CITY OF MENIFEE
SUBJECT: Ordinance Introduction and Annexation No. 29, Heritage Village, into Community Facilities District 2017-1,
Maintenance Services
MEETING DATE: April 2, 2025
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution calling an election to annex territory, including Tentative Tract Map 38346, located on the northwest corner of Rouse Road and Menifee Road, into City of Menifee Community Facilities District (CFD) No. 2017-1 (Maintenance Services) and to levy a special tax on that land; and
2. Hold a special landowner election and canvass the election; and
3. Adopt a resolution declaring results of special landowner election; and
4. Introduce an ordinance, amending the Ordinance No. 2017-231 and levying and apportioning the special tax in CFD 2017-1.
DISCUSSION
On February 19, 2025, the City Council adopted Resolution No. 25-1543, declaring its intent to annex territory to CFD No. 2017-1 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 29. The next steps in the annexation proceedings are to hold a public hearing on April 2, 2025, to conduct an election for the landowners and to declare the results of that election.
The area within Annexation No. 29 is included in Tentative Tract Map 38346 (TTM 38346) and is approximately 7.52 gross acres of a vacant lot within the City. The property is located on the northwest corner of Rouse Road and Menifee Road, as shown in the attached Project Location Map. The proposed maintenance services would include items such as landscaping, lighting, streets, drainage, parks, trails, and graffiti abatement.
City of Menifee Staff Report
CFD 2017-1 Annex No. 29, Heritage Village
April 2, 2025
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Per the request of Lennar Homes of California, LLC, (“Owner”), the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 29 to pay for those services.
Annexation No. 29 would have a maximum annual tax of $339 per unit and would be included in CFD No. 2017-1 as “Tax Zone 29.” This tax rate includes Maximum Special Tax A of $274 per unit per year for maintenance services of public facilities and a Maximum Special Tax B (“Contingent Tax B”) of $65 per unit per year and would be included in the CFD No. 2017-1 as “Tax Zone 29”. The maximum annual tax rate would escalate each year at the greater of the Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.
The Owner submitted Consent and Waiver forms on file in the City Clerk's Office to:
•hold the election and declare election results; and
•consent to the shortening of election time requirements; and •waive analysis and arguments; and
•waive all notice requirements relating to the conduct of the election immediately following the public hearing.
A copy of the boundary map entitled "Annexation Map No. 29, Community Facilities District No. 2017-1 (Maintenance Services)" was recorded on February 26, 2025, in Book 95 of Maps of Assessment and Community Facilities Districts at Page 52, in the office of the Riverside County Recorder. Annexing the parcel into CFD No. 2017-1 would cover the costs of maintenance of certain public improvements associated with the development.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. Upon full completion of the tract development, there would be an annual collection of Special Tax revenues of approximately $44,333, not including Contingent Tax B, to be used to pay for maintenance costs.
On June 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, would be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to 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 applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.
All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development City of Menifee Staff Report
CFD 2017-1 Annex No. 29, Heritage Village
April 2, 2025
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would be financed through special taxes levied on the parcels within CFD No. 2017-1 and not through the City’s General Fund.
ATTACHMENTS
1. Project Location Map
2. Resolution Calling the Election
3. Resolution Declaring Election Results
4. Certificate of Registered Voters
5. Ordinance
6. Signed Petition, Waiver and Consent for Annexation
7. Maintenance Site Plan Exhibit