HomeMy WebLinkAboutRes 2025-008Docusign Envelope ID: 3D668D33-E0F5-45B5-B34F-1 FD55A13A8ED
RESOLUTION NO. 2025-008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, DETERMINING THE VALIDITY OF PRIOR
PROCEEDINGS, FORMING THE CITY OF PALM DESERT COMMUNITY
FACILITIES DISTRICT NO. 2025-1 (SHADOW RIDGE PUBLIC
SERVICES), AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN,
ESTABLISHING AN APPROPRIATIONS LIMIT, AND TAKING CERTAIN
OTHER ACTIONS RELATING TO SAID DISTRICT
WHEREAS, the City Council of the City of Palm Desert adopted Resolution No.
2025-1 (the "Resolution of Intention"), stating its intention to form City of Palm Desert
Community Facilities District No. 2025-1 (Shadow Ridge Public Services) (the "CFD")
pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311,
of the California Government Code (the "Act"); and
WHEREAS, the Resolution of Intention, incorporating a map of the proposed
boundaries of the CFD, and stating the services to be provided, and the rate and method
of apportionment of the special tax to be levied within the CFD to pay for the services, is
on file with the City Clerk and the provisions of the Resolution of Intention are incorporated
herein by this reference as if fully set forth herein; and
WHEREAS, on February 13, 2025, the City Council held a noticed public hearing
as required by the Act and the Resolution of Intention with respect to the proposed
formation of the CFD; and
WHEREAS, at the hearing, all interested persons desiring to be heard on all
matters pertaining to the formation of the CFD, the services to be provided therein and
the levy of such special tax were heard and a full and fair hearing was held; and
WHEREAS, at the hearing, evidence was presented to the City Council on such
matters before it, including a special report (the "Report"), attached as Exhibit C hereto
and hereby incorporated herein, prepared by, or on behalf of, the City officer who is or
will be responsible for the CFD describing the services to be provided through the CFD
and the costs thereof pursuant to the Resolution of Intention, a copy of which is on file
with the City Clerk; and
WHEREAS, no written protests have been filed with the City Clerk by 50% or more
of the property owners that own one-half or more of the area of land within the CFD, and
not exempt from the proposed special taxes.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Recitals. The City Council finds and determines that all the foregoing
recitals are true and correct and incorporated herein.
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SECTION 2. No Majority Protest. The proposed special tax to be levied within the
CFD has not been precluded by majority protest pursuant to Section 53324 of the Act.
SECTION 3. Prior Proceedings Valid. All prior proceedings taken by the City
Council in connection with the establishment of the CFD, and the levy of the special tax
have been duly considered and are hereby found and determined to be valid and in
conformity with the Act, including without limitation, the filing of a petition of a landowner
requesting institution of proceedings to establish the CFD, adoption of the Resolution of
Intention, publication of notice of public hearing on the establishment of the CFD, and
conducting the public hearing on the establishment of the CFD.
SECTION 4. Report. The Report, as now submitted is hereby approved and is
made a part of the record of the hearing, and is kept on file with the transcript of these
proceedings and open for public inspection.
SECTION 5. Name of CFD. The community facilities district designated "City of
Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public Services)"
is hereby established pursuant to the Act.
SECTION 6. Boundaries of CFD. The boundaries of the CFD, as set forth in the
map of the CFD, on file with the City Clerk's office and as described in the Resolution of
Intention, and recorded in the Riverside County Recorder's Office on January 28, 2025 in
Book 95 of Maps of Assessment and Community Facilities Districts, at page 13, as
Document No. 2025-0027288 are hereby approved, are incorporated herein by reference
and shall be the boundaries of the CFD.
SECTION 7. Description of Services. The type of public services proposed to be
financed by the CFD pursuant to the Act shall consist of those items shown in Exhibit A
hereto and by this reference incorporated herein (the "Services").
SECTION 8. Special Tax.
a. Except to the extent that funds are otherwise available to the CFD to
pay for the Services, a special tax (the "Special Tax") sufficient to pay the costs thereof,
secured by the recordation of a continuing lien against all non-exempt real property in the
CFD, is intended to be levied annually within the CFD, and collected in the same manner
as ordinary ad valorem property taxes or in such other manner as may be prescribed by
the City Council.
b. The proposed rate and method of apportionment of the Special Tax
among the parcels of real property within the CFD are shown in Exhibit B attached hereto
and hereby incorporated herein, and include sufficient detail to allow each landowner
within the proposed CFD to estimate the maximum amount such owner will have to pay.
SECTION 9. Increased Demands. It is hereby found and determined that the
Services are necessary to meet increased demands placed upon local agencies,
including the City, as the result of development occurring in the CFD. The Services are
in addition to those provided in the territory of the CFD as of the date hereof and will not
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supplant services already available within the territory of the CFD as of the date hereof.
The City Council hereby determines the rate and method of apportionment set forth in
Exhibit B to be reasonable.
SECTION 10. Accountability Measures. Pursuant to and in compliance with the
provisions of Government Code Section 50075.1, the City Council hereby establishes the
following accountability measures pertaining to the levy by the CFD of the Special Tax
above:
c. Such Special Tax shall be levied for the specific purposes set forth
herein.
d. The proceeds of the levy of such Special Tax shall be applied only
to the specific purposes set forth herein.
e. The CFD shall establish an account or accounts into which the
proceeds of such Special Tax shall be deposited.
f. The Director of Finance, or their designee, acting for an on behalf of
the CFD, shall annually file a report with the City Council as required pursuant to
Government Code Section 50075.3.
SECTION 11. Responsible Official. The City's Director of Finance, or designee
thereof, 73-510 Fred Waring Drive, Palm Desert, California, telephone number (760) 346-
0611, is the officer of the City who will be responsible for preparing annually a current roll
of the levy of the Special Tax obligations by assessor's parcel number and who will be
responsible for estimating future levies of the Special Tax.
SECTION 12. Tax Lien. Upon recordation of a notice of special tax lien pursuant
to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure
each levy of the Special Tax shall attach to all nonexempt real property in the CFD, and
this lien shall continue in force and effect until the Special Tax obligation is prepaid and
permanently satisfied and the lien canceled in accordance with law or until collection of
the Special Tax by the City ceases.
SECTION 13. Appropriations Limit. In accordance with the Act, the annual
appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the
California Constitution, of the CFD is hereby preliminarily established at an amount equal
to all the proceeds of the special tax collected annually within the District, and such
appropriations limit shall be submitted to the voters of the CFD as hereafter provided. The
proposition establishing such annual appropriations limit shall become effective if
approved by the qualified electors voting thereon and shall be adjusted in accordance
with the applicable provisions of the Act and the Constitution.
SECTION 14. Election. Pursuant to the provisions of the Act, the proposed levy
of the Special Tax and the proposed establishment of the appropriations limit specified
above shall be submitted to the qualified electors of the CFD at an election, the time,
place and conditions of which election, shall be as specified by a separate resolution of
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this Council. The City Clerk is directed to certify and attest to this Resolution and to take
any and all necessary acts to call, hold, canvass, and certify an election or elections on
the levy of the Special Tax and the establishment of the appropriations limit.
SECTION 14. Effective Date. This resolution shall take effect upon its adoption.
ADOPTED ON FEBRUARY 13, 2025
Signed by:
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JAN C. HARNIK
MAYOR
ATTEST:
Signed by:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2025-008 is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on February 13, 2025, by
the following vote:
AYES:
NESTANDE, PRADETTO, QUINTANILLA, AND TRUBEE
NOES:
NONE
ABSENT:
HARNIK
ABSTAIN:
NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on 2/18/2025
Signed by:
ANTHONY J. MEJIA
CITY CLERK
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CITY OF PALM DESERT
Community Facilities District No. 2025-1
(Shadow Ridge Public Services)
DESCRIPTION OF SERVICES
The services to be funded, in whole or in part, by the community facilities district (the
"CFD") include, but are not limited to: (i) police protection and related services of the City
of Palm Desert required to sustain the public safety service delivery capability for
emergency and non -emergency services including related facilities, equipment, vehicles,
services, supplies and personnel; (ii) Fire protection and suppression services, and
ambulance and paramedic services; (iii) maintenance and lighting of parks, parkways,
streets, roads and open space; (iv) flood and storm protection services; and (v) other
public services authorized to be funded under Section 53313 of the California
Government Code.
The District may fund any of the following related to the services described in the
preceding sentence: obtaining, constructing, furnishing, operating and maintaining
equipment, apparatus or facilities related to providing the services and/ or equipment,
apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits
of personnel necessary or convenient to provide the services, payment of insurance costs
and other related expenses and the provision of reserves for repairs and replacements
and for the future provision of services. It is expected that the services will be provided by
the City, either with its own employees or by contract with third parties, or any combination
thereof.
The services to be financed by the District are in addition to those provided in the territory
of the District before the date of creation of the District, and will not supplant services
already available within that territory when the District is created.
Administrative Expenses: The administrative expenses to be funded by the District
include the direct and indirect expenses incurred by the City in carrying out its duties with
respect to the District (including, but not limited to, the levy and collection of the special
taxes) including the fees and expenses of attorneys, any fees of the County of Riverside
related to the District or the collection of special taxes, an allocable share of the salaries
of the City staff directly related thereto and a proportionate amount of the City's general
administrative overhead related thereto, any amounts paid by the City from its general
fund with respect to the District or the services authorized to be financed by the District,
and expenses incurred by the City in undertaking action to foreclose on properties for
which the payment of special taxes is delinquent, and all other costs and expenses of the
City in any way related to the District.
Other: The incidental expenses that may be funded by the District include, in addition to
the administrative expenses identified above, the payment or reimbursement to the City
of all costs associated with the establishment and administration of the District.
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CITY OF PALM DESERT
Community Facilities District No. 2025-1
(Shadow Ridge Public Services)
RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX
For the City of Palm Desert Community Facilities District No.
2025-1 (Shadow Ridge Public Services), County of Riverside,
State of California
The Special Tax as hereinafter defined shall be levied on all Assessor's Parcels within
the City of Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public
Services), ("CFD 2025-1"), other than Assessor's Parcels classified as Exempt Property
as defined herein and collected each Fiscal Year commencing in Fiscal Year 2025-26, in
an amount determined by the CFD Administrator through the application of the
procedures described below. All the real property within CFD 2025-1, unless exempted
by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in
the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Act" means the Mello -Roos Communities Facilities Act of 1982 as amended, being
Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated
expenses related to the administration of CFD 2025-1: (i) the costs of determining the
amount of the levy of the Special Tax, the collection of Special Taxes, including the
expenses of collecting delinquencies and pursuing foreclosures; (ii) the payment of a
proportional share of salaries and benefits of any City employee and City overhead whose
duties are directly related to the administration of CFD 2025-1; (iii) fees and expenses for
counsel, audits, costs associated with responding to public inquiries regarding CFD 2025-
1; and (iv) any and all other costs incurred in connection with the administration of CFD
2025-1.
"Annual Escalation Factor" means two percent (2%).
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned assessor's parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County
designating parcels by assessor's parcel number.
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"Base Year" means the first year that any Assessor's Parcel of Taxable Property is
classified as Developed Property.
"Building Permit" means a permit issued for new construction of a Residential Unit. For
purposes of this definition, "Building Permit" shall not include permits for construction or
installation of retaining walls, grading, utility improvements, or other such improvements
not intended for human habitation.
"Certificate of Occupancy" means a document issued by the City certifying that a newly
constructed Residential Unit complies with all applicable codes and ordinances and that
it is suitable and safe for occupancy.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Tax for CFD 2025-1.
"CFD 2025-1" means City of Palm Desert Community Facilities District No. 2025-1
(Shadow Ridge Public Services) established by the City Council under the Act.
"City" means the City of Palm Desert.
"City Council" means the Council of the City of Palm Desert, acting as the legislative
body of CFD 2025-1.
"County" means the County of Riverside.
"Developed Property" means an Assessor's Parcel of Taxable Residential Property for
which a Certificate of Occupancy was issued on or before June 1 preceding the Fiscal
Year for which the Special Tax is being levied.
"Exempt Property" means all Assessor's Parcels within CFD 2025-1 that are exempt
from the Special Tax pursuant to the Act or Section F herein.
"Fiscal Year" means the period commencing on July 1 of any year and ending the
following June 30.
"Land Use Type" means any of the land use types listed in Table 1 below.
"Maximum Special Tax" means the maximum Special Tax determined in accordance
with Section C, which may be levied in any Fiscal Year on an Assessor's Parcel of
Taxable Property.
"Property Owner Association Property" means for each Fiscal Year any property
within the boundaries of CFD 2025-1 that was owned by, or irrevocably dedicated as
indicated in an instrument recorded with the County Recorder to a property owner
association, including any master or sub -association, as of June 1.
"Proportionately" means in a manner such that the ratio of the actual Special Tax levy
to the Maximum Special Tax is equal for all Assessor's Parcels within each Land Use
Class.
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"Public Property" means any property that is owned by, dedicated or irrevocably
dedicated to a city, the federal government, the State of California, the County, or any
other public agency (each, a "Public Entity"); provided, however, that any such property
is leased by such a Public Entity to a private entity and is thereby subject to taxation
pursuant to Section 53340.1 of the Act, such leasehold estate shall be classified and
taxed according to the use thereof.
"Public Services" means those authorized services that may be funded by CFD 2025-
1 pursuant to the Act, as amended including but not limited to police protection services,
fire protection services, paramedic services, park maintenance, street maintenance and
flood control.
"Residential Property" means Assessor's Parcels of Developed Property within CFD
2025-1 for which a Building Permit has been issued for purposes of constructing one or
more Residential Unit(s).
"Residential Unit" means any residence in which a person or persons may live, which
is not considered to be used for non-residential purposes.
"Special Tax" means the special tax authorized to be levied within CFD 2025-1 pursuant
to the Act, to fund the Special Tax Requirement.
"Special Tax Requirement" means the amount, as determined by the CFD
Administrator, for any Fiscal Year to: (i) pay the costs of providing the Public Services
during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special
Tax, (iii) establish or replenish any operational reserve fund established for Public
Services, (iv) pay incidental expenses related to the Public Services as authorized
pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies
expected to occur in the Fiscal Year in which the Special Tax will be levied ("Estimated
Special Tax Delinquency Amount") and (vi) fund the shortfall, if any, in the Special Tax
revenues collected in the preceding Fiscal Year necessary to fund the Special Tax
Requirement for such Fiscal Year where such shortfall resulted from delinquencies in the
payment of the Special Tax in such Fiscal Year that exceeded the Estimated Special Tax
Delinquency Amount included in the Special Tax Requirement for such Fiscal Year.
"Taxable Property" means all Assessor's Parcels that are not exempt from the Special
Tax pursuant to the Act or Section F.
"Undeveloped Property" means an Assessor's Parcel of Taxable Property which is not
classified as Developed Property.
B. CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2025-26, using the definitions above, each
Assessor's Parcel within CFD 2025-1 shall be classified by the CFD Administrator as
Taxable Property or Exempt Property. In addition, each such Fiscal Year, each
Assessor's Parcel of Taxable Property shall be further classified by the CFD Administrator
as Developed Property or Undeveloped Property and subject to the levy of the Special
Tax pursuant to Section C below.
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C. SPECIAL TAX RATES
1. Developed Property
Each Fiscal Year commencing in Fiscal Year 2025-26, each Assessor's Parcel of
Developed Property shall be subject to the Special Tax.
The initial Maximum Special Tax for each Assessor's Parcel of Developed Property
in its Base Year shall be $2,200.
For each subsequent Fiscal Year following the Base Year, the Maximum Special
Tax rates shall be increased from the Maximum Special Tax rate in effect for the
prior Fiscal Year by the Annual Escalation Factor.
Undeveloped Property
Each Assessor's Parcel classified as Undeveloped Property shall be exempt from
the levy of the Special Tax.
Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section F.
For each Fiscal Year, if the use or ownership of an Assessor's Parcel or Exempt
Property changes so that such Assessor's Parcel is no longer classified as one of
the uses set forth in Section F, therefore making such Assessor's Parcel no longer
eligible to be classified as Exempt Property, such Assessor's Parcel shall be
deemed to be Taxable Property and shall be taxed pursuant to the provisions of
Section C.
!). METHOD OF APPORTIONMENT OF SPECIAL TAX
Commencing in Fiscal Year 2025-26 and for each subsequent Fiscal Year, the CFD
Administrator shall levy the Special Tax on all Taxable Property of CFD 2025-1 until the
total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax
shall be levied Proportionately on each Assessor's Parcel of Developed Property within
CFD 2025-1 up to 100% of the Maximum Special Tax to satisfy the Special Tax
Requirement.
Notwithstanding any provision of this Section D to the contrary, under no circumstances
will the Special Tax levied against any Assessor's Parcel of Developed Property that is
classified as Residential Property be increased by more than ten percent (10%) per Fiscal
Year as a consequence of delinquency or default in the payment of the Special Tax by
the owner of any other Assessor's Parcel.
PREPAYMENT OF SPECIAL TAX
The Special Tax for an Assessor's Parcel of Undeveloped Property that has been issued
a Building Permit or for an Assessor's Parcel of Developed Property may be prepaid. The
prepayment amount shall be the lesser of (i) $66,000 or (ii) the Maximum Special Tax
that will be in effect the following Fiscal Year times the number of Fiscal Years remaining
in the 30 -year period defined in Section I below.
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F. EXEMPTIONS
The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner
Association Property, (iii) Assessor's Parcels with public or utility easements making
impractical their utilization for other than the purposes set forth in the easement, including
but not limited to property designated for open space, trails, pathways, parks or park and
recreation related facilities, and (iv) property reasonably designated by the City or CFD
Administrator as Exempt Property due to deed restrictions, conservation easement, or
similar factors.
G. APPEALS
Any property owner claiming that the amounts or application of the Special Tax is not
correct may file a written notice of appeal with the CFD Administrator not later than twelve
months after having paid the first installment of the Special Tax. The CFD Administrator
shall promptly review the appeal, and if necessary, meet with the property owner,
consider written and oral evidence regarding the amount of the Special Tax, and rule on
the appeal. If the decision of the CFD Administrator requires that the Special Tax for an
Assessor's Parcel be modified or changed in favor of the property owner, a cash refund
shall not be made but an adjustment shall be made to the Special Tax on that Assessor's
Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special
Tax.
H. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary
ad valorem property taxes, provided, however, that the Special Tax may be billed and
collected at a different time or in a different manner if necessary to meet the financial
obligations of CFD 2025-1.
I. DURATION OF TAX
For each Residential Unit, the Special Tax shall be levied for a cumulative 30 -year period
to fund the Special Tax Requirement unless such tax is no longer required as determined
by the City Council.
J. INTERPRETATION
The City may interpret, clarify, and revise this Rate and Method to correct any
inconsistency, vagueness, or ambiguity, by resolution and/or ordinance, that does not
create a material adverse effect on the levy and collection of the Special Tax.
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EXHIBIT C
CITY OF PALM DESERT
Community Facilities District No. 2025-1
(Shadow Ridge Public Services)
CFD REPORT
(see attached)
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CFD Report
Palm Desert
City of Palm Desert
Community Facilities District
No. 2025-1 (Shadow Ridge Public Services)
January 2025
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TABLE OF CONTENTS
I. INTRODUCTION...............................................................................................1
II. GENERAL DESCRIPTION & BOUNDARIES OF CFD No. 2025-1..................................2
III. DESCRIPTION OFSERVICES...............................................................................3
IV. COST ESTIMATES..........................................................................................4
V. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.......................................5
EXHIBIT A (BOUNDARY MAP)......................................................................... A-1
EXHIBIT B (RATE AND METHOD OF APPORTIONMENT) .......................................... B-1
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I. Introduction
WHEREAS, the City Council of the City of Palm Desert (hereinafter referred to as the "City
Council"), in the State of California, did, pursuant to the terms and provisions of Chapter 2.5 of
Part 1, of Division 2, of Title 5 of the Government Code of the State of California, as amended
(the "Act"), adopt a Resolution of Intention for the proposed formation of City of Palm Desert
Community Facilities District No. 2025-1 (Shadow Ridge Public Services) ("CFD No. 2025-1").
WHEREAS, this Community Facilities District Report ("Report") is being provided to the City
Council and generally contains the following:
1. A brief description of CFD No. 2025-1;
2. A brief description of the Services (defined below) required at the time of formation
to meet the needs of CFD No. 2025-1.
3. A brief description of the boundaries of CFD No. 2025-1; and
4. An estimate of the cost of services, including all costs associated with formation of
CFD No. 2025-1, determination of the amount of any special taxes, collection of any
special taxes, or costs otherwise incurred in order to carry out the authorized
purposes of the City with respect to CFD No. 2025-1, and any other incidental
expenses to be paid through the proposed financing.
For particulars, reference is made to the Resolution of Intention, Resolution No. 2025-001, as
previously approved. All capitalized terms not defined herein are defined in the Rate and Method
of Apportionment of Special Tax section, attached as Exhibit C to this report.
NOW THEREFORE Wilidan Financial Services, the appointed responsible firm directed to prepare
the Report, pursuant to the provisions of the Act, does hereby submit the following:
/'WILLDAN
Financial Services
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II. General Description & Boundaries of CFD No. 2025-1
A description of the exterior boundaries of the territory proposed for inclusion in CFD No. 2025-
1, including properties and parcels of land proposed to be subject to the levy of a Special Tax by
CFD No. 2025-1, is shown on the boundary map designated as "PROPOSED BOUNDARIES OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SHADOW RIDGE PUBLIC SERVICES), CITY OF PALM
DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA", which is on file in the office of the Clerk
of the City Council of the City of Palm Desert and was recorded with the County Recorder of the
County of Riverside on January 28, 2025 in Book 95 of Maps of Assessment and Community
Facilities Districts at Page 13 and as Instrument Number 2025-0027288. A copy of the map is
attached hereto as Exhibit A and hereby incorporated by reference.
/'WILLDAN 2
Financial Services
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III. Description of Services
The General Description of the Services that may be funded are as follows:
The services to be funded, in whole or in part, by CFD No. 2025-1 include, but are not limited to
the following: (i) police protection and related services of the City of Palm Desert required to
sustain the public safety service delivery capability for emergency and non -emergency services
including related facilities, equipment, vehicles, services, supplies and personnel; (ii) Fire
protection and suppression services, and ambulance and paramedic services; (iii) maintenance
and lighting of parks, parkways, streets, roads and open space; (iv) flood and storm protection
services; and (v) other public services authorized to be funded under Section 53313 of the
California Government Code.
CFD No. 2025-1 may fund any of the following related to the services described in the preceding
sentence: obtaining, constructing, furnishing, operating and maintaining equipment, apparatus
or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures
in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient
to provide the services, payment of insurance costs and other related expenses and the provision
of reserves for repairs and replacements and for the future provision of services. It is expected
that the services will be provided by the City, either with its own employees or by contract with
third parties, or any combination thereof.
The services to be financed by CFD No. 2025-1 are in addition to those provided in the territory
of CFD No. 2025-1 before the date of creation of CFD No. 2025-1 and will not supplant services
already available within that territory when the CFD No. 2025-1 is created.
/'WILLDAN 3
Financial Services
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Resolution No. 2025-008 Page 17
IV. Cost Estimates
Costs of formation associated with CFD No. 2025-1 are currently estimated at approximately
$73,500.
The annual administration costs for CFD No. 2025-1 are expected to total $13,000 in Fiscal Year
2025/2026, escalating by two percent (2%) per year on July 1, 2026 and each July 1 thereafter.
The district's development is projected to be complete in fiscal year 2028/2029. Revenue for CFD
No. 2025-1 is projected at $221,461 in year fiscal year 2028/2029 after the development has fully
completed. Below is the projected revenue over the 30 -year term.
Fiscal Year
Projected completed units
Estimated Revenue
2025/2026
0
$0.00
2026/2027
18
40, 392.00
2027/2023
54
123,599.52
2028/2029
90
210,119.18
2029/2030
93
221,465.62
2030/2031
93
225,894.93
2031/2032
93
230,412.83
2032/2033
93
235,021.09
2033/2034
93
239,721.51
2034/2035
93
244,515.94
2035/2036
93
249,406.26
2036/2037
93
254,394.38
2037/2038
93
259,482.27
2033/2039
93
264,671.92
2039/2040
93
269,965.35
2040/2041
93
275, 364.66
2041/2042
93
280,871.96
2042/2043
93
286,489.39
2043/2044
93
292,219.18
2044/2045
93
298,063.57
2045/2046
93
304,024.34
2046/2047
93
310,105.33
2047/2048
93
316, 307.44
2048/2049
93
322,633.59
2049/2050
93
329,086.26
2050/2051
93
335,667.99
2051/2052
93
342, 331.35
2052/2053
93
349,228.97
2053/2054
93
356,213.55
2054/2055
93
363, 3 37.82
Total Revenue:
$7,831,058.71
/'WILLDAN 4
Flnancisl Services
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Resolution No. 2025-008 Page 18
V. Rate and Method of Apportionment of Special Tax
The Rate and Method of Apportionment (RMA) for each improvement area provides sufficient
information to allow a property owner within CFD No. 2025-1 to estimate the Maximum Special
Tax for his or her property. It also includes method of prepayment in full and the procedure for
prepayments.
For particulars on the RMA for CFD No. 2025-1, reference is made to Exhibit B of this report.
/'WILLDAN
Flnanclsl Services
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Resolution No. 2025-008
Page 19
EXHIBIT A
Boundary Map
MAP OF PROPOSED BOUNDARIES OF
WC COMMUNITY FACILITIES DISTRICT NO. 2025-1
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W'WILLDAN A-2
Financial Servioes
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Resolution No. 2025-008
Page 20
EXHIBIT B
Rate and Method of Apportionment
CFD No. 2025-1
W I LLDAN
NA NCIAL 5ERYICE5
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Resolution No. 2025-008 Page 21
RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX
For the City of Palm Desert Community Facilities District No. 2025-1
(Shadow Ridge Public Services), County of Riverside, State of California
The Special Tax as hereinafter defined shall be levied on all Assessor's Parcels within the City of Palm
Desert Community Facilities District No. 2025-1 (Shadow Ridge Public Services), ("CFD 2025-1"), other
than Assessor's Parcels classified as Exempt Property as defined herein and collected each Fiscal Year
commencing in Fiscal Year 2025-26, in an amount determined by the CFD Administrator through the
application of the procedures described below. All the real property within CFD 2025-1, unless exempted
by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein
provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Act" means the Mello -Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5, Part 1,
Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated expenses related to the
administration of CFD 2025-1: (i) the costs of determining the amount of the levy of the Special Tax, the
collection of Special Taxes, including the expenses of collecting delinquencies and pursuing foreclosures;
(ii) the payment of a proportional share of salaries and benefits of any City employee and City overhead
whose duties are directly related to the administration of CFD 2025-1; (iii) fees and expenses for counsel,
audits, costs associated with responding to public inquiries regarding CFD 2025-1; and (iv) any and all
other costs incurred in connection with the administration of CFD 2025-1.
"Annual Escalation Factor" means two percent (2%).
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's
parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
assessor's parcel number.
"Base Year" means the first year that any Assessor's Parcel of Taxable Property is classified as Developed
Property.
"Building Permit" means a permit issued for new construction of a Residential Unit. For purposes of this
definition, "Building Permit" shall not include permits for construction or installation of retaining walls,
grading, utility improvements, or other such improvements not intended for human habitation.
"Certificate of Occupancy" means a document issued by the City certifying that a newly constructed
Residential Unit complies with all applicable codes and ordinances and that it is suitable and safe for
occupancy.
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Resolution No. 2025-008 Page 22
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the
Special Tax Requirement and providing for the levy and collection of the Special Tax for CFD 2025-1.
"CFD 2025-1" means City of Palm Desert Community Facilities District No. 2025-1 (Shadow Ridge Public
Services) established by the City Council under the Act.
"City" means the City of Palm Desert.
"City Council" means the Council of the City of Palm Desert, acting as the legislative body of CFD 2025-1.
"County" means the County of Riverside.
"Developed Property" means an Assessor's Parcel of Taxable Residential Property for which a Certificate
of Occupancy was issued on or before June 1 preceding the Fiscal Year for which the Special Tax is being
levied.
"Exempt Property" means all Assessor's Parcels within CFD 2025-1 that are exempt from the Special Tax
pursuant to the Act or Section F herein.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
"Land Use Type" means any of the land use types listed in Table 1 below.
"Maximum Special Tax" means the maximum Special Tax determined in accordance with Section C, which
may be levied in any Fiscal Year on an Assessor's Parcel of Taxable Property.
"Property Owner Association Property" means for each Fiscal Year any property within the boundaries
of CFD 2025-1 that was owned by, or irrevocably dedicated as indicated in an instrument recorded with
the County Recorder to a property owner association, including any master or sub -association, as of June
1.
"Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum
Special Tax is equal for all Assessor's Parcels within each Land Use Class.
"Public Property" means any property that is owned by, dedicated or irrevocably dedicated to a city, the
federal government, the State of California, the County, or any other public agency (each, a "Public
Entity"); provided, however, that any such property is leased by such a Public Entity to a private entity
and is thereby subject to taxation pursuant to Section 53340.1 of the Act, such leasehold estate shall be
classified and taxed according to the use thereof.
"Public Services" means those authorized services that may be funded by CFD 2025-1 pursuant to the
Act, as amended including but not limited to police protection services, fire protection services, paramedic
services, park maintenance, street maintenance and flood control.
"Residential Property" means Assessor's Parcels of Developed Property within CFD 2025-1 for which a
Building Permit has been issued for purposes of constructing one or more Residential Unit(s).
"Residential Unit" means any residence in which a person or persons may live, which is not considered to
be used for non-residential purposes.
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Resolution No. 2025-008
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"Special Tax" means the special tax authorized to be levied within CFD 2025-1 pursuant to the Act, to
fund the Special Tax Requirement.
"Special Tax Requirement" means the amount, as determined by the CFD Administrator, for any Fiscal
Year to: (i) pay the costs of providing the Public Services during such Fiscal Year, (ii) pay Administrative
Expenses associated with the Special Tax, (iii) establish or replenish any operational reserve fund
established for Public Services, (iv) pay incidental expenses related to the Public Services as authorized
pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies expected to
occur in the Fiscal Year in which the Special Tax will be levied ("Estimated Special Tax Delinquency
Amount") and (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal
Year necessary to fund the Special Tax Requirement for such Fiscal Year where such shortfall resulted
from delinquencies in the payment of the Special Tax in such Fiscal Year that exceeded the Estimated
Special Tax Delinquency Amount included in the Special Tax Requirement for such Fiscal Year.
"Taxable Property" means all Assessor's Parcels that are not exempt from the Special Tax pursuant to the
Actor Section F.
"Undeveloped Property" means an Assessor's Parcel of Taxable Property which is not classified as
Developed Property.
B. CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2025-26, using the definitions above, each Assessor's Parcel
within CFD 2025-1 shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In
addition, each such Fiscal Year, each Assessor's Parcel of Taxable Property shall be further classified by
the CFD Administrator as Developed Property or Undeveloped Property and subject to the levy of the
Special Tax pursuant to Section C below.
C. SPECIAL TAX RATES
1. Developed Property
Each Fiscal Year commencing in Fiscal Year 2025-26, each Assessor's Parcel of Developed Property
shall be subject to the Special Tax.
The initial Maximum Special Tax for each Assessor's Parcel of Developed Property in its Base Year
shall be $2,200.
For each subsequent Fiscal Year following the Base Year, the Maximum Special Tax rates shall be
increased from the Maximum Special Tax rate in effect for the prior Fiscal Year by the Annual
Escalation Factor.
2. Undeveloped Property
Each Assessor's Parcel classified as Undeveloped Property shall be exempt from the levy of the
Special Tax.
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Resolution No. 2025-008 Page 24
3. Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section F.
For each Fiscal Year, if the use or ownership of an Assessor's Parcel or Exempt Property changes
so that such Assessor's Parcel is no longer classified as one of the uses set forth in Section F,
therefore making such Assessor's Parcel no longer eligible to be classified as Exempt Property,
such Assessor's Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the
provisions of Section C.
D. METHOD OF APPORTIONMENT OF SPECIAL TAX
Commencing in Fiscal Year 2025-26 and for each subsequent Fiscal Year, the CFD Administrator shall levy
the Special Tax on all Taxable Property of CFD 2025-1 until the total amount of Special Tax levied equals
the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Property within CFD 2025-1 up to 100% of the Maximum Special Tax to satisfy the Special Tax
Requirement.
Notwithstanding any provision of this Section D to the contrary, under no circumstances will the Special
Tax levied against any Assessor's Parcel of Developed Property that is classified as Residential Property be
increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default in
the payment of the Special Tax by the owner of any other Assessor's Parcel.
E. PREPAYMENT OF SPECIAL TAX
The Special Tax for an Assessor's Parcel of Undeveloped Property that has been issued a Building Permit
or for an Assessor's Parcel of Developed Property may be prepaid. The prepayment amount shall be the
lesser of (i) $66,000 or (ii) the Maximum Special Tax that will be in effect the following Fiscal Year times
the number of Fiscal Years remaining in the 30 -year period defined in Section I below.
F. EXEMPTIONS
The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association
Property, (iii) Assessor's Parcels with public or utility easements making impractical their utilization for
other than the purposes set forth in the easement, including but not limited to property designated for
open space, trails, pathways, parks or park and recreation related facilities, and (iv) property reasonably
designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation
easement, or similar factors.
G. APPEALS
Any property owner claiming that the amounts or application of the Special Tax is not correct may file a
written notice of appeal with the CFD Administrator not later than twelve months after having paid the
first installment of the Special Tax. The CFD Administrator shall promptly review the appeal, and if
necessary, meet with the property owner, consider written and oral evidence regarding the amount of
the Special Tax, and rule on the appeal. If the decision of the CFD Administrator requires that the Special
Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall
not be made but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the
subsequent Fiscal Year(s) to compensate for the overpayment of the Special Tax.
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Resolution No. 2025-008
Page 25
H. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided, however, that the Special Tax may be billed and collected at a different time or
in a different manner if necessary to meet the financial obligations of CFD 2025-1.
I. DURATION OF TAX
For each Residential Unit, the Special Tax shall be levied for a cumulative 30 -year period to fund the Special
Tax Requirement unless such tax is no longer required as determined by the City Council.
J. INTERPRETATION
The City may interpret, clarify, and revise this Rate and Method to correct any inconsistency, vagueness,
or ambiguity, by resolution and/or ordinance, that does not create a material adverse effect on the levy
and collection of the Special Tax.
7