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:Intention to Establish Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights)
Recommendation
Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-1
OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS), TO AUTHORIZE THE LEVY
OF A SPECIAL TAX TO PAY THE COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS; and Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF THE CITY
OF LAKE ELSINORE, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $14,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS) Background
The property to be included within proposed Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (“CFD No. 2025-1” or the “District”) is located on the northwest corner of Canyon Road and Craig Avenue (the “Property”) (see the attached project map). The property is approximately 81 gross acres with plans to be entitled to 133 single-family residential lots. Tri Pointe Homes Ie-Sd, Inc., a California Corporation (the “Property Owner”), currently owns the property.
Discussion
The Property Owner has requested that the City form CFD No. 2025-1 to encompass the property under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the Establishing CFD 2025-1 (Canyon Hills Heights)
costs of specific public improvements through the levy of a special tax and the issuance of bonds.
The maximum amount of bonded indebtedness proposed is $14 million.
The Property Owner has requested that the boundaries of CFD No. 2025-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-1 presented at this meeting (the “Resolution of Intention”), and that special taxes be levied within the boundaries of the District per the Rate and Method of Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention. The Resolution of Intention is the first step in forming CFD No. 2025-1. The attached Resolutions declare the City’s intention to establish CFD No. 2025-1, its intention to incur bonded indebtedness by CFD No. 2025-1, and call for a public hearing. A public hearing on the matter will take place on July 8, 2025, and at that time the Council will formally consider the establishment of CFD No. 2025-1, and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2025-
1. Fiscal Impact
The Property Owner has made a deposit to pay for the costs of the formation proceedings, which may be reimbursed to the Property Owner from proceeds of a future bond issuance (if any) per a reimbursement agreement with the Property Owner. If established and subject to necessary Council and voter approvals, CFD No. 2025-1 will annually levy special taxes on all taxable property within the District under the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for facilities, bond debt service, and CFD No. 2025-1 administration. Any bonds issued by CFD No. 2025-1 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-1.
The RMA provides that the annual special tax rates will range from $4,202 for home sizes less than 1,900 square feet to $5,228 for home sizes greater than 2,300 square feet, with rates escalating at 2% per year.
Attachments
Attachment 1 - Resolution of Intention to Establish CFD 2025-1 Attachment 2 - Resolution of Intention to Incur Debt
Attachment 3 - Landowner Petition
Attachment 4 - Project Map
Attachment 5 - Reimbursement Agreement
Administrative Services