1 CITY OF
CHULA VISTA
COMMUNITY
FACILITIES DISTRICT
NO. 97-2, IMPROVEMENT
AREA D
(PRESERVE MAINTENANCE
DISTRICT)
CFD REPORT
June 2026
2 1. INTRODUCTION
Purpose of Report
This Community Facilities District Report (“CFD Report”) is submitted to the City Council of the City of Chula Vista (the “City Council”) in accordance with the requirements of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”). The purpose of this report is to provide supporting documentation for the proposed formation of Community Facilities District No. 97-2 Improvement Area D (Preserve Maintenance District) (CFD No. 97-2 IA D).
This CFD Report includes the following key components:
A general description of CFD No. 97-2 IA D.
A summary of the services required at the time of formation to meet the needs of future development within CFD No. 97-2 IA D.
The estimated costs of providing the services to CFD No. 97-2 IA D. A description of the boundaries of CFD No. 97-2 IA D.
For further details, reference is made to Resolution of Intention No. 2026-078, adopted by the City Council on May 19, 2026. Capitalized terms used but not otherwise defined in this report shall have the meanings ascribed to them in the Rate and Method of Apportionment of Special Tax, attached hereto as Appendix A.
Legal Authority
Pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code), the City Council adopted a Resolution of Intention to initiate proceedings for the formation of CFD No. 97-2 IA D. This action authorizes the consideration of the levy of a special tax within the proposed district to finance the monitoring, maintenance, operation and management of public property required to be maintained as open space or habitat preservation or both.
3 2. DESCRIPTION OF SERVICES
The types of services authorized to be financed by CFD No. 97-2 IA D include, but are not limited to, the following:
Implement the monitoring, maintenance, reporting, and adaptive management activities required under the Long- Term Management Plan for the Salt Creek Mitigation Site including but not limited to, invasive species control, trash removal, site access control, biological monitoring, reporting, and as-needed remedial or adaptive management actions necessary to ensure the long-term sustainability, habitat function, and regulatory compliance of preserve and mitigation areas following completion of initial mitigation and monitoring requirements.
The activities described above are limited to those discrete tasks identified in the Long-Term Management Plan and are intended to ensure the long-term sustainability and ecological function of the Mitigation Site in perpetuity following completion of initial mitigation and monitoring requirements.
4 3. COST ESTIMATE
CFD No. 97-2 IA D is being formed to finance authorized services, and the special tax will be levied on an annual basis in amounts necessary to pay for the authorized services, incidental expenses, and administrative costs of the district.
The annual cost estimate for CFD No. 97-2 IA D is based on the anticipated cost to provide the services described in Section 2 of this report, including monitoring, maintenance, reporting, and adaptive management activities required under the applicable Long-Term Management Plan. The amount levied each fiscal year may vary based on the level of services required, inflationary adjustments, and other factors permitted under the Rate and Method of Apportionment of Special Tax.
Special tax proceeds may be used to pay for the following categories of costs:
Authorized services described in Section 2 of this report. Establishing or replenishing the Long-Term Management Reserve Fund. Administrative expenses of CFD No. 97-2 IA D.
Anticipated delinquencies.
The table below presents the estimated annual costs of the services to be funded by CFD No. 97-2 IA D. These costs reflect the anticipated expenses associated with implementing the monitoring, maintenance, reporting, and adaptive management activities described in Section 2, together with related administrative costs and other amounts necessary to support the ongoing operation of the district.
Invasive Plant Mapping, Trash Monitoring/Mapping, and Unauthorized Site Access Monitoring/Patrolling1,040$ Non-native Vegetation Control, Trash Removal and Monitoring/Patrolling 7,590$ Adaptive Management/As-Needed Remedial Revegetation420$ Adaptive Management/As-Needed Increased Monitoring Frequency208$ Adaptive Management/As-Needed Installation of Additional Signage/Fencing1,464$ Contingency1,072$ Annual Administrative Fee2,500$ TOTAL ANNUAL FEES14,294$
5 4. RATE AND METHOD OF APPORTIONMENT
The Rate and Method of Apportionment of Special Tax (“RMA”) for CFD No. 97-2 IA D is attached hereto as Appendix A and is incorporated by reference into this report.
The special tax will be levied and collected in the same manner and at the same time as ad valorem property taxes levied by the County of San Diego and will be subject to the same penalties and procedures in the case of delinquency. However, the special tax may also be collected in such other manner and at such other time as may be necessary to meet the financial obligations of CFD No. 97-2 IA D, as permitted by the Mello-Roos Community Facilities Act of 1982 (the “Act”).
All property within CFD No. 97-2 IA D, unless legally exempt or exempt pursuant to the RMA, shall be subject to the levy of the special tax to fund the authorized services, incidental expenses, and administrative costs of CFD No. 97-2 IA D. In accordance with Government Code Section 53325.3, the special tax is not a special assessment and need not be apportioned based on the benefit received by each parcel. Rather, the tax may be apportioned based on cost, service availability, or other reasonable criteria, provided it is not based on an ad valorem (value-based) methodology, in compliance with Article XIII A of the California Constitution.
In developing the RMA, Harris & Associates relied on data and assumptions including, but not limited to, building square footage, net taxable acreage, proposed land use classifications, and service area square footage. These inputs were provided by the City of Chula Vista, participating developers, bond counsel, and other members of the formation team.
Harris & Associates has not independently verified such data and disclaims responsibility for the impact of any inaccuracies on the resulting RMA or on CFD No. 97-2 IA D’s ability to meet its financial obligations.
6 5. BOUNDARY MAP AND DESCRIPTION
CFD No. 97-2 IA D is located within the City of Chula Vista and is generally bound by Eastlake Drive and the S Bay Expressway/Toll Road. At build-out, CFD No. 97-2 IA D is projected to contain a self-storage building.
CFD No. 97-2 IA D encompasses approximately 9.767 net acres within the City of Chula Vista and includes the following Assessor Parcel Number:
595-070-82
This parcel represents the property proposed to be included within the boundaries of CFD No. 97-2 IA D and are subject to the levy of special taxes to fund the services and incidental expenses described in this Report.
A reduced scale Boundary Map is provided in Appendix B. A full-scale map is on file with the City Clerk of the City of Chula Vista and was recorded with San Diego County Recorder’s Office in Book 53 of Maps of Assessment and Community Facilities Districts on May 27, 2026, at Page 10 in the office of the County Recorder for the County of San Diego, State of California, as Document No. 2026-7000238.
APPENDIX A
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
1 Rate and Method of Apportionment of Special Tax
City of Chula Vista Community Facilities District No. 97-2 (PRESERVE MAINTENANCE DISTRICT)
Improvement Area D
A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area D of the CFD and collected each Fiscal Year commencing with Fiscal Year 2025-2026 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property within Improvement Area D of the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. Definitions
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The Acreage of a Parcel shall be calculated to the nearest one-hundredth (1/100) of an acre. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City’s general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer Area D of the CFD as determined by the City. "Assessor's Parcel" or “Parcel” means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista.
"City" means the City of Chula Vista.
"City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. 2 "Improvement Area D" or "Area D" means Improvement Area D of the CFD, as identified on the boundary map for the CFD as amended from time to time.
“Initial Maintenance Period” means a minimum period of five (5) Fiscal Years commencing with Fiscal Year 2026-2027 until the Fiscal Year in which the City formally accepts the public improvements associated with Improvement Area D, for ongoing long-term management and periodic costs. During this period, the Special Tax may be levied at a reduced level, as determined by the City, for the purpose of partially funding maintenance obligations and establishing a Long-Term Management Reserve Fund to support long-term management costs.
"Long-Term Management Plan" means the “Eastlake Storage Mitigation Project Long-Term Management Plan” dated June 2025, prepared for the mitigation site located within the Salt Creek riparian corridor in the Otay Ranch Preserve (the “Mitigation Site”),
"Long-Term Management Program" means the perpetual management, maintenance, monitoring, reporting, and adaptive management activities required to be performed pursuant to the applicable Long- Term Management Plan, including but not limited to, invasive species control, trash removal, site access control, biological monitoring, reporting, and as-needed remedial or adaptive management actions necessary to ensure the long-term sustainability, habitat function, and regulatory compliance of preserve and mitigation areas following completion of Initial Maintenance Period and monitoring requirements. "Long-Term Management Fund Requirement" means, for any Fiscal Year, an amount equal to the Improvement Area D’s fair share of the budgeted costs of the Long-Term Management Program. Each Improvement Area’s “fair share” shall be based on its proportionate benefit, acreage, or other allocation methodology as determined in accordance with the applicable Rate and Method of Apportionment. “Long-Term Management Reserve Fund” means, fund established and maintained by the CFD to accumulate amounts over time to pay for periodic, non-annual, and as-needed costs of the Long-Term Management Program that are not incurred on an annual basis, including, without limitation, adaptive management measures, remedial actions, revegetation, increased monitoring, repair or replacement of site improvements, to the extent such costs are identified in the Long-Term Management Plan as occurring on a periodic or as-needed basis.
“Long-Term Management Reserve Fund Requirement” means, for any Fiscal Year, the amount determined by the CFD Administrator to be deposited into the Long-Term Management Reserve Fund, based on the annualized costs of periodic and non-annual activities identified in the Long-Term Management Plan, such that sufficient funds are available when such costs are incurred. "Management Fund" means a fund that shall be maintained within the CFD for each Fiscal Year to pay the costs of the Long-Term Management Program for the Mitigation Site, including ongoing management, maintenance, monitoring, reporting, and adaptive management activities, together with applicable Administrative Expenses.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in Area D to fund the Special Tax Requirement.
"Special Tax Requirement" means for any Fiscal Year for Area D the amount required to be levied in such Fiscal Year to: (i) pay the Long-Term Management Fund Requirement; (ii) pay any amounts required to establish or replenish the Long-Term Management Reserve Fund to the Long-Term Management 3 Reserve Fund Requirement; (iii) Administrative Expenses; and (iv) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of Area D of the CFD that are not exempt from the Special Tax pursuant to law or as defined below.
B. Assignment to Categories of Special Tax
Each Fiscal Year, using the definitions above, all property within Improvement Area D of the CFD shall be classified as Taxable Property or Exempt Property. Taxable Property shall be subject to Special Taxes pursuant to Sections C and D below.
C. Maximum Special Tax Rate
Taxable Category
The Maximum Special Tax for Fiscal Year 2025-2026 are the rates set forth in Table 1 below.
TABLE 1
Maximum Special Tax
Community Facilities District No. 97-2 Improvement Area D (Fiscal Year 2025-2026)
Long Term
Management Fund
Requirement
Long Term
Management Reserve
Fund Requirement &
Administrative
Expenses
Total Long-Term
Management Program
Costs
$990 / acre $473 / acre $1,463 / acre
Exempt Category
The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots, and any property that is otherwise exempt from the levy of special taxes pursuant to Government Code Section 53340(c) (“Exempt Category”).
Annual Escalation of Maximum Special Tax
The Maximum Special Tax as shown in the tables above that may be levied on each Assessor’s Parcel in Improvement Area D, shall be increased each Fiscal Year beginning in Fiscal Year 2026-2027 and thereafter by a factor equal to the annual percentage change in the San Diego Metropolitan Area Consumer Price Index for All Urban Consumers (CPI-U, All Items) or zero percent (0%), whichever is greater.
D. Method of Apportionment of the Special Tax
During the Initial Maintenance Period
During the Initial Maintenance Period, the Special Tax shall be levied at a reduced level, as determined annually by the City, sufficient to fund a portion of the Special Tax Requirement and to establish and build the Long-Term Management Reserve Fund. The City shall determine the percentage of the Maximum 4 Special Tax to be levied during the Initial Maintenance Period based on anticipated future maintenance costs and required reserve levels, provided the Special Tax during the Initial Maintenance Period shall not exceed the Special Tax Requirement. The Special Tax shall be apportioned to Parcels in accordance with the methodology set forth in Steps 1 through 3 below, after applying such reduced levy.
Following the Initial Maintenance Period
Commencing in the first Fiscal Year following the Initial Maintenance Period, the Special Tax shall be levied up to the full amount necessary to fund the Special Tax Requirement and shall be apportioned to Parcels in accordance with Steps 1 through 3 below.
Step 1: Determine the maximum revenue that could be generated by applying the Maximum Special Tax rates set forth in Table 1 (as such rates may be annually escalated pursuant to Section C) to all Parcels.
Step 2: If the total revenue calculated in Step 1 is greater than the Special Tax Requirement for Improvement Area D, reduce the Special Tax for each Parcel proportionately so that the total Special Tax levy for the Fiscal Year is equal to the Special Tax Requirement.
Step 3: In the event that the Special Tax Requirement for Improvement Area D includes amounts attributable to delinquent Special Taxes from the prior Fiscal Year, the City shall determine the amount of such delinquent Special Taxes and may identify the Parcels and owners associated with such delinquencies. To the extent permitted by law, the City may levy and collect such delinquent amounts from the applicable Parcels and/or owners. Any remaining portion of the Special Tax Requirement shall be allocated and levied in accordance with Steps 1 through 2 above.
Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel be increased by more than ten percent (10%) annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Area D of the CFD.
E. Appeals
Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such errors. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any, by the CFD Administrator, the landowner or resident believes such error still exists; such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor’s Parcel. Upon receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee.
The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding to all persons.
F. Manner of Collection
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Area D of the CFD or as otherwise determined appropriate by the CFD Administrator.
5 G. Term of Special Tax
Taxable Property in Improvement Area D of the CFD shall remain subject to the Special Tax in perpetuity. 6 Attachment A
Description of Long-Term Management Plan
Implement the monitoring, maintenance, reporting, and adaptive management activities required under the Long-Term Management Plan for the Salt Creek Mitigation Site including but not limited to, invasive species control, trash removal, site access control, biological monitoring, reporting, and as-needed remedial or adaptive management actions necessary to ensure the long-term sustainability, habitat function, and regulatory compliance of preserve and mitigation areas following completion of initial mitigation and monitoring requirements.
The activities described above are limited to those discrete tasks identified in the Long-Term Management Plan and are intended to ensure the long-term sustainability and ecological function of the Mitigation Site in perpetuity following completion of initial mitigation and monitoring requirements.
APPENDIX B
BOUNDARY MAP