HomeMy WebLinkAbout04-152 - Resolutions RESOLUTION NO. 04-152
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, DECLARING INTENTION
TO PURSUE A CHANGE OF ORGANIZATION AND REQUESTING
THE LOCAL AGENCY FORMATION COMMISSION TO INITIATE
PROCEEDINGS FOR THE ANNEXATION OF PROPERTY
(APPROXIMATELY 100 ACRES - DRC2003-00753) GENERALLY
LOCATED AT THE NORTHERLY END OF WARDMAN-BULLOCK
ROAD AT THE INTERSECTION WITH COLONBERO ROAD AS
DESCRIBED IN EXHIBITS "A" AND "B" ATTACHED AND AS
OUTLINED IN EXHIBIT"C,"THE ATTACHED PLAN FOR SERVICES
RESOLVED, by the City Council of the City of Rancho Cucamonga, California;that
WHEREAS, the above-described properties are located within and consistent with
the established Sphere of Influence of the City, and contiguous to current City limits; and
WHEREAS, the territory proposed to be annexed is uninhabited (as defined under
LAFCO),and a description of the boundaries of the territory is set forth in Exhibit"A"attached hereto
and by this reference incorporated herein; and
WHEREAS, the annexation of the property will represent a logical extension of the
City's boundaries and urban services; and
WHEREAS, i t i s t he C ity's intention to provide the usual and necessary urban
services to the area upon annexation, as outlined in the Plan for Services attached as Exhibit"C';
and
WHEREAS,the City has determined that the annexation of the properties would be
beneficial to the public purposes of the City, in that the properties will provide for development within
the City in a manner consistent with the City's General Plan and with related development; and
WHEREAS, the City Council as governing body of the City of Rancho Cucamonga
desires to initiate proceedings for a Change of Organization (Annexation)for the subject properties
pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, Division 3,
Commencing with Section 56000 of the California Government Code; and;
WHEREAS, the City Council has determined that the proposed annexation be
subject to the following terms and conditions:
1. The area proposed for annexation is intented be developed as proposed
Tentative Track Map 16234. The property owner has requested that the
City of Rancho Cucamonga initiate annexation. The City is, therefore,
requesting that the Local Agency Formation Commission approve the
proposal with the waiver of further conducting authority proceedings as
authorized by Govt. Code Section 56663(c).
2. The proposed annexation shall be subject to all standard conditions
required by the Local Agency Formation Commission.
Resolution No. 04-152
Page 2 of 61
NOW, THEREFORE, the City Council as the governing body of the City of Rancho
Cucamonga, California does hereby adopt, approve, resolve, determine and order as follows:
SECTION 1: Application and proposal is hereby made to the Local Agency
Formation Commission of the County of San Bernardino for Change
of Organization (Annexation) to the City of Rancho Cucamonga for
the property described in Exhibit "A" and Exhibit "B" is by this
reference incorporated herein as set forth in accordance to the terms
and conditions s tated a bove a nd i n the manner provided by the
Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000,
SECTION 2: The City Clerk is hereby authorized and directed to file a certified
copy of this Resolution with the Executive Officer of the Local Agency
Formation Commission of the County of San Bernardino.
Please see the following page
for formal adoption,certification and signatures
Resolution No. 04-152
Page 3 of 61
PASSED, APPROVED, AND ADOPTED this 5`h day of May 2004.
AYES: Alexander, Gutierrez, Howdyshell, Kurth, Williams
NOES: None
ABSENT: None
ABSTAINED: None
William J. All der, Miyof
ATTEST:
AjAu-
Debra J. Adam , CMC, City Clerk
I, DEBRA J.ADAMS,CITY CLERK of the City of Rancho Cucamonga,California,do
hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City
Council of the City of Rancho Cucamonga, California,at a Regular Meeting of said City Council held
on the 5`h day of May 2004.
Executed this 6`h day of May 2004, at Rancho Cucamonga, California.
Debra J. Adam C, City Clerk
' Resolution No. 04-152
Page 4 of 61
EXHII3IT "A"
LEGAL DESCRIPTION
LAFCO NO.
THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 21,AND A PORTION OF THE WEST
HALF OF SECTION 22 TOWNSHIP I NORTH,RANGE 6 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY
OF SAN BERNARDINO, STATE OF CALIFORNIA,DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID SECTION 22;
THENCE NORTH 89040'08"EAST ALONG THE NORTH LINE OF SAID SECTION 22,A DISTANCE OF 1325.05
FEET TO THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF
SAID SECTION 22;
THENCE SOUTH 00000'03"WEST ALONG THE EAST LINE OF SAID NORTHWEST QUARTER OF THE
NORTHWEST QUARTER,A DISTANCE OF 1319.87 FEET TO THE SOUTHEAST CORNER OF SAID NORTHWEST
QUARTER OF THE NORTHWEST QUARTER;
THENCE SOUTH 00000'03"WEST ALONG THE EAST LINE OF THE SOUTHWEST QUARTER OF THE
NORTHWEST QUARTER OF SAID SECTION 22,A DISTANCE OF 659.93 FEET;
THENCE SOUTH 89034'15"WEST A DISTANCE OF 1325.86 FEET TO THE WEST LINE OF SAID SECTION 22;
THENCE NORTH 00°01'26"EAST ALONG SAID WEST LINE,A DISTANCE OF 660.87 FEET TO THE SOUTHEAST
CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 21;
THENCE SOUTH 89015'44"WEST ALONG THE SOUTH LINE OF SAID NORTHEAST QUARTER OF THE
NORTHEAST QUARTER,A DISTANCE OF 1324.87 FEET TO THE SOUTHWEST CORNER OF SAID NORTHEAST
QUARTER OF THE NORTHEAST QUARTER;
THENCE NORTH 00000'53"EAST ALONG THE WEST LINE OF SAID NORTHEAST QUARTER OF THE
NORTHEAST QUARTER,A DISTANCE 1320.82 FEET TO THE NORTHWEST CORNER OF SAID NORTHEAST
QUARTER OF THE NORTHEAST QUARTER;
THENCE NORTH 89014'46"EAST ALONG THE NORTH LINE OF SAID SECTION 21,A DISTANCE OF 1325.09
FEET TO THE POINT OF BEGINNING.
CONTAINING IN 100.45 ACRES MORE OR LESS
ALL AS SHOWN ON EXHIBIT"B"ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF.
THIS LEGAL DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION.
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Resolution No. 04-152
EXHIBIT IIIA' Page 6 of 61
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HENDERSON CREEK
PLAN FOR SERVICES
_ RANCHO CUCAMONGA,CALIFORNIA
HOGLE IRI L IND INC. VICINITY MAP
JANUARY 23'04
VJ
Resolution No. 04-152
Page 7 of 61
PLAN FOR SERVICES
City of Rancho Cucamonga
Planning Division
Contact:
Larry Henderson, AICP, Principal Planner
Tel (909) 477-2750
Brad Buller, City Planner
Tel (909) 477-2750
Prepared for:
Henderson Creek Properties, LLC
Contact:
Steven Stewart
Tel (714) 839-0850
Prepared By:
Hogle-Ireland Inc
Contact:
Pamela Steele, Principal
Sonia Pierce, Senior Associate Project Manager
Chris Stamps, Associate Project Manager
Tel (909) 787-9222
Fax (909) 781-6014
Revised March 23,2004 (accepted all changes)
Revised March 4, 2004
January 2004
Henderson Creek 1
/l Plan for Services
Resolution No. 04-152
Page 8 of 61
Table of Contents
Section Page
I. Introduction 5
A. Introduction 5
B. Background 5
I1. Planning and Statutory Considerations 8
A. Planning Consideration 8
B. City of Rancho Cucamonga General Plan 8
C. Etiwanda North Specific Plan 8
D. Applicable Laws 9
I11. Service Considerations 11
A. Roadways and Transportation Services 11
B. Electricity 11
C. Natural Gas 11
D. Telephone 12
E. Drainage Services 12
F. Water Services 12
G. Sewer Services 13
H. Police Services 14
I. Fire Protection & Ambulance Services 14
J. Libraries 15
K. Street Lighting 15
L. Solid Waste Services 16
M. School Services 16
N. Parks & Recreation Services 16
IV. Fiscal Analysis 17
Henderson Creek 2
Plan for Services
Resolution No. 04-152
Page 9 of 61
EXHIBITS
Figure Page
1. Vicinity Map 4
2. Annexation Map 7
Exhibit A Fiscal Analysis
Henderson Creek 3
Plan for Services
Resolution No. 04-152
Page 10 of 61
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HENDERSON CREEK
• PLAN FOR SERVICES
( RANCHO CUCAMONGA,CALIFORNIA
HOGLF:IRELAND INC. VICINITY MAP
JANUARY 23 '04
Henderson Creek 4
Plan for Services
Resolution No. 04-152
Page 11 of 61
I. Introduction
A. Introduction
This document has been prepared to provide the San Bernardino County Local Agency
Formation Commission (LAFCO) and other interested individuals and agencies with
pertinent information relating to governmental functions, facilities, services and costs and
revenues applicable to proposed Annexation No. 04-XX to the City of Rancho
Cucamonga, California.
This annexation proposal has been initiated by the City of Rancho Cucamonga. This
document supports the City's petition by addressing all of the service related
considerations applicable to the property, thereby permitting the LAFCO Staff and Board
Members to fully understand, evaluate and approve the annexation request. This plan of
services addresses the basic level of public services that are required to support the future
development of the Henderson Creek Properties Annexation and the associated
population growth and the manner in which urban and municipal services will be
provided.
The proposed annexation area is located at the northwest comer of Wardman Bullock
Road and Colonbero Road in an unincorporated area of San Bernardino County within
the City of Rancho Cucamonga's Sphere of Influence, and within the Etiwanda North
Specific Plan (ENSP) area. The proposed annexation includes a total of 100.4 acres. The
total development area of annexation consists of 90.4-acres and includes residential, open
space, and the San Bernardino County Flood Channel. The remaining 10.0-acres outside
the development area to be annexed is owned by Southern California Edison easement
and used as a utility corridor.
The proposed project is a residential development of 123 single family residential lots
encompassing approximately 65.3 acres, with a minimum lot size of 14,025 square feet
and a maximum lot size of 45,755 square feet.
B. Project Background
The project site is located in the City's Etiwanda North Specific Plan (ENSP), which was
approved in 1991. The ENSP comprises approximately 6,840 acres and is located within
the City of Rancho Cucamonga and its Sphere of Influence. The project site is located
within the unincorporated portion of San Bernardino County. The project includes the
annexation of 100.4 acres from San Bernardino County into the City of Rancho
Cucamonga. As part of the approval process, the County of San Bernardino prepared a
full scope environmental impact report (EIR)for the project (SCH No. 2003111057).
Henderson Creek 5
Plan for Services
Resolution No. 04-152
Page 12 of 61
The majority of the annexation area is vacant. However, the Henderson Creek Channel
transverses the area and overhead power transmission lines (Southern California Edison)
easements are included within the site. It is surrounded by undeveloped land, with the
exception of the area immediate east, which is single-family residential development.
The City of Rancho Cucamonga is in the process of submitting four separate annexations
to the San Bernardino County Local Agency Formation Commission (LAFCO). Each of
the proposed annexations is under separate environmental reviews.
Henderson Creek 6
Plan for Services
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Resolution No. 04-152
Page 14 of 61
II. Planning and Statutory Consideration
A. Planning Considerations
The proposed annexation area is contained within the City of Rancho Cucamonga's
Sphere of Influence. The City's General Plan current land use designation for the site is
Very Low Residential (0.1-2 dwelling units per acre). The project is also included in the
Etiwanda North Specific Plan, adopted by the City Council on April 1, 1992. The
project, as proposed, would require amendments to both the City of Rancho Cucamonga
General Plan and the Etiwanda North Specific Plan to ensure consistency with adopted
land use designations.
B. City of Rancho Cucamonga General Plan
The City of Rancho Cucamonga General Plan designation for the 100.4-acre project site
is currently shown as Very Low Residential, (.1-2 Dwelling Units per Acre) Flood
Control, and Utility Corridor. The Very Low land use designation covers 65.3-acres with
the remaining 35.1 acres designated for Flood Control and Utility Corridor. The Very
Low Residential District is intended as an area for single family residential uses with a
minimum lot size of 20,000 (average lot area of 25,000 square feet) and a maximum
density of up to 2 dwelling units per acre. In addition, the project site is within the
Equestrian/Rural Overlay District. The Overlay District extends generally north of
Banyan Street between the western City limits and Milliken Avenue, and then north of I-
210 Freeway between Milliken Avenue and eastern City limits. The District allows the
keeping of horses and other farm animals.
The project proposes a General Plan Amendment that would change the current
designation of Very Low Residential (.1-2 Dwelling Units per Acre) to Low Residential
(2-4 Dwelling Units per Acre) for 65.3 acres of the 100.4-acre annexation site and Open
Space/Conservation for 5.2 acres. The remainder of the 100.4 acre annexation area will
remain within the existing land use designations of Flood Control and Utility Corridor.
C. Etiwanda North Specific Plan
The Henderson Creek Properties residential development is subject to the policies set
forth in the Etiwanda North Specific Plan. The Etiwanda North Specific Plan is a specific
area acknowledged in the City's General Plan subject to land use and community design
within the north Etiwanda area. The Etiwanda North Specific Plan was adopted on April
1, 1992 (Ordinance 493) and comprises of a 6,840 acres within the City of Rancho
Cucamonga and the City's Sphere of Influence. The project is located in Sub Area 6 of
the Etiwanda North Specific Plan and permits residential, open space and recreational
land uses.
Henderson Creek 8
Plan for Services
Resolution No. 04-152
Page 15 of 61
The Etiwanda North Specific Plan designates the site as Very Low Residential, allowing
a maximum of two dwelling units per acre with a minimum lot size of 20,000 square feet.
The project proposes a Specific Plan Amendment that would change the current
designation of Very Low Residential (.1-2 Dwelling Unit per Acre) to Low Residential
(2-4 Dwelling Units per Acre) for 65.3-acres of the 100.4 annexation area and Open
Space/Conservation for 5.2 acres. The remainder of the 100.4-acre annexation area will
remain within the existing land use designations of Flood Control and Utility Corridor.
D. Applicable Laws
LAFCO is authorized and mandated by State law as the agency responsible for evaluating
and approving annexations to an incorporated city. Subsequent to the initial consideration
of an annexation request by the City, a public hearing is held before the LAFCO Board
where the annexation proposal is approved, denied, or modified. The following Protest
Procedures for LAFCO proceedings are outlined in California Government Code (within
Section 57000) and summarized in the LAFCO Procedures and Guidelines: 1) Following
a LAFCO Commission action to approve an annexation, a resolution of that action is
forwarded to affected agencies and individuals. Thirty days following the LAFCO
Commission action the Protest Period is announced through a combination of publication
of a legal advertisement in the local newspaper and through mailing of individual notices
to anyone who has previously requested such notices. The protest period can be no less
than 15 days nor more than 60 days, from the date of the announcement. All protests
must follow strict LAFCO requirements, but generally they must be in writing and be
received during the protest period. The protest must also indicate whether the letter is
from a landowner and/or a registered voter from within the annexation area; only those
that are either a landowner and/or a registered voter from within the annexation area are
eligible to submit a valid protest; and 2) At the conclusion of the protest period,
LAFCO staff will make a finding of the results of any protests received for adoption by
the LAFCO Commission. The Commission must take one of the following actions based
on the result of the protest findings:
a. For uninhabited annexations (<12 registered voters within the annexation
area) the Commission must either:
• terminate the annexation if protest is received from 50% or more of the
assessed value of land owners (improvement values are not counted)
within the annexation area; or
• approve the annexation if written protest is submitted by landowners
who own less than 50% of the assessed value of the annexation area.
b. For inhabited annexations (>12 registered voters within the annexation area)
the Commission must either:
• terminate the annexation if protest is received from 50% or more of the
registered voters in the annexation area;
Henderson Creek 9
Plan for Services
Resolution No. 04-152
Page 16 of 61
• call an election if protest is received from at least 25% and less than
50% of the registered voters, or if 25% to 10017b of the number of
landowners —who own at least 25% of the total annexation land value —
submit a written protest (The voters (whether they own land or not)
would then decide the issue by majority vote in a special election]; or
• approve the annexation without an election if written protest is received
from less than 25% of the voters and less than 25% of the landowners
(owning less than 25% of the land value).
The above referenced requirements also require the submittal of a plan for services for
areas to be annexed. This document satisfies this statutory requirement.
Henderson Creek 10
Plan for Services
Resolution No. 04-152
Page 17 of 61
III. Service Considerations
A. Roadways and Transportation Services
The proposed development is not located within any Transit Service Corridor. Primary
access will be provided via Wardman Bullock Road. The annexation area is located north
of Banyan Avenue, west of Wardman Bullock Road, and northwest of Colonbero Road.
Sheridan Estates (Tract 13564) is located east of the site.
The proposed project includes improvements to the existing intersection at Wardman
Bullock Road and Wilson Avenue to accommodate vehicles traveling to and from the
site. The proposed project will be required to provide street improvements (curb, gutter
and sidewalk) along the street frontage of the site and within the project, as well as
improve the west side of Wardman-Bullock Road from Wilson Avenue to the south
boundary of the project.
The City of Rancho Cucamonga will assume responsibility for street maintenance of
public arterial roadways within the annexation area. The project will be annexed to the
City of Rancho Cucamonga's existing Landscape Maintenance District No. 7.
B. Electricity
The proposed annexation area lies within the service boundaries of the Southern
California Edison Company (SCE). SCE has indicated that the demands associated with
the project are accommodated within their master planning efforts and service can be
extended to the site.
The costs and rate structure to the property owners for these services are controlled by the
Public Utilities Commission. As these services are provided by private companies on a
user-pays-all fees basis, no additional costs to the City would be incurred due to
annexation. Assuming buildout of the 123 lots, electrical consumption for the site, based
on SCE designated criteria, is estimated as follows:
123 dwellings X 7kw/unit = 861 kw per month; or 10,332 kw annually.
C. Natural Gas
Natural Gas would be provided by The Gas Company. The Gas Company maintains
natural gas pipelines in Etiwanda Avenue and Wilson Avenue. Natural gas service will
be provided via extensions of these existing transmission pipelines. The Gas Company
anticipates no problems in extending service to the site and has included the project in its
master planning efforts.
Henderson Creek 11
Plan for Services
Resolution No. 04-152
Page 18 of 61
The costs and rate structure to the property owners for these services are controlled by the
Public Utilities Commission. As these services are provided by private companies on a
user-pays-all fees basis, no additional costs to the City would be incurred due to
annexation. Annual gas consumption upon development of the site is estimated to be
about 85 therms per unit per average month, for a total of 10,455 therms per month or
125,460 therms per year.
D. Telephone Services.
The telephone service to the project site would be provided by Verizon Communications.
The facilities will be extended from Wardman-Bullock Road into the Henderson Creek
project site. Verizon anticipates no problems in providing communication services to the
project site.
E. Drainage Services
The majority of the drainage from the annexation area will be collected into onsite
underground storm drains and then conveyed into a 66-inch storm drain along San
Segundo Drive. All streets will be designed to accommodate storm waters that could
exceed the top of curbs in the event of a 25-year storm as well as the right-of- way for a
100-year storm. All necessary facilities will be localized in nature and will be inspected
and maintained by the City of Rancho Cucamonga Public Works Department.
The County of San Bernardino Flood Control District is responsible for the maintenance
of the Henderson Creek Channel, which traverses the project site. The Henderson Creek
Channel and improvements to the levee have been designed to capture all flows entering
the creek and conveying the flows offsite. These improvements are scheduled to occur
prior to development of the Henderson Creek property. Upon completion of the levee
improvements, the levee will protect the property from these flows and potential
flooding. The project site is currently located within a 100-year hazard area and will be
required to process a Conditional Letter of Map Revision (CLOMR) based on the
proposed improvements to the levee and a Letter of Map Revision (LOMR) following
completion of the improvements. Both actions will be processed through the Federal
Emergency Management Agency (FEMA).
F. Water Services
The Cucamonga Valley Water District (CVWD) cover approximately 50 square miles,
and provides water treatment, storage, and distribution of domestic water to all of Rancho
Cucamonga, adjacent unincorporated County areas, and portions of the Cities of Ontario,
Fontana and one tract in Upland. CVWD derives water from three sources —
groundwater (43%), surface water (12%) and imported water (45%). Groundwater is
derived primarily from the Cucamonga basin. Groundwater may also be pumped from
Henderson Creek 12
Plan for Services
Resolution No. 04-152
Page 19 of 61
the Chino basin, but must be replenished through purchases of State Water Project
(imported) water. Canyon water is derived from surface and subsurface water form
Cucamonga, Deer, Day, and East Etiwanda Canyons. CVWD also purchases water from
northern California via the State Water Project. The current daily usage in the CVWD
service area is approximately 42 million gallons per day.
Residential water use amounts to 60 percent of the total water consumed, followed by
landscaping at 20 percent. CVWD's master plan estimates demand needs through the
year 2030; with residential water demand is expected to continue to be the greatest
sources of water demand. CVWD anticipates growth by ensuring that adequate facilities
are available to meet the water demand as it arises. CVWD is also one of seven member
agencies that operate under the umbrella of the Inland Empire Utilities Agency (IEUA).
The IEUA had adopted a 10-year growth or capital improvement program that is based
upon growth projections provided by the member agencies. CVWD is responsible for
collecting developer fees for the construction and operation of water facilities.
The Cucamonga Valley Water District (CVWD) will supply domestic water to the site.
The site is currently undeveloped and does not consume any domestic water. Water is
currently provided to the area by a 12-inch main located along Wardman-Bullock Road
as a result of the development of the Tract 13564, east of the proposed annexation area.
The proposed project includes the future connection of 123 single-family residential units
to the CVWD domestic water system. Single-family residential units have a daily water
demand of 640 gallons per day (GPD). Thus, the project will result in an increased water
demand of the CVWD system of 78,720 GPD. This represents a 0.2 percent increase in
water currently demanded from existing development within the City.
CVWD is also going to construct a water storage tank (Zone 4) that will be located
northeast of the project site and supply about 2/3 of the project site. In addition, the
developer will be responsible for the water tank (Zone 5) that will be located near the
future CVWD tank to the northwest of the project site. This water tank will supply the
other 1/3 of the project site. The supply of both water tanks will produce up to 250,000
gallons of water which is a sufficient amount needed for the proposed project as well as
to meet other needs planned by CVWD.
G. Sewer Services
The Inland Empire Utilities Agency (IEUA) currently covers over 240 square miles and
operates four wastewater treatment facilities that serve the cities of Rancho Cucamonga,
Fontana, Ontario, Upland, Montclair, Chino, and Chino Hills. An additional treatment
facility is currently planned. Two of the existing treatment plants, Regional Plants 1 and
4, serve development within the City of Rancho Cucamonga. CVWD provides
conveyance facilities to the treatment plants. The project site is within the service area of
treatment plant number 4 (RP-4). RP-4 is located on 6`h Street and Etiwanda Avenue in
the City of Rancho Cucamonga. The plant treats approximately 37.9 million gallons per
Henderson Creek 13
Plan for Services
Resolution No. 04-152
Page 20 of 61
day (MGD) of wastewater and has a capacity of 44 MGD. The water treatment facilities
cleanse the treated water to a tertiary level which is then used for irrigation proposed.
Development fees are collected by member agencies for wastewater treatment facilities
and passed on to the IEUA to use for new treatment plant construction.
Except for extending pipelines to the project site, there will be no requirement for the
construction of a new water or wastewater treatment facility or expansion of existing
facilities. The project will connect to the existing 8-inch sewer in San Segundo Avenue.
Based on the CCWD Master Plan and IEUA estimates, wastewater generation in the
project area is approximately 270 gallons of wastewater per unit per day. Therefore, the
123 residential units proposed will generate approximately 33,210 gallons of sewage per
day. This represents less than one percent of the current quantity of wastewater treated
by RP-4, and will not exceed the capacity of the plant.
In addition, the proposed project will comply with all regional Water Quality Control
Board wastewater treatment requirements and will obtain required NPDES (National
Pollution Discharge Elimination Systems) and SWPPP (Storm Water Pollution
Prevention Plan)permits prior to project construction.
H. Police Services
The City of Rancho Cucamonga has contracted with the County of San Bernardino
Sheriffs Department for police service since 1978. Currently the City contract includes
93 uniformed officers — including 11 sergeants, 2 lieutenants and one captain. With a
population of 146,700 (January 2003 Department of Finance estimate) the current ratio of
officers to residents is approximately 0.63 officers for every 1,000 residents. The
projected average response time to an emergency call for service within the vicinity of
the project site is at five minutes.
The City's Police Department is temporarily located at 8340 Utica Avenue in the City of
Rancho Cucamonga, the permanent facility at 10510 Civic Center Drive, adjacent to City
Hall, is currently being expanded and remodeled.
Police service calls will incrementally increase as result of the proposed project. The
proposed project will increase population by approximately 385 residents thus creating
the need for approximately 0.25 additional officers if the current officer/resident ratio is
maintained. The funds for additional police officers are provided as part of the City
General Fund. Each year the City's annual budget negotiation with the Sheriffs
department results in additional officers to be added to the Police force.
I. Fire Protection & Ambulance Services
The Rancho Cucamonga Fire Protection District (RCFPD) provides fire protection and
emergency medical response to approximately 50 square miles, which includes the City's
Henderson Creek 14
Plan for Services
Resolution No. 04-152
Page 21 of 61
Sphere of Influence and the project site. Six fire stations are located within the City; and
the RCFPD currently maintains a personnel ratio of 0.18 firefighter per 1,000 residents.
The goal of RCFPD is to provide a five-minute response time for 90 percent of
emergency calls placed within the City. Currently the City is providing five-minute
service for 85 percent of the emergency calls. Existing fire stations 173, 175 and 176 will
serve the project area.
Station 173 — 12158 Base Line Road (3 fire fighters)
Station 175 — 11108 Banyan Avenue (6 firefighters)
Station 176—East Avenue at 23`d Street—(3 firefighters)
The proposed project will incrementally increase the population in the vicinity by 385
residents thus creating the need for 0.07 additional firefighter personnel in order to
maintain the current firefighter personnel/resident ratio. With the recent opening of
Station 176, located approximately one-mile from the site, the current response times will
continue to be less than five—minutes to the project site.
The RCFPD also participates in an automatic response agreement, known as West End
Joint Power Authority (West End), with neighboring fire departments to send the closest
fire engine to a reported structure fire without regard to the city boundaries.
The American Medical Response (AMR), a private ambulance service, provides
ambulance service for the residents in the City of Rancho Cucamonga. AMR is located at
7925 Center Avenue in Rancho Cucamonga.
J. Libraries
The Rancho Cucamonga Public Library system will serve the project area upon
annexation. The Rancho Cucamonga Library is located in a 2,200 square foot building in
the City of Rancho Cucamonga on Archibald Avenue, north of Interstate 10 Freeway and
west of Interstate 15 Freeway. The Library contains approximately 115,000 books
(novels, magazines, references, etc,) and serves a population of over 146,000 residents.
In addition, the City has planned a new library within the Victoria Gardens regional
shopping center of approximately 22,000 square feet, which would serve the projected
needs at build-out of the City.
Library funding is derived from a percentage of the property tax allocation and
disbursement with the County of San Bernardino (refer to the Fiscal Impact Analysis).
K. Street Lighting
The project presently does not contain any streetlights, however, will be required to
install streetlights with development. The project will be annexed to the City of Rancho
Cucamonga's existing City-wide Arterial Street lighting District, and the Etiwanda North
Street Light District.
Henderson Creek 15
Plan for Services
Resolution No. 04-152
Page 22 of 61
L. Solid Waste
Burrtec Waste Industries will collect refuse from the project area under franchise
agreement with the City of Rancho Cucamonga. Burrtec takes all refuse collected to the
Transfer Station on Napa Street, at which point approximately 60% is diverted to the
Mid-Valley Sanitary Landfill in Rialto, the remaining refuse is transported out of the
County landfill system.
The City has implemented recycling programs, as required by state law (AB939), local
Source Reduction and Recycling Element.
M. School Services
The annexation area will be served by the Etiwanda School District (grades K through 8)
and the Chaffey Joint Union High School District (grades 9 through 12). Based on the
generation factors used by the Etiwanda School District, the area will generate
approximately 77 K-8 and 19 high school students from the 123 new homes.
Approximately 52 of these students would be elementary level (K-5) and 25 would be
intermediate level (grades 6-8). The total students generated would be approximately 96.
Historical enrollments in both Chaffey Joint Union High School District and the
Etiwanda Elementary School District have increased dramatically over the past 10 years.
Historical student generation data from the districts indicate the project could generate an
addition of approximately 96 students at build out, based on a total of 0.78 students per
household.
At present enrollments at all schools serving the project are at or over their capacities.
However, recent changes in school financing laws indicate that payment of state-
mandated developer impact fees represent full and complete mitigation under CEQA,
regardless of the enrollment to capacity conditions of the affected schools.
N. Parks and Recreation Services
The City of Rancho Cucamonga Community Services Department serves the surrounding
parks and recreation facilities. The recreational amenities and programs include -
Community Center at Lions East and Lions West, Senior Center, Family Sports Center,
Epicenter/Sports Complex, and 20 park sites throughout the City. All programs and
facilities are funded through a combination of user fees and City general fund.
Henderson Creek 16
Plan for Services
Resolution No. 04-152
Page 23 of 61
IV. Fiscal Analysis
The project will be annexed to the City of Rancho Cucamonga's existing Landscape
Maintenance District No. 7 to fund the maintenance costs of landscaping and other
appurtenant improvements associated with the new roadways. . The project will also be
annexed to the City of Rancho Cucamonga's existing City-wide Arterial Street lighting
District, and the Etiwanda North Street Light District.
A Fiscal Impact Analysis has been prepared on behalf of the City addressing the general
costs and revenue anticipated as a result of the annexation. The report "Henderson Creek
Properties Fiscal Impact Analysis City of Rancho Cucamonga" by Stanley Hoffman
Associates, Inc. forms a part of the Plan of Services as an exhibit. By its inclusion into
Plan of Services, the City certifies to the report's accuracy.
Henderson Creek 17
Plan for Services
Resolution No. 04-152
Page 24 of 61
EXHIBIT A
FISCAL ANALYSIS
Henderson Creek is
Plan for Services
Resolution No. 04-152
Page 25 of 61
SPS Development Services, Inc.
Henderson Creek Estates
Fiscal Impact Analysis
City of Rancho Cucamonga
March 25, 2004
SRHA Job#1033
STANLEY R.uOFFMAN 11661 San Vicente Blvd. Suite 306
1,• =E Los Angeles, CA 90049
t n310-820-2680, 310-820-8341,fax
P/�'j Fo Servi c G
www.stanleyrhoffman.com
Resolution No. 04-152
Page 26 of 61
CONTENTS
Tables.............................................................................................................................. ii
ExecutiveSummary......................................................................................................III
ChapterI Introduction ..............................................................................................1
1.1 Background................................................................................................1
1.2 Approach....................................................................................................2
1.3 Overview....................................................................................................3
Chapter 2 Project Description .................................................................................4
2.1 Development Description After Buildout ....................................................4
2.2 Public Infrastructure...................................................................................4
Chapter 3 Projected Fiscal Impacts.........................................................................8
3.1 Rancho Cucamonga General Fund ...........................................................8
3.2 Rancho Cucamonga Fire Protection District............ ...............................11
3.3 Landscape Maintenance District.............................................................. 11
Chapter 4 Fiscal Assumptions ...............................................................................13
4.1 General Information ................................................................................. 13
4.2 Revenue Assumptions .............................................................................15
4.3 Cost Assumptions....................................................................................22
Appendix A Persons and Agencies Contacted ........................................................31
Stanley R. Hoffman Associates, Inc. I Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 27 of 61
TABLES
A Summary of Projected Recurring Fiscal Impacts After Buildout .......................... iv
2-1 Buildout Development Description .......................................................................5
2-2 Housing Valuation.................................................................................................6
2-3 Public Street Lane Miles .......................................................................................7
3-1 City General Fund Fiscal Impacts After Buildout..................................................9
3-2 Ranch Cucamonga Fire Protection District, Fiscal Impacts After Buildout .........12
4-1 General Assumptions .........................................................................................14
4-2 Estimation of Existing City Developed Acres ......................................................16
4-3 Summary of Revenue Assumptions.................................................................... 17
4-4 Estimated Taxable Sales Capture ......................................................................19
4-5 Summary of Cost Assumptions ..........................................................................23
4-6 Police Cost Estimation........................................................................................24
4-7 Estimation of Public Works Costs.......................................................................25
4-8 Estimation of Planning and Building and Safety Costs.......................................27
4-9 Estimation of General Government Costs ..........................................................29
Stanley R. Hoffman Associates, Inc. Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 28 of 61
EXECUTIVE SUMMARY
HENDERSON CREEK ESTATES
The following is a summary of the projected fiscal impacts of Henderson Creek Estates at
full buildout assuming annexation to the City of Rancho Cucamonga. Annually recurring
fiscal impacts are projected for the City's General Fund and the Rancho Cucamonga Fire
Protection District.
Project Description
The Henderson Creek Estates project area is located in unincorporated San Bernardino
County, northwest of Wardman and Bullock Roads, near Colonbero Road. This area is in
the northeast portion of the City's sphere of influence. Henderson Creek Estates is a
proposed residential development of 123 homes on about 62 gross residential acres. The
population for Henderson Creek Estates is projected at 387, assuming 3.15 persons per
unit. Assessed valuation is projected at $83.5 million based on an average housing
valuation of$679,065 per unit.
Fiscal Impacts
Table A presents the projected recurring fiscal impacts to the City's General Fund and
the projected recurring revenues to the Rancho Cucamonga Fire Protection District.
The City of Rancho Cucamonga provides a full range of public services, including: police
protection; other related emergency/non-emergency services; public works, including
engineering, road maintenance and park maintenance; community services; planning
services; library services and general government.
The Rancho Cucamonga Fire Protection District provides fire protection to the proposed
project as a subsidiary district. In addition, a landscape maintenance district (LMD) is a
separate entity that covers the maintenance of storm drains, slopes, detention basins,trails
or a combination thereof. The LMD has no effect on the revenues and costs presented
under the City General Fund. Fiscal impacts are presented in constant 2004 dollars, with
no adjustment for future inflation.
Stanley R. Hoffman Associates, Inc. iii Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 29 of 61
TABLE A
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
SUMMARY OF PROJECTED RECURRING FISCAL IMPACTS AFTER BUILDOUT
(In Constant 2004 Dollars)
No MVLF Impact Impact of MVLF'
A. City General Fund
Recurring Revenues $160,648 $145,547
Direct Recurring Costs 91,656 91,656
Plus Contingency @ 15%of Direct Costs 13,748 13,748
Total Recurring Costs 105,405 105,405
Net Recurring Surplus 55,243 40,143
Revenue/Cost Ratio 1.52 1.38
B. Rancho Cucamonga Fire Protection District Revenues $104,100 $104,100
Notes: This assumes that revenues from MVLF will be reduced by about two-thirds due to State budget cuts.
Source: Stanley R.Hoffman Associates,Inc.
Property tax rates for the project area are based on information provided by the San
Bernardino County Local Agency Formation Commission, the County of San Bernardino
Auditor-Controller's office and the City of Rancho Cucamonga. Due to uncertainty in the
full impact of the ongoing State of California's budget adjustments overtime, a hypothetical
decrease in the Motor Vehicle License Fee has been used in this analysis to test potential
changes. However, it is recognized that the actual changes may manifest themselves in
different ways.
City General Fund - No MVLF Reduction
An annual recurring surplus of$55.2 thousand is projected for the City General Fund after
full buildout of Henderson Creek Estates. The projected surplus is based on revenues of
$160.6 thousand, and costs of$105.4 thousand, including a 15 percent contingency costs
estimate. The revenue/cost ratio for the City General Fund is estimated 1.52.
The major recurring revenues projected for the City General Fund are property tax; off-site
retail sales and use tax; and motor vehicle license in-lieu revenues. Projected major
recurring costs for the project are police protection and public works maintenance of public
arterial and local roadways in the annexation area. A landscape maintenance district will
maintain landscaping, slope areas, trails and landscaped parkways and medians.
Stanley R. Hoffman Associates, Inc. iv Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 30 of 61
City General Fund - With MVLF Reduction
Under this scenario it is assumed that revenues from the State for motor vehicle license
fees will be reduced by about two-thirds due to budget cuts at the State level. An annual
recurring surplus of$40.1 thousand is projected forthe City General Fund afterfull buildout
of Henderson Creek Estates. The projected surplus is based on revenues of $145.5
thousand, and costs of $105.4 thousand, including a 15 percent contingency costs
estimate. The revenue/cost ratio for the City General Fund is estimated 1.38.
Potential Impacts of Recent Passage of Proposition 57
According to the March 16, 2004 City Budget Update memorandum from City Manager,
Jack Lam, one outcome of the recent passage of Proposition 57 is that the City will
experience a '/4 cent sales tax shift to the State instead of the earlier%cent shift proposal.
While this would reduce the sales tax generated by the residents of the project by about
$9.3 thousand, the project would still be estimated to have an annual recurring surplus of
approximately $30.9 thousand to $46.0 thousand.
Rancho Cucamonga Fire Protection District
The Rancho Cucamonga Fire Protection District (RCFPD) service area currently includes
the incorporated City of Rancho Cucamonga and the City's Sphere of Influence; therefore
the proposed Henderson Creek Estates development is currently located within the
RCFPD jurisdictional boundaries. Based on the information provided by the City, the
RCFPD currently has adequate funding to provide fire protection services within its
jurisdictional boundaries. The Henderson Creek Estates development will contribute
annual property tax and earned interest revenues projected at $104.1 thousand to the
RCPFD.
Landscape Maintenance District
The proposed storm drain, landscaped slopes, detention basins and trails are to be
maintained by a landscape maintenance district. At this time it has not been determined if
the project facilities will be included in a new LIVID to be formed or if it will be annexed to an
existing LIVID. Under either scenario the maintenance of the common area landscaping,
slopes, and trails will not impact the City of Rancho Cucamonga General Fund.
Stanley R. Hoffman Associates, Inc. V Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 31 of 61
CHAPTER 1
INTRODUCTION
This report presents the fiscal impact analysis for Henderson Creek Estates assuming
annexation to the City of Rancho Cucamonga. The fiscal impact analysis projects
recurring public revenues and costs to the City of Rancho Cucamonga General Fund and
the Rancho Cucamonga Fire Protection District assuming full development of the project.
The Rancho Cucamonga Fire Protection District is a subsidiary district with its own budget
separate from the City's General Fund. Additionally, an LMD will be used for the
operations and maintenance of common areas, but it has not been determined if
Henderson Creek Estates will annex into an existing LMD or if a new one will be created.
1.1 Background
The property comprising Henderson Creek Estates is located in the northeast portion of the
City of Rancho Cucamonga in the City's Sphere of Influence in the unincorporated area of
San Bernardino County. The project is located at the northeast corner of Wardman,
Bullock and Colonbero Roads. Upon annexation, the entire project would be within the
City limits of Rancho Cucamonga.
Henderson Creek Estates is a community of about 90 gross acres in size, of which some
65.3 acres are proposed for residential development. Proposed development within the
project will include 123 residential dwelling units for an overall density of about 1.9 units per
acre. Average lot sizes are estimated at 18,200 square feet and the buildout population of
the area is estimated at 387 based on a factor of 3.15 persons per unit.
The focus of the fiscal analysis is the ongoing operations and maintenance costs of the
City of Rancho Cucamonga as provided through the General Fund revenues plus the Fire
Protection District revenues and costs. General Fund revenues include property, sales and
use taxes and other taxes; franchise fees; fines and forfeitures; licenses and permits;
charges for current services; revenues from other agencies; use of money and property;
and other miscellaneous revenues. The Gas Tax Fund receives revenues primarily from
Stanley R. Hoffman Associates, Inc. 1 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 32 of 61
gasoline taxes collected by the Federal and State governments and are restricted for road
related capital and operations and maintenance costs.
The ongoing range of services that the City of Rancho Cucamonga provides includes:
• Police protection
Planning
• Public works, including engineering, road maintenance and park maintenance
• Community services
Library services
• General government
The Rancho Cucamonga Fire Protection District, as a subsidiary district governed by the
City Council, provides fire protection services to the City and the Sphere of Influence area.
1.2 Approach
The fiscal analysis presents the projected recurring impacts of the proposed development
associated with Henderson Creek Estates. Fiscal impacts are projected for the City
General Fund and the Rancho Cucamonga Fire Protection District.
The fiscal analysis is based on data and assumptions from the following sources:
ti
• City of Rancho Cucamonga revenue
and cost factors are estimated based on the
General Fund Adopted Budget Fiscal Year 2003/2004 and discussions with key City
staff.
• The fiscal methodology is based on the Fiscal Analysis, General Plan Update, City of
Rancho Cucamonga, prepared by Stanley R. Hoffman Associates, October 2, 2000.
• Some project information was obtained from the Plan for the Provision of Municipal
Services, Annexation No. 01-01 to The City of Rancho Cucamonga, prepared by the
City, November 5, 2001.
• Residential valuation estimates are based on sales data provided by the project
proponent.
• Estimated population is based on 3.15 persons per household, as provided by the City
of Rancho Cucamonga.
• Cost and revenue factors are projected in constant 2004 dollars, i.e., not adjusted for
inflation.
• Existing land uses are provided by the City of Rancho Cucamonga.
Stanley R. Hoffman Associates, Inc. 2 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 33 of 61
• Property tax rates for the project area are based on information provided by the San
Bernardino County Local Agency Formation Commission, the County of San
Bernardino Auditor-Controller's office and the City of Rancho Cucamonga.
• Also, there is uncertainty in the full impact of the ongoing State of California's budget
adjustments over time. For this analysis, a hypothetical decrease in the Motor Vehicle
License Fee has been used to test potential changes. However, it is recognized that
the actual changes may manifest themselves in different ways.
1.3 Overview
Chapter 2 presents the detailed project description for Henderson Creek Estates assuming
full buildout of the project area. Chapter 3 presents the fiscal analysis for the City's
General Fund and the Rancho Cucamonga Fire Protection District. Chapter presents the
assumptions for the fiscal analysis and Appendix A includes a list of persons and agencies
contacted in the preparation of this report.
Stanley R. Hoffman Associates, Inc. 3 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 34 of 61
CHAPTER 2
PROJECT DESCRIPTION
This chapter presents the detailed development description for Henderson Creek Estates
assuming full buildout of the area.
2.1 Development Description After Buildout
Acres. Units and Population. Henderson Creek Estates is planned as a 90-acre
residential community consisting of 123 single family detached homes on lots averaging
18,200 square feet. As shown in Table 2-1, there are approximately 63 gross acres of
residential uses. Other acreage associated with the development includes 27.6 acres of
open space areas and 10.6 acres of public streets and/or right of ways (ROWS)within the
development area.
Buildout population for the Henderson Creek Estates development is estimated at 387
persons based on an average of 3.15 persons per housing unit. Population per housing
unit is based on information from the City of Rancho Cucamonga.
Project Valuation. As shown in Table 2-2, total residential valuation for the Henderson
Creek Estates is estimated at $83.5 million after buildout, based on an average value of
$679,065 per unit. Housing valuation is based on recent sales information as derived from
the project proponent. As presented in Table 2-2, four plan types are proposed with the
base pricing estimated to range from $640,000 to $720,000 per unit. The estimated
square footages range from 3,600 to 4,200 square feet.
2.2 Public Infrastructure
Streets. Primary access to Henderson Creek Estates will be provided via Wardman and
Bullock Road. As shown in Table 2-3, there is an estimated 3.54 street lane miles to be
developed as a part of the project; this includes local streets within the project boundaries
of Henderson Creek Estates. All 3.54 lane miles of streets are assumed to be public
streets maintained by the City of Rancho Cucamonga, once annexed by the City.
Stanley R. Hoffman Associates, Inc. 4 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 35 of 61
TABLE 2-1
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
BUILDOUT DEVELOPMENT DESCRIPTION
Acres at =PorcentBuildout
A. Land Use Acreage
Gross Residential Acres 51.8 57.6%
Open Space Areas 27.6 30.7%
Public Streets 10.6 11.8%
Total Project Acres 90.0 100.0%
B. Other Project Information
Residential Units-Single-family 123
Population (@ 3.15 persons per unit)2 387
Residential Assessed Valuation (@ $679,065 per unit)3 $83,525,000
Note: 2. Population is estimated at 3.15 persons per unit,per the City of Rancho Cucamonga
3. Assessed valuation is projected at an average value of$679,065 per unit based on information
provided by the project proponent.
Sources: Stanley R.Hoffman Associates, Inc.
Stanley R. Hoffman Associates, Inc. 5 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 36 of 61
TABLE 2-2
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
HOUSING VALUATION
(in Constant 2004 Dollars)
Plan Base Price Total
Plan Type I Square Feet I Quantity Per Unit Valuation
1 3,600 30 $640,000 $19,200,000
2 3,800 31 665,000 20,615,000
3 4,000 31 690,000 21 ,390,000
4 4,200 31 720.000 22,320,000
Total 123 $679,065 $83,525,000
Source: Stanley R.Hoffman Associates, Inc.
Development Planning&Financing Group
O'Donnell/Atkins
Stanley R. Hoffman Associates, Inc. 6 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 37 of 61
TABLE 2-3
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
PUBLIC STREET LANE MILES
Number Length Length Total
Street Type of Lanes in Feet in Miles Lane Miles
Local 2 9,356 1.77 3.54
Total Lane Miles 3.54
Source: Stanley R. Hoffman Associates, Inc.
Stanley R. Hoffman Associates, Inc. 7 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 38 of 61
CHAPTER
PROJECTED FISCAL IMPACTS
This chapter presents the fiscal analysis of Henderson Creek Estates to the City of Rancho
Cucamonga. This analysis first focuses on the recurring revenues and costs that impact
the City of Rancho Cucamonga's General Fund, described in Section 3.1. This is followed
by a projection of recurring revenues to the Rancho Cucamonga Fire Protection District
presented in Section 3.2. All projections are presented in constant 2004 dollars with no
adjustment for future inflation and assume full buildout.
3.1 Rancho Cucamonga General Fund
The fiscal impacts presented assume that the City of Rancho Cucamonga will receive 7.0
percent of the 1.0 percent basic property tax levy for the General Fund and 1.7 percent of
the basic levy for the Library Fund. Impacts are also presented assuming: 1) no impact on
MVLF fees; and 2) a two-thirds reduction in MVLF fees due to proposed State budget
adjustments.
No Impact on MVLF
Table 3-1 presents the projected fiscal impacts for the City's General Fund assuming that
there is no reduction in revenues received from the State in the category of motor vehicle
license fees. Recurring revenues are projected at $160.6 thousand. Annual direct
recurring costs are projected at $91.7 thousand. Added to the projected direct costs is a
contingency cost, calculated at 15 percent of direct costs, or $13.7 thousand. Adjusted
total recurring costs, including estimated direct costs and contingency costs, are projected
at $105.4 thousand. A recurring surplus of $55.2 thousand is projected for Henderson
Creek Estates, as shown in Table 3-1. The revenue/cost ratio is calculated at 1.52.
Proiected Revenues. Projected recurring revenues to the City of Rancho Cucamonga
General Fund include property tax; property transfer tax; off-site sales and use tax; motor
vehicle license in-lieu revenues; Proposition 172 sales tax; franchise fees; fines and
forfeitures; charges for services; other revenue; library revenue; and state gasoline tax.
Stanley R. Hoffman Associates, Inc. 8 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
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TABLE 3.1
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
CITY GENERAL FUND FISCAL IMPACTS AFTER BUILDOUT'
(In Constant 2004 Dollars)
No MVLF Impact Impact on MVLF'
Aker Percent Aker Percent
Buildout of Total Buildout of Total
Annual Recuffing Revenues
Property tax-general fund $58,468 36.4% $58,468 40.2%
Property tax-library fund 14,199 8.8% 14,199 9.8%
Property transfer tax 3,216 2.0% 3,216 2.2%
off-site sales and use tax 37,002 23.0% 37,002 25.4%
Motor vehicle license in-lieu 22,650 14.1% 7,550 5.2%
Proposition 172 sales tax 758 0.5% 758 0.5%
Franchise fees: utility 4,838 3.0% 4,838 3.3%
Franchise fees: refuse - 3,097 1.9% 3,097 2.1%
Franchise fees: cable 7,344 4.6% 7,344 5.0%2 111 1 3% 2,111 1.5%
Fines and forfeitures 241 0.1% 241 0.2%
Charges for services
Other revenue 197 0.1%% 197 0.1%
Library revenue 582 0.4%% 582 0.4%%
State gasoline tax' 5 946 3.70% 5 946 4N
Total Recurring Revenues $160,648 100.0% $145,547 100.0%
Annual Recurring Costs
Police protection $29,761 32.5% $29,761 32.5%
Animal control 1,031 1.1%% 1,031 1.1%
Engineering 9,330 10.2% 9,330 10.2%
Public works maintenance 19,812 21.6% 19,812 21.6%
Facilities maintenance 1,829 2.0% 1,829 2.0%%
Planning 4,322 4.7% 4,322 4.7%
Library 4,993 5.4% 4,993 5.4%
Community services 6,169 6.7% 6,169 6.7%
Contribution to Fire District 2,270 2.5% 2,270 2.5%%
General government 12140 13.2% 121_40 13.2%
Direct Recurring Costs $91,656 100.0% $91,656 100.0%
plus
Estimated Contingency costs(Q 15%of direct recurring costs) $13,748 $13.748
Total Recurring Costs $105,405 $105,405
Net Armlet Srwphis $55,243 $40,143
Revenue/Cost Ratio 1.52 1.38
Note: 1. Revenues and costs for fire protection services and common area landscaping aro coverd in separate districts and are not included as a
pan of Me General Fund anaysis.
2. This assumes Nat the alloca5on of motor verde in-lieu fees hom the suns to the local jurisdiction will be reduced by tvro-Mirds due to
changes n Slate budget agreements.
3. State gasoline tan is earmarked for public works road maintenance.
Source: Stanley R.Hoffman Associates.Inc.
Stanley R. Hoffman Associates, Inc. 9 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 40 of 61
The largest projected revenue source is property tax at $58.5 thousand, representing
approximately 36.4 percent of total projected recurring revenues. Off-site sales and use
tax is the second largest projected g p �ected revenue source at$37.0 thousand and 23.0 percent of
the total revenues. Motor vehicle license in-lieu revenues are projected at$22.7 thousand
and 14.1 percent, the third largest recurring revenue. These three revenue sources
represent approximately 73.5 percent of total projected recurring revenues.
Projected Costs. Table 3-1 also presents projected recurring costs to the City General
Fund for Henderson Creek Estates at buildout. Recurring direct costs to the City of
Rancho Cucamonga General Fund include police protection; animal control, engineering;
public works maintenance; facilities maintenance; planning; library; community services;
contribution to the Fire District; and general government costs.
Police protection costs are projected at about$29.8 thousand and account for 32.5 percent
of the total recurring annual costs. Public works maintenance for public arterial roads is
projected at $19.8 thousand and 21.6 percent of the total recurring costs. General
government costs (administrative functions)are projected as the third largest recurring cost
at$12.1 thousand or 13.2 percent of total projected costs. These three projected costs of
police protection, pubic works maintenance and general government represent
approximately 67.3 percent of total recurring costs.
Impact on MVLF
Table 3-1 also presents the projected fiscal impacts forthe City's General Fund assuming it
is impacted with a reduction in revenues received from the State in the category of motor
vehicle license fees. Recurring revenues under this scenario are projected at $145.5
thousand. Adjusted total annual recurring costs, including estimated direct costs and
contingency costs, are projected at $105.4 thousand. A recurring surplus of $40.1
thousand is projected for Henderson Creek Estates under these conditions. The
revenue/cost ratio is calculated at 1.38.
Projected Revenues. The largest projected revenue source is General Fund property tax
at $58.5 thousand, representing approximately 40.2 percent of total projected recurring
Stanley R. Hoffman Associates, Inc. 10 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 41 of 61
revenues. Off-site sales and use tax is the second largest projected revenue source at
$37.0 thousand and 25.4 percent of the total revenues. Library Fund property tax
revenues are projected at$14.2 thousand, the third largest recurring revenue. These three
revenue sources represent approximately 75.4 percent of total projected recurring
revenues.
3.2 Rancho Cucamonga Fire Protection District
The Rancho Cucamonga Fire Protection District(RCFPD) provides fire protection to both
the corporate City and the Sphere of Influence areas. Henderson Creek Estates is located
within the jurisdictional boundaries of the RCFPD.
Table 3-2 presents the projected recurring revenues to the Fire Protection District from the
full buildout of Henderson Creek Estates. Annual recurring property tax revenues are
projected to total $104.1 thousand after buildout.
Annual recurring fire protection costs are not projected for the Henderson Creek Estates
development. Based on the Plan for the Provision of Municipal Services Annexation No.
01-01 to the City of Rancho Cucamonga prepared by the City, the RCFPD currently has
adequate funding to provide fire protection within its jurisdictional boundaries.
3.3 Landscape Maintenance District
For Henderson Creek Estates, an LMD will be used to fund the ongoing operations and
maintenance costs related to any storm drains, slopes and trails within the project area. It
has not been determined at this time whether or not Henderson Creek Estates will be
annexed to an existing LMD of if a new LMD will be created. Under either condition, the
costs related to this function are entirely separate from the City's General Fund and there
will be no fiscal impact on the City's General Fund.
Stanley R. Hoffman Associates, Inc. 11 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 42 of 61
TABLE 3-2
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT
FISCAL IMPACTS AFTER BUILDOUT
(In Constant 2004 Dollars)
After Percent
Buildout of Total
Annual Recurring Revenues
Property tax $104,100 100.0%
Total Recurring Revenues $104,100 100.0%
Annual Recurring Costs n/at
Note: 1. The proposed development lies within the jurisdictional boundaries of the Rancho Cucamonga
Fire Protection District(RCFPD). Based on the Plan for the Provision of Municipal Services
Annexation No. 01-01 to The City of Rancho Cucamonga prepared by the City,the RCFPD
currently has adequate funding to provide fire protection services within its jurisdictional boundaries.
Source: Stanley R.Hoffman Associates,Inc.
Stanley R. Hoffman Associates, Inc. 12 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 43 of 61
CHAPTER 4
FISCAL ASSUMPTIONS
Chapter 4 presents the recurring revenue and cost assumptions used in preparing the
fiscal analysis for Henderson Creek Estates in the City of Rancho Cucamonga.
4.1 General Information
Table 4-1 presents the general City information used to calculate fiscal factors.
Population.The City population of 146,666 is based on the California State Department of
Finance estimate as of January 1, 2003. The population estimate is used to project per
capita revenue and cost factors.
Housing Units. For calculating per housing unit factors, the City housing unit estimate of
46,870 from the State Department of Finance (DOF) for January 1, 2003 is used.
Employment. Based on information from the City of Rancho Cucamonga, the City's
current employment estimate is 47,205. This estimate is used to calculate revenues and
costs based on employment.
Population/Employment Ratio. New population and employment generate some
revenues and costs, which are calculated based on the split of population and employment
and the ratio of each to the sum of the two. The sum of population and employment is
193,871. Population represents 76 percent of the total and employment represents 24
percent of the total. The projected City revenues or costs are split based on this ratio.
That is, the share of projected revenues or costs allocated to population is divided by the
City population of 146,666 while the employment share of the projected revenues or costs
is divided by the City employment estimate of 47,205.
Estimated Total City Developed Acres. Some costs, such as public works and planning,
are projected on a per-developed acre basis. The number of developed acres within the
City is estimated from City's Geographic Information System (GIS) and CoStar databases,
Stanley R. Hoffman Associates, Inc. 13 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 44 of 61
TABLE 4-1
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
GENERAL ASSUMPTIONS
Factor Explanation
General Factors
146,666 Rancho Cucamonga total population, January 1, 2003, DOF
46,870 Rancho Cucamonga total housing units, January 1, 2003, DOF
47,205 Rancho Cucamonga total employment, City Community and Economic Profile
193,871 Population plus employment
76% Population as a share of population plus employment
24% Employment as a share of population plus employment
3.13 Persons per Household, January 1,2003, DOF
3.15 Persons per Household, City of Rancho Cucamonga
12,990 Estimated total City developed acres
Source: Stanley R.Hoffman Associates,Inc.
City of Rancho Cucamonga,Fiscal Year 2003/04,Adopted Budget
City of Rancho Cucamonga
State of California,Department of Finance,City/County Population and Housing Estimates,2003
Stanley R. Hoffman Associates, Inc. 14 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 45 of 61
as shown in Table 4-2. There are an estimated total of 9,544 developed residential acres
in the City; and a total of 3,446 developed non-residential acres within the City. In total,
12,990 developed acres are within the City.
4.2 Revenue Assumptions
The revenue assumptions for the City's General Fund are summarized in Table 4-3. Table
4-3 also summarizes the revenue assumptions for the Fire Protection District. Projected
recurring revenues to the City General Fund include property tax; document transfer tax;
off-site sales and use tax; Proposition 172 sales tax revenue; franchise fees; fines and
forfeitures; motor vehicle license in-lieu revenues; charges for services; other revenues
such as rental/leases/ and sales of fixed assets; library revenues and state gasoline tax
funds. Interest revenues are not projected in this analysis.
Taxes
Property Tax. Property tax revenues are projected by multiplying the tax allocation
percentage for the City of Rancho Cucamonga General Fund, Library Fund and the
Rancho Cucamonga Fire Protection District by the projected assessed value within the tax
rate area (TRA) in which the project is located. As shown in Table 4-3,the City of Rancho
Cucamonga General Fund allocation is shown at 7.0 percent of the basic 1.0 percent levy.
Document Transfer Tax. Real property sales are taxed at a rate of$1.10 per$1,000 of
transferred property value. The property transfer tax is divided equally between the City
and the County, with the City receiving $0.55 per$1,000 of transferred property value. As
presented in Table 4-3, it is assumed that residential development will change ownership at
an average rate of about 7.0 percent per year, or that each home changes hands on the
average of about once every 14 years.
Off-Site Sales Tax. The City receives sales tax revenue from the State Board of
Equalization equal to one percent of all taxable sales generated within the City. The
Henderson Creek Estates development does not include on-site retail uses that would
generate direct taxable sales and use tax to the City upon annexation. However, indirect
sales and use tax revenues will be generated from purchases made by the residents of the
Stanley R. Hoffman Associates, Inc. 15 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 46 of 61
TABLE 4-2
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
ESTIMATION OF EXISTING CITY DEVELOPED ACRES'
Residential Acres
Residential- Non RDA 8,261
Residential- RDA 1.283
Subtotal Residential Acres 9,544
Non-Residential Acres
Non-Residential-Non RDA 747
Non-Residential- RDA 22,699
Subtotal Non-Residential Acres 3,446
Estimated Total Developed Acres 12,990
Note: 1. Esitrnated City right of way and other public/quasi public acres are not included as developable
acres.
Source: Stanley R.Hoffman Associates,Inc.
City of Rancho Cucamonga,Geographic Information System
Stanley R.Hoffman Associates,Fiscal Analysis,General Plan Update,City of Rancho Cucamonga,October 2,2000
Stanley R. Hoffman Associates, Inc. 16 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 47 of 61
TABLE 4-3
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
SUMMARY OF REVENUE ASSUMPTIONS
(In Constant 2004 Dollars)
Revenues Projection projection Method Annual
Revenue Source FY 2003-04 Basis and/or Assumptions Projection Factors
CITY GENERAL FUND
property Taxes $2,261,690 Assessed valuation Valuation assumptions 7.0%City General Fund allocation
M basic 1%levy
O3cument Transfer Tax 730,540 Assessed valuation Property lumwer and valuation 7%residential fumover rale
$0.55 per$1,000 of turnover valuation
Sales and Use Tax 14,626.00 Taxable sales Off-site taxable sales 1.0%of taxable sales
Plus 0.1075%of sales lax
proposition 172-Half Cent Sales Tax 289,500 Total sales and use tax Per$1,000 of sales and use tax $20.48 per$1,000 sales and use lax
Franchise Fees: Gas 8 Electric 2,423,180 Total population and employment Per capla and employee $12.50 per capita and per empbyxe
Refuse 1,173,379 Total populatlm Per capita $8.OD per capita
1,309,000 Total employment Peremployes $27.73 per employee
Cable 889,260 Total housing units Per unit $18.97 per anis
Fines B Forfeitures 1,057,180 Total population and employment Per capita and employee SS,ts per capes and per empinyae
Motor Vehicle License 8,582,310 Total population per capda $58.52 percapita
Charges for Services 120,460 Total population and employment percaptaardemployee $0.62 per capita and
W enip4onses
Rental2eases/Sales of Fixed Assets 98,830 Total population and employment Per capita and employee 80.51 per capita and per emploeye
Interest Eamings 500,000 Percent of fund revenues Interest rate not projected
Librafv Fund
Preperty Taxes Na' Assessed valuation Valuation assumptions 1.7%Ciy library Fuld allocation
of basic 1%levy
Litany Fares and Fees 118,000 Total poWtation Percapita $0.60 per capita
Library Rimus lSass 102,500 Total population Percepts $D.70 per capita
Interest Earnings ISODD Percent of fund revenues Interest rate not projected
Gas Tae Fund
State Gas Tax: Section 2105 738,000 Total population Per cape 85.03 per capita
Section 2106 485,no Total population per capita $318 percapita
Secoon2107 1,49,230 Tonal population Per capita $7.15 per capda
Interest Eamings Percent of fund revenues Interest rate not projected
RANCHO CUCAMONGA FIRE DISTRICT
Property Tax 7,552,820 Assessed valuation Valuation assumptions 12.48%County Fire Fuld allocation
of basic 1%kvy
Interest Eamings 96080 Percent of fund revenues Interest tale net projected
Nates: 1.In fiscal year 3003/ 1.oris revenue source did set exist ter Me City.
source: Stanley R.Nofmannssociaf Inc.
Ciyo!Randro Curanega,Real Vee 2003M.AdophO aud9ar
State or Cal fomb,Deparbnant of Finers,04wCounly PopWatibn and Housing Eslimale;January 1.2003
Stanley R. Hoffman Associates, Inc. 17 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 48 of 61
proposed project estimated to be captured within the City. It is assumed the City of
Rancho Cucamonga will capture 50 percent of the taxable purchases made by the future
residents of Henderson Creek Estates. The 50 percent capture assumption is based on
the access to existing and planned retail within the City boundaries, including the future
Victoria Gardens Regional Mall due to open in 2004.
Residential Sales and Use Tax. Residents of Henderson Creek Estates will generate
sales and use tax to the City of Rancho Cucamonga through retail purchases in the City.
As shown in Table 4-4, taxable sales from Henderson Creek Estates residents are
projected at $6.68 million. Taxable sales are projected based on the assumption that the
average household income of project residents represents about 25 percent of the total
assessed valuation and that 32 percent of household income is spent on taxable retail
sales. The fiscal analysis assumes the City will capture 50 percent of total taxable retail
sales or about $3.34 million in taxable retail sales.
Based on sales tax of 1 percent, potential sales tax to the City is projected at $33.4
thousand after buildout. At 10.75 percent of sales tax, use tax is projected at $3.6
thousand after buildout. Use tax is non-situs taxable sales allocated back to jurisdictions
by the State. Total sales and use tax is projected at $37.0 thousand after buildout.
According to the March 16, 2004 City Budget Update memorandum from City Manager,
Jack Lam, one outcome of the recent passage of Proposition 57 is that the City will
experience '/.cent sales tax shift to the State instead of the earlier %2 cent shift proposal.
While this would reduce the sales tax generated by the project residents by about $9.3
thousand, the project would still be projected to have an annual recurring surplus of
approximately$30.9 thousand to $46.0 thousand.
Use Tax. In addition to sales tax, the City also receives a use tax allocation equal to
approximately 10.75 percent of the one percent sales tax allocation. The use tax factor is
derived from two major sources:
Stanley R. Hoffman Associates, Inc. 18 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 49 of 61
TABLE 4-4
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
ESTIMATED TAXABLE SALES CAPTURE
(in Constant 2004 Dollars)
Description Amount
Residential Assessed Valuation (@ $679,065 per unit), $83,525,000
Household Income(@ 25% of valuation) $20,881,250
Retail Taxable Sales (@ 32% of household income) $6,682,000
Projected Off-Site Taxable Sales Captured in Rancho Cucamonga (@ 50% capture) $3,341,000
Projected Sales and UseTax to Rancho Cucamonga
Sales Tax(@ 1% of taxable sales) $33,410
Use Tax(@ 10.75% of sales tax) 3,592
Total Projected Sales and Use Tax $37,002
Note: 1. Assessed valuation is projected at an average of$679,065 per unit based on information provided by the
project proponent.
Sources: Stanley R. Hoffman Associates, Inc.
Stanley R. Hoffman Associates, Inc. 19 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 50 of 61
• A use tax rather than a sales taxis paid on construction materials from residential and
non-residential development. This tax is counted in the county in which construction
takes place, not at the point of sale of materials.
• A use taxis levied on purchases from out-of-state sellers of goods for use in California.
The State Board of Equalization assembles the use tax collections into a number of pools.
County pools for each county are based on tax proceeds assigned to a county level. A
statewide pool is developed for tax proceeds, which cannot be assigned to individual
counties. These pools of use tax proceeds are then distributed to individual cities and
counties on a quarterly basis. The distribution percentages to local jurisdictions for the
county pool are calculated on the basis of each city's and county's share of total
countywide non-situs based sales tax as a percentage of total point-of-sale, sales tax. A
similar procedure is used in the allocation of the statewide pool.
Proposition 172 Sales Tax (Public Safety Augmentation). The State's allocation
formula for public safety augmentation revenues from Proposition 172 is generally tied to
each city's sales tax effort. Therefore, based on Proposition 172 revenues of $299,500
and City sales tax revenues of$14,626,000, these revenues are projected at $20.48 per
$1,000 of additional sales tax generated.
Franchise Fees
The City of Rancho Cucamonga receives a franchise fee for the use of exclusive rights-of-
way within the City for gas and electric, refuse and cable television.
Gas and Electric Franchise Fees. As shown in Table 4-3, gas and electric franchise fees
are estimated at $12.50 per capita and per employee based on the City budget fees of
$2,423,180 and the City population plus City employment estimate of 193,871.
Refuse Franchise Fees. Franchise fees for rubbish services are projected at $8.00 per
capita, based on residential refuse costs of $1,173,379 and the population estimate of
146,666. Commercial (non-residential) refuse franchise fees are projected at $27.73 per
employee based on commercial refuse costs of $1,309,000 and employment of 47,205.
Stanley R. Hoffman Associates, Inc. 20 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 51 of 61
Cable Television Franchise Fees. Cable television franchise fees are projected at
$18.97 per housing unit based on budget figures of$889,260 for this type of franchise and
estimated housing units of 46,870.
Fines and Forfeitures. These revenues are projected at $5.45 per capita and per
employee, based on total revenues of $1,057,180 and the population plus employment
estimate of 193,871.
Motor Vehicle In-Lieu Fees. These State allocated revenues, as shown in Table 4-3, are
projected at$58.52 per capita based on information from the City of Rancho Cucamonga
budget for fiscal year 2003-2004 and a population of 146,666 as of January 1, 2003.
Charges for Services. Charges for services are shown in Table 4-3 and include revenues
such as printing fees and sale of printed materials. This revenue source is projected at
$0.62 per capita and per employee, based on annual revenues of $120,460 and the City
population plus employment of 193,871.
Other Revenues. These other miscellaneous revenues include rentals, leases and sales
of fixed assets. Other revenues are projected at$0.51 per capita and employee based on
the City preliminary budget revenues of$98,830 and the City population plus employment
estimate of 193,871.
Interest Income. Interest earnings to the General Fund are not projected as a part of this
analysis.
Library Fund. As shown in Table 4-3, the City is projected to receive from property tax
revenues, 1.7 percent of the basic 1.0 percent levy forthe Library Fund. In addition, library
revenues of $0.80 per capita are projected based on a total of $118,000 from fines and
fees and a population of 146,666. Library revenues of $0.70 per capita are projected
based on total media rentals and sales of $102,500 and population of 146,666. Interest
earnings are not projected as a significant revenue source.
State Gasoline Tax. State gasoline tax revenues are determined based on data provided
by the City's budget for fiscal year 2003-2004 and the City population of 146,666. These
revenues are projected based on the following:
Stanley R. Hoffman Associates, Inc. 21 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 52 of 61
State Gasoline Tax Total Amount Per Capita Amount
Section 2105 $738,000 $5.03
Section 2106 $465,770 $3.18
Section 2107 $1,049,230 $7.15
No interest earnings are projected as a part of this analysis. Gas Tax Fund revenues are
earmarked for public works road related maintenance costs.
Rancho Cucamonga Fire Protection District
The Rancho Cucamonga Fire Protection District (RCFPD) receives an estimated 12.46
percent of the basic one percent property tax levy for the Henderson Creek Estates
development. No interest earnings are projected as a part of this analysis.
4.3 Cost Assumptions
The cost assumptions for the City's General Fund are summarized in Table 4-5. Recurring
costs include police protection, animal control, public works, planning, building and safety,
community services, library, fire district and general government activities.
Police Protection. The City of Rancho Cucamonga contracts police protection services
with the County Sheriff. Table 4-6 presents the police cost estimation. Total annual costs
from the City's budget for 2003-2004 are $15,280,650. Based on discussion with the City
Finance Officer during preparation of the fiscal analysis of the General Plan Update, a
County Administrative Fee of $374,600 is subtracted from the total cost. The total net
police cost is $14,906,500, which is allocated to population and employment in their
relative proportions, yielding projected costs of $76.89 per capita and per employee.
Animal Control. Animal control costs are projected at$2.66 per capita, based on total net
costs of$390,490 and a population of 146,666, as shown in Table 4-5.
Public Works
Estimated public works costs are presented in Table 4-7.
Engineering. Based on City budget information, 2003-2004 engineering costs are
estimated to total$3,201,920,while engineering fee revenues are estimated at$1,259,680.
Net engineering costs of $1,942,240 are allocated on a per-developed acre basis.
Stanley R. Hoffman Associates, Inc. 22 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 53 of 61
TABLE 4-5
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
SUMMARY OF COST ASSUMPTIONS
(In Constant 2004 Dollars)
Budget FY 2003104 Projection Projection Method Annual
Cost Category Budget Net Cost Basis apolar Assumptions Projection Factors
CITY GENERAL FUND
Police Protection $15,280,650$14,901 Total Popula0on and Employment Per capita and employee $76.89 per capita and employee
Animal ContM $452,250 $390,490 Total Population Per capita $2.66 per capita
Public Works: Engineering $3,201,920 $1.942,240 Total Developed Acres Per developed aae $149.52 per developedacre
Public Works: Maintenance $4,551,630 $4.124,260 Taal Developed Acres Per developed acre $317.49 per developed acre
Public Works: Facilities $1,903,950 $380,790 Total Developed Acres Per developed am $29.31 per developed acre
Planning $1,749,700 $899,700 Total Developed Acres Per developed acre $69.26 per developed am
Building and Safety' $4,142,290 $0 Taal Deveoped Acres Pa developed acre Nal par developed!acre
Community Services $2,337,520 $2,337,520 Taal Papulation Per capita $15.94 per capita
Library Services $1,891,680 $1,891,680 Taal Population Per capita $12.90 per capila
Fire District Transfer $1,136,770 $1.136,770 Total Popaation and Employment Per capita and employee $5.86 per capita and empli
General Govemmenl $10.463,080$10,483,060 Share of Dii Line Costs 50%margiwl rate, 15.3%of direct line cost
Contingency Share of Total General Fund Costs %a cost, 150%of General Fund cost
Note: 1. The fiscal analysis assumes Mat building and today,costs breakeven w1M assodale1 fee revenues b Ne project
2. Marginal increase and carni cost assumptions are based on Me fiscal methodology used far the General Plan Update.
Source: Stanley R.Hoffman Associates,Inc.
City of Rancho Cucamonga,Fiscal year 2003N4,Adopted Budged
Stanley R.Hoffman Associates,Fiscal Analysis,General Plan Update,City of Rancho Cucamonga,October 2,2000
Stanley R. Hoffman Associates, Inc. 23 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 54 of 61
TABLE 4-6
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
POLICE COST ESTIMATION'
(In Constant 2004 Dollars)
1. POLICE COSTS
Total 2003/04 Budget $15,280,650
minus
County Administrative Fee $374,600
equals
Net Police Costs $14,906,050
2. PER CAPITA/EMPLOYEE COSTS
City Population Estimate 146,666
City Employment Estimate 47,205
Population plus Employment 193,871
Per Capita/Per Employee Cost $76.89
Note: 1. Police cost estimation is based on the methodology used in the General Plan fiscal analysis.
Source: Stanley R.Hoffman Associates, Inc.
City of Rancho Cucamonga,Fiscal Year 2003104,Adopted Budget
Stanley R. Hoffman Associates,Fiscal Analysis, General Plan Update, City of Rancho
Cucamonga,October 2,2000
Stanley R. Hoffman Associates, Inc. 24 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 55 of 61
TABLE 4-7
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
ESTIMATION OF PUBLIC WORKS COSTS
(In Constant 2004 Dollars)
1. ENGINEERING COSTS PER DEVELOPED ACRE
Engineering-Administration $332,760
Engineering-Construction Management 825,700
Engineering-Development Management 1,186,290
Engineering-NPDES Program 492,720
Engineering-Project Management 144,280
Engineering-Traffic Management 220,170
Total Engineering Costs $3,201,920
minus
Engineering Fees $1,209,680
Engineering Special Services Fees 50.000
Engineering Revenues $1,259,680
equals
Net Engineering Costs $1,942,240
divided by
Estimated Total Developed Acres 12,990
equals
Engineering Costs Per Developed Acre $149.52
2. PUBLIC WORKS MAINTENANCE COSTS PER DEVELOPED ACRE
Vehicle& Equipment Maintenance $854,740
times
Marginal Increase in Maintenance Vehicles& Equipment @' 50%
equals
Adjusted Maintenance Vehicles& Equipment $427,370
plus
Maintenance Public Works 3,696.890
Total Public Works Maintenance Costs $4,124,260
divided by
Estimated Total Developed Acres 12,990
equals
Public Works Costs Per Developed Acre $317.49
3. FACILITIES MAINTENANCE COSTS PER DEVELOPED ACRE
Facilities Maintenance $1,903,950
times
Marginal Increase in Facilities Maintenance @' 20%
equals
Adjusted Facilities Maintenance $380,790
divided by
Estimated Total Developed Acres 12,990
equals
Facilities Maintenance Costs per Developed Acre $29.31
Note1. Marginal increase assumptions are based on the fiscal methodology used for the General Plan Update.
Source: Stanley R.Hoffman Associates,Inc.
City of Rancho Cucamonga,Fiscal Year 2003/04,Adopted Budget
Stanley R.Hoffman Associates,Fiscal Analysis,General Plan Update,City of Rancho Cucamonga,October 2,2000
Stanley R. Hoffman Associates, Inc. 25 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 56 of 61
Developed acres total 12,990 and net engineering costs are projected at $149.52 per
developed acre, as shown in Table 4-7.
Public Works Maintenance. Public works services include street maintenance and
sweeping, maintenance of parks and trees, city facilities, and storm drains. The City public
works budget totals$4,124,260. Public works costs are projected on a per-developed acre
basis. With an estimated 12,990 developed acres in the City, maintenance costs are
projected at $317.49 per developed acre, as shown in Table 4-7.
Facilities Maintenance. Total facilities maintenance costs in 2003-2004 are $1,903,950.
Based on the fiscal methodology used for the General Plan Update, it is assumed that the
proposed project would incur a marginal increase in facilities maintenance costs of 20
percent, or an increase of$380,790. This marginal increase of$380,790 is divided by the
total 12,990 estimated developed acres, for projected facilities maintenance costs of
$29.31 per developed acre, also shown in Table 4-7.
Planning Department
Table 4-8 presents the estimation of both the Planning Department costs and the Building
and Safety Department costs. These costs are projected on a per-developed acre basis.
Planning. As shown in Table 4-8, Planning Department functions total $1,749,700,
according to the budget for fiscal year 2003-2004. Planning fee and special program fee
revenues for the same period total $850,000,for estimated net planning costs of$899,700.
Using estimated developed acres of 12,990; planning costs are projected at $69.26 per
developed acre.
Building and Safety. Table 4-8 also presents the estimation of the Building and Safety
Department costs. As shown, Building and Safety costs total $4,142,290, according to the
2003-2004 budget. Building permit and plan check fee revenues for the same period total
$4,316,200, for estimated surplus of$173,910. The fiscal analysis assumes that building
and safety costs breakeven with building permit and plan check fee revenues, thus
Stanley R. Hoffman Associates, Inc. 26 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 57 of 61
TABLE 4-8
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
ESTIMATION OF PLANNING AND BUILDING AND SAFETY COSTS
(In Constant 2004 Dollars)
1. PLANNING COSTS PER DEVELOPED ACRE
Planning $1,749,700
minus
Planning Fees $800,000
Planning- Special Services Fee 50.000
Planning Revenues $850,000
equals
Net Planning Costs $899,700
divided by
Estimated Total Developed Acres 12,990
equals
Net Planning Costs per Developed Acre $69.26
2. BUILDING AND SAFETY COSTS PER DEVELOPED ACRE
Building and Safety $4,142,290
minus
Building Permits $2,676,200
Plan Check Fees 1.640.000
Building and Safety Revenues $4,316,200
equals
Net Building and Safety Costs' -$173,910
Note: 1. The fiscal analysis assumes that costs for Building and Safety for Henderson Creek Estates will breakeven with
associated fee revenues.
Source: Stanley R.Hoffman Associates,Inc.
City of Rancho Cucamonga,Fiscal Year 2003/04,Adopted Budget
Stanley R.Hoffman Associates,Fiscal Analysis,General Plan Update,City of Rancho Cucamonga,October 2,2000
Stanley R. Hoffman Associates, Inc. 27 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 58 of 61
balancing building and safety costs in the long term. The line item of building and safety
costs is not projected in the fiscal analysis.
Community Services. As shown in Table 4-5, City Community Services costs are
estimated to total $2,337,520 in 2003-2004. On a per capita basis, this cost is projected at
$15.94.
Library. As shown in Table 4-5, the Rancho Cucamonga library costs are projected at
$12.90 per capita, based on a library annual budget of $1,891,680 and population of
146,666.
Fire District Transfer. Based on the proposed fiscal year 2003-2004 budget the General
Fund is transferring $1,136,770 to the Rancho Cucamonga Fire Protection District to
supplement the District's other funding sources. Based on the total population and
employment estimate of 193,871, the General Fund transfer cost to the Fire Protection
District is projected at $5.86 per capita and employee.
General Government Costs. Table 4-9 presents the estimation of general government
costs. All City costs are categorized as either general government costs or non-general
government costs. General Government costs are related to City administration and are
generally not associated with direct line department services to City residents or
employees. Non-general government functions provide direct services, such as animal
control, police, or community services.
As shown in Table 4-9, general government costs are estimated at $10,483,060. Non-
general government costs are estimated to total $34,330,390. The general government as
a percent of non-general government costs is equal to 30.5 percent. Due to economies of
scale, it is estimated that the marginal increase in general government costs would be one
half of this amount, or 15.3 percent. The 50 percent marginal increase in general
government costs is based on the fiscal methodology for the General Plan Update.
Stanley R. Hoffman Associates, Inc. 28 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 59 of 61
TABLE 4.9
HENDERSON CREEK ESTATES
CITY OF RANCHO CUCAMONGA
ESTIMATION OF GENERAL GOVERNMENT COSTS
(In Constant 2004 Dollars)
1. GENERAL FUND EXPENDITURES
General Non-General
Total Government Government
Non-Departmental General $3,278,500 $3,278,500
Non-Departmental Personnel 218,030 218,030
City Council 90,850 90,850
City Manager 801,140 801,140
City Clerk 371,430 371,430
Animal Control Services 452,250 452,250
Emergency Preparedness 122,090 122,090
Administrative Services-Administration 377,170 377,170
Business Licensing 209,380 209,380
City Facilities 1,485,860 1,485,860
Finance 604,650 604,650
Geographic Information Systems 304,890 304,890
Management Information Systems 1,938,140 1,938,140
Personnel 291,270 291,270
Purchasing 340,890 340,890
Risk Management 167,220 167,220
Treasury Management 3,640 3,640
Community Development Administration 0 0
Building&Safety 4,142,290 4,142,290
Engineering-Administration 332,760 332,760
Engineering-Construction Management 825,700 825,700
Engineering-Development Management 1,186,290 1,186,290
Engineering-NPOES 492,720 492,720
Engineering-Project Management 144,280 144,280
Engineering-Traffic Management 220,710 220,710
Facilities Maintenance 1,903,950 1,903,950
Integrated Waste Management 624,310 624,310
Planning 1,749,700 1,749,700
Planning Commission 9,570 9,570
Street and Park Maintenance 3,648,130 3,648,130
Vehicle&Equipment Maintenance 854,740 854,740
Community Services-Administration 2,337,520 2,337,520
Park and Recreation Commission 2,730 2,730
Fire Administration 0 0
Police Administration 15,280,650 15,280,650
Redevelopment Agency Administration 0 0
GRAND TOTAL GENERAL FUND $44,813,450 $10,483,060 $34,330,390
2, CALCULATION.OF.GENERAL GOVERNMENT COSTS
Estimated General Government Expenditures $10,483,060
divided by
Estimated Non-General Government Expenditures $34,330,390
equals
General Government as percent of Non-General Government Costs 30.5
Marginal Increase In General Government Costs @ 50%' 15.3
Note: 1. Marginal increase assumptions are based on the fiscal methodology used for the General Plan Update.
Source: Stanley R.Hoffman Associates,Inc.
City of Rancho Cucamonga,Fiscal Year 2003104,Adopted Budget
Stanley R.Hoffman Associates,Fiscal Analysis,General Plan Update,City of Rancho Cucamonga,October 2, 2000
Stanley R. Hoffman Associates, Inc. 29 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
Page 60 of 61
Contingency Costs. City General Fund contingency costs of 15 percent are applied to
projected costs to account for budget and economic uncertainties. The contingency cost
factor of 15 percent is based on discussion with City Finance Department staff during
preparation of the fiscal analysis of the General Plan Update.
Rancho Cucamonga Fire Protection District
Annual recurring fire protection costs are not projected for the Henderson Creek Estates
project. Based on the Plan for the Provision of Municipal Services Annexation No. 01-01 to
the City of Rancho Cucamonga prepared by the City, the RCFPD currently has adequate
funding to provide fire protection within it jurisdictional boundaries.
Stanley R. Hoffman Associates, Inc. 30 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis
Resolution No. 04-152
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APPENDIX A
PERSONS AND AGENCIES CONTACTED
City of Rancho Cucamonga
Debra Meier, AICP
909-477-2700
County of San Bernardino
Local Agency Formation Commission
Deputy Executive Officer
909-387-5869
County of San Bernardino
Auditor Controller's Office
909-386-8831
O'Donnell/Atkins
Mackey J. O'Donnell
949-705-5600
SPS Development Services, Inc.
Steven Paul Stewart
714-839-0850
Stanley R. Hoffman Associates, Inc. 31 Henderson Creek Estates
March 25, 2004 City of Rancho Cucamonga Fiscal Analysis