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HomeMy WebLinkAbout2024/05/07 - EIFD PFA Regular Meeting Agenda Packet RANCHO CUCAMONGA EIFD PUBLIC FINANCING AUTHORITY AGENDA Regular Meeting May 7, 2024 – 6:00 PM Council Chambers 10500 Civic Center Drive Rancho Cucamonga, CA 91730 A. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL: Chair Michael Vice Chair Kennedy Board Members Daniels, Oaxaca and Scott B. ANNOUNCEMENT / PRESENTATIONS C. PUBLIC COMMMUNICATIONS This is the time set aside for anyone wishing to address the Authority on items not listed in any other place on the agenda. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion at a later date. Any person desiring to speak should fill out a "Speaker Request Form" and give it to the Clerk before that portion of the agenda is called. Comments are to be limited to three (3) minutes per individual. For Rules of Decorum refer to Resolution No. 2023-086. D. CONSENT CALENDAR D1. Consideration of Meeting Minutes for the Regular Meeting of: August 1, 2023. E. ITEMS FOR DISCUSSION F. ADVERTISED PUBLIC HEARING ITEM(S) F1. Public Hearing on the Rancho Cucamonga Enhanced Infrastructure Financing District Annual Report for the Fiscal Year 2023-24 and Consideration of a Resolution Adopting the Annual Report for the Fiscal Year 2023- 2024. This Project is Exempt from CEQA as it does not Constitute a Project Under CEQA Guidelines. (RESOLUTION NO. PFA 2024-001) (EIFD) G. ADJOURNMENT CERTIFICATION I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least seventy-two (72) hours prior to the meeting per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California and on the City's website. LINDA A. TROYAN, MMC CITY CLERK SERVICES DIRECTOR If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's office at (909) 774-2023. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired. August 1, 2023 I Rancho Cucamonga EIFD Public Financing Authority Meeting Minutes I Page 1 of 1 August 1, 2023 RANCHO CUCAMONGA EIFD PUBLIC FINANCING AUTHORITY MEETING MINUTES A. CALL TO ORDER The Rancho Cucamonga EIFD Public Financing Authority Meeting held a Regular Meeting on Tuesday, August 1, 2023 in the Council Chambers, 10500 Civic Center Drive, Rancho Cucamonga, California . Chair Michael called the meeting to order at 6:00 p.m. Present were Members: L. Dennis Michael, Lynne Kennedy, Linda Daniels, Francisco Oaxaca, and Kristine Scott. Also present were: Noah Daniels, Finance Director and Patricia Bravo-Valdez, Acting Secretary. Board Member Daniels led the Pledge of Allegiance. B. ANNOUNCEMENT / PRESENTATIONS None. C. PUBLIC COMMUNICATIONS None. D. CONSENT CALENDAR D1. Consideration of Meeting Minutes for the Regular Meeting of: May 2, 2023. MOTION: Moved by Board Member Oaxaca, seconded by Board Member Scott, to approve Consent Calendar item D1. Motion carried 5-0. E. ITEMS FOR DISCUSSION None. F. ADVERTISED PUBLIC HEARING ITEM(S) - F1. Conduct a Public Hearing on the Rancho Cucamonga Enhanced Infrastructure Financing District Annual Report for the Fiscal Year 2022-2023 and Consideration of a Resolution Adopting the Annual Report for the Fiscal Year 2022-2023. This project is exempt from CEQA as it does not constitute a project under CEQA guidelines. (RESOLUTION NO. PFA 2023-001) (EIFD) City of Rancho Cucamonga Finance Director Daniels provided a Staff Report and a summary of the RC EIFD Annual Report for FY 2022-2023. Chair Michael opened the Public Hearing. There were no public communications. Chair Michael closed the Public Hearing. MOTION: Moved by Board Member Scott, seconded by Board Member Oaxaca, to approve Resolution No. PFA 2023-001, adopting the Annual Report for the Fiscal Year 2022-2023. Motion carried 5-0. G. ADJOURNMENT - The meeting adjourned at 6:06 p.m. __________________________________ Patricia Bravo-Valdez, MMC Acting Secretary Approved: DATE:May 7, 2024 TO:Chairman and Board Members of the Rancho Cucamonga EIFD Public Financing Authority FROM:Noah Daniels, Finance Director SUBJECT:Public Hearing on the Rancho Cucamonga Enhanced Infrastructure Financing District Annual Report for the Fiscal Year 2023-24 and Consideration of a Resolution Adopting the Annual Report for the Fiscal Year 2023-2024. This Project is Exempt from CEQA as it does not Constitute a Project Under CEQA Guidelines. (RESOLUTION NO. PFA 2024-001) (EIFD) RECOMMENDATION: Staff recommends the Rancho Cucamonga EIFD Public Financing Authority (PFA) conduct a public hearing on the Annual Report for the Fiscal Year 2023-24 and approve a Resolution adopting the Annual Report for the Fiscal Year 2023-24. BACKGROUND: On an annual basis, State law requires the PFA to review the Infrastructure Financing Plan (IFP) and consider any amendments that are necessary and appropriate, require the preparation of an annual independent financial audit, and adopt an annual report documenting the status of specific elements of implementation of the IFP following a public hearing process. ANALYSIS: As required by State Law, a draft Annual Report for the Fiscal Year 2023-24 was made available to the public 30 days before the public hearing. The draft Annual Report was posted on the RC EIFD’s website (www.cityofrc.us/EIFD) on April 1, 2024, and a written notice was mailed to all residents and landowners within the boundary of the RC EIFD on April 4, 2024. As a result of the public notice, staff responded to two inquiries from landowners about the purpose of the RC EIFD. No written public comment was provided as a result of these inquiries. Complying with State Law, the draft Annual Report includes the following sections: 1. A description of the projects undertaken in the fiscal year. No projects were undertaken in the Fiscal Year 2023-24, which is consistent with the progress expected to be made at this point. 2. Actual and budgeted revenue and expenses, including administrative costs. For the Fiscal Year 2023-24, the RC EIFD is forecasted to receive $382,300 in tax increment revenues and budgeted to spend $33,500, including administrative costs. City of Rancho Cucamonga Rancho Cucamonga EIFD Public Financing Authority Page 2 2 3 2 5 Through the date of the Annual Report, the RC EIFD has received $235,295 in tax increment revenue and has spent $4,842. 3. The amount of tax increment revenue received. Forecasted RC EIFD tax increment revenues between the Fiscal Years 2021-22 and 2023-2024 are $479,336. That forecasted amount is subject to confirmation as actual RC EIFD revenue calculations are finalized and allocation amounts are confirmed by the County of San Bernardino. 4. An assessment of the status regarding the completion of the enhanced infrastructure financing district’s projects. The RC EIFD is in the early phase of building a stabilized revenue stream that could be leveraged for future projects and potential debt issuance(s) accordingly. No RC EIFD projects have been funded, which is consistent with current expectations. 5. The amount of revenue expended to assist private businesses. As of the date of this Annual Report, no revenue has been expended to assist private businesses. As noted above, State Law also requires that the PFA review the IFP at least annually to consider potential amendments to the IFP. At this time, given that the EIFD was only formed in July 2022, staff is recommending that no changes to the IFP be made. Lastly, staff will comply with the requirement of an annual audit for the EIFD. The cost of performing the audit is included as a stand-alone audit under the City’s financial audit contract, and the costs to perform that audit are already included in the RC EIFD’s budget expenditures. CEQA REVIEW: The PFA’s adoption of the RC EIFD’s Annual Report for the Fiscal Year 2022-2023 is exempt from the California Environmental Quality Act (“CEQA”) as actions solely related to the creation of government funding mechanisms or other government fiscal activities. Therefore, these actions do not constitute a “project” pursuant to CEQA Guidelines Sections 15378(b)(4) and 15378(b)(5). This action could not result in a physical change in the environment because the PFA has not committed itself to any specific project(s) that the EIFD could fund. As a separate and independent ground, these actions are exempt from the requirements of CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that they will have a significant effect on the environment. However, future actions (such as the approval of infrastructure improvements using funding from the EIFD) will be subject to environmental review in accordance with CEQA. FISCAL IMPACT: There is no fiscal impact associated with this report. A portion of future property tax increment revenue from properties within the RC EIFD that the City and Fire District would otherwise receive is allocated to the RC EIFD to fund infrastructure and other public improvements. As outlined in the IFP, the allocation of tax increment is contingent upon the PFA’s use of such increment for authorized purposes. The City Council reserved the Page 3 2 3 2 5 right to approve any bonds, notes, agreements, or contractual obligations of the RC EIFD that are payable from such tax increment. ATTACHMENTS: Attachment 1 – Resolution No. 2024-001 4 5 5 9 PFA RESOLUTION NO. 2024-001 A RESOLUTION OF THE RANCHO CUCAMONGA EIFD PUBLIC FINANCING AUTHORITY ADOPTING THE ANNUAL REPORT FOR FISCAL YEAR 2023-24 WHEREAS, in accordance with Government Code Section 53398.66(j), the Rancho Cucamonga EIFD Financing Authority (“PFA”) is required to review the IFP on at least an annual basis and document the status of implementation of the Rancho Cucamonga Enhanced Infrastructure Financing District (“Rancho Cucamonga EIFD”) under the adopted Infrastructure Financing Plan (“IFP”); and WHEREAS, in accordance with Government Code Section 53398.66(j)(2) and (3) the PFA prepared its annual report for Fiscal Year 2023-2024; and WHEREAS, at least 30 days prior to the public hearing, the annual report was posted on the Rancho Cucamonga EIFD’s website, and notice of its availability was mailed to property owners and residents in the Rancho Cucamonga EIFD and to participating taxing agencies; and WHEREAS, the PFA has conducted a public hearing on the annual report; and WHEREAS, the PFA’s adoption of the EIFD Annual Report for Fiscal Year 2023-24 is not a “project” under the California Environmental Quality Act (“CEQA”) since it is not in-and-of itself a “project” (pursuant to CEQA Guidelines Section 15378), and since it involves the creation of a government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment per CEQA Guidelines Section 15378(b)(4). Additionally, the actions authorized by this resolution are exempt from CEQA since it can be determined with certainty that there is no possibility they will result in a significant effect on the environment. However, future actions (such as the funding of infrastructure improvements using funding from the Rancho Cucamonga EIFD will be subject to environmental review in accordance with CEQA at the “earliest feasible time” prior to “approval” consistent with CEQA Guidelines Sections 15004 and 15352. NOW, THEREFORE, BE IT RESOLVED, by the RANCHO CUCAMONGA EIFD PUBLIC FINANCING AUTHORITY, as follows: Section 1. The Annual Report for the Fiscal Year 2023-24 of the Rancho Cucamonga EIFD is attached hereto as Exhibit A and on file with the Secretary of the PFA for this meeting si herby approved. Section 2. This Resolution shall take effect immediately upon its adoption. ATTACHMENT 1 4 5 5 9 PASSED, APPROVED AND ADOPTED this 1st day of August, 2023, by the following vote: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ABSTAINED: BOARD MEMBERS: ______________________________________________________ Chair, Rancho Cucamonga EIFD Public Financing Authority ATTEST: ______________________________________________________ Secretary, Rancho Cucamonga EIFD Public Financing Authority 4 5 5 9 Exhibit A Annual Report for Fiscal Year 2022-2023 of the Rancho Cucamonga Enhanced Infrastructure Financing District 4 5 5 9 2023-24 Annual Report of the Rancho Cucamonga EIFD Public Financing Authority for the Rancho Cucamonga Enhanced Infrastructure Financing District This Annual Report is issued in accordance with the requirements of the Enhanced Infrastructure Financing District Law (California Government Code section 53398.66). The Rancho Cucamonga Enhanced Infrastructure Financing District (EIFD) encompasses approximately 1,500 acres of land, representing approximately 6.0% of the total acreage within the City. The EIFD includes various non-contiguous, largely undeveloped or underdeveloped parcels with significant potential for new development and/or rehabilitation. The purpose of the EIFD is to fund critical infrastructure that benefits the EIFD area and other portions of the City and the greater local region. A. Projects Undertaken in Fiscal Year 2023-24, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress: There were no projects undertaken in Fiscal Year 2023-24, which is consistent with the progress expected to be made at this point. B. Actual and Budgeted Revenues and Expenses, including administrative costs, for 2023-24: Actual (to the date of the report): EIFD Revenues: $235,295 Expenses: $4,842 Budgeted: Fund Balance on July 1, 2023:($186,678) Projected 2023-24 EIFD Revenue: $382,300 Expenses: $33,500 Projected Fund Balance on 6/30/2024: $162,122 C. Amount of Property Tax Increment Projected to be Received through Fiscal Year 2023-24: Fiscal Year 2021-22 (base year) $0 Fiscal Year 2022-23 $97,036 Fiscal Year 2023-24 (to be confirmed) $382,300 Total Property Tax Increment Projected $479,336 D. Assessment of completion of Projects in Fiscal Year 2023-24: No projects expected to be completed in this reporting period. E. Amount of Revenue expended to assist private businesses: None to date. A public hearing on this annual report will be held before the Rancho Cucamonga EIFD Public Financing Authority on Tuesday, May 7, 2024, at 6:00 p.m. The meeting will held at the City Hall Council Chambers, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. The agenda will be posted at least 72 hours prior to the meeting at City Hall and at www.cityofrc.us. This report is also available on the dedicated EIFD page at www.cityofrc.us/EIFD. Should you have any questions regarding this report, please email the City Clerk at city.clerk@cityofrc.us or call 909-477-2760.