Adopt a Resolution of Change determining that the increase in the rate and change in the method of apportionment of the Community Facilities District No. 1989-1 (Davis Library Branch) special tax contained in the Board of Supervisors' Resolution No. 24-70 have been approved by the qualified electors and are lawfully authorized. (No general fund impact) (Lopez)

Adopt a Resolution of Change (Attachment A) determining that the increase in the rate and change in the method of apportionment of the Community Facilities District No. 1989-1 (Davis Library Branch) special tax contained in the Board of Supervisors' Resolution No. 24-70 have been approved by the qualified electors and are lawfully authorized.

Davis voters approved a ballot measure (Measure T) on the November 5, 2024 general election ballot by the requisite two-thirds vote.  Measure T proposed an increase of $49 per parcel and $24.50 per residential unit for multifamily parcels (with a maximum inflator of two percent (2.0%) per year) to properties within Community Facilities District No. 1989-1, Davis Library Branch, ("the CFD"), which encompasses the boundaries of the Davis Joint Unified School District within Yolo County, including the City of Davis.  The Board of Supervisors placed Measure T on the ballot to finance services and facilities at both the Mary L. Stephens Davis Branch Library and the new Walnut Park Library in South Davis, including maintaining hours of operation, facilities, collections, and community services and programs. 

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.  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 special tax has been levied since 1990 and was increased with voter approval in 2007 to $88 per year per parcel ($44 per residential unit for multi-family parcels) with a 2.0% annual inflator to pay for further modernizing and expanding Davis library facilities and expanded services. 

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. 

Measure T
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. Following the public hearing, the Board adopted Resolution No. 24-88, placing Measure T on the November 5th ballot.

Measure T asked 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. 

Because Measure T proposed an increase to the CFD special parcel tax, it required a two-thirds vote to pass. The certified results of the November 5, 2024 election were accepted by the Board of Supervisors on December 10, 2024.  The Davis voters overwhelmingly approved Measure T with a 74.42% approval (see Attachment B - Registrar of Voters, Certified Canvass Results). Adoption of the Resolution of Change (Attachment A) is the final step needed to confirm the proposed increase to the special tax, changes to the approved services and facilities that may be funded by the special tax (including the new Walnut Park Library), and the updated RMA.  The Resolution further directs the Clerk of the Board to record an amended notice of special tax lien as required by the Mello-Roos Act (Gov. Code section 53338(c)).

The County Administrator's Office, County Counsel, the South Davis Ad Hoc Committee, SCI Consulting, and Library staff have been involved in developing the recommendation and resolution before you today.