VAN BUREN SEWER PROJECT COMMUNITY ENGAGEMENT MEETING APRIL 20, 2017
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1 VAN BUREN SEWER PROJECT COMMUNITY ENGAGEMENT MEETING APRIL 20,
2 HISTORY Areas of commercial and retail development over the years. Van Buren Boulevard has become a major transportation arterial road connecting the 91 and 215 freeways. As vehicular traffic has increased on Van Buren Boulevard, the existing land use has started to shift away from residential to commercial retail along the street frontage. 2
3 WHAT ISSUES ARE WE TRYING TO SOLVE? Existing septic systems that have failed and/or are failing. Offer alternatives to new development projects. Allow property owners to better utilize their property to higher and best land uses. 3
4 WHERE WE ARE TODAY? Area Supervisor and Councilman charged staff to provide solutions. A comprehensive analysis was done to identify the most economical way to provide sewer to this area. City of Riverside was $9,575,000 less than W.M.W.D. County of Riverside Executive Office initiated the process to form a CFD. 4
5 WHERE WE ARE TODAY? City of Riverside accepted this service area for sewer. City of Riverside, in March, approved the start of the design and environmental clearance of this project. Community engagement phase. 5
6 OTHER CONSIDERATION County of Riverside Transportation Department is planning on a capital project to improve Van Buren Boulevard to 3 lanes, center median and sidewalks within the next 2 years. These two projects will be coordinated to lessen construction impacts. 6
7 WHAT IS A COMMUNITY FACILITIES DISTRICT? Background: When California enacted Proposition 13, in 1978, the ability of public agencies to raise property taxes based on the assessed value of property was greatly curtailed. In 1982, the California legislature passed the Mello-Roos Community Facilities Act of 1982 (Government Code Section ) to provide an alternative method for financing needed improvements and services. The Mello-Roos Community Facilities Act of 1982: The Act gives any county, city, special district, school district, or joint powers authority the legal authority to establish a Community Facilities District (CFD) which allows for financing of public improvements and services. The improvements and services that can be financed include streets, sewer systems, and other basic infrastructure, police protection, fire protection, ambulance services, schools, parks, libraries, museums and other cultural facilities. The CFD can also recover expenses needed to form the CFD and administer the annual special taxes and bonded debt. 7
8 WHAT IS A COMMUNITY FACILITIES DISTRICT? How is a Community Facilities District Formed? A CFD is formed by a sponsoring public agency. The proposed district will include all properties that will benefit from the improvements to be constructed or the services to be provided. A CFD cannot be formed without a two thirds majority vote of residents living within the proposed boundary. Or, if there are fewer than 12 residents, the vote is by current landowners. Once approved, a Special Tax Lien is placed against each property within the CFD. Property owners then pay a Special Tax each year. Bonds may be sold by the CFD to provide money needed to build the improvements or fund the service. How is the Annual Charge Determined? The Special Tax cannot be based on the value of the property. Special Taxes are based on mathematical formulas that take into account property characteristics such as the use of the property, square footage of the structure and lot size. The formula is defined at the time the district is formed and will include the maximum special tax and a percentage maximum annual increase. 8
9 WHAT IS A COMMUNITY FACILITIES DISTRICT? How Long Will the Charge Continue? If bonds are issued, special taxes will be charged annually until the bonds are paid off. Often, after bonds are paid off, a reduced tax continues to be charged to fund maintenance on the facilities. 9
10 IMPORTANT ITEMS TO KNOW? Participation in this CFD is optional. If there is not enough participation to make the CFD viable the sewer will not be developed. If a property owner opts out of the CFD under the current proposed project, to receive sewer service will require Annexation procedures and fees. The County of Riverside will make every reasonable effort to contact all property owners within the boundary prior to a formation of a CFD. Riverside County fiscal policy requires that any debt does not exceed 2% of a property s value. Rights to Accelerated Foreclosure if the special tax is not paid, the CFD can start foreclosure within 90 days. Disclosure Requirement for Sellers (CA Civil Code Section ). 10
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14 THANK YOU FOR BEING HERE AND PARTICIPATING!! 14
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