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:July 8, 2025
Subject:Public Hearing and Election for Annexation Proceedings for Annexation No. 23 Into Community Facilities District No. 2015-2 (Maintenance Services) for TTM 34249 Canyon Hills Heights
Recommendation
1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE
QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 23);
2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DECLARING ELECTION RESULTS FOR COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 23); and
3. Introduce AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY
COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE
CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.
Annexation No. 23 Into CFD No. 2015-2 (Canyon Hills Heights)
Background
On May 27, 2025, the City Council adopted Resolution No. 2025-27, declaring its intention to annex territory to Community Facilities District No. 2015-2 (Maintenance Services) and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 23. A public hearing was set for July 8, 2025. Following such a public hearing, if there is no majority protest against the annexation and the levy of the special tax, the City Clerk will conduct an election for the landowners and declare the results of that election.
As required by the Resolution of Intention, an annexation map was recorded on June 3, 2025, at 12:19 p.m. in Book 96, Page 29, Document No. 2025-0167525 of Maps of Assessment and Community Facilities Districts with the Riverside County Recorder.
Discussion
The Resolution of Intention was adopted by the City Council in response to a request by Tri Pointe Homes IE-SD, Inc. (the "Owner") for the City to 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, street lighting, street maintenance, drainage, parks, and graffiti abatement. The Applicants 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 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 original area proposed under Annexation No. 23 encompasses 133 single-family lots, which will be incorporated into Tax Zone 26 of CFD No. 2015-2. Resolution No. 2025-27, adopted on May 27, 2025, originally proposed a maximum special tax rate of $1,026 per single-family residential unit. Following further project refinement, including the removal of Open Space Lot C and the addition of two Modular Wetland Units, the proposed maintenance costs were reduced.
As a result, the special tax rate was revised to $792 per unit. The maximum annual tax rates are proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%.
To annex property to CFD No. 2015-2 under the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance, which are summarized below.
•Resolution declaring City's intent to annex territory to Community Facilities District No. 2015-2, including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted May 27, 2025. •Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. •Resolution declaring the results of the election and directing the recording of the notice of special tax lien.
Annexation No. 23 Into CFD No. 2015-2 (Canyon Hills Heights)
•Amend the Ordinance and order the levy and collection of special taxes in the District.
With the adoption of the Resolutions and the first reading of the amended Ordinance, the second reading of the amended Ordinance would be scheduled for July 22, 2025.
Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will be subject to the special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, before buildout of the project, exceed 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 Zone.
Once developed, the Special Tax A for Tax Zone 26 will generate $105,289 annually, plus the annual escalator for maintenance services.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution Calling an Election
Exhibit A - Rate and Method of Apportionment
Exhibit B - Ballot
Attachment 3 - Resolution Declaring Election Results
Exhibit A - Certificate of Election Results
Attachment 4 - Certificate of Registrar of Voters
Attachment 5 - Ordinance
Administrative Services