An ordinance levying special taxes for public facilities in Modesto's community district.

ORDINANCE NO. 26-04
AN ORDINANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY LEVYING SPECIAL TAXES WITHIN CALIFORNIA MUNICIPAL FINANCE AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 2026-4 (CITY OF MODESTO – THE CROSSINGS)
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, sections 53311, et. seq., of the California Government Code (the "Act"), on January 30, 2026, this Board of Directors (the "Board") of the California Municipal Finance Authority (the "Authority"), adopted Resolution No. 26-100 (the "Resolution of Intention") stating its intention to (i) form "California Municipal Finance Authority Community Facilities District No. 2026-4 (City of Modesto – The Crossings)" (the "CFD"), (ii) designate therein "Improvement Area No. 1 of California Municipal Finance Authority Community Facilities District No. 2026-4 (City of Modesto – The Crossings)" ("Improvement Area No. 1"), and (ii) designate "California Municipal Finance Authority Community Facilities District No. 2026-4 (City of Modesto – The Crossings) (Future Annexation Area)" (the "Future Annexation Area"), to finance the acquisition and construction of certain public facilities; and
WHEREAS, in the Resolution of Intention, this Board determined that it may be necessary to designate additional improvement areas when territory in the Future Annexation Area annexes into the CFD (each, a "Future Improvement Area"); and
WHEREAS, notice was published as required by the Act relative to the intention of this Board to form the CFD, designate therein Improvement Area No. 1, and designate the Future Annexation Area, to provide for certain public facilities and to incur bonded indebtedness for Improvement Area No. 1 and Future Improvement Areas; and
WHEREAS, this Board has held noticed public hearings as required by the Act relative to (i) the determination to proceed with the formation of the CFD, the designation therein of Improvement Area No. 1, and the levy of a special tax in accordance with the rate and method of apportionment of the special tax to be levied within Improvement Area No. 1 to finance a portion of the costs of the public facilities, and (ii) the issuance of bonded indebtedness and other debt for Improvement Area No. 1 and Future Improvement Areas; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD, the designation of Improvement Area No. 1, the levy of said special taxes and the incurring of bonded indebtedness were heard, substantial evidence was presented and considered by this Board and a full and fair hearing was held; and
WHEREAS, subsequent to the hearing, this Board adopted Resolution No. 26-149 (the "Resolution of Formation"), Resolution No. 26-150 (the "Resolution of Necessity") and Resolution No. 26-151 (the "Resolution Calling Election"), which resolutions defined the public facilities to be financed by the CFD (the "Facilities"), formed the CFD, designated therein Improvement Area No. 1, and designated the Future Annexation Area, authorized the levy of a special tax within Improvement Area No. 1, authorized the levy of a special tax within the area to be annexed to the CFD from the Future Annexation Area upon a unanimous approval(s) from the owner(s) of parcels annexing into the CFD, determined the necessity to incur bonded indebtedness in Improvement Area No. 1 and areas within the CFD outside of Improvement Area No. 1, and called an election within Improvement Area No. 1 on the propositions of incurring indebtedness, levying a special tax, and establishing an appropriations limit within Improvement Area No. 1; and
WHEREAS, in accordance with the Resolution Calling Election, on March 13, 2026, a special election was held within Improvement Area No. 1 at which the eligible landowner-electors approved such propositions by the two-thirds vote required by the Act.
NOW, THEREFORE, THE BOARD OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY DOES ORDAIN AS FOLLOWS:Section 1. By the passage of this Ordinance, this Board hereby authorizes and levies the special tax on parcels within Improvement Area No. 1 and on any parcels that are annexed into Improvement Area No. 1 or a Future Improvement Area pursuant to the Act. With respect to Improvement Area No. 1, the Authority shall levy the special tax at the rate and in accordance with the formula applicable to Improvement Area No. 1 (the "Improvement Area No. 1 Rate and Method") set forth in the Resolution of Formation (and as may be amended in the future in accordance with the Act), which Resolution of Formation is by this reference incorporated herein. With respect to Future Improvement Areas, the Authority shall levy the special tax at the rate and in accordance with the formula approved by the qualified electors in the Future Improvement Areas in the manner required by the Act (and as may be amended thereafter in accordance with the Act) (each, a "Future Rate and Method," and together with the Improvement Area No. 1 Rate, the "Rate and Methods"). The special taxes are hereby authorized to be levied commencing in fiscal year 2025-26 and in each fiscal year thereafter for the period provided in the applicable Rate and Method, as contemplated by the Resolution of Formation, the Resolution of Necessity and the unanimous approval form(s) submitted by the owner or owners of land annexing into any Future Improvement Area of the CFD, and all costs of administering the CFD.
Section 2. The Executive Director of the Authority or his or her designee, who may be an outside consultant to the Authority, is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within Improvement Area No. 1 and each Future Improvement Area, in the manner and as provided in the applicable Rate and Method (and as may be amended in accordance with the Act).
Section 3. Except as provided in the Rate and Methods, properties or entities of the State of California, federal or local governments shall be exempt from any levy of the special taxes. In no event shall the special taxes be levied on any parcel within Improvement Area No. 1 or any parcel within any Future Improvement Area in excess of the maximum tax specified in, or contemplated by, the applicable Rate and Method (and as may be amended in the future in accordance with the Act).
Section 4. All of the collections of the special taxes shall be used as provided for in the Act and in the Resolution of Formation including, but not limited to, the payment of principal and interest on bonds and other debt (as defined in the Act) issued by the Authority for Improvement Area No. 1 or a Future Improvement Area (the "Bonds"), the replenishment of the reserve fund for the Bonds, the payment of the costs of the Facilities, the payment of the costs of the Authority in administering the CFD, and the costs of collecting and administering the special taxes.
Section 5. The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that this Board may provide for other appropriate methods of collection by resolutions of this Board. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The Executive Director of the Authority, or his or her designee, is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Stanislaus in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of Stanislaus for each fiscal year, as needed, until the Bonds are paid in full or such longer period of time provided in the Rate and Methods.
Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within Improvement Area No. 1 or a Future Improvement Area, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within Improvement Area No. 1 or any parcel within any Future Improvement Area shall not be affected.
Section 7. An Authorized Signatory shall sign this Ordinance and the Secretary shall cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation.
Section 8. This Ordinance shall take effect 30 days from the date of final passage.
INTRODUCED by the California Municipal Finance Authority on March 13, 2026.
PASSED AND ADOPTED by the California Municipal Finance Authority this 27th day of March, 2026 by the following vote:
AYES: De Foor, Grisham (Alt.), McCarthy (Alt.), McClure, Tanner (Alt.)
NOES: None
ABSTAIN: None
ABSENT: Adams, Alexander, Moreno
4/8/26
CNS-4029470#
THE MODESTO BEE
IPL0327703
Apr 8 2026