AGENDA
ITEM
20 AGENDA
CALEXICO California ITEM
COUNT WHERE CALIFORNIA AND MEXICO MEET
20 CITY COUNCIL
AGENDA STAFF REPORT
DATE: May 20, 2026
TO: Mayor and City Council
APPROVED BY: Benjamin Martinez, City Manager
/
REVIEWED BY: Karla Chaparro, Finance Director
PREPARED BY: Benjamin Martinez, City Manager
SUBJECT: Informational Item: Overview and Review of Hearthstone CFD No. 2005-1 ===========: ========================cz========================<∞== Recommendation:
Receive and file report.
Background:
CFD (Community Facilities District) No. 2005-1 (Hearthstone) was formed by the City Council in 2005 under the Mello-Roos Community Facilities Act of 1982 to finance public improvements needed to support new development within the Hearthstone master-planned community. The CFD encompasses approximately 75 taxable acres located north of Cole Road, south of the Central Main Canal, west of Meadows Road, and east of State Highway 111. At full buildout, the development was anticipated to include 457 single-family residential units.
Following a public hearing and landowner election held on September 20, 2005, voters approved the levy of a special tax and the issuance of bonded indebtedness not to exceed $15 million. Bonds in the amount of $14,710,000 were subsequently issued on July 12, 2006, to finance the acquisition and construction of authorized public facilities within the district.
Residential development within the CFD was ultimately completed at only approximately 50% of the originally anticipated buildout. While City fees, improvements, and Calexico Unified School District fees were calculated based on the projected construction of 457 single-family residential units, only 240 taxable residential units had been issued building permits as of March 1, 2025. As a result, the CFD has operated with a smaller tax base than originally anticipated at the time the bonds and related infrastructure obligations were established.
Discussion and Analysis:
To further review the overall status and financial structure of the CFD, staff will coordinate with the Finance and City Attorney Departments to conduct a comprehensive review and analysis of the
Hearthstone CFD. Upon completion within 90 days or sooner, the results and findings will be presented to the City Council for review and consideration.
Fiscal Impact:
There is no immediate fiscal impact associated with this informational item.
Coordinated With:
City Manager's Department
Finance Department
City Attorney
Attachments):
None.
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