Ceres Municipal Code Ch. 11 New Residential Development Service Operations Fee

A. The goals and policies of the Ceres General Plan include City policies 1.B.1 and 1.B.5 stating that new growth within the City should maintain a positive fiscal balance for the City and mitigate 100 percent of any operating deficit for the cost of the services and facilities necessary to support such growth.

B. The City Council is concerned that new residential development within the City does not generate sufficient revenue to fully pay the cost of providing the City services necessitated by such development. To more accurately identify and quantify the projected service cost of new residential development and its impact upon the City's budget, the City Council engaged the professional services of Economic and Planning Systems Inc. (E.P.S.) for the purpose of preparing a citywide fiscal impact analysis to summarize and analyze the annual operating costs and revenue related to new residential development occurring in the City through the year 2015.

C. The final report and analysis of E.P.S. has been completed, and their report entitled, "Ceres Citywide Fiscal Impact Analysis," dated July 14, 2000, (the report) is on file in the office of the City Clerk. The said report is approved, adopted and incorporated into this chapter by reference as though fully set forth herein, including all conclusions and supportive findings.

D. The report establishes that City operations and maintenance general fund expenses to serve new residential development will exceed general fund revenue generated from new development through the year 2015 based on the provision of current levels of municipal services, thereby creating a shortfall in revenue to provide City services. In addition, the City has determined to increase municipal service levels for certain City services. As a result of the existing shortfall in revenue, and the projected increased service levels, a total shortfall between the cost of services and the revenue generated by new residential development to fund such services in the approximate sum of $615.00 per residential unit will exist, all of which is more fully explained in the reports from the Director of Planning and Community Development dated November 22, 1999 and January 18, 2000, which are on file in the office of the City Clerk and incorporated herein by this reference.

E. It is the intent and purpose of the City Council of the City of Ceres that new residential development within the City must pay for the cost of providing services to such development so that existing development will not be subject to a reduced level of service, the financial resources of the City will not be unduly burdened, and the City may continue to maintain orderly residential growth which guarantees the maintenance of essential City services to all citizens.

F. To accomplish the City's intent and purpose, and in order to promote and provide for the general health and welfare of its citizens, the City Council finds that it is necessary to impose an annual service operations fee upon new residential development in an amount determined by the City Council and consistent with the "Ceres Citywide Fiscal Impact Analysis" dated July 14, 2000, or any future update or replacement of that analysis.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. In order to mitigate the negative impact of the cost of providing services to new residential development, each new subdivision, parcel map, or other discretionary approval for the development of real property for residential use shall be required, as a condition of development, to participate in the establishment of a community facilities district for the purpose of imposing a residential service operations fee, or if such district has been previously established, to annex the proposed residential project to the existing district.

B. The community facilities district shall be established, or properties shall be annexed to an existing district, pursuant to the provisions of Government Code sections 53318, et seq. The precise amount of the annual residential services operations fee to be levied against those properties included within the district shall be determined at the time of the initial formation of the district and in accordance with the statutes and laws applicable to the levying of such fees.

(Ord. No. 2020-1058, § 4, 3-23-2020)