Score: 0 (1/2/1)

San Diego County Grand Jury • 2021-2022

Community Facilities Districts the Misunderstood and Sometimes Hidden Use of Mello-roos Taxes Across San Diego County

Published: June 23, 2022 11 pages

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⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.

⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

Findings 3 findings

F01

Transparency in the CFD process for the homeowner is available but not in a meaningful or helpful way. Fact: The previously cited Government Code sections include educational information about the CFD process.

F02

Education for the buyer or homeowner does exist but only if they seek out information. Fact: California Government Code Section 53340.2 requires the legislative body to identify the responsible department, create procedures to respond promptly to inquiries concerning CFD levies on tax bills. Fact: The intended purpose of a special tax, administrative costs, why a CFD was created, and the duration of the CFD levies are not stated in a consumer-friendly manner Fact: In all the agencies studied, audits are not regularly performed on CFDs for financial concerns or performance issues.

F03

Oversight of the CFD process is the critical missing ingredient to a comprehensive understanding of individual CFDs. Annual reports that are available are not meaningful to the average homeowner.

Recommendations 4

R4

Assessments levied for maintenance. San Diego County sample tax bill. https://www.sdttc.com/content/dam/ttc/docs/new-homeowners-property-tax- guide.pdf. 64
R5

Reasonable annual administrative costs. An annual escalation of costs may occur with a cap of 2% on the bonded indebtedness and 6% on the maintenance assessment for CFDs if used to fund public services. Any increases cannot exceed the 1.86% cap.4 It should be noted this tax burden cap applies at the time the CFD is adopted and is only applicable to the parcels within the region that is under the County of San Diego’s land use jurisdiction. Each agency is responsible for setting its own limits. Existing developments are exploring the use of CFD special taxes to fund business improvements, landscaping, and street improvements.
22-23
Page 9

Take immediate measures to create procedures, over and above what the law
22-24
Page 9

Create procedures for oversight, over and above what the law requires, to

Agency Responses 5

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

City of Encinitas

October 03, 2022 • 1 pages View Details ▾

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City of San Diego

September 26, 2022 • 3 pages • 3 responses • Score: +1 (+1, 2, 0) View Details ▾

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3 responses to findings and recommendations

The EPC engages an extensive list of stakeholders in routine collaboration to address the issue of elder abuse in San Diego County; however, the County’s commitment to coordinating a response to elder abuse has not extended to include CBSC managements’ attendance at scheduled meetings of both EPC and AIS. Fact: California Welfare & Institutions Code Section 15630 establishes legal responsibility for mandated reporting as well as penalties for failure to report. Fact: Mandated reporter training i...

Response: Disagree Partially Score: 0

The City of San Diego disagrees in part with the Grand Jury's finding. The City strives to maintain transparency in the ongoing administration of all CFDs. The City's website is frequently updated to ensure information is readily available for each special tax levy year for each CFD and includes relevant documents such as the 100 Rate and Method of Apportionment and robust FAQs.¹ The City also provides contact information on the website to reach City staff and our Special Tax Consultant directly for any questions. <b>

Regardless of whether CBSC staff qualify as mandated reporters, since the staff of CBSCs interact on a regular basis with their senior clientele, receiving mandated reporter training would be beneficial for them to recognize signs of elder abuse and how to report suspected elder abuse. Fact: CBSCs are regularly used by seniors and are a critical point for addressing elder abuse.

Response: Agree Score: +1

The City of San Diego agrees with the Grand Jury's finding. The City provides comprehensive information on the CFDs administered by the City as well as helpful FAQs for homeowners buying/selling their home. <b>

Since CBSCs are regularly used by seniors, there exists an opportunity for educating their clientele and the local community about the types of elder abuse and how to report suspected elder abuse. Fact: An update given to the San Diego County Board of Supervisors by the Health & Human Services Agency stated: “The Age Well Health & Community Support Team envisions communities that offer accessible health and community services, technology to support aging in place, and village-like support system...

Response: Disagree Partially Score: 0

The City of San Diego disagrees in part with the Grand Jury's finding. The City strives to ensure annual information provided for each CFD is helpful and reader friendly. The reports are posted timely after each levy is submitted to the County and includes background on the District, the current debt service schedule, and a breakdown of the calculation of the annual special tax levy. RESPONSE TO RECOMMENDATIONS:

City of San Marcos

July 19, 2022 • 4 pages • 2 responses • Score: -1 (+0, 0, -1) View Details ▾

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2 responses to findings and recommendations

F02

Response: Disagree Score: -1

The City disagrees only with that portion of the finding which states, "but only if they seek out information." As a practical matter, because each individual parcel may be subject to different special taxes, a homeowner would need to initiate contact with the City's CFD Administrator if they need assistance. To ensure transparency and information for homeowners, the City makes the following resources and communication available: CFD administrator contact information is available on our CFD Annexation Information Sheet handout and made available on the County tax bill (phone number only) for C...

F03

Oversight of the CFD process is the critical missing ingredient to a comprehensive understanding of individual CFDs. Annual reports that are available are not meaningful to the average homeowner.

Response: Unknown Score: 0

, on our website; Provides a simple description and summary of each active CFD on our website; Provides District agenda packages and an Ordinance table on our website; and . City of San Marcos | 1 Civic Center Drive | San Marcos, CA 92069 | (760) 744-1050 | www.san-marcos.net 1. . Provides "Foundational" (formation) documents and Current tax levy analysis, upon request. 0 The City appreciates the review by the Grand Jury, and the opportunity to respond. Should you have questions or require additional information, please contact the undersigned at ext. 3115. Sincerely, Jack Griffin, City Manag...

City of Santee

October 03, 2022 • 6 pages View Details ▾

PDF

County of San Diego, Assessor’s Office

February 16, 2023 • 1 pages View Details ▾

PDF

No Responses Found 3

Government entities assigned to respond to this report. No response documents have been linked in our database.

Lemon Grove City

San Diego City

San Diego County County Clerk-Recorder Elected County Office