HomeMy Public PortalAbout19-009 - Community Facilities District No. 2018-01RESOLUTION NO. 19-009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON ACTING
IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF CARSON
COMMUNITY FACILITIES DISTRICT NO. 2018-01 (MAINTENANCE AND
SERVICES) APPROVING ADMINISTRATIVE ANNEXATION PROCEDURES
FOR FUTURE PROPERTIES WITHIN THE FUTURE ANNEXATION AREA BY
UNANIMOUS APPROVAL AND ADOPTING THE CITY-WIDE TAX RATES
WHEREAS, on September 18, 2018, the City Council of the City of Carson ("the "City") adopted
Resolution No. 18-083 (the "Resolution of Intention"), stating its intention to form City of Carson
Community Facilities District No. 2018-01 (Maintenance and Services) (the "CFD") and Future Voluntary
Annexation Area (the "Future Annexation Area") pursuant to Chapter 2.5 of Part 1 of Division 2 of Title
5, commencing with Section 53311, of the California Government Code (the "Act"); and
WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the
CFD and Future Annexation Area, and stating the services to be provided, and the rate and method of
apportionment of the special tax to be levied within the CFD to pay for the services, is on file with the
City Clerk and the provisions of the Resolution of Intention are incorporated herein by this reference as
if fully set forth herein; and
WHEREAS, the Resolution of Intention called for a public hearing on November 7, 2018 as
required by the Act relative to the proposed formation of the CFD and the Future Annexation Area; and
WHEREAS, at the hearing, all interested persons desiring to be heard on all matters pertaining
to the formation of the CFD and Future Annexation Area, the services to be provided therein and the
levy of such special tax were heard and a full and fair hearing was held; and
WHEREAS, no written protests were filed with the City Clerk by 50% or more of the registered
voters residing within the territory of the CFD or Future Annexation Area, or property owners that own
one-half or more of the area of land within the CFD or Future Annexation Area, and not exempt from
the proposed special taxes; and
WHEREAS, on November 7, 2018, the City Council adopted Resolution No. 18-119 (the
"Resolution of Formation"), which is on file with the City Clerk and the provisions of the Resolution of
Formation are incorporated herein by this reference, that ordered the formation of the CFD, defined the
public services (the "Services") to be provided by the CFD, authorized the levy of a special tax on
property within the CFD, preliminarily established an appropriations limit for the CFD, and approved
future qualifying projects the ability to voluntarily annex into the Future Annexation Area, all pursuant
to the Act; and
WHEREAS, on November 7, 2018, the City Council adopted Resolution No. 18-120 that called a
special election for November 7, 2018, at which the questions of levying a special tax and establishing an
appropriations limit with respect to the CFD were submitted to the qualified electors within the CFD;
and
01007.0018/526138.7 MES RESOLUTION NO. 19-009
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WHEREAS, on November 7, the City Council adopted Resolution No. 18-121, that declared the
results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special
election were in favor of the issue presented, and such measure passed; and
WHEREAS, on November 13, 2018 a notice of special tax lien was recorded with the Office of
the County Recorder of the County of Los Angeles, as Document No. 20181142886 (the "Notice of
Special Tax Lien"), thereby giving notice that the lien to secure payment of the special tax was imposed
on the land in the CFD; and
WHEREAS, the Resolution of Formation specified that the Future Annexation Area is voluntary
and the intent is to allow future qualifying projects the opportunity to annex; and
WHEREAS, the Council wishes to reiterate that voluntary annexation in to the CFD is one option
to mitigate the fiscal impacts, and that applicants may continue to elect other alternatives to satisfy
those fiscal impacts, such as an up -front one-time payment; and
WHEREAS, the territories of the CFD and Future Annexation Area are set forth in the map of the
CFD heretofore recorded on September 20, 2018 in the Los Angeles County Recorder's Office at Book
194 of Maps of Assessment and Community Facilities Districts at Pages 88 and 89, to which map is
incorporated herein by this reference; and
WHEREAS, public convenience and necessity require that the future territories within the Future
Annexation Area be added to the CFD when certain procedural requirements are met (the "Annexation
Approval Procedure"); and
WHEREAS, pursuant to the rate and method of apportionment, on file with the City Clerk and
which was attached to the Resolution of Intention, territories within the Future Annexation Area may
be part of different tax zones based on their project impacts on Services or other relevant information;
and
WHEREAS, the City has caused to be prepared a fiscal impact analysis report entitled Fiscal
Impact Analysis for Citywide Future Development dated February, 2019 prepared by NBS Government
Financial Group, which is attached hereto as Exhibit A and incorporated herein by this reference (the
"Report") presented herewith and by this reference incorporated herein delineating the fiscal impacts of
certain projects, including residential, commercial and industrial on services within the City; and
WHEREAS, the Report describes the fiscal impacts of new development on services within the
city based on the residential, industrial or commercial population, including certain enhanced services
for parks, sidewalks, and roadways; and
WHEREAS, the Report makes recommendations on proposed CFD tax rates for new
development within the City to the extent of these impacts to cover the additional costs of the Services,
including certain enhanced services; and
WHEREAS, the City desires to use these taxes as the basis of a standardized tax to be applied
within the Future Annexation Area with respect to projects creating such impacts on the Services; and
01007.0018/526138.7 MES RESOLUTION NO. 19-009
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WHEREAS, other projects, which in addition to such fiscal impacts, may provide even additional
burdens on Services may warrant an additional tax may be delineated in an additional tax zone or
alternative tax zone or district approved by the City Council; and
WHEREAS, Due to an influx of new development projects, including, 1,470 multiple family
dwelling units; 810,000 square feet of commercial; 68,360 square feet of office; 1,073,280 square feet of
industrial/business park; 2,187 truck yard spaces; 247 hotel rooms; 599,000 square feet of recreational
development and 300 dormitory rooms in the next few years, the City must consider strategies for
maintaining and improving current services in response to incoming developments that reflect
economic growth but also place demands on City services. Without a CFD, the City will not be able to
sustain its existing level of services due to the fact that Carson is a very low property tax city, meaning it
had no local property rate in the three years preceding the adoption of Prop. 12 in 1978, and therefore,
has a permanently small share of the 1% property tax allowed by Prop. 13 as compared to other cities
(6.75%); the City's assessed property values have not increased at the same rate as neighboring cities in
part due to the heavy industrial presence in the City of petroleum and other industrial and
manufacturing uses, resulting in slower property tax revenue growth; Carson also has one of, if not the
lowest, utility users tax in the region with a sunset clause; prior to the 1950s the County of Los Angeles
allowed cities to incorporate as full property tax cities; Carson incorporated in 1968 and was required to
accept low property tax status in order for the County to agree to city formation. Although, many cities
use property and utility user's taxes to fund City services, the low tax property tax and low utility user's
tax rates in Carson amplify the City's fiscal challenges; and while Carson was long able to rely on
redevelopment revenues to fund capital costs in the City, the State's decision to terminate
redevelopment, has stripped the City of those revenues.
WHEREAS, the City Council desires to harmonize the estimated benefits of the CFD and disclose
the potential special taxes that will be imposed for certain land use categories of projects within the
Future Annexation Area; and
WHEREAS, in connection therewith, the City desires to establish a "Tax Zone No. 4" which would
apply to qualifying projects, located within the Future Annexation Area, that meet the requirements for
certain land uses, which are further described in Exhibit "B" hereto; and
WHEREAS, the City Council now wishes to approve the administrative procedures to allow City
staff to process and approve future annexations of property within the Future Annexation Area into the
city-wide CFD in accordance with the simplified process for annexations under Sections 53328.1,
53339.7 and 53339.8 of the Act, which sections permit annexation to the CFD with the unanimous
written consent of the property owners of parcels of property within the Future Annexation Area; and
WHEREAS, the City Council also desires to state which projects will be accepted for future
annexations in the city-wide CFD.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, ACTING AS LEGISLATIVE BODY
OF THE CITY OF CARSON COMMUNITY FACILITIES DISTRICT NO. 2018-01 (MAINTENANCE AND
SERVICES) DOES HEREBY RESOLVE AS FOLLOWS:
1. Recitals. The City Council finds and determines that all the foregoing recitals are true
and correct and incorporated herein.
01007.0018/526138.7 MES RESOLUTION NO. 19-009
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Z. Qualifying Projects. The City Council hereby finds and determines that only certain
projects shall qualify as projects to be annexed into the CFD: (i) projects that will, or have, received
exceptions to the moratorium concerning the establishment, expansion, or modification of logistics
facilities (Interim Urgency Ordinance No. 17-1615U, extended by Interim Urgency Ordinance Nos. 17-
1618U and 18-180SU) (ii) new construction or significant demolition (in relationship to project site) and
redevelopment of residential projects with five (5) dwelling units or more, (iii) new construction or
significant (in relationship to project site) demolition and redevelopment of industrial projects, and (iv)
building additions (industrial) that increase total on-site building footprint by at least 100% or more.
Senior housing and affordable housing projects shall not qualify as projects to be annexed into the CFD.
3. City -Wide Fiscal Impact Analysis. The City Council hereby finds and approves the
determinations, including the recommended fiscal impact rates by land use categories, made within the
Report, which the Report describes in detail the fiscal impacts, information and tax liability of future
projects by land use categories within the Future Annexation Area. The Report describes the maximum
special tax rate for each category of project annexed in to the CFD at a level to ensure that the amounts
levied on such parcel or parcels is sufficient to pay their respective share of the costs of Services to be
provided. Said level of CFD services and special tax rates identified within the Report are for additional
and enhanced services required to meet the increased demand and service level standards on existing
City services. These additional services do not supplant services already available within the City.
4. City -Wide Tax Zone No. 4. The City Council hereby approves of the Rate and Method of
Apportionment applicable to City -Wide Tax Zone No. 4 which is based on the tax rates and impacts
described in the Report and attached hereto as Exhibit "B" and incorporated herein. The City has
determined to adopt lower rates in Tax Zone No. 4 than those described in the Report.
S. Annexation Approval Procedure. The City Council hereby determines that from time to
time, parcel or parcels within the Future Annexation Area may be annexed to the CFD with the
unanimous approval (each, a "Unanimous Approval") of the owner or owners of each parcel or parcels
at the time that parcel(s) are annexed, and in accordance with the Annexation Approval Procedure
described herein, however, the designation of property as in the Future Annexation Area and the ability
to annex property to the CFD based on Unanimous Approval shall not limit, in any way, the annexation
of property in the Future Annexation Area pursuant to other provisions of the Act:
The annexation and related matters described in the Unanimous Approval shall be implemented
and completed by officers, staff, and administration of the City without the need for the approval of City
Council as long as the following conditions are met:
(i) The improvements on the subject parcel or parcels of land within the Future Annexation
Area (the "Property") qualify as a Qualifying Project subject to annexation into the CFD;
+ (ii) The owner or owners (the "Property Owner") of the Property to be annexed into the
CFD, or in certain occasions the developer or alternate person with authority to act on behalf of the
Property Owner (the Alternate Person"), shall file the appropriate application and pay the required fees,
subject to the review and approval of the Community Development Department. To the extent the
Alternate Person files the necessary applications, the Alternate Person shall cause or inform the
Property Owner of the requirements to annex into the CFD or take the necessary alternative actions to
mitigate their negative fiscal impact in accordance with these requirements.;
01007.D018/526138.7 MES RESOLUTION NO. 19-009
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(iii) The rate and method of apportionment of special tax for the Property shall be the tax
specified in Tax Zone No. 4, as adjusted annually pursuant to the RMA and in substantially the form
attached as Exhibit "B" hereto and incorporated herein by this reference;
(iv) The Property's impact from the Qualifying Project shall qualify for and be consistent
with the maximum special tax rates contained in the Report; unless the project imposes additional
burdens on City services warranting an additional tax that may be delineated in the rate and method of
apportionment as an additional and separate tax zone or alternative tax zone approved by the City
Council;
(v) The Property Owner shall submit a Unanimous Approval in substantially the form
attached as Exhibit "C" hereto and incorporated herein by this reference by the earlier of the timeline
specified under Project's Conditions of Approval or prior to issuance of any permits. The Property shall
be annexed into the CFD and categorized within the appropriate land use as identified in Tax Zone No. 4
of the rate and method of apportionment. The City Council hereby finds that the Property Owners
written Unanimous Approval is equivalent to an election pursuant to Government Code Section
53339.7(a) of the Act. The Property shall be added to and part of the existing CFD with full legal effect,
and the City staff shall do any and all things to levy any special tax within the annexed territory as
specified in any Ordinance adopted with respect with respect to the Property, as specified in the
Resolution of Intention to annex adopted pursuant to Section 53339.2, and as specified in the Ordinance
adopted pursuant to Government Code Section 53340. Each annexation shall be deemed effective upon
execution of the Unanimous Approval.
(vi) The supplemental map of the CFD shall be prepared by a special consultant retained by
the City and paid for by the Property Owner submitting the Unanimous Approval. The supplemental
map shall be entitled "Annexation Map No. _ of City of Carson Community Facilities District No. 2018-1
(Maintenance and Services)," which shall be on file with the City Clerk, and shall be added to and part of
the CFD with full effect. The City Clerk, or designee, shall endorse the certificates set forth on the map
and shall record the map in accordance with the provisions of Sections 3111, 3113 and 3113.5 of the
Streets and Highways Code of the State of California. Each annexation shall be numbered sequentially
based on date annexed, if practical.
(vii) Upon meeting the conditions above, the City Clerk, or designee, shall complete, execute
and cause to be recorded in the office of County Recorder of the County of Los Angeles, an amendment
to the Notice of Special Tax Lien, in accordance with the provisions of Sections 3114.5 and 3117.5 of
California Streets and Highways Code of the State of California within fifteen (15) days of the acceptance
of the fully executed and completed Unanimous Approval and any and all applicable fees, evidencing
that the Property is added to the CFD. The amended Notice of Special Tax Lien shall be in substantially
the form attached as Exhibit "D" hereto and incorporated herein by this reference.
6. Approval by City Council. For any annexations of property that do not meet the
requirements of or substantially differ from the Annexation Approval Procedures in Section 5 of this
Resolution shall require the review, consideration, and approval of the City Council to legally effectuate
the annexation. Reasons for such differences may include but are not limited to, additional impacts,
large projects or other unique considerations affecting such projects.
7. Report's Recommended Approach. The City Council hereby finds and determines that
the recommendation for future projects to annex into the CFD is one of many financing options that
01007.0018/526138.7 MES RESOLUTION NO. 19-009
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future project applicants may use to mitigate the overall negative fiscal impact identified. Although
annexation into the CFD is the most practical approach to mitigate the negative fiscal impacts, project
applicants may be able to use alternative financing approaches in lieu of annexing into the CFD subject
to the review and approval of the City Council.
8. Administrative Regulations. The City Manager is hereby authorized to adopt rules and
regulations consistent with this Resolution as needed to implement this Resolution, subject to the
review and approval of the Office of the City Attorney, and to develop all related forms and/or materials
and take other steps needed to implement this Resolution, and make such interpretations of this
Resolution as he or she may consider necessary to achieve the purposes of this Resolution.
9. Effective Date. The City Clerk, or designee, shall certify the adoption of this Resolution.
This Resolution shall take effect upon its adoption.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Carson at a regular
meeting held on the 2"d day of April, 2019
[Signatures on Following Page]
01007.0018/526138.7 MES RESOLUTION NO. 19-009
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APPROVEDASTOFORM:CITYOFCARSON:.oItai,y,MayorATTEST:DonesiaGause-Aldana,MMC,CityClerkSTATEOFCALIFORNIACOUNTYOFLOSANGELES)ss.CITYOFCARSONI,DonesiaGause-Aldana,CityClerkoftheCityofCarson,California,herebyattesttoandcertifythattheforegoingresolution,beingResolutionNo.19-009,adoptedbytheCityofCarsonCityCouncilatitsmeetingheldonApril2,2019,bythefollowingvote:AYES:COUNCILMEMBERS:Robles,Davis—Holmes,HicksNOES:COUNCILMEMBERS:Hilton,DearABSTAIN:COUNCILMEMBERS:NoneABSENT:COUNCILMEMBERS:NoneDonesiaGause-Idana,MMC,CityClerk01007.0018/526138.7MESRESOLUTIONNO.19-009Page7of77
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EXHIBIT "A"
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
FISCAL IMPACT ANALYSIS
CITY OF CARSON
Report For.,
Fiscal Impact Analysis for
Citywide Future Development
March 2019
Prepared by:
")NBS-
halpiny oommunitlas
fund tomorrow
nbsgov.com RESOLUTION NO. 19-009 (Exhibit A)
Page 8 of 77
Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 600.676.7516
TABLE OF CONTENTS
Section1 INTRODUCTION....................................................................................................1
Section2 BACKGROUND......................................................................................................2
AnalysisMethodology..............................................................................................................2
CurrentCity Persons Served.................................................................................................... 3
FutureCity Development.........................................................................................................4
Section 3 1 REVENUE ESTIMATE.............................................................................................7
PropertyTax Revenue..............................................................................................................7
Property Tax in Lieu of Vehicle License Fee ("VLF") Revenue.................................................8
DocumentaryTransfer Tax.......................................................................................................9
SalesTax Revenue..................................................................................................................10
OtherCity Revenue................................................................................................................13
Future Development Revenue Summary ...............................................................................15
Section 4 1 EXPENDITURES ESTIMATE..................................................................................16
City Expenditure per Person Served......................................................................................17
Future Development Expenditure Summary.........................................................................18
Section S I FUTURE DEVELOPMENT FISCAL IMPACT.............................................................19
Future Development Fiscal Impact per Dwelling Unit or Acre..............................................19
Section 6 1 FISCAL IMPACT FUNDING OPTIONS....................................................................21
Community Facilities Districts................................................................................................21
CFD Special TaxRecommendation.........................................................................................23
Section 7 1 CFD SERVICES AND SPECIAL TAX RATES..............................................................
24
Enhanced Park and Sidewalk Services...................................................................................24
Enhanced Roadway Services..................................................................................................25
CFDSpecial Tax Rates.............................................................................................................28
APPENDIX A — INDUSTRIAL ZONE MAP.................................................................................29
RESOLUTION NO. 19-009 (Exhibit A)
Page 9 of 77
LIST OF TABLES
Table 1. Current Residential and Employee Population.......................................................................................3
Table 2. Current Persons Served..........................................................................................................................4
Table 3. Future Residential and Employee Population........................................................................................ 4
Table 4. Future Development Persons Served.....................................................................................................
5
Table S. Future Residential Dwelling Units...........................................................................................................
6
Table 6. Future Non -Residential Building Square Footage...................................................................................
6
Table 7. Residential Secured Property Tax Revenue............................................................................................
7
Table 8. Non -Residential Secured Property Tax Revenue....................................................................................
8
Table 9. Future Development Secured Property Tax Revenue............................................................................
8
Table 10. Property Tax in Lieu of VLF Ratio..........................................................................................................
9
Table 11. Future Development Property Tax in Lieu of VLF Revenue..................................................................
9
Table 12. Future Development Documentary Transfer Tax...............................................................................10
Table 13. Residential Sales Tax Revenue............................................................................................................11
Table 14. Future Commercial Sales Tax Revenue...............................................................................................12
Table 15. Employee Sales Tax Revenue..............................................................................................................12
Table 16. Allocated Employee Sales Tax Revenue..............................................................................................13
Table 17. Future Development Sales Tax Revenue............................................................................................13
Table18. Other City Revenue.............................................................................................................................14
Table 19. Other City Revenue per Person Served..............................................................................................14
Table 20. Future Development Other City Revenue..........................................................................................15
Table 21. Future Development Total Revenue...................................................................................................15
Table 22. City Expenditures Summary ................................................................................................................16
Table 23. City Expenditures per Person Served..................................................................................................17
Table 24. Future Development Total Expenditures............................................................................................18
Table 25. Future Development Overall Fiscal Impact.........................................................................................19
Table 26. Residential Fiscal Impact per Dwelling Unit........................................................................................19
Table 27. Commercial and Industrial Fiscal Impact per Acre.............................................................................
20
Table 28. Future Development Fiscal Impact Summary .....................................................................................
20
Table 29. City Expenditures Allocated to Future Residential Development......................................................
22
Table 30. Enhanced Park and Sidewalk Services per Future Person Served......................................................25
Table 31. Future Development Enhanced Park and Sidewalk Services per Dwelling Unit/Acre........................25
Table 32. Enhanced Roadway Services Costs.....................................................................................................
26
Table 33. Enhanced Roadway Services per Future Person or Employee...........................................................
26
Table 34. Future Development Enhanced Roadway Services per Dwelling Unit/Acre......................................
27
Table 35. Additional Enhanced Roadway Services per Industrial Zone..............................................................
27
Table 36. Proposed CFD Special Tax Rates - Residential Property ....................................................................
28
Table 37. Proposed CFD Special Tax Rates - Non -Residential Property............................................................
28
RESOLUTION NO. 19-009 (Exhibit A)
Page 10 of 77
SECTION 11 INTRODUCTION
The City of Carson ("City") is undertaking a comprehensive review of the net fiscal impact that would be
placed upon the City based upon the potential future development or redevelopment throughout the City.
To summarize, our review of the anticipated revenues, which will be generated from future development,
as compared with the additional costs the City will incur to provide recurring public services, future
residential development produces an overall negative fiscal impact and future non-residential
development produces an overall positive fiscal impact for the City. To off -set the negative fiscal impacts
produced from future residential development, the City should explore establishing a funding source to
mitigate those negative fiscal impacts. Further, the established funding source could also pay for
additional, enhanced levels of service needed from future residential and non-residential development.
This fiscal impact report will provide a background of the project, financial information, and recommended
actions for the City's consideration, To accomplish this objective, the report includes the following
information:
Background information. The introductory portion of the report focuses on the City, as well as the
public services and operations under review. Existing and future development information is also
addressed in this section.
Revenues. This section of the report identifies the various revenue sources and the potential
recurring revenues produced from future development, given certain reasonable assumptions.
Expenditures. The expenditure section of the report identifies the estimated recurring cost burden
placed upon City operations as a result of future development.
- Fiscal Impact. Using future development's identified revenues and expenditures, this section of the
report identifies the overall fiscal impact to City operations resulting from future development.
Fiscal impacts are addressed on a land use basis in both aggregate and using a per unit factor.
Depending on the objectives of the analysis, the per unit factor may be on a per person served, per
dwelling unit, per parcel, and/or per acre basis.
- Recommendations. Finally, the report concludes with a summary of findings and recommendations
for the City's consideration.
City of Carson
N BS Fiscal Impact Analysis for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 11 of 77
SECTION 2 1 BACKGROUND
New development can provide a significant benefit to a public agency. As part of the overall decision-
making process to move forward with a proposed development project, it is important to evaluate the
contributions and demands that development will place upon a public agency's general fund. In this
particular instance, the City needs to determine and ensure that developing and redeveloping property,
throughout the City, pays their fair share of any additional fiscal burdens placed upon the City's operational
budget as a result of future development and redevelopment. To determine the potential positive or
negative fiscal impacts placed upon the City from the proposed future development or redevelopment, this
fiscal impact analysis is designed to quantify the approximate cost of services provided by the City in order
to serve the added population. This fiscal impact analysis assumes that future development will impact
current City services in a similar manner that existing development within the City impacts those public
services. Further, the analysis anticipates that the same level of public services that are currently provided
throughout the City will also be provided to future development. Any enhanced level of public services
desired or services not currently provided by the City that may be provided to future development is
addressed separately in this fiscal analysis. Costs to provide any enhanced levels of service or the inclusion
of new services to future development would be in addition to the costs identified in the fiscal impact
analysis portion of the report.
To determine future development's overall fiscal impact, this fiscal analysis focuses on the estimated
recurring revenue produced from future development compared to the increased demands placed upon the
City's recurring operational budget. Revenue estimates for this fiscal analysis do not include one-time
development impact fees that are paid to offset additional burdens placed upon public infrastructure or
economic impacts generated from the construction of future infrastructure. Similarly, the expenditure side
of the analysis may exclude certain government transfers or capital allocations directed towards public
infrastructure.
Analysis Methodology
The revenue portion of the fiscal impact analysis focuses on various taxes, fees, and other City revenues.
The expenditures portion of the fiscal impact analysis includes general government activities, public safety
protection, community development, and other recurring City expenditures.
There are several industry -accepted methods for allocating the public agency's revenues and expenditures
to future development. This analysis largely focuses on two industry standard approaches: the case study
approach and the multiplier approach. Both of the approaches are summarized below.
CASE STUDY APPROACH
When data used in a fiscal impact analysis is specific to the analysis itself and is not dependent upon
industry accepted generalized multipliers such as the number of residents, employees, etc., the case study
approach is utilized. The case study approach relies on development -specific data to estimate the fiscal
impacts of the proposed development of a project. Data used in the case study approach may include
assessed valuations, property turnover rates, residential and employee populations, household Incomes,
estimated sales, and retail expenditures.
NBS+ City of Carson
�7 Fiscal Impact Analysis for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 12 of 77
MULTIPLIER APPROACH
The multiplier approach is used in a fiscal impact analysis when the relationship of the revenues or
expenditures generated from the proposed project are difficult to measure. This approach anticipates that
certain revenues and expenditures are indicators of future anticipated revenues and expenditures, which
can be quantified based upon changes in the number of persons served. To apply this approach, the analysis
determines an average revenue or expenditure amount on a per person served basis. Depending on the
type of revenue or expenditure, the person served can include a resident, employee, or combination of
both.
Current City Persons Served
In order to best utilize the multiplier approach in the fiscal impact analysis, and to allocate applicable
revenues and expenditures, City population information is needed. In this particular instance, the City's
existing residential and employee population figures need to be identified.
CURRENT RESIDENTIAL AND EMPLOYEE POPULATION
Current City population data used in this fiscal impact analysis was obtained from the 2017 Local Profiles
Report prepared by the Southern California Association of Governments' ("SCAG Profile Report"). According
to the SCAG Profile Report, the City's 2016 total residential population was 93,799 residents and the City's
total employee population was 60,804 employees.
TABLE 1. CURRENT RESIDENTIAL AND EMPLOYEE POPULATION
Current
Description Population
Current Residential Population 93,799
Current Employee Population 60,804
CURRENT PERSONS SERVED
Using the residential and employee population estimates provided above, the total number of persons
currently served within the City can be determined. When establishing the total number of persons served
within an area, it should be noted that the employee population does not have the same impacts that the
residential population has on an agency's public services. While the exact service demand relationship
between an employee and a resident is often difficult to measure, a relationship of one-half employee to
one resident is common fiscal practice. This 50% employee adjustment suggests that a resident will have
twice the demand on a public agency's revenues and services than that of an employee. Applying this 50%
adjustment to the City's existing employee population base, the total number of persons served within the
City is provided in the table on the following page.
1 Footnote: Profile of the City of Corson, Local Profiles Report 7017, Southern California Association of Governments, May 2017.
City of Carson
N BS Fiscal Impact Analysis for Citywide Future development
RESOLUTION NO. 19-009 (Exhibit A)
Page 13 of 77
TABLE 2. CURRENT PERSONS SERVED
Residential
Population Served
Employee
Population Served(l)
Current
Persons Served
93,799
30,402
124,201
(1) Adjusted to reflect 50% of the total employee population of 60,804.
Based upon the City's residential population and adjusted employee population, the total number of
persons currently served within the City is 124,201 persons.
Future City Development
The City is located in the central portion of southern Los Angeles County, commonly known as the South
Bay region. The City is about ten miles south of downtown Los Angeles and three miles north of the Ports of
Los Angeles and Long Beach. While the City is mostly developed, opportunities for development and
redevelopment still exist throughout the City. According to the January 2018 Carson 2040 Existing
Conditions Report2 ("Existing Conditions Report"), the largest land use within the City is designated as
industrial. The City's industrial land uses include warehousing, manufacturing, refineries, and storage
activities. The next largest land use identified within the City is residential, and there are several residential
development projects that are either approved, under construction, or under review.
As part of the Existing Conditions Report, many opportunity sites have been identified as having the
potential for future land use or intensity changes. These opportunity sites were identified by mapping
vacant and underutilized land throughout the City. Underutilized land was identified by using Los Angeles
County Assessor's data. Data was reviewed to identify parcels with low assessed value ratios, where the
improvement value was compared to the parcel's land value. An assessed value ratio of less than 0.5
indicated a greater potential for future redevelopment. In addition to low assessed value ratios, sites with
low building intensity were identified. Low intensity sites are those sites where the ratio of the building
floor area to overall site area have a floor area ratio of 0.3 or less. Based on the research, the City identified
approximately 1,830 acres of vacant land and underutilized land, and 1,180 acres of development with a
low floor area ratio. It should be noted that there are sites that are classified as both underutilized land and
low floor area ratios.
FUTURE RESIDENTIAL AND EMPLOYEE POPULATION
The Southern California Association of Governments estimates that by 2040 the City's total residential
population will increase to approximately 107,900 residents and the total employee population will increase
to 69,700 employees3.
TABLE 3. FUTURE RESIDENTIAL AND EMPLOYEE POPULATION
Description
Future
Population
2040 Estimated Residential Population
107,900
2040 Estimated Employee Population
69,700
2 Footnote: Carson 2040, Existing Conditions Report Volume 1: Chapters 1-4, Dyett & Bhotia, January 2018.
3 Footnote: Demographics & Growth Forecast Southern California Association of Governments, Draft December 2015.
4Z)N B Cityof Carson
Fiscal Impact Analysts for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 14 of 77
FUTURE DEVELOPMENT POPULATION CHANGE
To allocate and assign certain revenue and cost estimates to future development within the City, the future
service population needs to be established. Using the current and future population information from
Tables 1 and 3 above, the total number of additional persons served can be calculated. As previously noted,
to account for the reduced revenue and service demands of the employee population, a 50% adjustment is
applied to the future employee population increase. Comparing current and future population figures and
applying the employee adjustment, the total number of persons to be served from future development is
quantified in the table below.
TABLE 4. FUTURE DEVELOPMENT PERSONS SERVED
Description
Current
Population
Future
Population
Future
Development
Persons Served
Residential Population
93,799
107,900
14,101
Employee Population (1)(2)
60,804
69,700
4,448
Totals
154,603
177,600
18,549
(1) Future development persons served represents 50% of the 8,896 employee populationincrease.
(2) Per Table 6, employees allocated 75% to industrial development and 25% to commercial
development. Future development persons served of 4,448 is allocated at 3,336 employees to
industrial development and 1,112 employees to commercial development.
Based upon the anticipated future residential and employee population estimates, future development will
add 14,101 residents served and 4,448 employees served for a total increase of 18,549 persons served
within the City.
FUTURE DEVELOPMENT RESIDENTIAL DWELLING UNITS
To accommodate the City's estimated population increase, the additional number of residential dwelling
units and non-residential building square footage to serve the population increase needs to be quantified.
To determine the number of dwelling units needed to serve the future residential population, the average
persons per household is applied to the future residential population. Based on future residential
opportunities, the City has indicated that approximately 80% of future residential development will include
residential units, consisting of studio/apartment type units, with approximately 2.00 persons per dwelling
unit ("Res -- Studio/Apt"). The other 20% of future residential development will include all other residential
dwelling units with approximately 3.60 persons per dwelling unit ("Res —All Other"). Given the future
residential development plans, the estimated total number of future residential dwelling units are
calculated in the following table.
A 1 �� City of Carson
1 r Fiscal Impact Analysis for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 15 of 77
TABLE 5. FUTURE RESIDENTIAL DWELLING UNITS
Description
Res — All Other
Res — Studio/Apt
Future Residential Population(l)
2,820
11,281
Persons per Dwelling Unit(2)
3.60
2.00
Total Future Residential Dwelling Units
783
5,641
(1) The future population of 14,101 is allocated 20% to Res — All Other and 80% to Res —
5tudio/Apt.
(2) Per City estimates.
Based upon the estimated future residential population, the City will need 6,424 additional dwelling units to
accommodate future residential growth.
FUTURE DEVELOPMENT NON-RESIDENTIAL BUILDING SQUARE FOOTAGE
It is estimated that 8,896 employees will be added to the City's existing employee base and additional
building square footage will be needed to accommodate the future employee growth. The City's primary
non-residential land use is comprised of industrial land uses, and it is anticipated that future non-residential
growth will consist mostly of similar industrial land uses. However, the City has indicated that approximately
25% of future non-residential growth will include commercial development. Based on a buildout
methodology study prepared for Los Angeles County," the average median square footage per employee for
the retail land use categories within Los Angeles County is approximately 950 square feet per employee and
the median square footage per employee for the light industrial land use is approximately 1,000 square feet
per employee. Allocating 25% of the future employees to the commercial land use category and 75% of the
future employees to the industrial land use category, the total future building square footage can be
determined.
TABLE 6. FUTURE NON-RESIDENTIAL BUILDING SQUARE FOOTAGE
Description
Commercial
Land Use
industrial
Land Use
Future Employee Population(l)
2,224
6,672
Average Building Square Footage per Employee
950
1,000
Total Future Non -Residential Building Square Footage
2,112,800
6,672,000
(1) 8,896 employees allocated 25% to commercial and 75% to industrial
Applying the estimated commercial and industrial land use allocation to the future employee population
and the average employment density ratios for commercial and industrial land uses, the City will need
approximately 8.8 million of nonresidential building square feet to accommodate future employee growth
within the City.
4 Footnote: Buildout Methodology Final Draft, Department of Regional Planning/Placeworks, October Z 2014.
City of Carson
v. N BS Fiscal Impact Analysis for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 16 of 77
SECTION 3 1 REVENUE ESTIMATE
To carry out the goals and objectives of the City -provided services, the City relies on revenue received from
a variety of sources. City revenue sources include property tax revenue, property tax in lieu of vehicle
license fees, sales tax revenue, revenue from additional taxes, fines, forfeitures, and other revenue sources.
To determine the estimated total revenue generated from future development, the case study approach is
predominantly used in this analysis. The multiplier approach is used to allocate certain types of revenue to
future development when specific data needed to utilize the case study approach is not readily available.
Property Tax Revenue
Under California law, non-exempt property pays an ad valorem property tax equal to 1% of the assessed
value of the property. Any additional voter -approved taxes or assessments will result in a total property tax
rate burden that can exceed 1% of the property's assessed value. The property tax revenue received from
the 1% ad valorem property tax rate is then allocated to various overlapping public agencies based upon
their authorized allocation for each tax rate area ("TRA-). The City is located within several TRAs and per the
City's Fiscal Year 2018-2019 Budget, the City receives approximately 6.74% of the 1% ad valorem property
tax revenue after shifts to the Education Revenue Augmentation Fund.
RESIDENTIAL DEVELOPMENT PROPERTY TAX
Using median sales information for the City provided by Trulia.com and the average asking price for multi-
family units prepared by LoopNet.com, the total assessed value for future residential development can be
quantified. The reports indicated that the approximate value for studio/apartment type residential units is
$257,654 and $530,000 for all other residential units. Applying this approximate value per unit information,
the estimated value and secured property tax revenue for the future residential development is determined
in the table below.
TABLE 7. RESIDENTIAL SECURED PROPERTY TAX REVENUE
Description
Res —All Other
Amount
Res — Studio/Apt
Amount
Median Sales Price per Dwelling Unit
$530,000
$257,654
Less: Homeowner's Exemption
(7,000)
(7,000)
Estimated Value per Residential Dwelling Unit
$523,000
$250,654
Number of Residential Dwelling Units(1)
783
5,641
Total Residential Estimated Value
$409,509,000
$1,413,939,214
1% Ad Valorem Property Tax
$4,095,090
$14,139,392
City Share of 1% Ad Valorem Property Tax
6.74%
6.74%
Residential Secured Property Tax Revenue
$276,009
$952,995
(1) Previously identified in Table S.
Based on the approximate value for each residential unit type, the future residential development will
generate approximately $1,229,000 in total property tax revenue for the City.
N BS City of Carson
Fiscal Impact Analysis for citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 17 of 77
NON-RESIDENTIAL DEVELOPMENT PROPERTY TAX
Utilizing the non-residential building square footage calculated in Table 6, the estimated amount of
property tax revenue generated from the future nonresidential development can be determined.
According to information obtained from LoopNet.com, the average Los Angeles County value price of retail
development is $285 per building square foot and based on information obtained from CBRE5, the
development cost for industrial buildings within the Los Angeles area is approximately $160 per building
square foot. Based on this information, the non-residential property tax revenue is calculated in the table
below.
TABLE 8. NON-RESIDENTIAL SECURED PROPERTY TAX REVENUE
Description
Commercial
Amount
Industrial
Amount
Estimated Value per Building Square Foot
$285
$160
Total Non -Residential Building Square Feet(l)
2,112,800
6,672,000
Total Non -Residential Estimated Value
$602,148,000
$1,067,520,000
1% Ad Valorem Property Tax
$6,021,480
$10,675,200
City Share of 1% Ad Valorem Property Tax
6.74%
6.74%
Non -Residential Secured Property Tax Revenue
$405,848
$719,508
(1) Previously identified in Table 6.
The non-residential portion of the City's future development is estimated to generate approximately
$1,125,000 in property tax revenue for the City. In total, the City's future development will generate
approximately $3,060,000 in property tax revenue, as shown in the following table.
TABLE 9. FUTURE DEVELOPMENT SECURED PROPERTY TAX REVENUE
Description
Amount
Residential Secured Property Tax Revenue
$1,229,004
Non -Residential Secured Property Tax Revenue
1,125,356
Secured Property Tax Revenue
$2,354,360
Property Tax in Lieu of Vehicle License Fee ("VLF") Revenue
Property tax in lieu of VLF is revenue that the City receives in addition to the City's share of property tax
revenues. In 2004, the California Legislature permanently reduced the VLF rate from two percent to 0.65%
and compensated cities and counties for their revenue loss with a like amount of property taxes, dollar -for -
dollar. A public agency's property tax in lieu of VLF revenue allocation changes in proportion to the growth
or decline in the gross assessed valuation for that public agency. Therefore, to determine the anticipated
amount of property tax in lieu of VLF to be generated from future development, a ratio of the budgeted
property tax in lieu of VLF to the City's total secured assessed value is determined. Using information from
5 Footnote: CBRE Analysis Finds that Industrial Rents Support Additional Warehouse Development CBRE, June 5, 2018.
Q N B� City of Carson
Fiscal Impact Analysis for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 18 of 77
the City's Fiscal Year 2018-2019 Budget and the Los Angeles County Auditor's Value Report for Fiscal Year
2018-2019, the estimated property tax in lieu of VLF ratio is calculated below:
TABLE 10. PROPERTY TAX IN LIEU OF VLF RATIO
Description
Amount
2018-2019 Total City Secured Assessed Value
$15,145,550,676
2018-2019 Budgeted Property Tax in Lieu of VLF
7,873,445
Property Tax in Lieu of VLF Ratio
0.052%
This property tax in lieu of VLF ratio can then be applied to the estimated values for residential and non-
residential development presented in Tables 7 and 8 above to determine the amount of potential property
tax in lieu of VLF generated from future development. Based on the total estimated value, future
development will generate approximately $1,816,000 in property tax in lieu of VLF revenue as shown below.
TABLE 11. FUTURE DEVELOPMENT PROPERTY TAX IN LIEU OF VLF REVENUE
Description
Res —All Other
Amount
Res —Studio/Apt
Amount
Commercial
Amount
Industrial
Amount
Estimated Value
$409,509,000
$1,413,939,214
$602,148,000
$1,067,520,000
Property Tax in Lieu of VLF Ratio
0.052%
0.052%
0.052%
0.052%
Property Tax in Lieu of VLF Revenue
$212,945
$735,248
$313,117
$555,110
Documentary Transfer Tax
When property is sold, a documentary transfer tax is charged. The documentary transfer tax is charged at a
rate of $1.10 per $1,000 of assessed value. This transfer tax is then split between the City and Los Angeles
County. To determine the annual documentary transfer tax, the estimated property turnover rate must be
considered. This analysis assumes that residential property will turnover approximately every 13 years6,
which results in an annual turnover rate of about 8%. Non-residential land uses typically have minimal
ownership turnover. However, to consider the potential for non-residential land use turnover, a
conservative estimate of once every 20 years, or an annual turnover rate of 5%, is applied in this analysis.
Based upon the estimated value of future development and the estimated annual turnover rates, the City's
share of the documentary transfer tax is calculated in the table below.
6 Footnote: Latest Calculations Show Average Buyer Expected to Stay in a Nome 13 Years, Economic and Housing Policy, January
3, 2013.
Q N BS City of Carson
Fiscal Impact Analysis for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 19 of 77
TABLE 12. FUTURE DEVELOPMENT DOCUMENTARY TRANSFER TAX
(1) The $1.10 tax rate is split $0.55 to Los Angeles County and $0.55 to the City.
The documentary transfer tax will generate approximate $126,000 in revenue from future development.
Sales Tax Revenue
The base sales tax rate in California is 7.25%. Revenue generated from the base sale tax is then allocated to
certain state and local jurisdictions, with the City receiving 1% of the base sales tax rate. As a result of voter -
approved measures, the actual sales tax rate levied in the City is 9.50%. However, the incremental sales tax
rate over the 7.25% base sales tax rate is collected and remitted to the County to be used for certain
governmental purposes.
RESIDENTIAL DEVELOPMENT SALES TAX
To determine the amount of potential sales tax revenue to be generated from the future residential
population, the household income needs to be identified. Based on information obtained from the U.S.
Census Bureau's American Community Survey', the household income for 4 -person households in the City is
$98,926 and the household income for 2 -person households in the City is $67,011. Prorating the 4 -person
household income information by the number of persons per dwelling unit for the Res — All Other
residential category, the estimated household income for Res —All Other units is $89,033 (based on 3.6
persons per dwelling unit. In addition, information from the State Board of Equalization noted that the
approximate household spending for California taxable goods was 29.5%a of household income. Applying
this household spending percentage to the future residential development, the total amount of potential
sales tax revenue generated from future residential development can be calculated. However, it should be
noted that 100% of the taxable sales will not occur within the City. A portion of a household's taxable sales
will occur at establishments that are located outside of the City's limits. To determine the approximate
amount sale tax revenue that the City may receive from the future residential population, the City has
indicated that approximately 2/3rds of taxable sales will occur outside of the City. Therefore, only 33% of
future taxable sales per household are anticipated to occur within the City.
7 Footnote. U.S. Census Bureau, 2013-2017 American Community Survey 5 -Year Estimates.
8 Footnote. State Board of Equalization, Economic Perspective, Discussion of Recent Economic Developments, December 2016.
��City of Carson
Fiscal Impact Analysis for Citywide Future Development 10
RESOLUTION NO. 19-009 (Exhibit A)
Page 20 of 77
Res —All Other
Res—Studio/Apt
Commercial
Industrial
Description
Amount
Amount
Amount
Amount
Total Estimated Value
$409,509,000
$1,413,939,214
$602,148,000
$1,067,520,000
Estimated Annual Turnover Rate
8%
8%
5%
5%
Annual Turnover Estimated Value
$32,760,720
$113,115,137
$30,107,400
$53,376,000
Annual Turnover Estimated Value
$32,761
$113,115
$30,107
$53,376
/$1,000
Documentary transfer Tax Rate
$0.55
$0.55
$0.55
$0.55
per $1,000(1)
Documentary Transfer Tax Revenue
$18,019
$62,213
$16,559
$29,357
(1) The $1.10 tax rate is split $0.55 to Los Angeles County and $0.55 to the City.
The documentary transfer tax will generate approximate $126,000 in revenue from future development.
Sales Tax Revenue
The base sales tax rate in California is 7.25%. Revenue generated from the base sale tax is then allocated to
certain state and local jurisdictions, with the City receiving 1% of the base sales tax rate. As a result of voter -
approved measures, the actual sales tax rate levied in the City is 9.50%. However, the incremental sales tax
rate over the 7.25% base sales tax rate is collected and remitted to the County to be used for certain
governmental purposes.
RESIDENTIAL DEVELOPMENT SALES TAX
To determine the amount of potential sales tax revenue to be generated from the future residential
population, the household income needs to be identified. Based on information obtained from the U.S.
Census Bureau's American Community Survey', the household income for 4 -person households in the City is
$98,926 and the household income for 2 -person households in the City is $67,011. Prorating the 4 -person
household income information by the number of persons per dwelling unit for the Res — All Other
residential category, the estimated household income for Res —All Other units is $89,033 (based on 3.6
persons per dwelling unit. In addition, information from the State Board of Equalization noted that the
approximate household spending for California taxable goods was 29.5%a of household income. Applying
this household spending percentage to the future residential development, the total amount of potential
sales tax revenue generated from future residential development can be calculated. However, it should be
noted that 100% of the taxable sales will not occur within the City. A portion of a household's taxable sales
will occur at establishments that are located outside of the City's limits. To determine the approximate
amount sale tax revenue that the City may receive from the future residential population, the City has
indicated that approximately 2/3rds of taxable sales will occur outside of the City. Therefore, only 33% of
future taxable sales per household are anticipated to occur within the City.
7 Footnote. U.S. Census Bureau, 2013-2017 American Community Survey 5 -Year Estimates.
8 Footnote. State Board of Equalization, Economic Perspective, Discussion of Recent Economic Developments, December 2016.
��City of Carson
Fiscal Impact Analysis for Citywide Future Development 10
RESOLUTION NO. 19-009 (Exhibit A)
Page 20 of 77
TABLE 13. RESIDENTIAL SALES TAX REVENUE
Description
Res — All Other
Amount
Res — Studio/Apt
Amount
Estimated Household Income
$89,033
$67,011
% of Household Income Spent on Taxable Goods
29.5%
29.5%
Taxable Sales per Household
$26,265
$19,768
Number of Future Households
783
5,641
Estimated % of Taxable Sales within City(1)
33%
33%
Residential Taxable Sales within City
$6,786,613
$36,798,725
City Sales Tax
1%
1%
Residential Sales Tax Revenue
$67,866
$367,987
(1) Estimated; subject to change.
The residential population from future development will generate almost $436,000 in sales tax revenue for
the City.
NON-RESIDENTIAL DEVELOPMENT SALES TAX REVENUE
The non-residential portion of future development will generate sales tax revenue from the taxable sales of
the commercial development and the discretionary spending of the employees. It is anticipated that no
retail activity is to occur upon the industrial land uses, therefore, there is no sales tax revenue anticipated
from the industrial land use business operations.
To best estimate the potential sales tax revenue from future commercial development, an estimated $325
taxable sales per square foot' is considered. The City has indicated that a portion of sales tax revenue from
a significant future commercial development will be reinvested and the City will receive approximately half
of the sales tax revenue. Specifically, new commercial development will primarily be concentrated to the
157 acre site owned by the Carson Reclamation Authority for the Fashion Outlet of Los Angeles project. Half
of the sales tax revenue generated from this project will be reinvested into the development of the project.
It is important to note that not all of the taxable sales generated from future development will be new
taxable sales for the City. There will be a portion of future commercial development's taxable sales that will
shift from a City's existing place of business to a future development's place of business. This shift in taxable
sales from one of place of business to another place of business will not provide an overall increase in sales
tax revenue from future development. Therefore, to account for the potential reinvestment of sales tax
revenue into future commercial development and shifts in taxable sales from one point of sale to another
point of sale within the City, an estimated 75% reduction to sales tax revenue generated from future
commercial development has been applied. Applying this information to the taxable sales per square foot,
the estimated sales tax revenue from future commercial development can be determined.
Further, a portion of the commercial sales tax revenue will occur from the future residential and employee
population. The sales generated from future residential and employee populations have been quantified
separately in this analysis.
9 Footnote: Measuring Up Retail Benchmorking Survey, PwC Consulting, 1013
NBS City of Carson
Fiscal Impact Analysis for Citywide Future Development 11
RESOLUTION NO. 19-009 (Exhibit A)
Page 21 of 77
TABLE 14. FUTURE COMMERCIAL SALES TAX REVENUE
Description
Commercial
Amount
Estimated Taxable Sales per Square Foot
$325
Future Commercial Building Square Footage
2,112,800
Commercial Taxable Sales
$686,660,000
Commercial Sales Tax Revenue(1)
$6,866,600
Sales Tax Revenue Reduction(2)
75%
Commercial Sales Tax Revenue
$1,716,650
(1) Commercial taxable sales multiplied by 1%.
(2) Estimated; subject to change. Reflects the reduction in sales tax revenue as a result of the
shifts in taxable sales from one point of sale to another point of sale within the City and
committed reinvestment of sales tax revenue into the 157 Acre Carson Reclamation
Authority site for the Fashion Outlet Los Angeles project. Future residential and employee
population sales tax revenue calculated separately from this analysis.
The International Council of Shopping Centers conducted a national survey10 that evaluated the average
spending habits of the workforce. The survey determined that the average employee within an urban
market spends about $5,780 per year on restaurants, goods and services, and personal care. This annual
spending amount includes both taxable and non-taxable purchases. While personal spending habits are
unique to each individual, this analysis assumes that approximately 50% of the employees annual spending
will be on taxable purchases that will occur near their place of employment. Using this information, the
estimated sales tax revenue generated from the future employee population is calculated in the table
below.
TABLE 15. EMPLOYEE SALES TAX REVENUE
Description
Amount
Average Annual Taxable Spending per Employee
$5,780
Number of Future Employees
8,896
Estimated % of Taxable Sales within City(1)
50%
Total Employee Taxable Sales within City
$25,709,440
City Sales Tax
1%
Employee Sales Tax Revenue
$257,095
(1) Estimated; subject to change.
Employees from future non-residential development will generate approximately $257,000, or $28.90 per
employee, in sales tax revenue for the City. As previously noted in Table 6, an estimated 6,672 employees
are allocated to industrial development and 2,224 employees are allocated to commercial development.
Using these population figures, the employee sales tax revenue is allocated to each non-residential land use
category below.
10 Footnote: International Council of Shopping Centers, Office -Worker Retail Spending in a Digital Age, 2011-
D N BS City of Carson
Fiscal Impact Analysis for Citywide Future Development 12
RESOLUTION NO. 19-009 (Exhibit A)
Page 22 of 77
TABLE 16. ALLOCATED EMPLOYEE SALES TAX REVENUE
Description
Commercial
Amount
Industrial
Amount
Number of Future Employees
2,224
6,672
Employee Sales Tax Revenue per Employee
$28.90
$28.90
Employee Sales Tax Revenue
$64,274
$192,821
SALES TAX REVENUE SUMMARY
The total sales tax revenue generated from future development is approximately $2,410,000. The sales tax
revenue amounts allocated to residential and non-residential future development are provided in the table
below.
TABLE 17. FUTURE DEVELOPMENT SALES TAX REVENUE
Description
Amount
Residential Sales Tax Revenue
$435,853
Commercial Sales Tax Revenue(1)
1,780,924
industrial Sales Tax Revenue
192,821
Future Development Sales Tax Revenue
$2,409,598
(1) Includes $1,716,650 commercial development sales tax revenue and $64,274
employee sales tax revenue.
Other City Revenue
The City also receives revenue from sources that were not previously quantified via the case study approach
above. Other City revenues include additional taxes, fees, fines, penalties, property rentals, charges for
services, and other revenues. For purposes of this fiscal impact analysis, revenues that are not allocated to
future development include one-time building permits and planning fees, as well as taxes paid by specific
entities such as the oil industry tax. Further, the City budgets approximately $7,000,000 for the Utility Users
Tax and this revenue would typically be considered in the calculation. However, the Utility Users Tax is set
to expire on June 30, 2023 and is, therefore, excluded from the calculation. Additionally, the City also has
temporary revenues from the Redevelopment Property Tax Trust Fund ("RPTTF") as part of the
redevelopment dissolution process. The RPTTF funds are temporary and will eventually be eliminated, and
are, therefore, also excluded from the calculation. Using general fund revenue information from the City's
Fiscal Year 2018-2019 Budget, the table below presents the other City revenues to be allocated to future
development.
BS' City of Carson
Fiscal Impact Analysts for Citywide Future Development 13
RESOLUTION NO. 19-009 (Exhibit A)
Page 23 of 77
TABLE 18. OTHER CITY REVENUE
Description
City's 2018-2019
Budget Amount
Business Tax
$2,930,000
Other Licenses and Permits
908,250
Fines and Forfeitures
2,485,800
Franchise Fees
9,948,750
Use of Money and Property
2,411,820
Motor Vehicle License Fees
40,000
Charges for Services
3,562,800
Other Revenue
3,218,500
Total Other City Revenue
$25,505,920
The overall impact that future development will have on the other City revenue sources is based upon the
assumption that the current per capita revenue amounts will serve as the best indicator of the future per
capita revenue amounts. Therefore, to best allocate these other City revenues to future development, the
multiplier approach is utilized. Table 2 previously identified that the total numbers of persons currently
served within the City is 124,201, of which the number of residents served is 93,799 and the number of
employees served is 30,402. Using the number of persons served, the amount of other City revenue per
person can be determined. The total other City revenue amounts, the total number of persons served, and
the amount per person served are presented in the table below.
TABLE 19. OTHER CITY REVENUE PER PERSON SERVED
Description
City's 2018-2019
Budget Amount
Persons
Served
Amount per
Person Served
Business Tax
$2,930,000
30,402(1)
$96.38
Other Licenses and Permits
908,250
124,201
7.31
Fines and Forfeitures
2,485,800
124,201
20.01
Franchise Fees
9,948,750
124,201
80.10
Use of Money and Property
2,411,820
124,201
19.42
Motor Vehicle License Fees
40,000
124,201
0.32
Charges for Services
3,562,800
124,201
28.69
Other Revenue
3,218,500
124,201
25.91
Totals
$25,505,920
$278.14
(1) Based upon employees served only.
Since the City's business tax revenue is allocated to only the employees served, the total other City revenue
amount allocated to each resident served is $181.76 and the total other City revenue amount allocated to
each employee served is $278.14. In order to determine the amount of other City revenue allocated to
future development, the other City revenue amount per person is multiplied by the number of future
NBSCity of Carson
Fiscal Impart Analysis for Citywide Future Development 14
RESOLUTION NO. 19-009 (Exhibit A)
Page 24 of 77
persons served. As previously determined in Table 4, the total future development persons served is 18,549,
which results in a total other City revenue amount of approximately $3,800,000 as shown in the table
below.
TABLE 20. FUTURE DEVELOPMENT OTHER CITY REVENUE
Future Development Revenue Summary
The City's future development will generate revenue from several different sources that will enable the City
to provide certain recurring City services. A portion of the anticipated future revenue was calculated based
upon the case study approach and the remaining other City revenue was allocated to future development
using the multiplier approach. A summary of the estimated City revenue generated from future
development is presented in the table below.
TABLE 21. FUTURE DEVELOPMENT TOTAL REVENUE
Description
Res —AII Other
Res — Studio/Apt
Commercial
Industrial
Description
Amount
Amount
Amount
Amount
Other City Revenue per Person Served
$181.76
$181.76
$278.14
$278.14
Future Development Persons Served
2,820
11,281
1,112
3,336
Total Future Development Other City
$512,563
$2,050,435
$309,292
$927,875
Revenue
512,563
2,050,435
309,292
927,875
Future Development Revenue Summary
The City's future development will generate revenue from several different sources that will enable the City
to provide certain recurring City services. A portion of the anticipated future revenue was calculated based
upon the case study approach and the remaining other City revenue was allocated to future development
using the multiplier approach. A summary of the estimated City revenue generated from future
development is presented in the table below.
TABLE 21. FUTURE DEVELOPMENT TOTAL REVENUE
Description
Res — All Other
Total Revenue
Amount
Res — Studio/Apt
Total Revenue
Amount
Commercial
Total Revenue
Amount
Industrial
Total Revenue
Amount
Secured Property Tax Revenue
$276,009
$952,995
$405,848
$719,508
Property Tax In Lieu of VLF Revenue
212,945
735,248
313,117
555,110
Documentary Transfer Tax Revenue
18,019
62,213
16,559
29,357
Sales Tax Revenue
67,866
367,987
1,780,924
192,821
Other City Revenue
512,563
2,050,435
309,292
927,875
Total Future Development
Revenue
$1,087,402
$4,168,878
$2,825,740
$2,424,671
The City's future development is anticipated to generate approximately $10,507,000 in revenue to support
recurring City operations.
N BS City of Carson
Fiscal Impact Analysis for Citywide Future Development is
RESOLUTION NO. 19-009 (Exhibit A)
Page 25 of 77
SECTION 4 1 EXPENDITURES ESTIMATE
The future development revenue identified in Section 3 of this report is intended to pay for recurring
expenditures related to general City services. City General Fund expenditures that are not considered in
this analysis include costs associated with infrastructure improvements, special fund expenditures,
governmental transfers, and expenses supported by one-time development fees. For purposes of
determining the overall fiscal impact of future development, the City expenditures allocated to future
development are based upon amounts presented in the City's Fiscal Year 2018-2019 Budget.
Future development within the City will add several residents and employees to the City's existing
population base. This residential and employee population increase will place additional demands on
already existing services provided by the City. In order to account for the increased costs associated with
the additional demand, City expenditures are allocated to future development using the multiplier
approach. However, the increased impacts from future development will not necessarily result in a direct
1:1 relationship increase in City expenditures (i.e., there are some "step" functions). Some of the City's
expenditures are fixed amounts or will have only minimal increases, regardless of the population served.
Therefore, to account for a relationship that is less than 1:1, the City expenditures have been adjusted to
reflect a conservative impact in expenditures as a result of future development. It should be recognized
that the City expenditure adjustments are only estimates based upon industry averages and the nature of
the future development. The original City's Fiscal Year 2018-2019 Budget amount, the demand adjustment
percentage, and the adjusted City's Fiscal Year 2018-2019 Budget amount are presented below.
TABLE 22. CITY EXPENDITURES SUMMARY
Description
City's 2018-2019
Budget Amount
Demand
Adjustment
Percentage(1)
Adjusted
City's 2018-2019
Budget Amount
City Council
$927,549
75%
$695,662
Legal
2,920,000
75%
2,190,000
City Clerk
1,112,767
75%
834,576
City Treasurer
788,874
75%
591,656
City Manager
4,351,107
75%
3,263,331
Public Safety
24,071,329
100%
24,071,329
Finance
4,085,693
75%
3,064,270
HR and Risk Management
2,597,877
75%
1,948,408
Community Development
7,496,259
75%
5,622,195
Public Works
16,444,543
75%
12,333,408
Community Services
13,234,510
75%
9,925,883
Non-Departmental(2)
10,769,305
100%
10,769,305
Totals
$88,799,813
$75,310,023
(1) Estimated; subject to change.
(2) Reflects retirement benefits.
Q)N Bim'+ City of Carson
�7 Fiscal Impact Analysis for G#ywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 26 of 77
After adjusting the expenditures from the City's Fiscal Year 2018-2019 Budget to account for estimated
costs that are less than a 1:1 relationship in costs per person served, the adjusted City's Fiscal Year 2018-
2019 Budget amount to be allocated to future development is approximately $75,310,000.
City Expenditure per Person Served
Each City expenditure category is reviewed to determine whether the expenditure category is intended to
serve both the residential and employee population, the residential population only, or the employee
population only. As previously noted in Table 2, the total number of persons served in the City is 124,201
and the number of residents served within the City is 93,799. Utilizing the multiplier approach, the number
of persons served within each City expenditure category is applied to the corresponding adjusted
expenditure line item to determine the allocable expenditure per person. The table below provides the
expenditure per person for each of the categories.
TABLE 23. CITY EXPENDITURES PER PERSON SERVED
Description
Adjusted
City's 2018-2019
Budget Amount(1)
Persons
Served
Adjusted City's 2018 -
2019 Budget Amount
per Person Served
City Council
$695,662
124,201
$5.60
Legal
2,190,000
124,201
17.63
City Clerk
834,576
124,201
6.72
City Treasurer
591,656
124,201
4.76
City Manager
3,263,331
124,201
26.27
Public Safety
24,071,329
124,201
193.81
Finance
3,064,270
124,201
24.67
HR and Risk Management
1,948,408
124,201
15.69
Community Development
5,622,195
124,201
45.27
Public Works
12,333,408
124,201
99.30
Community Services
9,925,883
109,000(2)
91.06
Non -Departmental
10,769,305
124,201
86.71
Total per Person Served
$75,310,023
$617.49
(1) Established in Table 22.
(2) Employees served has been adjusted to 25% of total employee population to reflect the employee's use
of the City's community services. Total employees served for community services is 15,201.
Given the additional demands that the increased population from future development will place upon
existing City services, the adjusted City expenditures per resident served is $617.49. Community services
are intended to primarily serve the residential population, however, there are benefits and use by
employees of the City's community services. To account for the employee's limited*use of the City's
community services, the employee population has been adjusted to 2S%. Applying this additional
adjustment for community services, the adjusted City expenditures per employee served is $571.96.
1 N BS City of Carson
Fiscal Impact Analysis for Citywide Future Development 17
RESOLUTION NO. 19-009 (Exhibit A)
Page 27 of 77
Future Development Expenditure Summary
In order to determine the total amount of City expenditures allocated to future development, the total
expenditures per person served is multiplied by the estimated future residential and employee persons
served. As previously calculated in Table 4, the total future development population served is 18,549.
Applying the total City expenditures per person served amount of $617.49 per resident and $571.96 per
employee to the total persons served, the allocated impact of future development's population to the
City's expenditures is approximately $11,251,000, as shown in the table below.
TABLE 24. FUTURE DEVELOPMENT TOTAL EXPENDITURES
Description
Res — All Other
Amount
Res — Studio/Apt
Amount
Commercial
Amount
Industrial
Amount
City Expenditures per Person Served
$617.49
$617.49
$571.96
$571.96
Future Development Persons Served
2,820
11,281
1,112
3,336
Total Future Development Expenditures
$1,741,322
$6,965,905
$636,020
$1,908,059
4 N BS City of Carson
Fiscal Impart Analysis for Citywide Future Development is
RESOLUTION NO. 19-009 (Exhibit A)
Page 28 of 77
SECTION 5 1 FUTURE DEVELOPMENT FISCAL IMPACT
Based on the City's future development estimated revenue determined in Table 21 and the future
development's allocated expenditures presented in Table 24, future residential development will result in
an overall negative fiscal impact and non-residential development will result in an overall positive fiscal
impact for the City. The table below sets forth the total anticipated fiscal impact and fiscal impact per
person served for both future residential and non-residential land uses.
TABLE 25. FUTURE DEVELOPMENT OVERALL FISCAL IMPACT
Future Development Fiscal Impact per Dwelling Unit or Acre
To better understand the overall future development fiscal impact, the fiscal impact per person amount
identified in Table 25, is quantified on a per dwelling unit rate basis for residential property and on a per
acre rate basis for non-residential property.
RESIDENTIAL. FISCAL IMPACT PER DWELLING UNIT
As previously noted in Table 5, the average number of persons per Res — All Other dwelling unit is 3.60
persons and the average number of person per Res — 5tudio/Apt dwelling unit is 2.00 persons. Applying the
residential negative fiscal impact per resident of $231.89 per Res — All Other person and $247.95 per Res —
Studio/Apt person to the persons per dwelling unit for each residential land use, the negative fiscal impact
per dwelling unit is established in the table below.
TABLE 26. RESIDENTIAL FISCAL IMPACT PER DWELLING UNIT
Description
Res — All Other
Res — Studio/Apt
Commercial
Industrial
Description
Amount
Amount
Amount
Amount
Total Future Development Revenue
$1,087,402
$4,168,878
$2,825,740
$2,424,671
Total Future Development Expenditures
1,741,322
6,965,905
636,020
1,908,059
Future Development Positive /
($653,920)
($2,797,027)
$2,189,720
$516,612
(Negative) Fiscal Impact
Future Development Persons Served
2,820
11,281
1,112
3,336
Future Development Positive /
(Negative) Fiscal Impact per Person
($231.89)
($247.95)
$1,969.18
$154.86
Served
Future Development Fiscal Impact per Dwelling Unit or Acre
To better understand the overall future development fiscal impact, the fiscal impact per person amount
identified in Table 25, is quantified on a per dwelling unit rate basis for residential property and on a per
acre rate basis for non-residential property.
RESIDENTIAL. FISCAL IMPACT PER DWELLING UNIT
As previously noted in Table 5, the average number of persons per Res — All Other dwelling unit is 3.60
persons and the average number of person per Res — 5tudio/Apt dwelling unit is 2.00 persons. Applying the
residential negative fiscal impact per resident of $231.89 per Res — All Other person and $247.95 per Res —
Studio/Apt person to the persons per dwelling unit for each residential land use, the negative fiscal impact
per dwelling unit is established in the table below.
TABLE 26. RESIDENTIAL FISCAL IMPACT PER DWELLING UNIT
Description
Res — All Other
Amount
Res — Studio/Apt
Amount
Persons per Residential Dwelling Unit
3.60
2.00
Negative Fiscal Impact per Resident
($231.89)
($247.95)
CFD Special Tax Rate per Residential Dwelling Unit
($834.80)
($495.90)
The overall negative fiscal impact for future residential property is $834.80 per Res — All Other dwelling unit
and $495.90 per Res — Studio/Apt dwelling unit.
�1 N B� City of Carson
i Fiscal Impact Analysis for Citywide Future Development 19
RESOLUTION NO. 19-009 (Exhibit A)
Page 29 of 77
NON-RESIDENTIAL FISCAL IMPACT PER ACRE
In order to establish future non-residential development's overall fiscal impact on an acreage basis, the
acreage building densities need to be considered. The City's General Plan notes that the average floor area
ratio expected at build out for commercial land uses is approximately 0.32 and for light industrial land uses
is approximately 0.42. Using these floor area ratios and the estimated building square footage per
employee, the number of employees per acre for each non-residential land use can be identified. Applying
the approximate number of employees per acre for each non-residential land use to the calculated fiscal
impacts per employee, the commercial and industrial overall fiscal impact per acre can be calculated.
TABLE 27. COMMERCIAL AND INDUSTRIAL FISCAL IMPACT PER ACRE
Description
Commercial
Amount
Industrial
Amount
Square Feet per Acre
43,560
43,560
Floor Area Ratio
0.32
0.42
Estimated Building Square Feet per Acre
13,939
18,295
Estimated Employees per Acre(1)
14.70
18.30
Employees Served per Acre(2)
7.4
9.2
Positive Fiscal Impact per Employee Served
$1,969.18
$154.86
Positive Fiscal Impact per Acre
$14,571.93
$1,424.71
(1) Estimated building square feet per acre divided by the estimated commercial building square feet
(950) per employee and the estimated industrial building square feet (1,000) per employee
identified in Table 6.
(2) Adjusted by 50% to reflect the numbers of employees served per acre.
The overall positive fiscal impact for future commercial property is $14,571.93 per acre and the overall fiscal
impact for future industrial property is $1,424.71 per acre.
FUTURE DEVELOPMENT FISCAL IMPACT SUMMARY
The table below summarizes the overall fiscal impact for future development within the City.
TABLE 28. FUTURE DEVELOPMENT FISCAL IMPACT SUMMARY
Description
Res — All Other
Dwelling Unit
Res — Studio/Apt
Dwelling Unit
Commercial
Acre
Industrial
Acre
Positive / (Negative) Fiscal Impact
($834.80)
($495.90)
$14,571.93
$1,424.71
Since the estimated future residential development produces an overall negative fiscal impact, the City
should consider the establishment of a Special Financing District (SFD) to mitigate the negative fiscal
impacts created from the residential development. Further, any enhanced levels of service or newly
provided services to future development can also be funded via the SFD. Alternatives for the City's
consideration are presented in Section 6 of this report.
3 NBS City of Carson
Fiscal Impact Analysis for Citywide Future Development
RESOLUTION NO. 19-009 (Exhibit A)
Page 30 of 77
2D
SECTION 6 1 FISCAL IMPACT FUNDING OPTIONS
To mitigate the overall negative fiscal impact identified in Section 5 of this report, the City should consider
the establishment of a SFD, which could include a special tax or a special assessment. Since the City's
negative fiscal impact is attributable to the provision of general City services, a special assessment would
not be the most appropriate funding option for the City. Special assessments require the identification and
separation of general and special benefits. Special benefits can be assessed to property, but all general
benefits must be funded by sources other than the special assessments. Therefore, a special assessment
would not entirely alleviate the negative fiscal impact created by future residential development.
Alternatively, the City could implement a special tax.
Community Facilities Districts
A Community Facilities District, or CFD and also referred to as a Mello -Roos District, is a type of SFD that is
established via the Mello -Roos Community Facilities District Act of 1982 ("1982 Act"). Through the levy and
collection of a special tax, CFDs provide funding for authorized public improvements and/or public services.
The CFD's Rate and Method of Apportionment includes procedures for identifying and classifying property
within the CFD, establishing the initial maximum special tax rates, and the formula for calculating the
annual special tax and assigning the special tax to taxable property within the CFD. Since CFDs authorize
the levy and collection of a special tax, as opposed to a special assessment, there is no requirement to
make a finding of special benefit for the property subject to the special tax. However, the special tax
should be based on a benefit received by property, the cost of providing the facilities or services, or some
other reasonable basis for assigning the special tax, as determined by the legislative body.
In order to establish a CFD, the 1982 Act requires a two-thirds approval of the registered voters, residing
within the proposed CFD boundary, voting in the special tax election. If there are less than 12 registered
voters within the proposed CFD boundaries, then a landowner special tax election can take place. In the
case of a landowner special tax election, a two-thirds approval is still required and each landowner receives
one vote per acre or portion of an acre of land owned. It should be noted that if a CFD is approved via a
landowner special tax election, the CFD is only authorized to fund additional services. In Building Industry
Association of the Bay Area v. City of San Ramon, the California Appellate Court held that a landowner
approved CFD can only fund the increase in demand for pre-existing services, so long as the special tax
revenue is not available for general government purposes. The additional services funded by the CFD shall
not replace services already available and provided within the boundaries of the CFD. Further, special tax
revenue generated from the CFD can only be used to fund the authorized public services set forth in the
1982 Act. CFD authorized public services may include, but are not limited to, police, library and the
maintenance of parks, roads and open space. A list of recurring City expenditures and the amount
allocated to future residential development are presented in the table below.
Q NBS' City of Carson
Fiscal Impact Analysis for Citywide Future Development 21
RESOLUTION NO. 19-009 (Exhibit A)
Page 31 of 77
TABLE 29. CITY EXPENDITURES ALLOCATED TO FUTURE RESIDENTIAL DEVELOPMENT
Description
Total City Expenditure
Allocated to Future
Residential
Development(1)
CFD Eligible
Expenditure
City Council
$78,966
No
Legal
248,601
No
City Clerk
94,759
No
City Treasurer
67,121
No
City Manager
370,433
No
Public Safety
2,732,915
Yes
Finance
347,872
No
HR and Risk Management
221,245
No
Community Development
638,352
Yes(2)
Public Works
1,400,229
Yes(2)
Community Services
1,284,037
Yes(2)
Non -Departmental
1,222,697
No
Totals
$8,707,227
(1) Adjusted City's 2018-2019 Budget amount per person served identified in Table 23
multiplied by future residential population served of 14,101 identified in Table 4.
(2) Subject to further review to exclude any services that are not authorized CFD services.
Per Table 25, the total negative fiscal impact for future residential development is $3,450,947. However,
the total amount of expenditures allocated to future residential development is $8,707,227. The allocated
expenditures include both eligible and ineligible CFD authorized services. Therefore, to mitigate the
negative fiscal impact from residential development, the City should establish a CFD to provide funding for
CFD authorized public services such as public safety and, to the extent allowed and needed, other
departments that provide CFD authorized public services. The remainder of City expenditures allocated to
future residential development will be off -set by other general City revenues generated from future
residential development.
FUTURE DEVELOPMENT SPECIFIC COSTS
In addition to using a CFD to mitigate future residential development's negative fiscal impacts, the CFD can
also fund authorized CFD services that are intended to provide an enhanced level of service or services that
are unique to future development. These services would be in addition to any previously identified
negative fiscal impacts placed upon the City in providing the existing level of service. Funding for any
enhanced and/or additional recurring public service costs, including repairs and replacements, reserves
and administration can be accomplished through a CFD.
N BS' City of Carson
Fiscal Impact Analysis for Citywide Future Development 22
RESOLUTION NO. 19-009 (Exhibit A)
Page 32 of 77
BENEFITS TO CITY
Through the formation of a CFD, the City can establish an ongoing funding source that mitigates the
negative fiscal impacts created by future residential development and provides funding for new or
enhanced services within the City. The CFD's maximum special tax rate can include an annual escalation
factor, to keep pace with changing costs, that is based upon an annual fixed amount or an escalation factor
that is tied to a specific inflation index. Further, the CFD special tax can be established without a sunset
date so that the CFD special tax can be levied in perpetuity.
CFD Special Tax Recommendation
In order for the City to continue to provide necessary services to their population base, the City needs to
ensure that developing property pays their fair share as a result of any additional fiscal burdens placed upon
the City's operational budget due to new development. It has been determined that the future residential
development will produce an overall negative fiscal impact of $3,450,947. To mitigate the negative fiscal
impact, the City should consider establishing a CFD. The levy and collection of the special tax could generate
sufficient revenue to offset the negative residential fiscal impact to the City. Further, the CFD provides the
flexibility to generate additional revenue to fund any enhanced or new project specific costs desired by
future residential and non-residential development. The CFD's Rate and Method of Apportionment
establishes the special tax formula and sets the initial maximum special tax rates. A benefit of the CFD is
that it allows for a great deal of flexibility in structuring the special tax formula so that the formula and
maximum special tax rates best fit and accomplish specific needs. In this particular case, the CFD special tax
rates could be sized to recover the annual negative fiscal impact on residential development, fund
enhanced levels of existing service or new services, recover ongoing administrative costs related to the CFD,
and be structured to create both a residential special tax rate and non-residential special tax rate.
City of Carson
:, N BS Fiscal Impact Analysis for Citywide Future Development 23
RESOLUTION NO. 19-009 (Exhibit A)
Page 33 of 77
SECTION 7 1 CFD SERVICES AND SPECIAL TAX RATES
It has been previously determined in Table 25 that future residential development will produce an overall
negative fiscal impact of $3,450,947. The City should establish a CFD to fund the nggative fiscal impact from
future residential development. In addition, the City has identified enhanced and/or new public services
needed to serve future development, including park services and roadway services. Currently, there is not a
revenue source to provide funding for these services and the annual costs associated with each enhanced
service should also be included in the CFD. The two enhanced services are further described below.
Enhanced Park and Sidewalk Services
In 2016, Los Angeles County prepared a Comprehensive Parks and Recreation Needs Assessment ("Parks
Assessment")" to understand the existing conditions and what steps need to be taken to ensure that
communities have adequate access to thriving parks and open space. The portion of the assessment that
was specific to the City identified several infrastructure priorities for the City to consider. In addition to the
priority infrastructure, the Parks Assessment also identified various deferred park maintenance costs to
replace park and recreation amenities that are either in poor or fair condition. In order to replace those
amenities that are either in poor or fair condition, at some point in the future, the City will need
approximately $54,000,000 to fund all of the deferred maintenance identified in the Park Assessment.
Further, NCE performed an assessment" of the City's publicly maintained sidewalks, curb and gutters, and
curb ramps to identify and evaluate potential tripping hazards and non -ADA compliant sidewalks. In
addition to identifying the qualifying sidewalk improvements needed, the assessment also included a cost
estimate for the maintenance repairs and/or replacements of the sidewalks, curb and gutters, and curb
ramps. The assessment established a cost estimate of approximately $11,500,000 that will be needed to
address the tripping hazards and non -ADA compliant sidewalk improvements.
To determine the costs associated with future development, the deferred park maintenance and sidewalk
improvement cost estimates were apportioned over a period of 20 years. Utilizing the annualized deferred
park maintenance costs, sidewalk improvement costs and the total future population served, the annual
enhanced park and sidewalk services amount per future person served is calculated in the table below.
11 Footnote: Los Angeles Countywide Comprehensive Parks & Recreation Needs Assessment, Los Angeles County Department of
Parks & Recreation, May 3, 2016,
12 Footnote: City of Carson, Citywide Sidewalk Assessment 2017 Update, Final Report NCE, April 2017
4 N BS City of Carson
Fiscal Impact Analysis for Citywide Future Development 24
RESOLUTION NO. 19-009 (Exhibit A)
Page 34 of 77
TABLE 30. ENHANCED PARK AND SIDEWALK SERVICES PER FUTURE PERSON SERVED
Description
Total Deferred Park Maintenance Costs
Amount
$54,000,000
Total Sidewalk Costs
11,500,000
Total Enhanced Park and Sidewalk Services
$65,500,000
Annual Enhanced Park and Sidewalk Services Costs(l)
$3,275,000
Total Future Population(2)
125,325
Annual Enhanced Park and Sidewalk Services per Person Served
$26.13
(1) Allocated over a period of 20 years.
(2) Includes 107,900 residents and 69,700 employees factored at 25% per employee.
The amount of annual enhanced park services per resident is $26.13. The City's parks, recreation areas,
sidewalk improvements are intended to primarily serve the residential population, however, there is a
benefit to employees and it is anticipated that employees will likely use the areas. Therefore, to account for
an employee's limited use of the facilities, an employee is weighted at 25% of a resident. Based on this
adjustment, the annual enhanced park and sidewalk services per employee is $6.53. Applying these annual
enhanced park and sidewalk services costs per person to the future development land uses, the amount per
dwelling unit or acre is presented in the table below:
TABLE 31. FUTURE DEVELOPMENT ENHANCED PARK AND SIDEWALK SERVICES PER DWELLING UNIT/ACRE
For the future development's residential property, the enhanced park services are $94.07 per Res — All
Other dwelling unit and $52.26 per Res — Studio/Apt dwelling unit. Future development's enhanced park
services are $95.99 per acre for commercial property and $119.50 per acre for industrial property.
Enhanced Roadway Services
The City has determined that vehicular traffic is producing significant impacts to roadways throughout the
City and there is a significant need to provide for the maintenance and repair of these roadways. In addition
to the negative impacts created on the roadway system, truck traffic negatively affects trafficand air
quality, generates increased noise and vibrations, and increase health impacts upon the community.
Currently, the City does not have a long-term funding source to pay for the enhanced level of services and
maintenance needed for the roadway impacts created. To provide a long-term funding solution, and have
future development fund their proportional share of costs, the enhanced roadway services should be
included in the proposed CFD. The annual enhanced roadway services costs are presented in the table
below.
NBS City of Carson
�7 Fiscal Impart Analysis for Citywide Future Development 25
RESOLUTION NO. 19-009 (Exhibit A)
Page 35 of 77
Res — All Other
Res — Studio/Apt
Commercial
Industrial
Description
Amount
Amount
Amount
Amount
Enhanced Park and Sidewalk
$26.13
$26.13
$6.53
$6.53
Services per Person or Employee
Persons per Dwelling Unit or
3.60
2.00
14.70
18.30
Employees per Acre
Enhanced Park and Sidewalk
$84.07
$52.26
$95.99
$119.50
Services per Dwelling Unit or Acre
For the future development's residential property, the enhanced park services are $94.07 per Res — All
Other dwelling unit and $52.26 per Res — Studio/Apt dwelling unit. Future development's enhanced park
services are $95.99 per acre for commercial property and $119.50 per acre for industrial property.
Enhanced Roadway Services
The City has determined that vehicular traffic is producing significant impacts to roadways throughout the
City and there is a significant need to provide for the maintenance and repair of these roadways. In addition
to the negative impacts created on the roadway system, truck traffic negatively affects trafficand air
quality, generates increased noise and vibrations, and increase health impacts upon the community.
Currently, the City does not have a long-term funding source to pay for the enhanced level of services and
maintenance needed for the roadway impacts created. To provide a long-term funding solution, and have
future development fund their proportional share of costs, the enhanced roadway services should be
included in the proposed CFD. The annual enhanced roadway services costs are presented in the table
below.
NBS City of Carson
�7 Fiscal Impart Analysis for Citywide Future Development 25
RESOLUTION NO. 19-009 (Exhibit A)
Page 35 of 77
TABLE 32. ENHANCED ROADWAY SERVICES COSTS
Description
Total
Amount(1)
Residential
Allocation
Commercial
Allocation
Industrial
Allocation
Arterial, Collector or Residential(2)
$1,000,000
$800,000
$86,000
$114,000
Regular Truck Routes(3)
5,792,437
0
2,490,748
3,301,689
Truck Oriented Routes(4)
1,358,514
0
0
1,358,514
Overweight Truck Routes(4)
849,049
0
0
849,049
Totals:
$9,000,000
$800,000
$2,576,748
$5,623,252
(1) Per PMP 2017 CIP Budget Recommendations for Truck Routes.
(2) Per City, costs allocated 80% to residential property and 20% to non-residential property. The non-residential
portion is allocated 57% to industrial property and 43% to commercial property.
(3) Per City, costs allocated 57% to industrial property and 43% to commercial property.
(4) Per City, costs allocated to industrial property only.
To determine the amount of enhanced roadway services allocated to future development, the enhanced
roadway services costs per person needs to be determined. The truck oriented route and overweight truck
routes are enhanced roadway services that are allocated to industrial property only, and those enhanced
roadway services are addressed later in this analysis. The estimated total future population of 107,900
residents and 69,700 employees are used in the enhanced roadway services analysis. It is anticipated that
the future employees within the City will be allocated approximately 50% to commercial property and
approximately 50% to industrial property. Based on the future population estimates and the allocation of
the future employee population, the enhanced roadway services costs per person or employee are as
follows:
TABLE 33. ENHANCED ROADWAY SERVICES PER FUTURE PERSON OR EMPLOYEE
(1) The industrial allocation excludes the truck oriented routes and overweight truck routes costs that are
addressed separately in the analysis.
The amount of annual enhanced roadway services costs per resident is $7.41, the costs per commercial
employee is $73.94, and the costs per industrial employee is $98.01. Applying these annual enhanced
roadway services costs per person or employee to the future development land uses, the amount per
dwelling unit or acre is presented in the table below:
N BS City of Carson
Fiscal impact Analysis for Citywide Future Development 26
RESOLUTION NO. 19-009 (Exhibit A)
Page 36 of 77
Residential
Commercial
Industrial
Description
Allocation
Allocation
Allocation
Enhanced Roadway Services Costs(1)
$800,000
$2,576,748
$3,415,689
Estimated Future Population
107,900
34,850
34,850
Enhanced Roadway Services Costs per
$7.41
$73.94
$98.01
Person or Employee
(1) The industrial allocation excludes the truck oriented routes and overweight truck routes costs that are
addressed separately in the analysis.
The amount of annual enhanced roadway services costs per resident is $7.41, the costs per commercial
employee is $73.94, and the costs per industrial employee is $98.01. Applying these annual enhanced
roadway services costs per person or employee to the future development land uses, the amount per
dwelling unit or acre is presented in the table below:
N BS City of Carson
Fiscal impact Analysis for Citywide Future Development 26
RESOLUTION NO. 19-009 (Exhibit A)
Page 36 of 77
TABLE 34. FUTURE DEVELOPMENT ENHANCED ROADWAY SERVICES PER DWELLING UNIT/ACRE
For the future development's residential property, the enhanced roadway services costs are $26.68 per Res
— All Other dwelling unit and $14.82 per Res — Studio/Apt dwelling unit. Future development's enhanced
roadway services costs are $1,086.92 per acre for commercial property and $1,793.58 per acre for industrial
property.
ENHANCED ROADWAY SERVICES INDUSTRIAL COST ZONES
The truck oriented routes and overweight truck routes are intended to primarily serve industrial land uses
only. The City has identified two areas as enhanced industrial zones that will be impacted by future
development or redevelopment. Zone 1 contains the local truck and truck oriented routes and includes
approximately 2,884 acres and 49.69 lane miles. Zone 2 includes the overweight truck routes and includes
approximately 787 acres and 8.55 lane miles. Appendix A of this report provides a map that identifies each
of these zones within the City. The City estimates that approximately 20% of the Zone 1 and Zone 2 land will
either develop or redevelop within the next 20 years. Applying this percentage to each zone, the future
development or redevelopment acreage is 576,81 acres for Zone 1 and 157.32 acres for Zone 2. Based on
the enhanced roadway costs associated with each zone and the estimated acreage of future development
included within each zone, the additional industrial zone rates per acre are calculated in the table below.
TABLE 35. ADDITIONAL ENHANCED ROADWAY SERVICES PER INDUSTRIAL ZONE
Description
Res — All Other
Res — Studio/Apt
Commercial
Industrial
Description
Amount
Amount
Amount
Amount
Enhanced Roadway Services
$7.41
$7.41
$73.94
$98.01
Costs per Person or Employee
Persons per Dwelling Unit or
3.60
2.00
14.70
18.30
Employees per Acre
Enhanced Roadway Services
$26.68
$14.82
$1,086.92
$1,793.58
Costs per Dwelling Unit or Acre
For the future development's residential property, the enhanced roadway services costs are $26.68 per Res
— All Other dwelling unit and $14.82 per Res — Studio/Apt dwelling unit. Future development's enhanced
roadway services costs are $1,086.92 per acre for commercial property and $1,793.58 per acre for industrial
property.
ENHANCED ROADWAY SERVICES INDUSTRIAL COST ZONES
The truck oriented routes and overweight truck routes are intended to primarily serve industrial land uses
only. The City has identified two areas as enhanced industrial zones that will be impacted by future
development or redevelopment. Zone 1 contains the local truck and truck oriented routes and includes
approximately 2,884 acres and 49.69 lane miles. Zone 2 includes the overweight truck routes and includes
approximately 787 acres and 8.55 lane miles. Appendix A of this report provides a map that identifies each
of these zones within the City. The City estimates that approximately 20% of the Zone 1 and Zone 2 land will
either develop or redevelop within the next 20 years. Applying this percentage to each zone, the future
development or redevelopment acreage is 576,81 acres for Zone 1 and 157.32 acres for Zone 2. Based on
the enhanced roadway costs associated with each zone and the estimated acreage of future development
included within each zone, the additional industrial zone rates per acre are calculated in the table below.
TABLE 35. ADDITIONAL ENHANCED ROADWAY SERVICES PER INDUSTRIAL ZONE
Description
Zone 1
Zone 2
Additional Enhanced Roadway Services Costs
$1,358,514
$849,049
Estimated Development or Redevelopment
576.81
159.46
Acreage(l)
Additional Enhanced Roadway Services
$2,355.22
$5,324.46
Costs per Acre
(1) Assumes 20% of the area identified is each zone will developed or redevelop over the next 20 years.
Appendix A of this report includes a GIS Map that identifies each zone.
Future development's industrial property may be located within one of the additional industrial zones. For
the industrial property located within Zone 1, the additional enhanced roadway services costs are $2,355.22
per acre and for industrial property located within Zone 2, the additional enhanced roadway services costs
are $5,324.46 per acre. These enhanced roadway services costs are in addition to the enhanced roadways
services costs of $1,793.58 per acre for industrial property previously established in Table 34_
Q N BS City of Carson
Fiscal Impact Analysis for Citywide Future Development 27
RESOLUTION NO. 19-009 (Exhibit A)
Page 37 of 77
CFD Special Tax Rates
Based on the overall fiscal impacts created by future development, as well as the enhanced park services
and enhanced roadway services previously identified, the proposed CFD special tax rates can be calculated
for each land use.
TABLE 36. PROPOSED CFD SPECIAL TAX RATES — RESIDENTIAL PROPERTY
Description
Res- All Other
CFD Tax Rate
Res — Studio/Apt
CFD Tax Rate
Overall Fiscal Impact(1)
$834.80
$495.90
Enhanced Park and Sidewalk Services
94.07
52.26
Enhanced Roadway Services
26.68
14.82
Enhanced Industrial Zones(2)
N/A
N/A
Total CFD Special Tax Rate per Dwelling Unit:
$955.55
$562.98
(1) Reflects the negative fiscal impact to be collected from residential property,
(2) Allocated to industrial property only.
TABLE 37. PROPOSED CFD SPECIAL TAX RATES — NON-RESIDENTIAL PROPERTY
(1) Reflects the positive fiscal impact to be credited to commercial property and industrial property.
(2) Allocated to industrial property only.
The CFD special tax rates presented in Tables 36 and 37, would represent the initial CFD maximum special
tax rates to fund the negative fiscal impact for residential property, as well as enhanced services. The City
could also increase the initial CFD maximum special tax rates to cover the added costs for administering the
CFD, as well as establish any reserves or contingency funds. Further, the CFD would be structured to include
a special tax escalation factor, which would allow for an annual increase to the initial CFD maximum special
tax rates. While the CFD maximum special tax rates would increase on an annual basis, the City is not
required to levy the special tax at the CFD maximum special tax rates each year. In order to meet the CFD
annual special tax requirement, authorized services and administrative costs, the City has the flexibility to
levy a CFD special tax amount that is less than or equal to the CFD maximum special tax.
City of Carson
:' N BS Fiscal Impact Analysis for Citywide Future Development 29
RESOLUTION NO. 19-009 (Exhibit A)
Page 38 of 77
Industrial —
Industrial —
Commercial
Industrial
Zone 1
Zone 2
Description
CFD Tax Rate
CFD Tax Rate
CFD Tax Rate
CFD Tax Rate
Overall Fiscal Impact(1)
($14,571.91)
($1,424.71)
($1,424.71)
($1,424.71)
Enhanced Park and Sidewalk
95.99
119.50
119.50
119.50
Services
Enhanced Roadway Services
1,086.92
1,793.58
1,793.58
1,793.58
Enhanced Industrial Zones(2)
N/A
N/A
2,355.22
5,324.46
Totals CFD Special Tax Rate
$0.00
$488.37
$2,843.59
$5,812.83
per Acre:
(1) Reflects the positive fiscal impact to be credited to commercial property and industrial property.
(2) Allocated to industrial property only.
The CFD special tax rates presented in Tables 36 and 37, would represent the initial CFD maximum special
tax rates to fund the negative fiscal impact for residential property, as well as enhanced services. The City
could also increase the initial CFD maximum special tax rates to cover the added costs for administering the
CFD, as well as establish any reserves or contingency funds. Further, the CFD would be structured to include
a special tax escalation factor, which would allow for an annual increase to the initial CFD maximum special
tax rates. While the CFD maximum special tax rates would increase on an annual basis, the City is not
required to levy the special tax at the CFD maximum special tax rates each year. In order to meet the CFD
annual special tax requirement, authorized services and administrative costs, the City has the flexibility to
levy a CFD special tax amount that is less than or equal to the CFD maximum special tax.
City of Carson
:' N BS Fiscal Impact Analysis for Citywide Future Development 29
RESOLUTION NO. 19-009 (Exhibit A)
Page 38 of 77
APPENDIX A - INDUSTRIAL ZONE MAP
The following map identifies the Citywide industrial area, as well as the two enhanced industrial zones
within the City.
Q N BV City of Carson
Fiscal Impact Analysis for Citywide Future Development 29
RESOLUTION NO. 19-009 (Exhibit A)
Page 39 of 77
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RESOLUTION NO. 19-009 (Exhibit A)
Page 40 of 77
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EXHIBIT `B"
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
RATE AND METHOD OF APPORTIONMENT
TAX ZONE NO.4
The Special Tax shall be levied in Tax Zone No. 4 in accordance with the Rate and Method of
Apportionment of Special Tax for City of Carson Community Facilities District No. 2018-01 (Maintenance
and Services) pursuant to the rate for Tax Zone No. 4 set forth in Attachment No. 1 thereto. The Rate
and Method of Apportionment of Special Tax is attached hereto and incorporated herein by this
reference.
01007.0018/525138.7MES RESOLUTION NO. 19-009 (Exhibit B)
Page 41 of 77
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be levied and collected in City of Carson Community Facilities District No. 2018-01
(Maintenance and Services) (the "District") each Fiscal Year, in an amount determined by the application
of the procedures described below. All of the Taxable Property (as defined below) in the District, unless
exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner
herein provided.
I. DEFINITIONS
The terms used herein shall have the following meanings:
"Accessory Unit" means a secondary residential unit of limited size (e.g., granny cottage, second unit)
that shares a Parcel with a Unit of Single Family Detached Property.
"Acreage" or "Acre" means that acreage shown on the Assessor's Parcel Map or in the Assessor's Data
for each Assessor's Parcel. In the event that the Assessor's Parcel Map or Assessor's Data shows no
acreage, the Acreage for any Assessor's Parcel shall be determined by the District Administrator based
upon the applicable condominium plan, final map or parcel map. If the preceding maps for a land are
not available, the Acreage of such land area may be determined utilizing available spatial data and
geographic information systems (GIS).
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division
2 of Title 5 of the Government Act of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to
the administration of the District: the costs of computing the Annual Special Tax Requirement and the
annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting
the Special Taxes, including any charges levied by the County Auditor's Office, Tax Collector's Office or
Treasurer's Office; the costs of the City or designee in complying with the disclosure requirements of the
California Government Code (including the Act), including public inquiries regarding the Special Taxes;
and the costs of the City or designee related to an appeal of the Special Tax. Administrative Expenses
shall also include costs related to the formation of the District and of annexing territory to the District as
well as any amounts advanced by the City for any administrative purposes of the District and an
allocable share of the salaries of City staff and an allocable portion of City overhead costs relating to the
foregoing, or costs of the City in any way related to the establishment or administration of the District.
"Annual Services Costs" means the amounts required to fund services authorized to be funded by the
District.
"Annual Special Tax Requirement" means that amount with respect to the District determined by the
Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual
Services Costs for each Tax Zone, (3) any amount required to establish or replenish any reserve or
replacement fund established in connection with the District, and (4) reasonably anticipated delinquent
Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year.
01007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 42 of 77
"Assessor's Data" means Acreage or other Parcel information contained in the records of the County
Assessor.
"Assessor's Parcel" or "Parcel' means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means, with respect to an Assessor's Parcel, that number assigned to such
Assessment's Parcel by the County for purposes of identification.
"Association Property" means any property within the boundaries of the District which is owned by a
homeowners' or property association, including any master or sub -association.
"Boundary Map" means that map recorded with the County recorder's office on September 20, 2018 in
Book 194 at Pages 88 & 89 as Document Number 20180967743.
"City" means the City of Carson, County of Los Angeles.
"Council" means the City Council of the City, acting as the legislative body of the District.
"County" means the County of Los Angeles, California.
"Developed Property" means, in any Fiscal Year, all Taxable Property in the District for which a building
permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year.
"District" means the City of Carson Community Facilities District No. 2018-01 (Maintenance and
Services), and, when applicable, any annexed Assessor's Parcels.
"District Administrator" means an official of the City, or designee or agent or consultant, responsible for
administering the Special Tax in accordance with this Rate and Method of Apportionment.
"Exempt Property" means all property located within the boundaries of the District which is exempt
from the Special Tax pursuant to Section V below.
"Expected Special Tax Revenue" means the amount of revenue anticipated to be collected in each Tax
Zone, adjusted annually by the Tax Escalation Factor.
"Finance Director" means the official of the City who is the chief financial officer or other comparable
officer of the City or designee thereof.
"Fiscal Year" means the period from July I" of any calendar year through June 301h of the following
calendar year.
"Future Voluntary Annexation Area" means the area designated for future voluntary annexation to the
District as shown in the District Boundary Map, as may be amended from time to time.
01007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 43 of 77
"Maximum Special Tax Rate" means the maximum Special Tax authorized for levy in any Fiscal Year that
may apply to Taxable Property as described in Section III.
"Multi -Family Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building
permit or use permit has been issued for construction of a residential structure with five or more Units
that share a single Assessor's Parcel Number, are offered for rent to the general public, and cannot be
purchased by individual homebuyers.
"Non -Residential Property" means all Developed Property that is not used for people to live in, and
does not include Public Property.
"Proportionately" means, in any Fiscal Year, that the ratio of the actual Special Tax to the Maximum
Special Tax Rate is equal for all Assessor's Parcels authorized to be levied in that Fiscal Year within each
respective Tax Zone.
"Public Property" means any property within the boundaries of the District owned by, irrevocably
offered or dedicated to, or for which an easement for purposes of public or private road right-of-way
making the property unusable for any other purpose has been granted to the federal government, the
State of California, the County, the City, or any local government or other public agency for public
purpose.
"Single Family Attached Property" means, in any Fiscal Year, all Parcels of Developed Property for which
a building permit or use permit was issued for construction of a residential structure consisting of two or
more Units that share common walls, have separate Assessor's Parcel Numbers assigned to them
(except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or
fourplex Unit(s)), and may be purchased by individual homebuyers (which shall still be the case even if
the Units are purchased and subsequently offered for rent by the owner of the Unit), including such
residential structures that meet the statutory definition of a condominium project contained in Civil
Code Section 4125.
"Single Family Detached Property" means, in any Fiscal Year, all Parcels of Developed Property for
which a building permit was issued for construction of a Unit that does not share a common wall with
another Unit.
"Special Tax" means the amount levied in each Fiscal Year on each Assessor's Parcel of Taxable Property
to fund the Annual Special Tax Requirement.
"Tax Escalation Factor" means a factor that will be applied annually after Fiscal Year 2018/19 to
increase the Maximum Special Tax Rates shown in Section III and as specified for each Tax Zone.
"Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied
pursuant to this Rate and Method of Apportionment. All of the Taxable Property within the District at
the time of its formation is within Tax Zone No. 1 as specified on the District Boundary Map. Additional
Tax Zones may be created when property is annexed to the District, and a separate Maximum Special
Tax shall be identified for property within the new Tax Zone at the time of such annexation. The
Assessor's Parcels included within a new Tax Zone when such Parcels are annexed to the District shall be
01007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 44 of 77
identified by Assessors Parcel number in the Unanimous Approval Form that is signed by the owner(s)
of the Parcels at the time of annexation, or any proceeding for annexation to the District.
'Taxable Property" means all Parcels within the boundary of the District that are not Exempt Property,
exempt from the Special Tax pursuant to the Act or Section V below.
"Unanimous Approval Form" means that form executed by the record owner of fee title to a Parcel or
Parcels of Taxable Property annexed into the District that constitutes the property owners approval and
unanimous vote in favor of annexing into the District and the levy of Special Tax against his/her Parcel or
Parcels pursuant to this Rate and Method of Apportionment of Special Tax.
"Undeveloped Property" means all Parcels of Taxable Property that are not Developed Property.
"Unit" means an individual single family detached or attached home, townhome, condominium,
apartment, or other residential dwelling unit, including each separate living area within a half-plex,
duplex, triplex, fourplex, or other residential structure. An Accessory Unit that shares a Parcel with a
Unit of Single Family Detached Property shall not be considered a separate Unit for purposes of
calculating the Special Tax.
11. DETERMINATION OF TAXABLE PARCELS
On or about July 1 of each Fiscal Year, the District Administrator shall determine the valid Assessor's
Parcel Numbers for all Taxable Property within the District. If any Assessor's Parcel Numbers are no
longer valid from the previous Fiscal Year, the District Administrator shall determine the new Assessor's
Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels
of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall
be assigned to the new Assessor's Parcels pursuant to Section III. The District Administrator shall also
determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed
Property; (iii) the Acreage or number of Units each Parcel contains; and (iv) the Annual Special Tax
Requirement for the Fiscal Year.
Ill. ANNUAL SPECIAL TAX - METHOD OF APPORTIONMENT
All Taxable Property shall be subject to a Special Tax defined as follows.
The Special Tax shall be levied each Fiscal Year by the District Administrator. The Annual Special Tax
Requirement shall be apportioned to each Parcel of Taxable Property within the District by the method
shown below.
First. Determine the Annual Special Tax Requirement.
Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the
Maximum Special Tax Rate described in Table 1 below to satisfy the Annual Special Tax
Requirement.
01007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 45 of 77
TABLE 1
SPECIAL TAX RATES — TAX ZONE NO. 1
FISCAL YEAR 2018/19"
Maximum Special
Property Type T; I Per
Expected Special
Tax Revenue
Non -Residential Property $1,971.51 1 Acre
$9,189.21
*On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each
Tax Zone shall be increased by the percentage change in the November annualized
Consumer Price Index for Las Angeles -Long Beach -Anaheim for all Urban Consumers,
the Tax Escalation Factor far Tax Zane No. 1.
Should the total revenue for Tax Zone No. 1 not be fully realized when all Parcels in Tax Zone No. 1 are
classified as Developed Property, the Special Tax rate per Acre shall be adjusted so that the Special Tax
per Acre is sufficient to generate the total Expected Special Tax Revenue for Tax Zone No. 1, adjusted
annually by the Tax Escalation Factor. The Maximum Special Tax Rate shall be the greater of the
Maximum Special Tax Rate shown in Table 1, adjusted annually by the Tax Escalation Factor or the
Special Tax Rate calculated to generate the total Expected Special Tax Revenue for Tax Zone No. 1,
adjusted annually by the Tax Escalation Factor.
if a building permit has been issued after June 1 of the preceding Fiscal Year, the City may directly bill to
meet the Annual Special Tax Requirement, as prorated based on the date the building permit is issued
and the end of the Fiscal Year.
A different Maximum Special Tax Rate may be identified in Tax Zones added to the District as a result of
future annexations.
IV. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS
The Special Tax may not be prepaid.
V. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no
Special Taxes shall be levied on (i) Public Property, (ii) Association Property, (iii) Assessor's Parcels with
public or utility easements making impractical their utilization for any use other than the purposes set
forth in the easement, or (iv) except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.
VI. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City reserves the right to make minor administrative and technical changes to this document that do
not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation
and application of any section of this document shall be at the City's discretion. Interpretations may be
made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this
Rate and Method of Apportionment of Special Tax.
VII. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a
01007.oa18/526138-7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 46 of 77
different time or in a different manner if needed to meet the financial obligations of the District, and
may collect delinquent Special Taxes through foreclosure or other available methods.
A Special Tax shall continue to be levied and collected within the District, as needed to fund the Annual
Special Tax Requirement, in perpetuity.
Vlll. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the District Administrator claiming
that the amount or application of the Special Tax is not correct. The appeal must be filed not later than
one calendar year after having paid the Special Taxes that are disputed, and the appellant must be
current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special
Taxes levied must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The District
Administrator shall review the appeal, meet with the appellant if the District Administrator deems
necessary, and advise the appellant of its determination.
If the property owner disagrees with the District Administrator's decision relative to the appeal, the
owner may then file a written appeal with the City Council whose subsequent decision shall be final and
binding on all interested parties. If the decision of the District Administrator or subsequent decision by
the City Council requires the Special Taxes to be modified or changed in favor of the property owner, no
cash refund shall be made for prior years' Special Taxes, but an adjustment shall be made to credit
future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition
precedent to filing any legal action by such owner.
01007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 47 of 77
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
ATTACHMENT 1
MAXIMUM SPECIAL TAX RATES
TAX ZONE 4 — BASE YEAR 2019/20
Property Type
Maximum
Special Tax Rate
Per
Single Family Attached Property
$517.94
Unit
Single Family Detached Property
879.10
Unit
Multi -Family Property
517.94
Unit
Non -Residential Property
449.30
Acre
Non -Residential Property— Industrial Zone 1
2,616.10
Acre
Non -Residential Property — Industrial Zone 2
5,347.80
Acre
Association Property
0.00
Acre
Public Property
0.00 1
Acre
On each July 1, commencing on July 1, 2020 through and including July 1, 2024, the Maximum
Special Tax Rate for Tax Zone No. 4 shall be increased by 7%. On each July 1, commencing on
July 1, 2025 and thereafter, the Maximum Special Tax Rate for Tax Zone No. 4 shall be increased
by the percentage change in the November annualized Consumer Price Index for Los Angeles -
Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax Zone No. 4.
03007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 48 of 77
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01007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit B)
Page 49 of 77
EXHIBIT "C"
CITY OF CARSON
Community Facilities District No. 2018-01
17 (Maintenance and Services)
UNANIMOUS APPROVAL LETTER
[attached]
01007.0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit C)
Page 50 of 77
UNANIMOUS APPROVAL
of Annexation to a Community Facilities District
and Related Matters
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
Annexation No.
To the Honorable City Council
City of Carson
701 E. Carson Street
Carson, CA 90745
Members of the City Council:
This constitutes the Unanimous Approval (the "Unanimous Approval") of PROPERTY OWNER
NAME, the record owner(s) (the "Property Owner") of the fee title to the real property identified below
(the "E[gpert,"} contemplated by Section 53339.3 et seq. of the Mello -Roos Community Facilities Act of
1982, as amended (the "Act"), to the annexation of the Property to the "City of Carson Community
Facilities District No. 2018-01 (Maintenance and Services)" (the "CFD"), and it states as follows:
1. Property Owner. This Unanimous Approval is submitted by the Property Owner as the
record owner(s) of fee title to the Property. The Property Owner has supplied to the City current
evidence of its ownership of fee title to the Property.
2. Approval of Annexation. This Unanimous Approval constitutes the unanimous approval
and unanimous vote by the Property Owner in favor of the annexation of the Property to the CFD. The
CFD was formed to finance the municipal services, which are incorporated herein by this reference (the
"Services") described in Exhibit A hereto and made a part hereof. In such connection Property Owner
has reviewed the list of the Services and hereby agrees, consents and approves to the Services and the
Annexation of the Property to the CFD for the benefit of the City and the CFD.
3. Approval of Special Tax and the Services. This Unanimous Approval constitutes the
unanimous approval and unanimous vote by the Property Owner in favor of the levy of special taxes (the
"Special Taxes") on the Property to finance the Services. The Special Taxes will be levied according to
the Rate and Method of Apportionment of Special Taxes for the CFD attached hereto as Exhibit B and
made a part hereof (the "Rate and Method"). Exhibit B includes the cost estimate for the Services. In
such connection property owner consents and approves of the Rate and Method and understands that
such taxes shall be levied against the Property.
4. Approval of the Appropriations Limit. This Unanimous Approval constitutes the
unanimous approval and unanimous vote by the Property Owner in favor of the appropriations limit
established for the CFD. The Property Owner hereby approves, consents and agrees to the
appropriations limit for the CFD of $1,000,000, pursuant to Article XIIIB of the California Constitution, as
adjusted for changes in the cost of living and changes in the population.
RESOLUTION NO. 19-009 (Exhibit C)
Page 51 of 77
S. Waivers and Vote. Section 53328.1 of the Act provides for an alternate and
independent procedure for formation of a community facilities district that simplifies the annexation
process. Under such process, the Property Owner acknowledges and agrees that by executing this
Unanimous Approval, the Property Owner is voluntarily waiving any and all right to an election held in
accordance with Sections 53326, 53327, 53327.5 and 53328 of the Act. The Property Owner hereby
confirms that this Unanimous Approval constitutes its unanimous approval and unanimous vote as
described herein and as contemplated by Section 53339.3 et seq. of the Act and for purposes of the
California Constitution Article XIII A and XIII C. In lieu of an approval by public hearing, ballot and
election, if any, the Property Owner intends for this Unanimous Approval to constitute its ballot and
election and waiver of a public hearing. Further, the Property Owner hereby waives all other rights with
respect to the annexation of the Property, the levy of the Special Taxes on the Property in accordance
with the rate and method of apportionment and the other matters covered in this Unanimous Approval.
6. Recordation of Amendment to Notice of Special Tax Lien. The Notice of Special Tax Lien
for the CFD was recorded in the Office of the County Recorder of the County of Los Angeles, State of
California on November 13, 2018 as Document No. 20181142886.
The Property Owner hereby understands and agrees, consents and approves to the City Clerk, or
City designee, to execute and cause to be recorded in the office of the County Recorder of the County of
Los Angeles an amendment to the Notice of Special Tax Lien for the CFD as required by Section 3117.5
of the California Streets and Highways Code. The amendment to the Notice of Special Tax Lien shall
include the Rate and Method as an exhibit thereto.
7. Authority Warranted. The Property Owner warrants to the City that the presentation of
this Unanimous Approval, any votes, consents or waivers contained herein, and other actions mandated
by the City for the annexation of the Property to the CFD shall not constitute or be construed as events
of default or delinquencies under any existing or proposed financing documents entered into or to be
entered into by the Property Owner for the Property, including any "due -on -encumbrance" clauses
under any existing security instruments secured by the Property.
B. Due Diligence and Disclosures. The Property Owner agrees to comply with Section
53341.5 of the Act with respect to disclosures about the Special Taxes to purchasers of the Property or
any part of it.
9. Agreements. The Property Owner further agrees to execute such additional or
supplemental agreements as may be reasonably required by the City to provide for any of the actions
and conditions described in this Unanimous Approval, including any cash deposit required to pay for the
City's costs in annexing the Property to the CFD.
10. The Property. The Property is identified below, and such Property Owner approves,
consents and agrees that Property will be subject to the CFD upon the recordation of the amendment to
the Notice of Special Tax Lien. The map demonstrating the annexed Property area is entitled
"Annexation Map No. 1 of City of Carson Community Facilities District No. 2018-1 (Maintenance and
Services)" and is attached hereto as Exhibit C.
RESOLUTION NO. 19-009 (Exhibit C)
Page 52 of 77
Assessor's Parcel Number(s):
Property Addresses:
Acres:
By executing this Unanimous Approval, the Property Owner agrees to all of the above.
Annexation No.
Tax Zone No. a
Property Owner
PROPERTY OWNER
SIGNATURE BLOCK
By:
Name:
Title:
Notice Address:
RESOLUTION NO. 19-009 (Exhibit C)
Page 53 of 77
EXHIBIT A
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
DESCRIPTION OF SERVICES
The services to be funded, in whole or in part, by the community facilities district (the "District") include
all direct and incidental costs related to providing for the maintenance of public infrastructure within
the area of the District, the future voluntary annexation area, and areas adjacent to or in the vicinity of
such areas. More specifically, the services may include, but not be limited to: (i) police and related
services of the City of Carson required to sustain the public safety service delivery capability for
emergency and non -emergency services including related facilities, equipment, vehicles, services,
supplies and personnel; (ii) maintenance and lighting of parks, parkways, streets, roads and open space;
(iii) flood and storm protection services; as well as the provision of other public services authorized to be
funded under Section 53313 of the California Government Code. The District may fund any of the
following related to the services described in the preceding sentence: obtaining, constructing, furnishing,
operating and maintaining equipment, apparatus or facilities related to providing the services and/ or
equipment, apparatus, 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 and 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 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.
Administrative Expenses:
The administrative expenses to be funded by the District include the direct and indirect expenses
incurred by the City in carrying out its duties with respect to the District (including, but not limited to,
the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the
County of Los Angeles related to the District or the collection of special taxes, an allocable share of the
salaries of the City staff directly related thereto and a proportionate amount of the City's general
administrative overhead related thereto, any amounts paid by the City from its general fund with
respect to the District or the services authorized to be financed by the District, and expenses incurred by
the City in undertaking action to foreclose on properties for which the payment of special taxes is
delinquent, and all other costs and expenses of the City in any way related to the District.
Other:
The incidental expenses that may be funded by the District include, in addition to the administrative
expenses identified above, the payment or reimbursement to the City of all costs associated with the
establishment and administration of the District.
RESOLUTION NO. 19-009 (Exhibit C)
Page 54 of 77
EXHIBIT B
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
RATE AND METHOD OF APPORTIONMENT
TAX ZONE NO.4
The Special Tax shall be levied in Tax Zone No. 4 in accordance with the Rate and Method of
Apportionment of Special Tax for City of Carson Community Facilities District No. 2018-01 (Maintenance
and Services) pursuant to the rate for Tax Zone No. 4 set forth in Attachment No. 1 thereto. The Rate
and Method of Apportionment of Special Tax is attached hereto and incorporated herein by this
reference.
RESOLUTION NO. 19-009 (Exhibit C)
Page 55 of 77
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be levied and collected in City of Carson Community Facilities District No. 2018-01
(Maintenance and Services) (the "District") each Fiscal Year, in an amount determined by the application
of the procedures described below. All of the Taxable Property (as defined below) in the District, unless
exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner
herein provided.
I. DEFINITIONS
The terms used herein shall have the following meanings:
"Accessory Unit" means a secondary residential unit of limited size (e.g., granny cottage, second unit)
that shares a Parcel with a Unit of Single Family Detached Property.
"Acreage" or "Acre" means that acreage shown on the Assessor's Parcel Map or in the Assessor's Data
for each Assessor's Parcel. In the event that the Assessor's Parcel Map or Assessor's Data shows no
acreage, the Acreage for any Assessor's Parcel shall be determined by the District Administrator based
upon the applicable condominium plan, final map or parcel map. If the preceding maps for a land are
not available, the Acreage of such land area may be determined utilizing available spatial data and
geographic information systems (GIS).
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division
2 of Title 5 of the Government Act of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to
the administration of the District: the costs of computing the Annual Special Tax Requirement and the
annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting
the Special Taxes, including any charges levied by the County Auditor's Office, Tax Collector's Office or
Treasurer's Office; the costs of the City or designee in complying with the disclosure requirements of the
California Government Code (including the Act), including public inquiries regarding the Special Taxes;
and the costs of the City or designee related to an appeal of the Special Tax. Administrative Expenses
shall also include costs related to the formation of the District and of annexing territory to the District as
well as any amounts advanced by the City for any administrative purposes of the District and an
allocable share of the salaries of City staff and an allocable portion of City overhead costs relating to the
foregoing, or costs of the City in any way related to the establishment or administration of the District.
"Annual Services Costs" means the amounts required to fund services authorized to be funded by the
District.
"Annual Special Tax Requirement" means that amount with respect to the District determined by the
Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual
Services Costs for each Tax Zone, (3) any amount required to establish or replenish any reserve or
replacement fund established in connection with the District, and (4) reasonably anticipated delinquent
Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year.
RESOLUTION NO. 19-009 (Exhibit C)
Page 56 of 77
"Assessor's Data" means Acreage or other Parcel information contained in the records of the County
Assessor.
"Assessor's Parcel" or "Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means, with respect to an Assessor's Parcel, that number assigned to such
Assessment's Parcel by the County for purposes of identification.
"Association Property" means any property within the boundaries of the District which is owned by a
homeowners' or property association, including any master or sub -association.
"Boundary Map" means that map recorded with the County recorder's office on September 20, 2018 in
Book 194 at Pages 88 & 89 as Document Number 20180967743.
"City" means the City of Carson, County of Los Angeles.
"Council" means the City Council of the City, acting as the legislative body of the District.
"County" means the County of Los Angeles, California.
"Developed Property" means, in any Fiscal Year, all Taxable Property in the District for which a building
permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year.
"District" means the City of Carson Community Facilities District No. 2018-01 (Maintenance and
Services), and, when applicable, any annexed Assessor's Parcels.
"District Administrator" means an official of the City, or designee or agent or consultant, responsible for
administering the Special Tax in accordance with this Rate and Method of Apportionment.
"Exempt Property" means all property located within the boundaries of the District which is exempt
from the Special Tax pursuant to Section V below.
"Expected Special Tax Revenue" means the amount of revenue anticipated to be collected in each Tax
Zone, adjusted annually by the Tax Escalation Factor.
"Finance Director" means the official of the City who is the chief financial officer or other comparable
officer of the City or designee thereof.
"Fiscal Year" means the period from July iso of any calendar year through June 30", of the following
calendar year.
"Future Voluntary Annexation Area" means the area designated for future voluntary annexation to the
District as shown in the District Boundary Map, as may be amended from time to time.
RESOLUTION NO. 19-009 (Exhibit Q
Page 57 of 77
"Maximum Special Tax Rate" means the maximum Special Tax authorized for levy in any Fiscal Year that
may apply to Taxable Property as described in Section III.
"Multi -Family Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building
permit or use permit has been issued for construction of a residential structure with five or more Units
that share a single Assessor's Parcel Number, are offered for rent to the general public, and cannot be
purchased by individual homebuyers.
"Non -Residential Property" means all Developed Property that is not used for people to live in, and
does not include Public Property.
"Proportionately" means, in any Fiscal Year, that the ratio of the actual Special Tax to the Maximum
Special Tax Rate is equal for all Assessor's Parcels authorized to be levied in that Fiscal Year within each
respective Tax Zone.
"Public Property" means any property within the boundaries of the District owned by, irrevocably
offered or dedicated to, or for which an easement for purposes of public or private road right-of-way
making the property unusable for any other purpose has been granted to the federal government, the
State of California, the County, the City, or any local government or other public agency.
"Single Family Attached Property" means, in any Fiscal Year, all Parcels of Developed Property for which
a building permit or use permit was issued for construction of a residential structure consisting of two or
more Units that share common walls, have separate Assessor's Parcel Numbers assigned to them
(except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or
fourplex Unit(s)), and may be purchased by individual homebuyers (which shall still be the case even if
the Units are purchased and subsequently offered for rent by the owner of the Unit), including such
residential structures that meet the statutory definition of a condominium project contained in Civil
Code Section 4125.
"Single Family Detached Property" means, in any Fiscal Year, all Parcels of Developed Property for
which a building permit was issued for construction of a Unit that does not share a common wall with
another Unit.
"Special Tax" means the amount levied in each Fiscal Year on each Assessor's Parcel of Taxable Property
to fund the Annual Special Tax Requirement.
"Tax Escalation Factor" means a factor that will be applied annually after Fiscal Year 2018/19 to
increase the Maximum Special Tax Rates shown in Section Ill and as specified for each Tax Zone.
"Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied
pursuant to this Rate and Method of Apportionment. All of the Taxable Property within the District at
the time of its formation is within Tax Zone No.1 as specified on the District Boundary Map. Additional
Tax Zones may be created when property is annexed to the District, and a separate Maximum Special
Tax shall be identified for property within the new Tax Zone at the time of such annexation. The
Assessor's Parcels included within a new Tax Zone when such Parcels are annexed to the District shall be
identified by Assessor's Parcel number in the Unanimous Approval Form that is signed by the owner(s)
of the Parcels at the time of annexation, or any proceeding for annexation to the District.
RESOLUTION NO. 19-009 (Exhibit C)
Page 58 of 77
"Taxable Property" means all Parcels within the boundary of the District that are not Exempt Property,
exempt from the Special Tax pursuant to the Actor Section V below.
"Unanimous Approval Form" means that form executed by the record owner of fee title to a Parcel or
Parcels of Taxable Property annexed into the District that constitutes the property owners approval and
unanimous vote in favor of annexing into the District and the levy of Special Tax against his/her Parcel or
Parcels pursuant to this Rate and Method of Apportionment of Special Tax.
"Undeveloped Property" means all Parcels of Taxable Property that are not Developed Property.
"Unit" means an individual single family detached or attached home, townhome, condominium,
apartment, or other residential dwelling unit, including each separate living area within a half-plex,
duplex, triplex, fourplex, or other residential structure. An Accessory Unit that shares a Parcel with a
Unit of Single Family Detached Property shall not be considered a separate Unit for purposes of
calculating the Special Tax.
II. DETERMINATION OF TAXABLE PARCELS
On or about July 1 of each Fiscal Year, the District Administrator shall determine the valid Assessor's
Parcel Numbers for all Taxable Property within the District. If any Assessor's Parcel Numbers are no
longer valid from the previous Fiscal Year, the District Administrator shall determine the new Assessor's
Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels
of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall
be assigned to the new Assessor's Parcels pursuant to Section III. The District Administrator shall also
determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed
Property; (iii) the Acreage or number of Units each Parcel contains; and (iv) the Annual Special Tax
Requirement for the Fiscal Year.
Ill. ANNUAL SPECIAL TAX - METHOD OF APPORTIONMENT
All Taxable Property shall be subject to a Special Tax defined as follows.
The Special Tax shall be levied each Fiscal Year by the District Administrator. The Annual Special Tax
Requirement shall be apportioned to each Parcel of Taxable Property within the District by the method
shown below.
First. Determine the Annual Special Tax Requirement.
Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the
Maximum Special Tax Rate described in Table 1 below to satisfy the Annual Special Tax
Requirement.
RESOLUTION NO. 19-009 (Exhibit C)
Page 59 of 77
TABLE 1
SPECIAL TAX RATES —TAX ZONE NO. 1
FISCAL YEAR 2018/19*
Maximum Special
Property Type Tax Rate
Per
Expected Special
Tax Revenue
Non -Residential Property $1,971.51
Acre
$9,189.21
*On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone
shall be increased by the percentage change in the November annualized Consumer Price Index
for Los Angeles -Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax
Zone No. 1.
Should the total revenue for Tax Zone No. 1 not be fully realized when all Parcels in Tax Zone No. 1 are
classified as Developed Property, the Special Tax rate per Acre shall be adjusted so that the Special Tax
per Acre is sufficient to generate the total Expected Special Tax Revenue for Tax Zone No. 1, adjusted
annually by the Tax Escalation Factor. The Maximum Special Tax Rate shall be the greater of the
Maximum Special Tax Rate shown in Table 1, adjusted annually by the Tax Escalation Factor or the
Special Tax Rate calculated to generate the total Expected Special Tax Revenue for Tax Zone No. 1,
adjusted annually by the Tax Escalation Factor.
If a building permit has been issued after June 1 of the preceding Fiscal Year, the City may directly bill to
meet the Annual Special Tax Requirement, as prorated based on the date the building permit is issued
and the end of the Fiscal Year.
A different Maximum Special Tax Rate may be identified in Tax Zones added to the District as a result of
future annexations.
IV. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS
The Special Tax may not be prepaid.
V. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no
Special Taxes shall be levied on (i) Public Property, (ii) Association Property, (iii) Assessors Parcels with
public or utility easements making impractical their utilization for any use other than the purposes set
forth in the easement, or (iv) except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.
VI. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City reserves the right to make minor administrative and technical changes to this document that do
not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation
and application of any section of this document shall be at the City's discretion. Interpretations may be
made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this
Rate and Method of Apportionment of Special Tax.
VII. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a
different time or in a different manner if needed to meet the financial obligations of the District, and
may collect delinquent Special Taxes through foreclosure or other available methods.
RESOLUTION NO. 19-009 (Exhibit C)
Page 60 of 77
A Special Tax shall continue to be levied and collected within the District, as needed to fund the Annual
Special Tax Requirement, in perpetuity.
VIII. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the District Administrator claiming
that the amount or application of the Special Tax is not correct. The appeal must be filed not later than
one calendar year after having paid the Special Taxes that are disputed, and the appellant must be
current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special
Taxes levied must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The District
Administrator shall review the appeal, meet with the appellant if the District Administrator deems
necessary, and advise the appellant of its determination.
If the property owner disagrees with the District Administrator's decision relative to the appeal, the
owner may then file a written appeal with the City Council whose subsequent decision shall be final and
binding on all interested parties. If the decision of the District Administrator or subsequent decision by
the City Council requires the Special Taxes to be modified or changed in favor of the property owner, no
cash refund shall be made for prior years' Special Taxes, but an adjustment shall be made to credit
future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition
precedent to filing any legal action by such owner.
RESOLUTION NO. 19-009 (Exhibit C)
Page 61 of 77
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
ATTACHMENT 1
MAXIMUM SPECIAL TAX RATES
TAX ZONE 4 — BASE YEAR 2019/20
Property Type
Maximum
Special Tax Rate
Per
Single Family Attached Property
$517.94
Unit
Single Family Detached Property
879.10
Unit
Multi -Family Property
517.94
Unit
Non -Residential Property
449.30
Acre
Non -Residential Property — Industrial Zone 1
2,616.10
Acre
Non -Residential Property—Industrial Zone 2
5,347.80
Acre
Association Property
0.00
Acre
Public Property
0.00 1
Acre
On each July 1, commencing on July 1, 2020 through and including July 1, 2024, the Maximum
Special Tax Rate for Tax Zone No. 4 shall be increased by 7%. On each July 1, commencing on
July 1, 2025 and thereafter, the Maximum Special Tax Rate for Tax Zone No. 4 shall be increased
by the percentage change in the November annualized Consumer Price Index for Los Angeles -
Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax Zone No. 4.
RESOLUTION NO. 19-009 (Exhibit C)
Page 62 of 77
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Page 63 of 77
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RESOLUTION NO. 19-009 (Exhibit C)
Page 63 of 77
EXHIBIT C
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
ANNEXATION MAP NO. _ OF CITY OF CARSON COMMUNITY FACILITIES DISTRICT NO. 2018-1
(MAINTENANCE AND SERVICES)
RESOLUTION NO. 19-009 (Exhibit C)
Page 64 of 77
EXHIBIT "D"
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
AMENDED NOTICE OF SPECIAL; TAX LIEN
[attached]
01007,0018/526138.7 MES RESOLUTION NO. 19-009 (Exhibit D)
Page 65 of 77
RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:
City Clerk
City of Carson
701 E. Carson St
Carson, CA 90745
SPACE ABOVE FOR RECORDER'S USE ONLY
Exempt from payment of recording fees per to Gov't Code 06103, 27383.
AMENDMENT NO. TO
NOTICE OF SPECIAL TAX LIEN
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
Annexation No.
Pursuant to the requirements of Sections 3114.5 and 3117.5 of the Streets and Highways Code
of California and the Mello -Roos Community Facilities Act of 1982, as amended, section 53311, et. seq.,
of the California Government Code (the "Act"), the undersigned clerk of the legislative body of the City
of Carson Community Facilities District No. 2018-01 (Maintenance and Services) (the "CFD"), County of
Los Angeles, State of California, hereby gives notice that a lien to secure payment of a special tax, which
special tax the City of Carson (the "City") is authorized to levy, is hereby imposed on the property
described herein. The special tax secured by this lien is authorized to be levied for the purpose of paying
for costs of the public services authorized to be funded by the CFD, as described in Exhibit A to the
Notice of Special Tax Lien heretofore recorded in the Office of the County Recorder of the County of Los
Angeles, State of California on November 13, 2018 as Document No. 20181142886, and said special tax
is to be levied according to the Rate and Method of Apportionment of Special Tax set forth in Exhibit B
to the Notice of Special Tax Lien, to which recorded Notice of Special Tax Lien reference is hereby made
and the provisions of which are hereby incorporated herein in full by this reference.
This Amendment No. — to Notice of Special Tax Lien amends the Notice of Special Tax Lien to
add to the territory of the CFD. The territory and future voluntary annexation area included in the
original CFD is set forth in the map of the CFD heretofore recorded on September 20, 2018 in the Los
Angeles County Recorder's Office at Book 194 of Maps of Assessment and Community Facilities
Districts at Pages 88 and 89, to which map reference is hereby made, as such map has been
supplemented in connection with subsequent annexations. The territory to be added from the future
voluntary annexation area is that certain "Annexation Map No. _ to Community Facilities District No.
2018-01 (Maintenance and Services)" heretofore recorded on [DATE] as Document Number [_]
Page 1 of 11
RESOLUTION NO. 19-009 (Exhibit D)
Page 66 of 77
in Book U of Assessment and Community Facilities Districts at Pages L] in the Office of the County
Recorder of the County of Los Angeles, State of California.
The special tax is authorized to be levied within the CFD and the lien of the special tax is a
continuing lien which shall secure each annual levy of the special tax and which shall continue in force
and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance
with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded
in accordance with section 53330.5 of the Government Code.
The rate, method of apportionment, and manner of collection of the authorized special tax is
set forth in Exhibit B hereto and hereby made a part hereof. The Maximum Special Tax for Tax Zone No.
4 is set forth in Exhibit C hereto, and hereby made a part of the Existing RMA, as that term is defined
below, and a part hereof.
Notice is further given that upon the recording of this notice in the office of the county
recorder, the obligation to pay the special tax levy shall become a lien upon all nonexempt real
property with in the territory to be added to the CFD in accordance with Section 3115.5 of the Streets
and Highways Code.
The assessor's tax parcel(s) numbers of all parcels or any portion thereof which are included in
this Amendment No. 3 to Notice of Special Tax Lien, together with the name(s) of the owner(s) thereof,
as they appear on the latest secured assessment roll as of the date of recording hereof or as are
otherwise known to the City are as set forth in Exhibit A hereto, and by such reference hereby made a
part hereof.
The territory to be added to the CFD which is included in this Amendment No. — to Notice of
Special Tax Lien shall be placed in Tax Zone No. 4 as such term is defined in the Rate and Method of
Apportionment of Special Tax applicable to the CFD, as supplemented to date (the "Existing RMA"). Tax
Zone No. 4 is being established in connection with Annexation No. —to the CFD.
For further information concerning the current and estimated future tax liability of owners or
purchasers of real property subject to this special tax lien, interested persons should contact the Finance
Director of the City of Carson, 701 E. Carson St, Carson, California, 90745, telephone number (310) 830-
7600.
Dated: As of . 2019
By:
Donesia Aldana-Gause, MMC, City Clerk
City of Carson
Page 2 or 11
RESOLUTION NO. 19-009 (Exhibit D)
Page 67 of 77
EXHIBIT A
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
Annexation No.
ASSESSOR'S PARCEL NUMBERS AND OWNERS OF LAND
Assessor's
Parcel No(s). Names) of Property Owners
Exhibit A
Page 3 of 11
RESOLUTION NO. 19-009 (Exhibit D)
Page 68 of 77
EXHIBIT B
CITY OF CARSON
Community Facilities District No. 2018-01
{Maintenance and Services}
RATE AND METHOD OF APPORTIONMENT
TAX ZONE NO.4
The Special Tax shall be levied in Tax Zone No. 4 in accordance with the Rate and Method of
Apportionment of Special Tax for City of Carson Community Facilities District No. 2018-01 (Maintenance
and Services) pursuant to the rate for Tax Zone No. 4 set forth in Attachment No. 1 thereto. The Rate
and Method of Apportionment of Special Tax is attached hereto and incorporated herein by this
reference.
Exhibit B
Page 4 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 69 of 77
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be levied and collected in City of Carson Community Facilities District No. 2018-01
(Maintenance and Services) (the "District") each Fiscal Year, in an amount determined by the application
of the procedures described below. All of the Taxable Property (as defined below) in the District, unless
exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner
herein provided.
I. DEFINITIONS
The terms used herein shall have the following meanings:
"Accessory Unit" means a secondary residential unit of limited size (e.g., granny cottage, second unit)
that shares a Parcel with a Unit of Single Family Detached Property.
"Acreage" or "Acre" means that acreage shown on the Assessor's Parcel Map or in the Assessor's Data
for each Assessor's Parcel. In the event that the Assessor's Parcel Map or Assessor's Data shows no
acreage, the Acreage for any Assessor's Parcel shall be determined by the District Administrator based
upon the applicable condominium plan, final map or parcel map. If the preceding maps for a land are
not available, the Acreage of such land area may be determined utilizing available spatial data and
geographic information systems (GIS).
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division
2 of Title 5 of the Government Act of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to
the administration of the District: the costs of computing the Annual Special Tax Requirement and the
annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting
the Special Taxes, including any charges levied by the County Auditor's Office, Tax Collector's Office or
Treasurer's Office; the costs of the City or designee in complying with the disclosure requirements of the
California Government Code (including the Act), including public inquiries regarding the Special Taxes;
and the costs of the City or designee related to an appeal of the Special Tax. Administrative Expenses
shall also include costs related to the formation of the District and of annexing territory to the District as
well as any amounts advanced by the City for any administrative purposes of the District and an
allocable share of the salaries of City staff and an allocable portion of City overhead costs relating to the
foregoing, or costs of the City in any way related to the establishment or administration of the District.
"Annual Services Costs" means the amounts required to fund services authorized to be funded by the
District.
"Annual Special Tax Requirement" means that amount with respect to the District determined by the
Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual
Services Costs for each Tax Zone, (3) any amount required to establish or replenish any reserve or
replacement fund established in connection with the District, and (4) reasonably anticipated delinquent
Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year.
Exhibit B
Page 5 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 70 of 77
"Assessor's Data" means Acreage or other Parcel information contained in the records of the County
Assessor.
"Assessor's Parcel" or "Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means, with respect to an Assessor's Parcel, that number assigned to such
Assessment's Parcel by the County for purposes of identification.
"Association Property" means any property within the boundaries of the District which is owned by a
homeowners' or property association, including any master or sub -association.
"Boundary Map" means that map recorded with the County recorder's office on September 20, 2018 in
Book 194 at Pages 88 & 89 as Document Number 20180967743.
"City" means the City of Carson, County of Los Angeles,
"Council" means the City Council of the City, acting as the legislative body of the District.
"County" means the County of Los Angeles, California.
"Developed Property" means, in any Fiscal Year, all Taxable Property in the District for which a building
permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year.
"District" means the City of Carson Community Facilities District No. 2018-01 (Maintenance and
Services), and, when applicable, any annexed Assessor's Parcels.
"District Administrator" means an official of the City, or designee or agent or consultant, responsible for
administering the Special Tax in accordance with this Rate and Method of Apportionment.
"Exempt Property" means all property located within the boundaries of the District which is exempt
from the Special Tax pursuant to Section V below.
"Expected Special Tax Revenue" means the amount of revenue anticipated to be collected in each Tax
Zone, adjusted annually by the Tax Escalation Factor.
"Finance Director" means the official of the City who is the chief financial officer or other comparable
officer of the City or designee thereof.
"Fiscal Year" means the period from July 1`t of any calendar year through June 301h of the following
calendar year.
"Future Voluntary Annexation Area" means the area designated for future voluntary annexation to the
District as shown in the District Boundary Map, as may be amended from time to time.
Exhibit B
Page 6 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 71 of 77
"Maximum Special Tax Rate" means the maximum Special Tax authorized for levy in any Fiscal Year that
may apply to Taxable Property as described in Section III.
"Multi -Family Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building
permit or use permit has been issued for construction of a residential structure with five or more Units
that share a single Assessor's Parcel Number, are offered for rent to the general public, and cannot be
purchased by individual homebuyers.
"Non -Residential Property" means all Developed Property that is not used for people to live in, and
does not include Public Property.
"Proportionately" means, in any Fiscal Year, that the ratio of the actual Special Tax to the Maximum
Special Tax Rate is equal for all Assessors Parcels authorized to be levied in that Fiscal Year within each
respective Tax Zone.
"Public Property" means any property within the boundaries of the District owned by, irrevocably
offered or dedicated to, or for which an easement for purposes of public or private road right-of-way
making the property unusable for any other purpose has been granted to the federal government, the
State of California, the County, the City, or any local government or other public agency.
"Single Family Attached Property" means, in any Fiscal Year, all Parcels of Developed Property for which
a building permit or use permit was issued for construction of a residential structure consisting of two or
more Units that share common walls, have separate Assessor's Parcel Numbers assigned to them
(except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or
fourplex Unit(s)), and may be purchased by individual homebuyers (which shall still be the case even if
the Units are purchased and subsequently offered for rent by the owner of the Unit), including such
residential structures that meet the statutory definition of a condominium project contained in Civil
Code Section 4125.
"Single Family Detached Property" means, in any Fiscal Year, all Parcels of Developed Property for
which a building permit was issued for construction of a Unit that does not share a common wall with
another Unit.
"Special Tax" means the amount levied in each Fiscal Year on each Assessor's Parcel of Taxable Property
to fund the Annual Special Tax Requirement.
"Tax Escalation Factor" means a factor that will be applied annually after Fiscal Year 2018/19 to
increase the Maximum Special Tax Rates shown in Section III and as specified for each Tax Zone.
"Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied
pursuant to this Rate and Method of Apportionment. All of the Taxable Property within the District at
the time of its formation is within Tax Zone No.1 as specified on the District Boundary Map. Additional
Tax Zones may be created when property is annexed to the District, and a separate Maximum Special
Tax shall be identified for property within the new Tax Zone at the time of such annexation. The
Assessor's Parcels included within a new Tax Zone when such Parcels are annexed to the District shall be
identified by Assessor's Parcel number in the Unanimous Approval Form that is signed by the owner(s)
of the Parcels at the time of annexation, or any proceeding for annexation to the District.
Exhibit 8
Page 7 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 72 of 77
"Taxable Property" means all Parcels within the boundary of the District that are not Exempt Property,
exempt from the Special Tax pursuant to the Act or Section V below.
"Unanimous Approval Form" means that form executed by the record owner of fee title to a Parcel or
Parcels of Taxable Property annexed into the District that constitutes the property owners approval and
unanimous vote in favor of annexing into the District and the levy of Special Tax against his/her Parcel or
Parcels pursuant to this Rate and Method of Apportionment of Special Tax.
"Undeveloped Property" means all Parcels of Taxable Property that are not Developed Property.
"Unit" means an individual single family detached or attached home, townhome, condominium,
apartment, or other residential dwelling unit, including each separate living area within a half-plex,
duplex, triplex, fourplex, or other residential structure. An Accessory Unit that shares a Parcel with a
Unit of Single Family Detached Property shall not be considered a separate Unit for purposes of
calculating the Special Tax.
II. DETERMINATION OF TAXABLE PARCELS
On or about July 1 of each Fiscal Year, the District Administrator shall determine the valid Assessor's
Parcel Numbers for all Taxable Property within the District. If any Assessor's Parcel Numbers are no
longer valid from the previous Fiscal Year, the District Administrator shall determine the new Assessor's
Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels
of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall
be assigned to the new Assessor's Parcels pursuant to Section III. The District Administrator shall also
determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed
Property; (iii) the Acreage or number of Units each Parcel contains; and (iv) the Annual Special Tax
Requirement for the Fiscal Year.
Ill. ANNUAL SPECIALTAX - METHOD OF APPORTIONMENT
All Taxable Property shall be subject to a Special Tax defined as follows.
The Special Tax shall be levied each Fiscal Year by the District Administrator. The Annual Special Tax
Requirement shall be apportioned to each Parcel of Taxable Property within the District by the method
shown below.
First. Determine the Annual Special Tax Requirement.
Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the
Maximum Special Tax Rate described in Table 1 below to satisfy the Annual Special Tax
Requirement.
Exhibit B
Page 8 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 73 of 77
TABLE 1
SPECIAL TAX RATES —TAX ZONE NO. 1
FISCAL YEAR 2018/19'
Property Type
Maximum Special
Tax Rate Per
Expected Special
Tax Revenue
Non -Residential Property
$1,971.51 Acre
$9,189.21
"On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone
shall be increased by the percentage change in the November annualized Consumer Price Index
for Los Angeles -Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax
Zone No. 1.
Should the total revenue for Tax Zone No. 1 not be fully realized when all Parcels in Tax Zone No. 1 are
classified as Developed Property, the Special Tax rate per Acre shall be adjusted so that the Special Tax
per Acre is sufficient to generate the total Expected Special Tax Revenue for Tax Zone No. 1, adjusted
annually by the Tax Escalation Factor. The Maximum Special Tax Rate shall be the greater of the
Maximum Special Tax Rate shown in Table 1, adjusted annually by the Tax Escalation Factor or the
Special Tax Rate calculated to generate the total Expected Special Tax Revenue for Tax Zone No. 1,
adjusted annually by the Tax Escalation Factor.
If a building permit has been issued after June 1 of the preceding Fiscal Year, the City may directly bill to
meet the Annual Special Tax Requirement, as prorated based on the date the building permit is issued
and the end of the Fiscal Year.
A different Maximum Special Tax Rate may be identified in Tax Zones added to the District as a result of
future annexations.
IV. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS
The Special Tax may not be prepaid.
V. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no
Special Taxes shall be levied on (i) Public Property, (ii) Association Property, (iii) Assessor's Parcels with
public or utility easements making impractical their utilization for any use other than the purposes set
forth in the easement, or (iv) except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.
VI. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City reserves the right to make minor administrative and technical changes to this document that do
not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation
and application of any section of this document shall be at the City's discretion. Interpretations may be
made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this
Rate and Method of Apportionment of Special Tax.
VII. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a
different time or in a different manner if needed to meet the financial obligations of the District, and
may collect delinquent Special Taxes through foreclosure or other available methods.
Exhibit B
Page 9 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 74 of 77
A Special Tax shall continue to be levied and collected within the District, as needed to fund the Annual
Special Tax Requirement, in perpetuity.
VI l I. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the District Administrator claiming
that the amount or application of the Special Tax is not correct. The appeal must be filed not later than
one calendar year after having paid the Special Taxes that are disputed, and the appellant must be
current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special
Taxes levied must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The District
Administrator shall review the appeal, meet with the appellant if the District Administrator deems
necessary, and advise the appellant of its determination.
If the property owner disagrees with the District Administrator's decision relative to the appeal, the
owner may then file a written appeal with the City Council whose subsequent decision shall be final and
binding on all interested parties. If the decision of the District Administrator or subsequent decision by
the City Council requires the Special Taxes to be modified or changed in favor of the property owner, no
cash refund shall be made for prior years' Special Taxes, but an adjustment shall be made to credit
future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition
precedent to filing any legal action by such owner.
Exhibit B
Page 10 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 75 of 77
EXHIBIT C
CITY OF CARSON
Community Facilities District No. 2018-01
(Maintenance and Services)
ATTACHMENT 1
MAXIMUM SPECIAL TAX RATES
TAX ZONE 4 — BASE YEAR 2019/20
Property Type
Maximum
Special Tax Rate
Per
Single Family Attached Property
$517.94
Unit
Single Family Detached Property
879.10
Unit
Multi -Family Property
517.94
Unit
Non -Residential Property
449.30
Acre
Non -Residential Property—Industrial Zone 1
2,616.10
Acre
Non -Residential Property—Industrial Zone 2
5,347.80
Acre
Association Property
0.00 1
Acre
Public Property
0.00 1
Acre
On each July 1, commencing on July 1, 2020 through and including July 1, 2024, the Maximum
Special Tax Rate for Tax Zone No. 4 shall be increased by 7%. On each July 1, commencing on
July 1, 2025 and thereafter, the Maximum Special Tax Rate for Tax Zone No. 4 shall be increased
by the percentage change in the November annualized Consumer Price Index for Los Angeles -
Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax Zone No. 4.
Exhibit C
Page 11 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 76 of 77
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Page 12 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 77 of 77
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Exhibit C
Page 12 of 12
RESOLUTION NO. 19-009 (Exhibit D)
Page 77 of 77