DIAMOND
SPRINGS-EL DORADO FIRE PROTECTION
DISTRICT |
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Number: Article 5.1 |
Date: 10/11/2006 |
Revision Date: 05/27/2009 |
Subject: Community Facilities District [ index ] |
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I. Purpose
This document sets forth the goals and policies of the Diamond Springs / El Dorado Fire Protection District (the “District”) concerning the use of the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Section 53311 and following of the California Government Code) with respect to community facilities districts for which debt will not be issued. It has been prepared pursuant to the requirements of Section 53312.7 of the Act.
II. Fundamental Policy
It is the policy of the District that, except as specifically limited by these goals and policies, the Board of Directors may exercise all rights, powers, and authorities granted to it by the Act. The silence of these goals and policies with respect to any matter shall not be interpreted as creating any policy with regard to that matter. Any inconsistency between these goals and policies and the Act, as amended, shall be resolved in favor of the Act.
III. Relationship to Other Goals and Policies
These goals and policies shall only govern the establishment and administration of community facilities districts with respect to which the District has not issued, and does not plan to issue, special tax bonds or other marketable debt. In the event a Community Facilities District (a “CFD”) is established that would be subject to both these goals and policies and some other local goals and policies previously or hereafter adopted by the Board of Directors for a specific area of the District or for some special purpose, the Board of Directors may designate with which of the goals and policies the CFD shall be consistent, and need not comply with any other goals and policies which would otherwise be applicable.
IV. Financing Priorities
The purpose of the District’s use of the Act is to finance services and facilities necessitated by development or planned development within a proposed CFD. The District may also use the Act to finance other necessary or useful services or facilities authorized to be financed pursuant to the Act.
V. Exhibit A
In selecting services and facilities to be financed, the District may finance any services or facilities permitted to be financed under the Act. Priority for financing may be given to services, such as public safety services and similar District services, which will be demanded by the owners or occupants of parcels within a CFD as a result of increases in the intensity of use of territory within the CFD.
As permitted by the Act, the District may finance services and facilities to be owned and operated by other public agencies, including school districts.
A. Equity of Tax Allocation Formulas
It is a goal of the District that any special tax levied pursuant to the Act be allocated equitably against all similar parcels within any CFD.Towards this end, the District will engage a qualified special tax consultant to assist in the development of the rate and method of apportionment for any special tax proposed in connection with a CFD.
Parcels should, at a minimum, be classified according to whether they are undeveloped, approved with a final map, developed as a fractional use development, developed for residential uses, or developed for non-residential uses. Because undeveloped parcels, approved with a final map parcels, developed fractional use parcels, developed residential parcels and developed non-residential parcels have dissimilar economic and other impacts upon the District and its residents, place different demands upon District resources, and provide different benefits to the District, its residents and its economy, a CFD may be created that levies a tax upon less than all of these five classes of parcels. Similarly, a CFD may be created that taxes only one of these classes of parcels where such differentiation is requested by a property owner to comply with requirements of the planning laws of the District. However, between parcels within a class, the District may attempt to maintain equity by, for example, taxing each single family dwelling within a CFD at the same rate, or taxing each fractional-use unit in a fractional development at the same rate per week of ownership interest.
The District recognizes that any determination of tax equity must rely, to a large extent, on assumptions based on average characteristics of parcels, and that an exactly fair share of costs can not be perfectly estimated with respect to any parcel or class of parcel. Consequently, the District may rely on any reasonable tax apportionment analysis, in its sole and absolute discretion. Furthermore, in its sole and absolute discretion, the District may permit the allocation of special taxes on any basis that is rationally related to the purpose of the CFD, but may not be based on assessed valuation.
Because any special tax levied pursuant to these goals and policies will be for the ongoing provision of services, any special tax methodology may provide for an annual rate increase to reflect inflation. Such annual inflation adjustment may be tied to the Consumer Price Index for All Urban Consumers for the San Francisco-Oakland-San Jose area, or to any other index deemed appropriate by the District.
It is not desirable that the annual special tax on any parcel pursuant to these Goals and Policies exceed an amount equal to a total tax rate of 2%, including the general property taxes and other special taxes or assessments, per year per dwelling unit, hotel room or similar occupyable space. Taxes upon fractional use parcels shall be scaled proportionately to weeks of ownership interest represented by the parcel. This is the maximum tax that may be levied pursuant to these Goals and Policies unless the Board of Directors finds that a higher amount would be more appropriate in light of the attributes of the parcel. The maximum tax rate for developed parcels that do not contain dwelling units, hotel rooms, or similar occupyable spaces shall be an equitable rate that is comparable to that given above, to be determined by the Board of Directors.
B. Issuance of Bonds—Statement Regarding Credit Policy and Appraisal Standards
At this time, it is the policy of the District to utilize the Act pursuant to these goals and policies only for the financing of services and minor improvements to facilities. Therefore, these goals and policies do not authorize the issuance of bonds pursuant to Article 5 of the Act.
As a consequence, these goals and policies do not include a statement regarding credit policies or a statement of definitions, standards, and assumptions to be used in appraisals.
The Board of Directors may, in the future, amend these goals and policies to permit the issuance of bonds.
C. Responsible Department
The District’s Fire Chief, who is located at 501 Main Street, Diamond Springs, California 95619 and whose telephone number is (530) 626-3190, is designated as the official of the District who will serve as CFD Administrator and who is responsible for: (i) preparing the annual roll of special tax obligations with respect to any CFD; (ii) providing information to interested persons regarding the current and estimated future tax liability of owners or purchasers of real property subject to the special tax lien; and (iii) furnishing notices of special tax as required by Section 53340.2 of the Act.
Subject to the policies of the District, and as permitted by applicable law, the District may obtain the assistance of a qualified consultant to perform any of the duties set forth above.
D. Transparency and Notification
The District will take the following steps to ensure that prospective property purchasers are fully informed about their taxpaying obligations imposed under the Act:
1) It will conduct all proceedings required by the Act in the manner required by the Ralph M. Brown Act (Section 54950 and following of the California Government Code);
2) It will cause a map of the boundaries of any proposed CFD to be recorded, pursuant to Section 3111 of the California Streets and Highways Code, in the Office of the Recorder of El Dorado County within 15 days following the adoption, of a resolution of intention to form that CFD, pursuant to Section 53321 of the Act;
3) It will give notice, pursuant to Section 53322 of the Act, prior to holding any public hearing on the establishment of a CFD;
4) It will record a notice of special tax lien, in the form specified by Section 3114.5 of the California Streets and Highways Code, within 15 days of the Board of Directors’s determination that the requisite number of voters are in favor of the levy of a special tax in connection with a CFD. Such notice will include, among other information:
a) A description of the rate, method of apportionment, and manner of collection of the authorized special tax;
b) Information about the conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien of the special tax canceled;
c) The name(s) of the owner(s) and the assessor’s tax parcel number(s) of the real property included within this community facilities district and not exempt from the special tax; and
d) The name, address and telephone number of the CFD Adminstrator, so they may contact the CFD Administrator to obtain further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to the special tax lien.
5) It will, through the CFD Administrator, furnish a notice of ny individual requesting the notice or any owner of property subject to aspecial tax, in the form set forth in Section 53340.2(c) of the Act to a special tax levied by the local agency within five working days of a request for such notice. The Board of Directors may establish a reasonable fee for this service.
E. CFD Costs Deposits and Reimbursements
All District and consultant costs incurred in the establishment of a CFD shall be paid by the entities, if any, requesting establishment of the CFD.
F. Interpretation
The Board of Directors is empowered to interpret these Goals and Policies. A finding by the Board of Directors that a CFD conforms with the provisions of these Goals and Policies shall be conclusive evidence of such conformity.
G. Amendment
These Goals and Policies may be amended from time to time by resolution of the Board of Directors.
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