Council approves special taxation districts
Lincoln City Council formed two Community Facility Districts (CFDs) Tuesday night in a move designed to ensure future development will pay for the maintenance of city assets as well as public-safety services.
The districts, or CFD 2018-1 and CFD 2018-2, were approved 4-0, with Councilman Paul Joiner recusing himself from the vote due to family interests.
The first district, CFD 2018-1, will fund the maintenance of city landscaping, parks, open space, street lighting, traffic signals and storm water quality and drainage facilities. Services in this district are split between citywide maintenance and local maintenance. The second district, CFD 2018-2, will pay for the amount required to provide additional public-safety services needed by new development.
The boundary for CFD 2018-1 is Twelve Bridges Village 11, the borders of which include Twelve Bridges Drive and Ridgecrest Drive. Twelve Bridges Village 11 is owned by WDS GP, Inc., also known as Woodside Homes. The boundary for CFD 2018-2 is the Independence at Lincoln subdivision, which is located just south of the intersection of Nicholas Road and Waverly Drive. Independence at Lincoln will consist of 575 homes on 93.2 acres.
Lincoln city engineer Ray Leftwich said all future subdivisions in Lincoln will be required to be annexed into the two districts.
“Maintenance costs will never go away,” Leftwich said. “This funds the ability to maintain parks, storm drains and streets forever.”
Both districts will levy a special tax on property owners within the boundaries of the proposed neighborhoods.
The maximum special tax rate for Twelve Bridges Village 11 is $211 per parcel for citywide services and $288 per parcel for localized services.
The maximum special tax rate for the Independence at Lincoln subdivision is $63 per parcel for low- density residential and medium-density residential and $40 per parcel for high-density residential.
Councilman Peter Gilbert said creating the districts will allow Lincoln to continue to grow.
“The issue of residential development not paying its own way has been around for decades,” Gilbert said. “We can’t go back and tax homes that have been built already. New homes can pay their own way.”
Councilman Dan Karleskint offered a caution.
“I don’t want people to get the wrong idea,” Karleskint said. “The CFDs are designed to stop the shortfall within new development.”
Twelve Bridges Pressure Reducing and Metering Station
The council voted 4-1 to authorize the city manager to enter a contract with T&S Construction in the amount of $4.6 million. Mayor Stan Nader voted no.
The project will allow for a second point of entry into the city for water coming from the Placer County Water Agency and includes construction of a five-million-gallon water tank east of the Catta Verdera neighborhood. The project will eventually become Placer County Water Agency’s property.
Nader was concerned that the city was covering all of the costs for a project that will ultimately belong to the water agency. Leftwich said the city will get additional water capacity in the future.
“We’re fronting the money,” Nader said. “It started at $3.6 million and now it’s at $12 million. Who knows where it will go?”