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:August 12, 2025
Subject:Public Hearing and Election for Annexation Proceedings for Annexation No. 26 Into Community Facilities District No. 2015-2 (Maintenance Services) for APN Nos. 377-380-003 & 377-100-003 (Cambern Apartments)
Recommendation
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. 26);
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. 26); and Introduce by title only and waive further reading of 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.
Background
On June 24, 2025, the City Council adopted Resolution No. 2025-33, 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. 26. A public hearing was set for August 12, 2025. Following such 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.
Annexation No. 26 Into CFD No. 2015-2 Cambern Apartments
As required by the Resolution of Intention, an annexation map was recorded on July 2, 2025, at 8:58 a.m. in Book 96, Page 65, Document No. 2025-0202947 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 Cambern Avenue Development Holding Company, LLC (the "Owner") for the City to assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs associated with the maintenance of public improvements. The improvements proposed to be maintained include items such as 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 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 original area proposed under Annexation No. 26 encompasses a 76-unit multi-family affordable housing apartment complex, which will be incorporated into Tax Zone 30 of CFD No. 2015-2. Resolution No. 2025-33, adopted on June 24, 2025, originally proposed a maximum special tax rate of $5,449 per acre for Special Tax A, and $2,227 per acre per year for Special Tax B. The maximum annual tax rates are proposed to escalate each year at the greater of 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 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 June 24, 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.
•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 August 26, 2025.
Annexation No. 26 Into CFD No. 2015-2 Cambern Apartments
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 30 will generate $18,619 annually, plus the annual escalator for maintenance services.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution Calling an Election
Exhibit 2A - Rate and Method of Apportionment
Exhibit 2B - Ballot
Attachment 3 - Resolution Declaring Election Results
Exhibit 3A - Certificate of Election Results
Attachment 4 - Certificate of Registrar of Voters
Attachment 5 - Ordinance
Attachment 6 – Proof of Publication
Administrative Services