CITY OF MENIFEE
SUBJECT: Public Safety Services Community Facilities District MEETING DATE: July 8, 2025
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Provide feedback to staff on the proposed formation of a Public Safety Services Community Facilities District (CFD) and initiation of a fiscal impact analysis study.
DISCUSSION
Since incorporation, the City of Menifee has seen its population grow significantly, reaching 115,316 as of 2025. As development within the City continues, it is critical to maintain high standards of public safety while managing the fiscal pressures associated with growth. Included within its current Strategic Plan, one of the City’s pillar priorities and goals is to continue to be a safe and vibrant community, with exceptional public safety as well as fostering a thriving economy.
Evaluating other opportunities to diversify revenue streams supporting public safety, could better position the City to financially support increasing service needs. While sales tax, including Quality of Life, property tax and other revenues currently support public safety, an additional dedicated revenue source for such services could come in the form of a public safety services Community Facilities District (CFD).
The State Legislature enacted the Mello-Roos Community Facilities Act of 1982 (1982 Mello- Roos Act) to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes or providing for the financing of on-going public services through formation of a CFD. Pursuant to Government Code section 53313, a CFD may be established to finance a wide variety of services within an area. A safety services CFD provides a sustainable and legally defensible mechanism for funding enhanced safety services through a special tax applied to new residential development.
In 2015 the city of Menifee initiated the process of forming a Public Safety Services CFD, holding a Resolution of Intent meeting in January 2015. Ultimately, the City elected to not move forward with the proposed CFD at that time. Various surrounding cities have established a safety services CFD, including but not limited to Murrieta, Lake Elsinore, Hemet, San Jacinto, Wildomar and
City of Menifee Staff Report
Community Facilities District (CFD): Public Safety Services July 8, 2025
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Perris. The proposed CFD would pick up all new residential development projects to ensure that all new housing projects incorporate public safety costs into the cost of the development. Under this scenario, each new house in all new developments will assist in defraying the cost of increasing public safety resources, including, but not limited to, police protection, fire protection, and ambulance and paramedic services
The next step to forming a Public Safety Services CFD is to move forward with completing a Fiscal Impact Analysis (FIA). The FIA is the foundation for forming a defensible and equitable Public Safety Services CFD. It evaluates the net fiscal position of the City under a full build-out scenario and determines the level of funding required to maintain or enhance public safety services. The goal is to assess whether new development generates enough revenue to offset the increased demand on police, fire, and EMS services—or whether a funding shortfall necessitates a special tax. The estimated cost for such a study would be approximately $21,000 based on a proposal received by the City’s special tax consultant, Spicer Consulting Group (SCG). The study would include 2 main components: the FIA (estimated at $13,500) and CFD formation services (estimated at $7,500).
FISCAL IMPACT
Moving forward with the evaluation/consideration of a Public Safety Services CFD, and engaging SCG for completion of the FIA study and subsequently CFD formation services, would have a fiscal impact of $21,000. This cost would be funded with existing approved FY2025/26 budget.
ATTACHMENTS
None.