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:June 24, 2025
Subject:Annexation No. 24 Into Community Facilities District No. 2015-2 (Maintenance Services) for PM 38195 & 38281 (Evergreen) Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, 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. 24) AND AUTHORIZING THE LEVY OF A 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.
Cambern and Central North, LLC, an Arizona limited liability company, and Evergreen-Cambern and Central South Land, LLC, an Arizona limited liability company (the "Owners"), own 8.34 gross acres of a vacant commercial lot within the City. The Owners have requested that the City assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs associated with maintaining public improvements. The improvements proposed to be maintained include items such as landscaping, lighting, street maintenance, and drainage.
Discussion
The landowners have 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 are to be levied as described in Exhibit "C”.
CFD 2015-2 (Maintenance Services) Annexation 24
The original area proposed within Annexation No. 24 will encompass a grocery store, several quick-serve restaurants, a gas station with a convenience store, and a separate drive-through car wash with 369 parking spaces. The territory proposed to be annexed into CFD No. 2015-2 will be included in Tax Zone 27. The property is located at the northeast intersection of Cambern Avenue and Central Avenue. The proposed maximum tax rate is $1,594 per acre per year for Special Tax A. The maximum annual tax rates are proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%. Refer to Exhibit 3 for a maintenance exhibit that illustrates which services are being maintained by the CFD.
The Owners have 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 under 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 a Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on August 12, 2025, at which time the Council will formally consider the approval of Annexation No. 24.
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 buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be on undeveloped property within the Tax Zones. Once developed, the Special Tax A for Tax Zone 27 will generate $11,297 for maintenance services.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibits A-G
Attachment 3 - Maintenance Exhibit
Administrative Services