|
TO: |
Board of Supervisors Board of Directors, San Diego County Fire Protection District |
SUBJECT
NOTICED PUBLIC HEARING:
Title
PUBLIC HEARING TO CONFIRM FISCAL YEAR 2025-26 LEVIES FOR COMMUNITY FACILITIES DISTRICTS AND RELATED CEQA EXEMPTION (DISTRICTS: ALL)
Body
OVERVIEW
A Community Facilities District (CFD) is established to create a funding mechanism for public facilities and services such as streets, sewer facilities, stormwater facilities, fire protection, parks, and libraries. Through this funding mechanism, these public facilities and services are paid for by property owners within the boundaries of the CFD since they benefit the most from the services and are typically established as part of the development process for new or infill housing to support the residents of those housing developments. In accordance with County of San Diego (County) Board of Supervisors (Board) Policy I-136, Comprehensive Goals and Policies for Community Facilities Districts, the County Board approves levies for nine CFDs throughout the region, six managed by the County and three managed by the San Diego County Fire Protection District.
The method used to calculate CFD levies can be based on a variety of factors, including parcel acreage or land use type (single-family or multi-family). The rate is established in each district’s Rate and Method of Apportionment (RMA) as adopted by the County Board at the time each CFD is formed. The RMA provides the methodology used to determine the maximum annual special tax allowable for each district. Any changes to an RMA require approval by voters within the CFD’s boundaries. CFDs are levied annually on each parcel’s property tax bill, reducing the cost to the ratepayer by eliminating the administrative costs that arise from annual billing and payment collection. The annual adoption of a resolution is required to provide for the levies of a special tax for CFDs on the tax rolls. Today’s request is for the County Board and San Diego County Fire Protection District Board of Directors, acting as the Governing Body of the CFDs, to adopt resolutions to authorize the FY 2025-26 levies for nine CFDs. Upon approval, the annual levies will be placed on the tax roll so that the property owners can continue to pay the levy through their property tax bills.
Board Policy B-29 directs departments to recover the full cost of services provided to agencies or individuals. Staff reviewed each district’s budget to determine if revenues were adequate for services or if rates should be increased or decreased based on the budget. Staff determined that the proposed rate increases for FY 2025-26 are needed to fund costs for services and that available fund balance is needed for working capital, future services, facility repair, improvements, or replacement, and to ensure compliance with Board Policy B-29. There is no projected unrecovered cost; therefore, a waiver of Board Policy B-29 is not requested as part of today’s action.
If today’s actions are approved, levies will be adopted for nine CFDs. All proposed levies for the upcoming fiscal year are within approved maximum rates in accordance with the RMAs for each district and would not require voter approval. If today’s proposed actions are not approved, there would be a reduction in revenue from not placing the proposed FY 2025-26 assessments on the tax roll. This would mean that maintenance and bond repayment would be impacted, and available fund balance would be used to mitigate any shortfalls for FY 2025-26.
The list of proposed levies for FY 2025-26 is as follows, with the complete summaries of changes in the background:
1. Community Facilities District No. 2008-01 (Harmony Grove Village) (District 3) The Harmony Grove Village subdivision is located within the San Dieguito Community Plan area. The site is approximately 418 acres and includes 736 residential dwelling units and three public park sites. Harmony Grove Village 4th of July Park, Harmony Grove Village Community Park, and Harmony Grove Village Equestrian Park are located within the CFD. Funds support costs related to the construction of public facilities including parks, roads, wastewater, and flood control facilities built by the developer and administration, operation, and maintenance costs for flood control structures, public park and recreation facilities, street lighting, and emergency response services provided by Rancho Santa Fe Fire Protection District.
2. Community Facilities District No. 2013-01 (Horse Creek Ridge Maintenance) (District 5)
The Horse Creek Ridge subdivision is located within the Fallbrook Community Plan area. The site is approximately 277 acres and includes 741 single-family and multi-family dwelling units, a public sports park and staging area site. Horse Creek Ridge County Park is located within the CFD. Funds support increased costs to operate and maintain a regional sports park complex, staging area and park trails, onsite and offsite open space, fire services, and detention basins within the CFD.
3. Community Facilities District No. 2019-02 (Sweetwater Place Maintenance) (District 4)
The Sweetwater Place subdivision is located within the Spring Valley Community Plan area. The site is approximately 18 acres and includes 122 single-family and multi-family dwelling units and a two-acre public park. This funds increased costs to operate and maintain the two-acre Sweetwater Place County Park, which is located within the CFD.
4. Community Facilities District No. 2019-01 (Meadowood Maintenance) (District 5)
The Meadowood subdivision is located within the Fallbrook Community Plan area. The site is approximately 389 acres and is approved for 844 single-family and multi-family dwelling units and a park. The Meadowood subdivision is still being built out, and the number of parcels increased from 704 to 813 between FY 2024-25 and FY 2025-26. This funds the costs of operating and maintaining a park, park trails, fire services, and stormwater drainage and treatment facilities within the CFD.
5. Community Facilities District No. 2019-03 (Park Circle Maintenance) (District 5)
The Park Circle subdivision is located within the Valley Center Community Plan area. The site is approximately 74 acres and includes 322 residential dwelling units and a 2.6-acre public park. This funds the cost of operations and maintenance of Harvest County Park.
6. Community Facilities District No. 2022-01 (Piper Otay Preserve Maintenance) (District 1)
The Piper Otay subdivision is located within the East Otay Mesa Business Park Specific Plan and supports ongoing operations and maintenance to manage the Piper Otay Preserve.
7. Community Facilities District No. 04-1 (CFD No. 04-1) (District 2)
Located in southeast San Diego county, CFD No. 04-1 encompasses approximately 4,549 acres of land (868 acres classified as developed property with 47 residential parcels, 2 non-residential parcels, and 3,584 undeveloped acres) within the communities of Lake Morena, Jacumba, Jamul, and Lyons Valley. This funds fire protection operations, equipment, facilities, and staffing.
8. Community Facilities District No. 09-1 (CFD No. 09-1) (District 1)
Located in the southwestern portion of San Diego county, CFD No. 09-1 is between the Otay River Valley to the north, the international border with Mexico to the south, the San Ysidro Mountains to the east, and the City of San Diego to the west, encompassing approximately 3,068 acres of land. This funds staffing and the operation and maintenance of fire facilities that serve the approximately 134 parcels within the boundaries of the CFD, 43 of which are currently developed.
9. Community Facilities District No. 2014-01 (CFD No. 2014-01) (District 5)
Located in Borrego Springs in northeastern San Diego county, CFD No. 2014-01 encompasses approximately 591.92 acres of land to fund capital projects and support fire protection services for the community of Borrego Springs.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
Acting as the Board of Directors, San Diego County Fire Protection District:
1. Adopt a Resolution entitled A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY FIRE PROTECTION DISTRICT ACTING AS THE GOVERNING BODY OF COMMUNITY FACILITIES DISTRICT NO. 04-1 AUTHORIZING THE LEVY OF SPECIAL TAXES FOR FISCAL YEAR 2025-26.
2. Adopt a Resolution entitled A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY FIRE PROTECTION DISTRICT ACTING AS THE GOVERNING BODY OF COMMUNITY FACILITIES DISTRICT NO. 09-1 AUTHORIZING THE LEVY OF SPECIAL TAXES FOR FISCAL YEAR 2025-26.
3. Adopt a Resolution entitled A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY FIRE PROTECTION DISTRICT ACTING AS THE GOVERNING BODY OF COMMUNITY FACILITIES DISTRICT NO. 2014-01 AUTHORIZING THE LEVY OF SPECIAL TAXES FOR FISCAL YEAR 2025-26.
EQUITY IMPACT STATEMENT
Levying special taxes that fund special districts would result in additional community services and resources that improve the health, safety, and economic interests of local communities. Therefore, services provided through the levying charges on the Fiscal Year 2025-26 tax rolls will have a positive impact on communities throughout the unincorporated areas of the county, including providing fire protection, flood control protection, parks, and paramedic services.
SUSTAINABILITY IMPACT STATEMENT
Today’s action to confirm special district assessments supports economic stability, promotes the health and well-being of citizens, and provides equitable access to County services. Timely road maintenance prevents more costly repairs in the future, contributing to economic and infrastructural sustainability. Fire protection, flood control protection, emergency communication, and paramedic services protect the health and well-being of citizens and their properties. County parks provide citizens equitable access to outdoor recreation and nature opportunities. This action will help maintain a strong and resilient community through the continued collection of levies.
FISCAL IMPACT
The proposed special tax levies are included in the Fiscal Year (FY) 2025-26 Operational Plan for the Department of Public Works (DPW), Department of Parks and Recreation (DPR), and San Diego County Fire Protection District. If approved, the proposed rate increases will result in additional estimated revenue of $86,267.42 in DPW for Community Facilities District (CFD) No. 2008-01 Harmony Grove Village; and a total of $191,800.05 in DPR: $18,765.98 for CFD No. 2013-01 Horse Creek Ridge Maintenance, $4,584.76 for CFD No. 2019-02 Sweetwater Place Maintenance, $157,115.50 for CFD No. 2019-01 Meadowood Maintenance, $9,913.52 for CFD No. 2019-03 Park Circle Maintenance, and $1,420.29 for CFD No. 2022-01 Piper Otay Preserve Maintenance. If approved, the proposed rates for the San Diego County Fire Protection District will result in estimated additional revenue of $434.06 for CFD No. 04-01 Lake Morena, Jacumba, Jamul, and Lyons Valley, $103,465.30 for CFD No. 09-1 East Otay Mesa, and $960.30 for CFD No. 2014-01 Borrego Springs. If approved, the cumulative proposed rate increases will result in additional estimated total revenue of $382,927.13 to the County of San Diego (County). The funding sources are special tax levies from CFD No. 2008-01, CFD No. 2013-01, CFD No. 2019-02, CFD No. 2019-01, CFD No. 2019-03, CFD No. 2022-01, CFD No. 04-1, CFD No. 09-1 and CFD No. 2014-01 paid by property owners. There will be no change in net General Fund cost and no additional staff years.
The proposed assessment levies are evaluated annually in an amount sufficient to recover the full cost as required by Board Policy B-29. The funding source is assessment levies paid by property owners within the identified CFDs. If the Board does not adopt the resolutions, the proposed assessments cannot be placed on the tax rolls for FY 2025-26. Without the additional funds generated by the proposed assessments, services for streets, sewer facilities, stormwater facilities, fire protection, parks, and libraries would be reduced unless other funding sources are identified. Without the funds generated by the proposed assessments, bond repayments would not be properly funded, and the bonds could go into default.
BUSINESS IMPACT STATEMENT
N/A
(RELATES TO BOARD OF SUPERVISORS AGENDA ITEM 06)
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
This item is the annual adoption of resolutions for the levy of the special taxes for Fiscal Year (FY) 2025-26 per County of San Diego (County) Board of Supervisors (Board) Policy I-136: Comprehensive Goals and Policies for Community Facilities Districts (CFDs), for CFD No. 2008-01 (Harmony Grove Village), CFD No. 2013-01 (Horse Creek Ridge Maintenance), CFD No. 2019-02 (Sweetwater Place Maintenance), CFD No. 2019-01 (Meadowood Maintenance), CFD No. 2019-03 (Park Circle Maintenance), CFD No. 2022-01 (Piper Otay Mesa Preserve Maintenance), CFD No. 04-1, CFD No. 09-1, and CFD No. 2014-1.
Each year, a resolution must be adopted to provide for the levies of a special tax within a CFD. These districts provide funding for public services and facilities and are constructed as part of the development process for new housing to support the residents of those housing developments. The method used to calculate the levies is established in each CFD’s Rate and Method of Apportionment (RMA) as adopted by the CFD’s governing body and is based on a variety of factors, including acreage or land use type (single-family or multi-family). The assessments are charged annually through property tax bills, and each CFD’s RMA includes formulas for the annual increase of the approved special taxes to ensure that sufficient funds can continue to be collected to provide ongoing support for public services and improvements. All proposed levies are within the maximum amount approved for these districts and do not require voter approval. Some of the CFDs have multiple special taxes, as determined at the time of formation, to fund specific public services or costs related to the construction of public facilities.
As part of the annual review process, staff assessed rates to determine if increases were needed for ongoing operations. The proposed rates are needed to offset increases, including, but not limited to, utilities, contract, and labor costs. The following information details the authorized increase per parcel and the resulting total amount levied for each CFD.
CFD managed by the Department of Public Works and Finance & General Government Group:
Community Facilities District No. 2008-01 (Harmony Grove Village) (District 3). Harmony Grove Village is located north and south of the intersection of Country Club Drive and Harmony Grove Road within the San Dieguito Community Plan area. It is comprised of approximately 418 acres and includes 736 residential dwelling units and three public park sites. CFD No. 2008-01 was established on June 25, 2008 (9) by the Board, pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, which was established to create an alternate method of financing public improvements and services. This CFD was established to help fund debt issuance for the construction and acquisition of public facilities and ongoing maintenance and operation services for public facilities related to the CFD, including parks, roads, wastewater, and flood control facilities. Management of this CFD is performed by the County’s Department of Public Works, along with the County’s Finance and General Government Group.
Special Tax A funds costs related to construction of public facilities built by the developer and CFD administration through a bond series approved by the Board on December 5, 2017 (23) and December 10, 2019 (25). The RMA allows for a 2% annual increase to the maximum allowable Special Tax rate for each parcel for Special Tax A. If the applied rate is below the maximum allowable rate, an adjustment greater than 2% and up to the maximum rate is allowed per the RMA. Special Tax A revenues are used to repay outstanding bonds and administrative costs associated with managing the bonds. The second and final bond series was issued in 2020, and the total cost of the required bond repayment is now known. Applied rates have been adjusted to meet the needed revenue, which resulted in an increase in the per parcel rate of 2.02% from FY 2024-25 to FY 2025-26 for Tax A Improvement Area 1 and 1.87% for Tax A Improvement Area 2. The applied rate is below the maximum allowable rate for both Improvement Area 1 and Improvement Area 2. The combined overall (total amount levied) increase for Tax A Improvement Area 1 and for Tax A Improvement Area 2 is 1.95%.
Funding from Special Tax B offsets costs related to operations and maintenance of flood control structures, public park and recreation facilities, and street lighting. Harmony Grove Village 4th of July Park, Harmony Grove Village Community Park, and Harmony Grove Village Equestrian Park are located within the CFD. Special Tax B also funds CFD administration and emergency response services which are provided by Rancho Santa Fe Fire Protection District. The RMA allows for an increase on the levy for each parcel of no less than 2% and up to 6% in accordance with the Los Angeles Consumer Price Index (LACPI). The overall (total amount levied) increase for Special Tax B is 3.3% based on the LACPI from December 2023 to December 2024.
Special Tax A and Special Tax B are levied on parcels of land within the boundaries pursuant to the RMA. In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the district (Attachment B).
|
CFD No. 2008-01 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
2008-01 Special Tax A, Improvement Area No.1 |
$1,433,439.94 |
$1,462,340.56 |
|
2008-01 Special Tax A, Improvement Area No. 2 |
$1,199,830.92 |
$1,224,224.92 |
|
2008-01 Special Tax B |
$962,820.48 |
$995,793.28 |
CFDs managed by the Department of Parks and Recreation (DPR):
DPR manages five CFDs that were formed primarily to provide park services for new developments. While the construction of a park helps the County meet its General Plan goal of 10 acres of parkland per 1,000 residents, the CFD ensures that the facilities are well-maintained and services are provided, and that these services are paid for by those who benefit the most from these services rather than the general taxpayer. The CFDs that DPR manages are assigned a tax per parcel based on the type of use, either single-family or multi-family dwelling, and the rate is determined by the RMA as adopted by the Board.
Community Facilities District No. 2013-01 (Horse Creek Ridge Maintenance) (District 5). The Horse Creek Ridge subdivision is located in the northeast quadrant adjacent to the State Route 76 (SR-76) and Interstate 15 (I-15) interchange, within the Fallbrook Community Plan area. The site is approximately 277 acres and includes 741 single-family and multi-family dwelling units, a public sports park and staging area site. Horse Creek Ridge County Park is located within the CFD. CFD No. 2013-01 was established January 29, 2014 (1), pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982. This CFD was established to finance ongoing operations and maintenance of the regional sports park complex, staging area and park trails, onsite and offsite open space, fire services, and stormwater runoff detention basins within the CFD.
Special Tax A funds costs related to open space, trails, the park, recreational facility maintenance, and CFD administration. The RMA allows for an increase of 2% on the levy for each parcel for Special Tax A. Special Tax B funds storm drainage and detention basin facilities maintenance. The RMA allows for an increase of 2% on the levy for each parcel for Special Tax B. Special Tax C funds fire protection, suppression, and emergency medical services provided by the North County Fire Protection District. The RMA allows for an increase of 2% on the levy for each parcel for Special Tax C. Special Tax A, Special Tax B, and Special Tax C are levied on parcels of land within the boundaries pursuant to the RMA. The CFD Annual District Administration Report contains specific budget and levy information (Attachment D). The additional revenue will support ongoing operations and maintenance, fire services, and maintenance of detention basins within the CFD.
|
CFD No. 2013-01 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
2013-01 Special Tax A |
$547,065.44 |
$557,999.40 |
|
2013-01 Special Tax B |
$223,221.26 |
$227,693.78 |
|
2013-01 Special Tax C |
$168,090.00 |
$171,449.50 |
Community Facilities District No. 2019-02 (Sweetwater Place Maintenance) (District 4). The Sweetwater Place subdivision is located north of Jamacha Boulevard at Sweetwater Springs Boulevard, within the Spring Valley Community Plan area. The site is approximately 18 acres and includes 122 single-family and multi-family dwelling units and a two-acre public park. CFD No. 2019-02 was established May 1, 2019 (2) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982. This CFD was established to finance ongoing operations and maintenance of the park within the CFD. Sweetwater Place County Park is located within the CFD. The RMA allows for an increase on the levy for each parcel for the Special Tax based on the San Diego Consumer Price Index (SDCPI), to be no less than 2% and no more than 6%. In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the CFD (Attachment F).
|
CFD No. 2019-02 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
Special Tax |
$146,897.76 |
$151,482.52 |
Community Facilities District No. 2019-01 (Meadowood Maintenance) (District 5). The Meadowood subdivision is located northeast of the SR-76 and I-15 interchange within the Fallbrook Community Plan area. The site is approximately 389 acres and is approved for 844 single-family and multi-family dwelling units and a park. Willow Grove County Park is located within the CFD. CFD No. 2019-01 was established April 10, 2019 (2) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982. This CFD was established to finance ongoing operations and maintenance of the park and park trails, fire services, and stormwater drainage and treatment facilities within the CFD. Special Tax A funds costs related to open space, trails, a park, recreational facility maintenance, and CFD administration. The RMA allows for an increase of 2% on the levy for each parcel for Special Tax A. Special Tax B funds storm drainage and detention basin facilities maintenance. The RMA allows for an increase of 2% on the levy for each parcel for Special Tax B. Special Tax C funds fire protection, suppression, and emergency medical services provided by the North County Fire Protection District. The RMA allows for an increase of 2% on the levy for each parcel for Special Tax C. Special Tax A, Special Tax B, and Special Tax C are levied on parcels of land within the boundaries pursuant to the RMA. The number of parcels increased from 704 to 813 between FY 2024-25 and FY 2025-26, adding to the total revenue collected under this CFD. This increase in parcels paying into the CFD has resulted in a larger-than-usual increase in the special tax. In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the CFD (Attachment H).
|
CFD No. 2019-01 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
Special Tax A |
$437,725.80 |
$515,961.82 |
|
Special Tax B |
$252,218.92 |
$297,305.36 |
|
Special Tax C |
$188,848.40 |
$222,641.44 |
*Number of assessed units increased from 704 to 813 between FY 2024-25 and FY 2025-26.
Community Facilities District No. 2019-03 (Park Circle Maintenance) (District 5). The Park Circle subdivision is located at the northwest intersection of Valley Center Road and Mirar De Valle Road within the Valley Center Community Plan area. The site is approximately 74 acres and includes 322 residential dwelling units and a 2.6-acre public park. CFD No. 2019-03 was established June 5, 2019 (4) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982. This CFD was established to finance ongoing operations and maintenance of Harvest County Park, the park within the CFD. The RMA allows for an increase on the levy for each parcel for the Special Tax, based on the SDCPI, to be no less than 2% and no more than 6%. In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the CFD (Attachment J).
|
CFD No. 2019-03 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
Special Tax |
$317,617.76 |
$327,531.28 |
Community Facilities District No. 2022-01 (Piper Otay Preserve Maintenance) (District 1). The Piper Otay subdivision is located within the East Otay Mesa Business Park Specific Plan. The site is approximately 11.9 acres in the Otay Ranch Preserve area. CFD No. 2022-01 was established April 6, 2022 (6) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982. This CFD was established to finance ongoing operations and maintenance of Piper Otay Preserve, the preserve within the CFD. The RMA allows for an increase of the levy for each parcel for Special Tax A and Special Tax B, based on the SDCPI, to be no less than 2% and no more than 6%. In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the CFD (Attachment L).
|
CFD No. 2022-21 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
Special Tax A |
$24,405.43 |
$25,503.60 |
|
Special Tax B |
$16,104.04 |
$16,426.16 |
CFDs managed by the San Diego County Fire Protection District:
The San Diego Rural Fire Protection District Board of Directors established CFD No. 04-1, CFD No. 09-1, and CFD No. 2014-01 to fund fire protection services within the districts, located in the unincorporated areas of San Diego County. As a result of reorganizations, CFDs transferred from the district to the County in 2016, and again from the County to the San Diego County Fire Protection District in 2020. Today, the San Diego County Fire Protection District manages CFD No. 04-01, CFD No. 09-01, and CFD No. 2014-1, including the collection of special taxes to supplement the cost of fire protection and emergency medical services.
Community Facilities District No. 04-1 (CFD No. 04-1) (District 2). CFD No. 04-1 encompasses approximately 4,549 acres of land located in southeast San Diego County, which includes Lake Morena, Jacumba, Jamul, and Lyons Valley; 868 acres are classified as developed property with 47 residential parcels and 2 non-residential parcels. The remaining 3,535 acres are undeveloped. CFD No. 04-1 was established on January 6, 2004, by the former San Diego Rural Fire Protection District Board pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982. This CFD was established to fund fire protection, suppression, and paramedic services, as well as the construction or acquisition of fire stations, fire training facilities, fire dispatch centers, fire communication systems, and fire equipment with a useful life of five years or more. As additional development occurs within the CFD boundary, parcels are annexed into the CFD.
Special Tax A and Special Tax B are levied on parcels of land within the boundaries pursuant to the RMA. Special Tax A funds fire protection operations, equipment, facilities, staffing, and administrative expenses. The RMA specifies an annual 2% increase in the levy for each parcel for Special Tax A. The overall total amount collected increased by $434.06. Special Tax B is a one-time tax levied only in the first FY that a parcel of land is considered “Developed Property”, and no parcels are eligible for it in FY 2025-26. In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the district (Attachment N).
|
CFD No. 04-1 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
04-1 Special Tax A |
$21,709.04 |
$22,143.10 |
|
04-1 Special Tax B |
$1,726.82 |
$0.00 |
Community Facilities District No. 09-1 (CFD No. 09-1) (District 1). CFD No. 09-1 is comprised of approximately 3,068 acres of land within the East Otay Mesa Specific Plan, located in the southwestern portion of San Diego County immediately adjacent to the United States/Mexico Border. CFD No. 09-1 was established on September 22, 2009, by the former San Diego Rural Fire Protection District Board pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982. This CFD was established to finance a fire station, fire services, and provide lease payments for a temporary substation for the San Diego County Sheriff’s Department. These services and facilities are necessary to serve the approximately 134 parcels within the boundaries, 43 of which are currently developed. The collection of Special Tax A has been suspended as the temporary lease for the Sheriff’s Substation is not currently needed.
Special Tax B funds staffing and the operation and maintenance of fire facilities. The RMA specifies Special Tax B is to be levied on parcels of land within the boundaries and allows for an annual increase of 3% to the tax rate for each parcel. The overall total amount collected increased by $103,465.32, or 4.85%, due to an increase in assessed parcels of 41 to 43.
In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the district (Attachment P).
|
CFD No. 09-1 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts* |
|
09-1 Special Tax B |
$2,133,113.96 |
$2,236,579.26 |
*Number of assessed parcels increased from 41 to 43 between FY 2024-25 and FY 2025-26.
Community Facilities District No. 2014-01 (CFD No. 2014-01) (District 5). Located in Borrego Springs in northeastern San Diego county, CFD No. 2014-01 encompasses approximately 591.92 acres of land. The special tax was established by the former Borrego Springs Fire Protection District (BSFPD) and through Local Agency Formation Commission Organization (LAFCO) hearing in 2023, CFD 2014-01 was transferred to the San Diego County Fire Protection District following dissolution of BSFPD. CFD No. 2014-01 was established to fund fire protection, suppression, and related services, as well as the construction or acquisition of fire stations, safety gear, radios, equipment, and other fire related facilities. CFD 2014-01 includes Special Tax A and Special Tax B. Special Tax A provides funding for facilities and Special Tax B covers ongoing services.
The RMA for CFD 2014-01 specifies annual increases for Special Tax A as amount equal to the greater of the Construction Inflation Index, or 2% of the Maximum Special Tax in effect for the previous Fiscal Year and an annual escalation factor of 3% for parcels eligible for Special Tax B. For FY 2025-26 there are two parcels eligible for Special Tax A, and both parcels are categorized as Non-Residential - Sustainable Energy Properties. No parcels in CFD 2014-01 are eligible for Special Tax B for FY 2025-26. As additional development occurs within the CFD boundary, parcels may be annexed into the CFD. In addition to the overview provided here, the CFD Annual District Administration Report provides a summary of the financial and administrative information, as well as specific budget and levy information for the district (Attachment R).
|
CFD No. 2014-01 Total Special Tax Assessments |
|
Tax |
FY 2024-25 Total Levy Amounts |
FY 2025-26 Total Levy Amounts |
|
2014-01 Special Tax A |
$17,021.23 |
$17,981.53 |
|
2014-01 Special Tax B |
$0 |
$0 |
ENVIRONMENTAL STATEMENT
The adoption of the resolutions to authorize levies for Fiscal Year 2025-26 is exempt from CEQA pursuant to Sections 15060(c)(3), 15378(b)(4), (b)(5), and 15273(b) (Rates, Tolls, Fares and Charges) of the State CEQA Guidelines. Section 15378 is applicable because the action before the County of San Diego Board of Supervisors (Board) is administrative in nature. An annual adoption of a resolution is required to provide for the levies of a special tax for CFDs. Administrative activities that will not result in direct or indirect physical changes in the environment and government fiscal activities that do not involve any commitment to any specific project which may result in potentially significant physical impact on the environment are not projects as defined by Section 15378. Section 15060(c)(3) is applicable because today’s action does not meet the definition of a project pursuant to Section 15378 because it will not result in a physical change in the environment; therefore, the project is not subject to CEQA. Section 15273 is applicable because the action before the Board is to authorize levies on properties within existing CFDs to provide funding for constructed improvements and ongoing operations and maintenance of public facilities. The levies will not be used to fund capital projects for the expansion of any system within the CFDs. The written findings required by Section 15273(c) of the CEQA Guidelines are attached hereto as Attachment Q.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions to authorize levies to be placed on the tax rolls support the Community and Sustainability Initiatives in the County of San Diego’s 2025-30 Strategic Plan by providing funds to maintain the fiscal stability of the Community Facilities Districts (CFDs) and strengthening the local economy through development and infrastructure in the CFDs. Today’s actions also support the Community Initiative by providing funds for public safety operations and facilities in the CFDs.
Respectfully submitted,
DAHVIA LYNCH
Deputy Chief Administrative Officer
ATTACHMENT(S)
Note: Due to the size of the attachments, the documents are available online through the Clerk of the Board's website at https://www.sandiegocounty.gov/content/sdc/cob/bosa.html.
Attachment A - A Resolution of the Board of Supervisors of the County of San Diego Acting as the Governing Body of Community Facilities District No. 2008-01 (Harmony Grove Village) Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment B - County of San Diego CFD 2008-01 (Harmony Grove Village) Fiscal Year 2025-26 Annual District Administration Report
Attachment C - A Resolution of the Board of Supervisors of the County of San Diego Acting as the Governing Body of Community Facilities District No. 2013-01 (Horse Creek Ridge Maintenance) Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment D - County of San Diego CFD 2013-01 (Horse Creek Ridge Maintenance) Fiscal Year 2025-26 Annual District Administration Report
Attachment E - A Resolution of the Board of Supervisors of the County of San Diego Acting as the Governing Body of Community Facilities District No. 2019-02 (Sweetwater Place Maintenance) Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment F - County of San Diego CFD 2019-02 (Sweetwater Place Maintenance) Fiscal Year 2025-26 Annual District Administration Report
Attachment G - A Resolution of the Board of Supervisors of the County of San Diego Acting as the Governing Body of Community Facilities District No. 2019-01 (Meadowood Maintenance) Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment H - County of San Diego CFD 2019-01 (Meadowood Maintenance) Fiscal Year 2025-26 Annual District Administration Report
Attachment I - A Resolution of the Board of Supervisors of the County of San Diego Acting as the Governing Body of Community Facilities District No. 2019-03 (Park Circle Maintenance) Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment J - County of San Diego CFD 2019-03 (Park Circle Maintenance) Fiscal Year 2025-26 Annual District Administration Report
Attachment K - A Resolution of the Board of Supervisors of the County of San Diego Acting as the Governing Body of Community Facilities District No. 2022-01 (Piper Otay Preserve Maintenance) Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment L - County of San Diego CFD 2022-01 (Piper Otay Preserve Maintenance) Fiscal Year 2025-26 Annual District Administration Report
Attachment M - A Resolution of the Board of Directors of the San Diego County Fire Protection District Acting as the Governing Body of Community Facilities District No. 04-1 Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment N - Fiscal Year 2025-26, Administration Report, County of San Diego, Community Facilities District No. 04-1
Attachment O - A Resolution of the Board of Directors of the San Diego County Fire Protection District Acting as the Governing Body of Community Facilities District No. 09-1 Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment P - Fiscal Year 2025-26, Administration Report, County of San Diego, Community Facilities District No. 09-1
Attachment Q - A Resolution of the Board of Directors of the San Diego County Fire Protection District Acting as the Governing Body of Community Facilities District No. 2014-01 Authorizing the Levy of Special Taxes for Fiscal Year 2025-26
Attachment R - Fiscal Year 2025-26, Administration Report, County of San Diego, Community Facilities District No. 2014-01
Attachment S - Findings Required by Section 15273(c) of the CEQA Guidelines