxes applicable to each Assessor’s Parcel in the City of Rohnert Park Community Facilities District No. 2026-01 (Redwood Crossings) shall be levied and collected according to the tax liability determined by the CFD Administrator through the application of the appropriate amount or rate for Taxable Property, as described below. All Taxable Property in the CFD shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms as may hereinafter be set forth have the following meanings: “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of the CFD: the costs of computing the Special Taxes and preparing the Annual Special Tax collection schedules; the costs of collecting the Special Taxes (whether by the County or otherwise); the costs associated with preparing the Annual Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City or the CFD related to an appeal of Special Taxes; the City’s administration fees and third party expenses; the costs of City staff time and reasonable overhead related to the CFD; and amounts estimated or advanced by the City or the CFD for any other administrative purposes of the CFD, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Annual Special Tax” means the special tax levied in any Fiscal Year to pay the Annual Special Tax Requirement. “Annual Special Tax Requirement” means the amount necessary in any Fiscal Year to pay the cost of Authorized Services, Administrative Expenses, an amount to create a sinking fund for Authorized Services that could not otherwise be funded in a given Fiscal Year, an amount to build a reserve fund for capital replacement, and an amount equal to Annual Special Tax delinquencies based on the historical delinquency rate for the Annual Special Tax, as determined by the CFD Administrator. “Assessor’s Parcel” or “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 designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, the number assigned to such Assessor’s Parcel by the County for purposes of identification. City of Rohnert Park CFD No. 2026-01 2 January 30, 2026 “Authorized Services” means the public services authorized to be funded by the CFD as set forth in documents adopted by the City Council when the CFD was formed. “Certificate of Occupancy” means a certificate issued by the Building Division of the City, or a letter written by the Building Division of the City to the CFD Administrator, to confirm that a Residential Unit or a building with multiple Residential Units has met all of the applicable building codes and can be occupied for residential use. “Certificate of Occupancy” may include any temporary certificate of occupancy issued by the City. “CFD Administrator” means an official of the City responsible for determining the Annual Special Tax Requirement, providing for the levy and collection of the Annual Special Tax, and performing the other duties provided for herein. “CFD” or “CFD No. 2026-01” means the City of Rohnert Park Community Facilities District No. 2026-01 (Redwood Crossings). “City” means the City of Rohnert Park, California. “City Council” means the City Council of the City, acting as the legislative body of the CFD. “County” means the County of Sonoma. “CPI” means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for All Urban Consumers, All Items, in the San Francisco-Oakland-Hayward area, measured as specified in this Rate and Method of Apportionment. In the event this index ceases to be published, the CPI shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the San Francisco-Oakland-Hayward area. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “Maximum Annual Special Tax” means the maximum Annual Special Tax, determined in accordance with Section C, that can be levied in any Fiscal Year. “Maximum One-Time Special Tax” means the maximum One-Time Special Tax, determined in accordance with Section C, that can be levied on a Parcel of Residential Property in any Fiscal Year. “Maximum Special Taxes” means, collectively, the Maximum Annual Special Tax and the Maximum One-Time Special Tax. “One-Time Special Tax” means the special tax levied on Residential Property at the time of issuance of a building permit or special use permit for new construction pursuant to Section D below. “Proportionately” means that the ratio of the actual Annual Special Tax levied in any Fiscal Year to the Maximum Annual Special Tax authorized to be levied in that Fiscal Year is equal for all Parcels of Taxable Property. City of Rohnert Park CFD No. 2026-01 3 January 30, 2026 “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes. “Residential Property” means, in any Fiscal Year, all Assessor’s Parcels in the CFD for which a building permit or special use permit was issued by the City for construction of a structure consisting of one or more Residential Units. “Residential Unit” means an individual single-family attached or detached home, townhome, condominium, apartment unit, or other residential dwelling unit, including each separate dwelling unit within a half-plex, duplex, triplex, fourplex, or other residential building. “Special Taxes” means, collectively, the Annual Special Tax and the One-Time Special Tax. “Taxable Property” means, for each Fiscal Year, the following: For purposes of levying the One-Time Special Tax, all Parcels of Residential Property. For purposes of levying the Annual Special Tax, all Residential Units for which a Certificate of Occupancy was issued prior to preparation of the Annual Special Tax levy for the Fiscal Year. B. DATA FOR ANNUAL SPECIAL TAX LEVY Each Fiscal Year, the CFD Administrator shall identify the current Assessor’s Parcel Number for all Parcels of Taxable Property within the CFD. The CFD Administrator shall also determine the number of Residential Units built or to be built on each Parcel by referencing the building permit, Certificate of Occupancy, condominium plan, apartment plan, site plan or other development plan for the property. In any Fiscal Year, if it is determined that (i) a parcel map for a portion of property in the CFD was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly-created Parcels meets the definition of Taxable Property, the CFD Administrator shall calculate the Annual Special Tax for the property affected by recordation of the parcel map by determining the Annual Special Tax that applies separately to each parcel of Taxable Property, then applying the sum of the individual Annual Special Taxes to the original Assessor’s Parcel that was subdivided by recordation of the parcel map. C. MAXIMUM SPECIAL TAXES The Maximum Annual Special Tax and the Maximum One-Time Special Tax for each Assessor’s Parcel of Taxable Property shall be $1,066 per Residential Unit for Fiscal Year 2026-27. Beginning June 1, 2027 and each June 1 thereafter, the Maximum Special Taxes to be applied in the following Fiscal Year shall be subject to an automatic increase at a rate equal to the percentage increase, if any, in the CPI from June 1 of the prior Fiscal Year to June 1 of the current Fiscal Year. If the CPI has decreased, there shall be no corresponding decrease in the Maximum Special Taxes. City of Rohnert Park CFD No. 2026-01 4 January 30, 2026 D. METHOD OF LEVY OF THE SPECIAL TAXES 1. Annual Special Tax Each Fiscal Year, the CFD Administrator shall determine the Annual Special Tax Requirement and levy the Annual Special Tax Proportionately on each Assessor’s Parcel of Taxable Property up to 100% of the Maximum Annual Special Tax for each Parcel until the amount levied on Taxable Property is equal to the Annual Special Tax Requirement. 2. One-Time Special Tax The Maximum One-Time Special Tax determined pursuant to Section C above shall be levied on Taxable Property in the CFD as set forth in Section E.2 below. E. MANNER OF COLLECTION 1. Annual Special Tax 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 Annual Special Tax may be collected in such other manner as the City Council shall determine, including direct billing of affected property owners. 2. One-Time Special Tax The Maximum One-Time Special Tax shall be collected at the time a building permit or special use permit is issued for new construction within the CFD and shall be immediately delinquent if not so paid. F. TERM OF ANNUAL SPECIAL TAX The Annual Special Tax shall continue to be levied indefinitely on an annual basis on all Taxable Property in the CFD. G. INTERPRETATION OF SPECIAL TAX FORMULA The City reserves the right to make minor administrative and technical changes to this Rate and Method of Apportionment that do not materially affect the rate and method of apportioning the Special Taxes. In addition, the interpretation and application of any section of this Rate and Method of Apportionment shall be left to the City’s discretion. Interpretations may be made by the City Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. ATTACHMENT "B" TYPES OF SERVICES TO BE FINANCED BY CITY OF ROHNERT PARK COMMUNITY FACILITIES DISTRICT NO. 2026-01 (REDWOOD CROSSINGS) The City of Rohnert Park Community Facilities District No. 2026-01 (Redwood Crossings) (the "District") shall be authorized to finance all or a portion of the costs of the types of services permitted pursuant to Government Section 53313, which shall include, but not be limited to, the following: the provision of public safety services to developed property, the maintenance, rehabilitation and reconstruction of publicly owned landscapes, parks, playgrounds, signage, curbs, gutters, sidewalks, and decorative walls, and the permitting, operation, maintenance, monitoring, rehabilitation and reconstruction of publicly owned drainage and storm water treatment systems, together with all appurtenances and appurtenant work in connection with the foregoing and any other expense incidental to providing the services and maintaining the facilities that provide the services, all to the extent that such services are in addition to those provided in the territory of the District prior to its creation. The Services listed herein are representative of the types of Services authorized to be funded by the District and the detailed scope and limits of specific maintenance activities and projects will be determined as appropriate,consistent with the standards of the City. Addition,deletion or modification of descriptions of the Services may be made consistent with the requirements of the City Council of the City of Rohnert Park and the Mello-Roos Community Facilities District Act of 1982. The Incidental Expenses to be paid from the special taxes include:all costs associated with the annual administration cost of the District including the costs of developing budgets, calculating the special taxes and levying the taxes with the County of Sonoma for collection. Annual administration costs may include costs for City staff time as well as outside legal and financial consultants and any fees charged by the County of Sonoma. B-1 4931-4626-6525v2/024675-0016 ATTACHMENT "C" BALLOT PROPOSITIONS CITY OF ROHNERT PARK COMMUNITY FACILITIES DISTRICT NO. 2026-01 (REDWOOD CROSSINGS) SPECIAL TAX ELECTION April 28,2026 PROPOSITION A: Shall a special tax with a rate and method of apportionment as provided in Resolution No. 2026-26 of the City YES Council of the City of Rohnert Park be levied to pay for the Services, Incidental Expenses and other purposes described in NO Resolution No.2026-26 of the City Council of the City of Rohnert Park? PROPOSITION B: For each year commencing with Fiscal Year 2026-27, shall the appropriations limit, as defined by subdivision YES (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal to [$100,000,000], increased NO annually in accordance with California law? C-1 4931-4626-6525v2/024675-0016