ELK GROVE, CA (MPG) - The Elk Grove City Council approved four resolutions at its Sept. 24 meeting designed to modernize the annexation process of Community Facilities Districts in the city.

Two resolutions each for Community Facilities District 2003-2 – Police Services and Community Facilities District 2006-1 – Maintenance Services added territory to the future annexation area, along with authorizing levying and apportioning of special taxes in territory annexed to both districts.

The move was what the lone individual testifying during the agenda item’s public comment portion referred to as a “Ponzi scheme” perpetuated on new homebuyers in the city.

“Is it just me or does anyone else feel this is ridiculous?” Elk Grove resident Lynn Wheat asked.

The Police Services and Maintenance Services Community Facilities districts were established in 2003 and 2006, respectively. That followed the process set forth by the state’s Mello-Roos Community Facilities Act of 1982 and after a fiscal study was performed indicating existing revenue sources weren’t adequate to fund additional services needed due to the city’s growth.

Annexation is a condition for approving projects in community facilities districts. It must be completed before issuing building permits, requires a public hearing, voting by landowners and at least two City Council meetings to adopt resolutions and ordinances.

“It can take months to complete this process from start to finish with all of the steps involved,” Elk Grove finance and budget analyst Cindy Tiffany told council.

Taking steps to define future annexation areas streamlines this process through using what is referred to as “unanimous approval,” which constitutes a ballot and waives a public hearing. It also avoids bringing items to council twice, mailing of ballots and reduces the timeline for the annexation process within the two community facilities districts.

“This defining of annexation area is not creating a new annexation area,” Tiffany said. “It is only modernizing the process we currently follow.”

The proposed annexation area for Police Services includes current Elk Grove boundaries except for parcels in the original formation in 2003 and parcels that service Poppy Ridge. It does not change the previous 77 annexations that have been completed.

The same holds true for the Maintenance Services, which excludes parcels in the original formation in 2006 and those specific to the Laguna Ridge Development. It does not change the previous 103 annexations that have been completed.

In her comments during the public hearing, Wheat said the moves were a “backdoor” attempt to get around the requirements of Proposition 13, passed by California voters in 1978 limiting property taxes to 2%. She said first-time homebuyers often don’t know about the special tax assessments since they are buried in inches-thick contract documents.

Citing area tax statistics, Wheat said, combining property taxes and Mello-Roos assessments has increased taxes on property in Elk Grove by 3.5% annually, if not more.

“Last time I checked, my salary hasn’t gone up 3.5%,” Wheat said. “In fact, it has been flat, like probably most people in this economic environment.”

While she was the only one speaking to council on the issue, Wheat said that others are voicing their disapproval with the special assessments via other means such as social media.

“Eventually, when their taxes are so high, I imagine some might show up to meetings such as this,” Wheat added.

After the public hearing was completed, council voted 4-0 to approve the four resolutions. Councilman Darren Suen was not in attendance with an excused absence.

Also during the Sept. 24 meeting, council unanimously approved a Conditional Use Permit (CUP) and Major Design Review Amendment allowing construction of a four-story hotel in the Laguna Pointe Center to move forward.

Home2 Suites by Hilton is proposed for construction on a 2.7-acre parcel of the larger 20-acre site. The amendment meets the specific needs of the hotel operator, reconfigures the parking area, increases the guest room count from 107 to 110 and provides outdoor amenities, including a swimming pool and patio area.

The parcel was originally approved for a three-story, 76,000-square-foot office building.

A conditional use permit allows individual review of a project having “unusual site-development features or operating characteristics to ensure those features are compatible with the surrounding area.” Elk Grove associate planner Joseph Daguman said the hotel property is surrounded by commercial and office uses, with six of the nine parcels in Laguna Pointe Center already developed, is more than 700 feet away from residential uses and is “conditioned” for the safety of guests.

The project also meets two findings required by the conditional use permit: It is consistent with the city’s General Plan and zoning requirements and there is no detriment to people living and/or working in the area. Daguman also noted the architecture is compatible with the rest of the Laguna Pointe Center-approved design.

Jim Dillon of Dillon Consulting, representing the applicant Jackson Properties and Jackson Hospitality, thanked city staff for their hard work on the conditional use permit and getting the information and resolution to council in a “timely manner.”

“It was a very smooth process and we appreciate that,” Dillon said.

The applicant is working on preparing its construction drawings “now” in anticipation of the council’s approval, according to Dillon.

“Looking forward to another hotel in Elk Grove, much needed,” Mayor Bobbie Singh-Allen said after the vote.