REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
July 23, 2024
FROM
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District
SUBJECT
Title
Continuation of Special Taxes for Community Facilities District 1033 within the City of San Bernardino and Community Facilities District 94-01 within the City of Hesperia
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Fire Protection District:
1. Adopt Resolution authorizing the continuing levy of special taxes on commercial parcels within Community Facilities District 1033, as detailed in Exhibit A, to help fund the cost of providing fire services within the Verdemont area of the City of San Bernardino.
2. Adopt Resolution authorizing the continuing levy of special taxes on parcels within Community Facilities District 94-01, as detailed in Exhibit 1, to help fund the cost of providing fire services within the City of Hesperia.
3. Direct the Auditor-Controller/Treasurer/Tax Collector to place the special taxes for Community Facilities District 1033 and Community Facilities District 94-01, as detailed in Exhibits A and 1 respectively, on the 2024-25 Tax Roll.
4. Approve Agreement for Collection of Special Taxes, Fees, and Assessments Fiscal Year 2024-25 with San Bernardino County, for the San Bernardino County Auditor-Controller/Treasurer/Tax Collector to collect special taxes, fees, and assessments for the San Bernardino County Fire Protection District for 2024-25.
(Presenter: Dan Munsey, Fire Chief/Fire Warden, 387-5779)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of these actions will not result in the use of additional Discretionary General Funding (Net County Cost). The special taxes for Community Facilities District 1033 (CFD 1033) and Community Facilities District 94-01 (CFD 94-01) will be placed on the 2024-25 property Tax Roll to help fund San Bernardino County Fire Protection District’s (SBCFPD) cost of providing fire services. Projected 2024-25 revenue from these special taxes is as follows:
• CFD 1033 - $1,191,171 from 14 commercial parcels (Exhibit A), which includes $23,356 from a recommended 2% increase.
• CFD 94-01 - $1,243,885 from 3,450 parcels (Exhibit 1), which includes $72,504 from a recommended 4% increase and the addition of 156 new parcels.
Revenue from these special taxes is included in SBCFPD’s 2024-25 budget.
The cost to SBCFPD for the collection of special taxes for CFD 1033 and CFD 94-01 from the Agreement for Collection of Special Taxes, Fees, and Assessments Fiscal Year 2024-25 (Agreement) identified in Recommendation No. 4 will be less than $1,050 for 2024-25. Sufficient appropriation for this cost is included in SBCFPD’s 2024-25 budget.
BACKGROUND INFORMATION
CFD 1033 was established in 2004 by the City of San Bernardino (City) to provide funding for fire services in the City’s Verdemont area through the annual levy of special taxes assessed on commercial parcels within CFD 1033. The special tax can be levied for a period not to exceed 30 years and increased by up to 2% from the previous fiscal year. Administration of CFD 1033 transferred from the City to SBCFPD by the issuance of the Certificate of Completion for Local Agency Formation Commission (LAFCO) No. 3198 in June 2016.
In 1994, CFD 94-01 was established by the Hesperia Fire Protection District to pay for expenses associated with providing fire suppression and emergency medical services through the annual levy of special taxes assessed on parcels within CFD 94-01. Administration of CFD 94-01 transferred from the City of Hesperia to SBCFPD by the issuance of the Certificate of Completion for LAFCO No. 3218 effective November 1, 2018.
The special tax for CFD 94-01 can be increased annually based upon the increase during the preceding fiscal year in the Consumer Price Index (CPI) for all urban consumers, all items index, as published by the United States Department of Labor, Bureau of Labor Statistics. Originally, the CPI for the Los Angeles/Anaheim/Riverside area was utilized in determining the annual increase. However, that area was discontinued and replaced by the formation of new areas. Because CFD 94-01 provides funding for fire services within the City of Hesperia, it is most appropriate to now use the CPI for the Riverside/San Bernardino/Ontario area in establishing this special tax’s annual increase. The CPI for the Riverside/San Bernardino/Ontario area during the preceding fiscal year (May 2023 to May 2024) was 4%.
The recommended actions will provide for the continuation of special taxes for both CFD 1033 and CFD 94-01, as well as direct the placement of these special taxes on the 2024-25 Tax Roll.
There are currently 14 taxable parcels within the boundaries of CFD 1033. The 2024-25 amount of special taxes for each parcel is listed on Exhibit A to the Resolution and includes a 2% increase from the prior year to support the costs of providing fire services in the Verdemont area of the City.
There are currently 3,450 taxable parcels within the boundaries of CFD 94-01. The 2024-25 amount of special taxes for each parcel is listed on Exhibit 1 to the Resolution and includes a 4% increase from prior year to support the costs of providing fire services in the City of Hesperia.
This item also recommends the Agreement with San Bernardino County (County) for the County’s Auditor-Controller/Treasurer/Tax Collector to collect SBCFPD special taxes, fees, and assessments for 2024-25. The County will charge SBCFPD an amount per parcel (currently $0.30 in accordance with the adopted Fee Ordinance) for each special tax, fee, or assessment that is to be collected, not to exceed the County’s actual cost of collection. The Agreement requires SBCFPD to release, as well as indemnify, defend, and hold the County harmless of various claims, liabilities, etc., including any claim that may arise out of this Agreement. The Agreement may be terminated by either party with 30 days written notice.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Scott Runyan, Principal Assistant County Counsel, and Aaron Gest, Deputy County Counsel, 387-5455) on July 16, 2024; Auditor-Controller/Treasurer/Tax Collector (Franciliza Zyss, Chief Deputy, 382-3176) on July 3, 2024; Finance (Ivan Ramirez, Administrative Analyst, 387-4020) on July 5, 2024; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on July 5, 2024.