CITY OF MENIFEE
SUBJECT: Resolution of Intention for Annexation No. 28, Nova Power, LLC, into Community Facility District 2017-1, Maintenance Services
MEETING DATE: July 16, 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. Accept the Petition of Nova Power, LLC, PLN 22-0154, located east of Antelope Road, north of McLaughlin Road, southwest of Matthews Road, and south of State Route 74 into Community Facilities District (CFD) No. 2017-1, Maintenance Services, as Annexation No. 28; and
2. Adopt a Resolution of Intention to add Annexation No. 28 into CFD No. 2017-1, to authorize the levy of special tax therein to finance certain maintenance services, and to set a public hearing for September 3, 2025.
DISCUSSION
On December 6, 2017, the City Council adopted Resolution No. 17-658, establishing CFD No. 2017-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Act). CFD No. 2017-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.
Nova Power, LLC, (Owner), a Delaware Limited Liability Company, is the Owner of PLN 22-0154 (APN 331-180-022), which consists of an approximately 43.14 gross acre lot with a pre-existing energy generation plant. The property is located east of Antelope Road, north of McLaughlin Road, southwest of Matthews Road, and south of State Route 74, as shown in the attached Project Location Map.
The Owner has requested that the City assist it in annexing PLN 22-0154 into CFD 2017-1 to cover the costs associated with the maintenance of public improvements. The area proposed for
City of Menifee Staff Report
CFD 2017-1, Annex 28 - Nova Power
July 16, 2025
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annexation would be designated “Annexation No. 28,” and would include property within PLN 22- 0154, to include the redevelopment of the Inland Empire Energy Center (IEEC) generation plant.
Per the Owner’s request, the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 28 to pay for those services.
Annexation No. 28 would have a maximum annual tax of $820 per acre and would be included in CFD No. 2017-1 as “Tax Zone 28.” The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. There are no maintenance services proposed to be funded by the levy of Special Tax B (Contingent) for CFD No. 2017-1. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.
The Owner has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Owner has submitted a “Consent and Waiver” form on file in the City Clerk’s Office which authorizes the City to (1) hold the election and declare election results (2) shorten election time requirements, (3) waive analysis and arguments, and (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.
The next step to annex PLN 22-0154 into CFD 2017-1 is to publish a notification of the proposed annexation along with the Resolution of Intention and Boundary Maps of the proposed Annexation area. A public hearing on the matter would take place on September 3, 2025, and at that time the Council would formally consider approval of the Annexation No. 28.
STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. It is estimated, upon full completion of the tract development that there would be an annual collection of special tax revenues of approximately $30,070 to be used to pay for maintenance costs.
On June 1 of each year, every taxable acre 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, 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 Owners. By annexing into the CFD, the costs of maintaining improvements located within the development would be financed through special taxes levied on the parcels within CFD No. 2017-1 and not through the City’s General Fund.
City of Menifee Staff Report
CFD 2017-1, Annex 28 - Nova Power
July 16, 2025
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ATTACHMENTS
1. Project Location Map
2. Resolution of Intention and Exhibits
3. CFD Maintenance Site Plan Exhibit