CITY OF MENIFEE
SUBJECT: Levy of Charges for County Service Areas for Fiscal Year 2025/2026
MEETING DATE: July 16, 2025
TO: Mayor and City Council
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. Adopt a resolution ordering the levy and collection of Fiscal Year 2025/2026 charges for County Service Areas within the City.
DISCUSSION
Each year the City Council must approve two separate resolutions to allow for the continued collection of County Service Area (CSA) charges within the City. The first resolution (Resolution of Intention No. 25-1582) was adopted at the June 4, 2025, City Council meeting. The second resolution – now before the City Council – orders the levy and collection of the proposed CSA charges in the upcoming fiscal year.
When the City of Menifee incorporated in October 2008, it assumed responsibility for the services and charges for the six existing CSAs located within the City’s boundaries (CSAs 33, 43, 84, 86, 138, and 145). Additionally, during the formal incorporation on October 1, 2008, the City of Menifee adopted all Riverside County ordinances then in effect, including Riverside County Ordinance No. 573.
Riverside County Ordinance No. 573 specifically requires that the City Council annually cause to be prepared and filed with it a report describing the services, parcels and charges provided by each CSA for the upcoming fiscal year. Each of the six CSAs identified above has annual assessment charges levied against the parcels contained within the CSA boundaries. The charges are set each year based on the formula specified within Ordinance No. 573. The annual charges are assessed and included on the property tax statement for each affected parcel and are collected and transferred to the CSA/City on the same schedule as the normal property tax.
City of Menifee Staff Report
CSA public hearing
July 16, 2025
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The CSAs provide various services to portions of the city, primarily street lighting. However, some CSAs provide additional services. For example, CSA 86 provides funding for dedicated law enforcement service to the Quail Valley area, and CSA 145 provides for parks and recreation services to most areas of the City west of Interstate 215.
The cost of services provided by five of the six CSAs is either covered entirely by their respective special assessments, or by a combination of special assessment revenue and the CSA’s fund balance. Historically, the exception has been CSA 145, which maintains streetlights, landscaping and parks and provides recreation services to 7,744 properties in Sun City and western Menifee.
When this CSA was formed, the assessment increases were limited to 2% annually, which has resulted in maintenance costs rising faster than revenues. To accommodate an expense for tree trimming, which has become necessary, maintenance personnel costs were reduced this year in order to ensure expenditures did not exceed revenues. In FY 2025/2026 CSA 145 has budgeted revenue of $1,052,783 and budgeted expenditures of $1,016,831.
A notice of public hearing for this item was published on July 2, 2025, pursuant to Government Code Section 6066. As of the date of this staff report, no comments were received from the public regarding this matter.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
Adoption of this resolution would allow the City of Menifee to collect approximately $1,941,338, which would allow the City to meet its maintenance obligation for the six CSAs.
ATTACHMENTS
1. Resolution Ordering the Levy (CSAs)
2. CSA Preliminary Summary of Fixed Charges
3. CSAs Annual Report