REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:May 27, 2025
Subject:Annexation No. 23 Into Community Facilities District No. 2015-2 (Maintenance Services) for TTM 34249 (Canyon Hills Heights) Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 23) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN.
Background
On September 22, 2015, the City Council approved Resolution No. 2015-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore (the "CFD No. 2015-2" or "District") to levy special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.
Tri Pointe Homes IE-SD, Inc. (the "Owner") owns 76.71 gross acres of a vacant residential lot within the City. The Owner has requested that the City assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs of maintaining public improvements. The proposed improvements include landscaping, street lighting, street maintenance, drainage, parks, and graffiti abatement.
CFD 2015-2 (Maintenance Services) Annexation 23
Discussion
The landowner has advised the City that the area described in Exhibit "B" of the Resolution of Intention is to be annexed into CFD No. 2015-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit "C." The original area proposed within Annexation No. 23 will encompass 133 single-family lots. The territory proposed to be annexed into CFD No. 2015-2 will be included in Tax Zone 26. The property is located south of Hemlock Street and west of Pine Avenue. The proposed maximum tax rate is $1,026 per unit per year for Special Tax A and $216 per unit per year for Special Tax B. The maximum annual tax rates are proposed to escalate yearly at the greater of the Consumer Price Index (CPI) or 2%. See Exhibit 3 for a maintenance exhibit illustrating which services are being maintained by the CFD.
The Owner has agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office to initiate and conduct proceedings according to the Mello- Roos Act of 1982, requesting the annexation of property to CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
The next step in annexing the property to CFD No. 2015-2 is to publish a notification of the proposed district along with the "Resolution of Intention" and Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on July 8, 2025, and at that time, the Council will formally consider approval of Annexation No. 23.
Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will be subject to special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given fiscal year before the project buildout exceed the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to undeveloped property within the tax zone. Once developed, the Special Tax A for Tax Zone 26 will generate $136,508 for maintenance services.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibit A - Resolution Exhibits A-G
Attachment 3 - CFD Maintenance Exhibit
Administrative Services