BACKGROUND
The proposed Schedule of Maintenance Costs and Charges for Maintenance CFDs identifies costs for services provided by the City at the request of, or on behalf of individual districts, as opposed to the public at large.
This schedule of costs and charges is intended for application to all new maintenance CFDs planned and formed by the City. Prior to this uniform schedule, existing CFDs have negotiated individually with the City, resulting in divergent charges and potentially disparate recovery of the costs of service.
The City published Goals and Policies Concerning the Use of Mello-Roos Community Facilities Act of 1982, effective April 3, 2024. These policies affirm the purpose of CFDs, which is to “fund all or a portion of the ongoing costs of parks and open space, public landscaping, police and fire protection services and library services and maintenance; and/or to pay for any unfunded ongoing City maintenance or service costs associated with the development project.”
The Schedule of Maintenance Costs and Charges for Maintenance CFDs is intended to be reviewed annually. The schedule of costs and charges, effective July 1, 2024 through June 30, 2025, is based on the results of a study completed in May 2023 and applying the annual Consumer Price Index (CPI) change from October to October, as allowed per Council via Resolution. The report can be found in the link below.
It is important to note that while establishing a universal schedule of costs and charges might provide a fiscal impact in the form of additional revenue, the revenue is not intended to be used to fund new services, rather the revenue is intended to offset the costs of providing existing services that are recoverable from the schedule. Consequently, while charges may rise annually, typically labor costs (the primary driver of service costs) also rise annually. Recalibration of the schedule of costs and charges simply provides an offset of existing expenditure/needs rather than a source of funding for expanded service levels.
Annual Maintenance Cost Schedule for Maintenance CFDs
Resolution 23-140