City Council

LODI CITY COUNCIL - AGENDA - Special Meeting Date: June 17, 2025 SPECIAL Time: 4:00 p.m. Carnegie Forum 305 W. Pine Street, Lodi Mayor Cameron Bregman Mayor Pro Tempore Ramon Yepez Councilmember Lisa Craig-Hensley Councilmember Mikey Hothi Councilmember Alan Nakanishi Notice Regarding Public Comments Public Comment may be submitted in the following ways: • In-person • Email – councilcomments@lodi.gov > Received no later than two hours prior to the meeting • Mail – City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241 • Hand delivered to: City Clerk’s Office, 221 W. Pine Street, Lodi, CA 95240 > Received no later than two hours prior to the meeting Public comment received via email, mail, or hand delivery will be provided to the City Council and included in the official minutes record of the meeting, but will not be read aloud at the meeting. A. Call to Order / Roll Call B. Regular Calendar B.1 Receive Presentation Concerning Economic Development and Financing Options to Fund Development in the City’s Future Growth Areas (ED & CA) Attachments: Attachment 1 - Presentation C. Adjournment Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day. ______________________________ Olivia Nashed City Clerk Page 1 of 2 1 City Council - Special AGENDA June 17, 2025 ----------------------------------------------------------------------------------------------------------------------------------------------------- All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at least 24 hours prior to the meeting date. Language interpreter requests must be received at least 24 hours in advance of the meeting to help ensure availability. Contact Olivia Nashed at (209) 333-6702. Solicitudes de interpretación de idiomas deben ser recibidas por lo menos con 24 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Olivia Nashed (209) 333-6702. ----------------------------------------------------------------------------------------------------------------------------------------------------- Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link. Members of the public may view and listen to the open session of this meeting at www.facebook.com/CityofLodi/. ----------------------------------------------------------------------------------------------------------------------------------------------------- Page 2 of 2 2  AGENDA ITEM B.1 COUNCIL COMMUNICATION AGENDA TITLE: Receive Presentation Concerning Economic Development and Financing Options to Fund Development in the City’s Future Growth Areas (ED & CA) MEETING DATE: June 17, 2025 PREPARED BY: Luis Aguilar, Economic Development Director and Katie Lucchesi, City Attorney RECOMMENDED ACTION: Receive presentation concerning economic development and financing options to fund development of utilities and infrastructure within the City’s future growth areas. BACKGROUND INFORMATION: This presentation is the third, and final presentation related to the future growth areas within Lodi’s Sphere of Influence (SOI). The final workshop will focus on funding tools to ensure that new development pays for itself. Economic Development Director Luis Aguilar will provide an overview of how future growth plays a crucial role in the Ccity’s long-term economic development strategy. The City Attorney’s Office has also invited outside counsel Michael Colantuono, a partner with Colantuono, Highsmith, Whatley P.C., to present to the City Council. Mr. Colantuono is a statewide expert in local government revenue and infrastructure funding mechanisms. His presentation will cover municipal revenue sources and describe development -funding options such as Community Facilities Districts (CFDs), impact fees, and improvement agreements. STRATEGIC VISION: 2A. Economic Development: Develop long-term economic development strategy. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. City of Lodi Page 1 of 1 Printed on 6/13/2025 powered by Legistar™ 3  Options to Fund Development Presented by Michael G. Colantuono, Esq. COLANTUONO, HIGHSMITH & WHATLEY, PC Mcolantuono@chwlaw.us (530) 432-7357 4 Where do Cities Get Money? • Taxes • Assessments • Fees (of many kinds) • Subventions from other levels of government 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 2 5 Taxes • General taxes can be spent for any City purpose and require 50% voter approval • Special taxes can be spent for stated purposes and require 2/3-voter approval or must be proposed by initiative • Most common in the development context are community facilities district (CFD) taxes imposed under the Mello-Roos Community Facilities District Act 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 3 6 CFD Taxes • These are special taxes which require 2/3 approval of • Voters if there are more than 12 in the district • Landowners otherwise • Landowners and developers commonly approve such taxes to help finance their developments • These can • support debt to fund infrastructure • fund maintenance and operation and services • Do both 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 4 7 Assessments • There are 40+ statutes authorizing assessments for various purposes • Most fund capital improvements, but a few fund services • Landscaping & Lighting Assessment Act of 1972 • Benefit Maintenance Assessment Act of 1982 • These require majority approval of assessees voting 1 vote per $ of assessment paid 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 5 8 Fees • Fees most relevant to greenfield development are • Service fees (water, sewer, trash, power) • Connection & capacity fees (1X fee for connection to utility service) • Development impact fees (AB 1600 fees) • Limited to capital improvements • Paid with building permits or certificates of occupancy • Must be supported by a capital improvement plan and you must spend the money with 5 years or explain why you need more time 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 6 9 Park Fees • Quimby fees • Imposed on subdivisions • Either donation of land or a fee in lieu of a land donation • Limited to capital funding • Development impact fees (AB 1600 fees) • Collected w/ building permits • Limited to capital facilities • Must spend within five years 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 7 10 How to fund Park M&O These are the options for funding park & recreation services, as opposed to facilities • Taxes, including Mello Roos CFD Taxes • Assessments, such as Landscaping & Lighting of 82 Act maintenance assessments • Fees • Rents and participation fees • Not fees on development – those are limited to development 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 8 11 Fee approval process • Council can simply approve most fees • Water, sewer and trash fees require a Prop. 218 majority-protest hearing • AB 1600 / development impact fees • Nexus study • Hearings • Fee adoption • Annual and 5-year reports 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 9 12 Cash Flow Considerations • Capital is often needed up-front while revenues come later via permit fees and fees paid by residents or occupants of new development • Two kinds of borrowing • City or CFD debt paid from later revenues • Reimbursement agreements 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 10 13 Reimbursement Agreements • A “first mover” developer in need of a capital improvement to move forward may “front” the cost of some infrastructure • To avoid paying more than its fair share, the developer enters into a reimbursement agreement with the City • The City adopts an ordinance, designates the land to benefit from the improvement, and collects a fee with each building permit to be paid to the original developer for the new development’s fair share of the improvement cost 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 11 14 Questions • Questions? 6/13/2025 © 2022 Colantuono, Highsmith & Whatley, PC 12 15  Colantuono, Highsmith & Whatley, PC Northern California 420 Sierra College Dr., Suite 140 333 University Ave., Suite 200 Grass Valley, CA 95945-5091 Sacramento, CA 95825 (530) 432-7357 Phone: (916) 400-0370 670 West Napa Street Sonoma, CA 95476 (707) 986-8091 Southern California 790 E. Colorado Blvd., Suite 850 440 Stevens Avenue, Suite 200 Pasadena, CA 91101-2109 Solana Beach, CA 92075 (213) 542-5700 (858) 682-3665 888 Prospect St, Ste. 200 La Jolla, CA 92037 (619) 272-6200 www.chwlaw.us 6/13/2025 © 2024 Colantuono, Highsmith & Whatley, PC 13 16