Establishment of the CFD for The Ranch Project is expected to generate approximately $448,000 in special taxes annually assuming 1,177 single family residential units using Fiscal Year 2021-2022 special tax rates. Upon annexation of additional future developments into the CFD, the anticipated revenue will increase based on the number and type of residential units within those developments.

On March 8, 2022, the Board took action to approve a resolution of intent, Resolution 2022/4, to form a Community Facilities District (CFD) in the area of south Antioch, known as the Sand Creek Focus Area. This area is becoming developed with long range forecasts of 3,000 new homes to be added over the next several years. The District has worked with the City of Antioch and one of the developers, Richland Communities, to establish a Community Facilities District (CFD) for “The Ranch Project” in order to provide augmented funding for the cost of ongoing operations for fire and emergency response services as a result of new development in this area.   
  
The Ranch Project is a master planned residential community consisting of 1,177 residential units on a 551.50-acre site in the Sand Creek Focus Area west of Deer Valley Road. The proposed project will include various housing types and densities, including low density, medium density, estate and age-restricted housing; a 5.0-acre Village Center site consisting of commercial, office, and retail space; 3.0 acres of public facilities (including a new fire station site and a trail staging area); over 20 acres of public parks and landscaped areas; 229.50 acres of open space, including a creek corridor averaging 450 feet wide and 6.0 miles of trails; and 38.00 acres of roadway per the final environmental impact report dated July 17, 2020.  
  
The current allocation of the 1% basic property tax to the District ranges from 8%-9.5% in the tax rate areas being developed. This is well below the average rate of 14% throughout most of the District. A CFD is necessary within Antioch to sustain the ongoing costs of providing fire and emergency response services due to the low property tax allocation in many areas being considered for future development.  
  
The landowner and developer, Richland Communities, executed a petition for the Board of Directors to create a community facilities district and related matters under the Mello-Roos Community Facilities Act of 1982. Establishment of the CFD for The Ranch Project will enable the District to work with the City of Antioch and other developers to annex future developments into this CFD in order to provide the necessary revenue to support District operations throughout areas of new development.  
  
The special tax rate has been established at a maximum of $381 per residential unit of single family residential property and $267 per residential unit of multi-residential family property for fiscal year 2021-2022. For each subsequent fiscal year following fiscal year 2021-22, the Maximum Special Tax rates shall be increased from the Maximum Special Tax rate in effect for the prior fiscal year by the Annual Escalation Factor; the annual percentage increase of the All Urban Consumers Consumer Price Index (“CPI”) or two percent (2%), whichever is greater. The annual CPI used shall be for the area of San Francisco-Oakland-Hayward as determined by the Bureau of Labor Statistics for the 12 months ending the preceding December 31, or such other replacement index as may be determined by the District.  
  
This is the second of two required board meetings necessary to establish the CFD and Future Annexation Area. A third meeting will be necessary in May to adopt an ordinance levying the special tax.  
  
At the March 8 meeting, the Board took actions to adopt District goals and financing policies for CFDs, adopted a Resolution of Intention to establish a Mello-Roos CFD, and set April 26, 2022, for the public hearing on the establishment of the proposed CFD.   
  
Today's actions will include the public hearing on establishment of a Mello-Roos CFD and levy of a special tax, as well as additional action items to adopt a Resolution of Formation to establish Contra Costa County Fire Protection District Community Facilities District No. 2022-1 and designating a future annexation area, adopt an additional resolution calling for a special landowner election to levy a special tax within the boundaries of CFD No. 2022-1, conduct the special landowner election, adopt a resolution declaring the results of the special landowner election, and finally to introduce an ordinance authorizing the levy of a special tax on properties in CFD No. 2022-1, and establishing an appropriations limit for CFD No. 2022-1.   
  
Pursuant to the Mello-Roos Act, the qualified electors for the proposed CFD are the landowners within the CFD, having one vote for each acre or portion thereof that each landowner owns in the CFD. The proposed CFD consists of a single landowner, the developer Richland Communities, which owns all of the approximately 554 acres included within the proposed CFD boundary. Accordingly, a single ballot for the special landowner election to the levy the special tax was issued. Richland Communities, through its subsidiaries, has returned the ballot and all votes in favor of levying the special tax within the CFD.   
  
The third and final meeting will be scheduled for May 10, 2022, and will include an action item to adopt the ordinance authorizing the levy of special taxes within the Contra Costa County Fire Protection District Community Facilities District No. 2022-1 (Antioch Fire Protection and Emergency Response Services).  

If unapproved, the CFD formation process will not move forward. Additional revenue necessary for providing ongoing operations as a result of new development within Antioch will not be obtained. New development will be constructed and populated in the years ahead without adequate funding for fire and emergency response services.