Time Set # 49.
Board of Supervisors
- Meeting Date:
- 06/25/2024
- Brief Title
- Conduct a public hearing for ballot measure
From:
Diana Lopez, County Librarian & Chief Archivist, Library
Staff Contact:
Meredith Beales, Fiscal Administrative Officer, Library, x8085
Supervisorial District Impact:
Districts 2 and 4
Subject
Hold a public hearing to consider changes to Community Facilities District No. 1989-1 (Davis Branch Library) ("CFD"), including increasing the amount of the special tax, amending the authorized facilities and services to be funded by the CFD, and revising the Rate and Method of Apportionment, and adopt a resolution calling an election for November 5, 2024 to increase the CFD special tax and approve these additional CFD changes. (No general fund impact) (Lopez/Beales) (Est. Time: 10 mins)
Recommended Action
- Hold a public hearing to consider changes to Community Facilities District No. 1989-1 (Davis Branch Library) ("CFD"), including increasing the amount of the special tax, amending the authorized facilities and services to be funded by the CFD, and revising the Rate and Method of Apportionment; and
- Adopt a resolution to submit a ballot measure to the registered voters within the CFD at the general election on November 5, 2024 to increase the CFD special tax and approve these additional CFD changes.
Strategic Plan Goal(s)
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Thriving Residents |
Reason for Recommended Action/Background
A community facilities district created pursuant to the Mello-Roos Community Facilities Act of 1982 (Gov. Code 53311 et seq., "Mello-Roos Act") provides a means for financing certain public facilities and services, such as libraries, through incurring bonded indebtedness and levying of special taxes. Community Facilities District No. 1989-1 ("the CFD") was created by the Board of Supervisors in 1989 pursuant to the Mello-Roos Act to levy a special tax to fund library services and facilities in Davis, including repayment of bonds issued to fund improvements to the Davis Branch Library (now the Mary L. Stephens Library - Davis Branch). The formation of the CFD in 1989 authorized up to $4.1 million in bonded indebtedness and the special parcel tax was levied at the rate of $42 per year for single-family residences with no inflationary adjustment. The CFD's boundaries encompass the City of Davis and the Davis Joint Unified School District and have not been changed since its formation.
In 2007, Davis voters approved Measure P, which increased the amount of the annual CFD special tax, authorized an additional $7.5 million in bonded indebtedness, updated the rate and method of apportionment, and revised the library facilities and services to be funded by the special tax. Specifically, Measure P increased the special tax for fiscal year 2008/09 from $42 to $88 for single-family residential parcels within the CFD (and $44 per residential unit for multi-family residential parcels) and also authorized a 2.0% per year increase to the special tax rate. The special tax rate is set by the Board of Supervisors each year consistent with Measure P. The CFD 1989-1 special tax rate for fiscal year 2024/25 is $120.80 for single-family residential parcels and $60.39 per residential unit for multi-family residential parcels (Resolution No. 24-19). The proceeds of this special tax are being used to pay for the cost of additional bonds issued for the purpose of expanding and renovating the Mary L. Stephens Davis Branch Library, as well as providing additional funds for library services within the CFD.
The CFD bonds have been refunded periodically with the latest occurring in 2015 to obtain lower interest rates (see Resolution No. 15-114). The 2015 bond refunding did not result in any additional debt nor extend the time for repayment of the special tax bonds. The final bond payment is due in December 2037 (fiscal year 2037/38). The current principal balance of the special tax bonds is approximately $3.97 million.
In October 2022, the County received an award from the California State Library for $8,783,400 toward the construction of a new library facility in South Davis. On February 21, 2023, the Board of Supervisors voted to authorize the County Administrator to execute the grant agreement. The Board of Supervisors subsequently approved a project budget with funding sources consisting of grant funds, accumulated special tax proceeds, development impact fees, capital improvement reserves, and a contribution from the City of Davis. Additionally, the City of Davis received $850,0000 in federal funding to be used toward construction of the new library. County staff have been working with WMB Architects to design a new library to be located in Walnut Park in South Davis, which is currently known as the Walnut Park Library.
The Walnut Park Library will reduce capacity issues at the Mary L. Stephens Davis Branch Library, expand services to a growing Davis community, and provide access for those who have difficulty traveling to the Mary L. Stephens Library in North Davis. However, having a second library in Davis will generate additional operations and maintenance costs beginning in late 2026, when the new library is projected to open. Additionally, the current special tax, including its 2% annual inflation rate, is not projected to keep up with the costs of the Mary L. Stephens Davis Branch Library, particularly with the rising cost of salaries and benefits for staff and remaining bond debt service. Increasing the special tax will allow the County to operate and maintain the existing Mary L. Stephens Davis Branch Library as well as the new Walnut Park Library, but will not authorize additional bonded indebtedness.
On May 21, 2024, the Board of Supervisors adopted a Resolution of Consideration (Resolution No. 24-70) setting a public hearing on June 25, 2024 to consider changes to the CFD, including increasing the amount of the special tax, amending the authorized facilities and services to be funded by the CFD, and revising the Rate and Method of Apportionment. Notice of the public hearing was published in accordance with the Mello-Roos Act (Att. B.). The Board may consider the testimony interested persons or taxpayers for or against the proposed CFD changes described in the Resolution of Consideration, the extent of the CFD, or the furnishing of the specified public facilities and services. At the hearing, protests against the proposed CFD changes may be made orally or in writing by any interested person prior to the close of the public hearing.
At the conclusion of the public hearing, and assuming no majority protest by 50 percent or more of the registered voters residing in the CFD, the Board may adopt the attached resolution (Att. A) calling for the submission of a ballot measure to the registered voters within the CFD at the general election on November 5, 2024. The ballot measure will request voters to approve increasing the current special tax by $49 per parcel (multifamily parcels would pay $24.50 more per unit) beginning in fiscal year 2025/26, with an increase of up to 2% per year for inflation, along with related changes to the approved services and facilities that may be funded by the special tax and the Rate and Method of Apportionment (RMA) of the special tax. The RMA defines the methodology used to calculate the special tax, sets the maximum tax allowed, defines exempt properties, and provides the road map for administration of the CFD.
The proposed ballot question that will appear on the November 5, 2024 ballot if the attached Resolution is adopted is as follows:
“To operate two Davis branch libraries (Mary L. Stephens and the new Walnut Park Library in South Davis) — including hours of operation, maintenance, collections, and community programs and services — shall the measure increasing the annual special library tax by $49 per parcel (multifamily parcels would increase by $24.50 per unit), increasing no more than 2% per year, raising approximately $1,070,875 annually, and continuing until ended by the Board of Supervisors, be adopted?”
Because the proposed actions include increasing the special tax, a two-thirds vote or more is required for the ballot measure to pass.
In 2007, Davis voters approved Measure P, which increased the amount of the annual CFD special tax, authorized an additional $7.5 million in bonded indebtedness, updated the rate and method of apportionment, and revised the library facilities and services to be funded by the special tax. Specifically, Measure P increased the special tax for fiscal year 2008/09 from $42 to $88 for single-family residential parcels within the CFD (and $44 per residential unit for multi-family residential parcels) and also authorized a 2.0% per year increase to the special tax rate. The special tax rate is set by the Board of Supervisors each year consistent with Measure P. The CFD 1989-1 special tax rate for fiscal year 2024/25 is $120.80 for single-family residential parcels and $60.39 per residential unit for multi-family residential parcels (Resolution No. 24-19). The proceeds of this special tax are being used to pay for the cost of additional bonds issued for the purpose of expanding and renovating the Mary L. Stephens Davis Branch Library, as well as providing additional funds for library services within the CFD.
The CFD bonds have been refunded periodically with the latest occurring in 2015 to obtain lower interest rates (see Resolution No. 15-114). The 2015 bond refunding did not result in any additional debt nor extend the time for repayment of the special tax bonds. The final bond payment is due in December 2037 (fiscal year 2037/38). The current principal balance of the special tax bonds is approximately $3.97 million.
In October 2022, the County received an award from the California State Library for $8,783,400 toward the construction of a new library facility in South Davis. On February 21, 2023, the Board of Supervisors voted to authorize the County Administrator to execute the grant agreement. The Board of Supervisors subsequently approved a project budget with funding sources consisting of grant funds, accumulated special tax proceeds, development impact fees, capital improvement reserves, and a contribution from the City of Davis. Additionally, the City of Davis received $850,0000 in federal funding to be used toward construction of the new library. County staff have been working with WMB Architects to design a new library to be located in Walnut Park in South Davis, which is currently known as the Walnut Park Library.
The Walnut Park Library will reduce capacity issues at the Mary L. Stephens Davis Branch Library, expand services to a growing Davis community, and provide access for those who have difficulty traveling to the Mary L. Stephens Library in North Davis. However, having a second library in Davis will generate additional operations and maintenance costs beginning in late 2026, when the new library is projected to open. Additionally, the current special tax, including its 2% annual inflation rate, is not projected to keep up with the costs of the Mary L. Stephens Davis Branch Library, particularly with the rising cost of salaries and benefits for staff and remaining bond debt service. Increasing the special tax will allow the County to operate and maintain the existing Mary L. Stephens Davis Branch Library as well as the new Walnut Park Library, but will not authorize additional bonded indebtedness.
On May 21, 2024, the Board of Supervisors adopted a Resolution of Consideration (Resolution No. 24-70) setting a public hearing on June 25, 2024 to consider changes to the CFD, including increasing the amount of the special tax, amending the authorized facilities and services to be funded by the CFD, and revising the Rate and Method of Apportionment. Notice of the public hearing was published in accordance with the Mello-Roos Act (Att. B.). The Board may consider the testimony interested persons or taxpayers for or against the proposed CFD changes described in the Resolution of Consideration, the extent of the CFD, or the furnishing of the specified public facilities and services. At the hearing, protests against the proposed CFD changes may be made orally or in writing by any interested person prior to the close of the public hearing.
At the conclusion of the public hearing, and assuming no majority protest by 50 percent or more of the registered voters residing in the CFD, the Board may adopt the attached resolution (Att. A) calling for the submission of a ballot measure to the registered voters within the CFD at the general election on November 5, 2024. The ballot measure will request voters to approve increasing the current special tax by $49 per parcel (multifamily parcels would pay $24.50 more per unit) beginning in fiscal year 2025/26, with an increase of up to 2% per year for inflation, along with related changes to the approved services and facilities that may be funded by the special tax and the Rate and Method of Apportionment (RMA) of the special tax. The RMA defines the methodology used to calculate the special tax, sets the maximum tax allowed, defines exempt properties, and provides the road map for administration of the CFD.
The proposed ballot question that will appear on the November 5, 2024 ballot if the attached Resolution is adopted is as follows:
“To operate two Davis branch libraries (Mary L. Stephens and the new Walnut Park Library in South Davis) — including hours of operation, maintenance, collections, and community programs and services — shall the measure increasing the annual special library tax by $49 per parcel (multifamily parcels would increase by $24.50 per unit), increasing no more than 2% per year, raising approximately $1,070,875 annually, and continuing until ended by the Board of Supervisors, be adopted?”
Because the proposed actions include increasing the special tax, a two-thirds vote or more is required for the ballot measure to pass.
Collaborations (including Board advisory groups and external partner agencies)
The County Administrator's Office, County Counsel, County General Services Department, SCI Consulting Group, the South Davis Ad Hoc Committee, and Library staff have been involved in developing the recommendation and resolution before you today.
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $
- Amount budgeted for expenditure:
- $
- Additional expenditure authority needed:
- $
- On-going commitment (annual cost):
- $
Source of Funds for this Expenditure
- General Fund
- $0
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kimberly Hood | Kimberly Hood | 06/13/2024 10:45 AM |
| Diana Lopez | Diana Lopez | 06/14/2024 10:07 AM |
| Yen Nguyen | Yen Nguyen | 06/14/2024 11:55 AM |
- Form Started By:
- Meredith Beales
- Started On:
- 05/21/2024 10:10 AM
- Final Approval Date:
- 06/14/2024