Valley
-
Wide
Fiscal Impact Analysis
:
Special District Annexation
Landscape Maintenance
September 22, 2025
Presentation Overview
Valley-Wide Organizational Overview
• Menifee Parks
• Parks North
• Parks South
Menifee portion of Valley-Wide Maintenance Districts
• Structure of current assessments
• City maintenance standard comparison
Financial Analysis To Incorporate Into City Park System • Annexation LAFCO Process
• Proposition 218 Vote Process
Annexation Process
Discussion/Direction
Valley-Wide Recreation & Parks District
Public Agency - Est. 1972
• 100+ Parks (733 acres of parkland)
• 70 miles of landscaped streetscapes
• 10 Community Centers
• 1 Aquatic Facility
• 1 Golf Course
275,064 Population Served
Revenue/Expenses: $29,512,629
• Property taxes & assessments
• Ad Valorem
• CFD/LMD
• Program fees
Revenue Sources
Valley-Wide Recreation & Parks District
• Diamond Valley
• Homeland
• French Valley
• Romoland
• Sage
• Valle Vista
• Winchester
Unincorporated Communities:
• Hemet
• San Jacinto
• Menifee – 3 Areas w/ Districts
• Menifee Parks (blue)
• Menifee North (green)
• Menifee South (pink)
Cities
Valley-wide Maintained Areas in Menifee (3 Areas)
Parks Within City Boundaries
City Parks VW Parks
Parks 22 24
Parkland Acres 114 148
ROW SF (Millions) 6 5.5
Community Centers 2 3
FT Maintenance Staff
(includes 1 Fac staff) 10* 13**
*current staffing level
**projected staffing level
Budget
Estimates
• Valley-wide estimates are based on available data
• City estimates are based on current levels of service including utilities, service contracts, and maintenance personnel costs
• City maintenance personnel inspects, repairs, and conducts replacements • Supervision and Park Ranger patrol costs are added into assumptions • 1 maintenance vehicle is required for each FT maintenance staff City Parks System
Other Considerations
• North and South Districts contain portions outside city limits and may require Prop 218 votes to annex
• Recreation programs, maintenance vehicles, and sport field light costs are supported by City General Fund
• Reserves may be available to conduct capital improvements on VW assets
Menifee Parks Districts
1. Aldergate Park
2. Brindle Mills Park
3. Desert Green Park
4. El Dorado Park
5. Grand Vista Park
6. La Paloma Park
7. Lago Vista Park*
8. Mahogany Creek Park
9. Mahogany Creek Pocket Park
10. Menifee South Tot Lot
11. Pepita Square Park
12. Wheatfield Park
12 Parks (65 Acres)
• 1,212,200 SF (28 Acres)
• *includes Lago Vista open space
Landscape Areas
12. Wheatfield Community Center
12. Menifee Gym - 50% JUA
(Evenings/Weekends Only)
2 Facilities (20,000 SF)
- 2% annual escalator ($57,753 – 2.5%)
- Direct costs – zone specific maintenance
- Indirect costs – administrative and reserves
- 7,200 Parcels in this district
District Revenue $2,298,996
Valley-wide Total Budget $2,298,996
Parks/Trails/Facilities $1,425,112
Direct maintenance $412,553
Indirect $461,331
City Maintenance Estimate $2,231,717
Parks/Trails/Facilities $1,201,990
Direct maintenance $571,717
Indirect $458,010
Est. General Fund Impact $714,513
Sport Park Utility Cost $222,110
Sport Park Maintenance $60,576
Facilities $107,350
Maintenance Vehicles $48,000
Rec Programs Budget $487,237
Revenue Offset - Recreation ($210,760)
Variance (+/-) ($647,234)
Menifee North Districts
1. Discovery Park
2. Eller Park (Outside District)
3. Heritage Lake Sports Park
4. Heritage Park
5. Marion Ashley Park (County)
6. McCall Canyon Park
7. Sunrise Park
7 Parks (69 Acres)
•3,551,381 SF (81.5 Acres)
•Nearly half is Open Space
Landscape Areas
•Marion V. Ashley (County)
1 Facility (25,000 SF)
- 2% annual escalator on all Zones
- Direct costs – zone specific maintenance
- Indirect costs – administrative and reserves
- 4,140 Parcels in this district
District Revenue $2,808,703
Valley-wide Total Budget $2,808,703
Parks/Trails/Facilities $706,183
Direct maintenance $1,540,780
Indirect $561,741
City Maintenance Estimate $3,058,069
Parks/Trails/Facilities $1,293,725
Direct maintenance $1,202,603
Indirect $561,741
Est. General Fund Impact $683,102
Sport Park Utility Cost $133,273
Sport Park Maintenance $36,347
Facilities $150,376
Maintenance Vehicles $72,000
Rec Programs Budget $597,643
Revenue Offset - Recreation ($306,537)
Variance (+/-) ($932,468)
Zone Parcels Levy
Zone 1A 593 $126,469
Zone 1 226 $138,321
Zone 2 212 $127,828
Zone 3* 74 $40,972
Zone 4 162 $134,810
Zone 5 2,689 $2,226,465
Zone 6* 407 $329,755
Zone 8 257 $54,810
Zone 9* 31 $16,308
Total 4,651 $3,195,738
Menifee North
Park LMD
*Zones outside of city boundary.
# of Parcels – 4,140
Menifee South Districts
1. Autumn Breeze Park
2. Hidden Meadows Park
3. Mira Park
4. Mosaic Park
5. Rolling Hills Park
5 Parks (14 Acres)
• 793,883 SF
• Includes portion outside
city limit at Briggs/Scott Rd
Landscape Areas
No Facilities
- 2% annual escalator on all Zones
- Direct costs – zone specific maintenance
- Indirect costs – administrative and reserves
- 2,100 Parcels in this district
District Revenue $1,112,877
Valley-wide Total Budget $1,112,877
Parks/Trails/Facilities $218,933
Direct maintenance $671,368
Indirect $222,575
City Maintenance Estimate $996,390
Parks/Trails/Facilities $236,465
Direct maintenance $537,350
Indirect $222,575
Est. General Fund Impact $6,965
Sport Park Utility Cost $0
Sport Park Maintenance $0
Maintenance Vehicles $12,000
Rec Programs Budget $600
Revenue Offset - Recreation ($5,635)
Variance (+/-) $109,522
Zone Parcels Levy
Zone 1 107 $51,171
Zone 2 169 $71,629
Zone 3* 406 $256,105
Zone 4 144 $55,706
Zone 5 292 $184,994
Zone 6** 266 $153,628
Zone 7 59 $27,970
Zone 8 190 $70,881
Zone 9* 146 $54,458
Zone 10 99 $72,014
Zone 11 178 $181,419
Zone 12 114 $42,843
Zone 13* 68 $32,900
Zone 14 258 $135,112
Zone 16 230 $65,509
Total 2,726 $1,456,340
Menifee South
Park LMD
*Zones outside of city boundary.
**Zone 6 split inside/outside city boundary.
# of Parcels – 2,100
Totals and
Considerations
Menifee Parks Menifee North Menifee South Total Impact
# of Homes/Parcels 7,200 4,140 2,100 13,440
District Revenue $2,298,996 $2,808,703 $1,112,877 $6,220,576 Valley-wide Total Budget $2,298,996 $2,808,703 $1,112,877 $6,220,576 Parks/Trails/Facilities $1,425,112 $706,183 $218,933 $2,350,228 Direct Maintenance $412,553 $1,540,780 $671,368 $2,624,700 Indirect $461,331 $561,741 $222,575 $1,245,647
City Maintenance Estimate $2,231,717 $3,058,069 $996,390 $6,286,176 Parks/Trails/Facilities $1,201,990 $1,293,725 $236,465 $2,732,181 Direct Maintenance $571,717 $1,202,603 $537,350 $2,311,670 Indirect $458,010 $561,741 $222,575 $1,242,326
Est. General Fund Impact $714,513 $683,102 $6,965 $1,404,580 Sport Park Utility Cost $222,110 $133,273 $0 $355,383
Sport Park Maintenance $60,576 $36,347 $0 $96,923
Facilities $107,350 $150,376 $0 $257,726
Maintenance Vehicles $48,000 $72,000 $12,000 $132,000
Rec Programs Budget $487,237 $597,643 $600 $1,085,480
Revenue Offset - Rec Programs ($210,760) ($306,537) ($5,635) ($522,932) Base Surplus/Deficit ($647,234) ($932,468) $109,522 ($1,470,180) Annexation Procedure / LAFCO Process
• Removal of territory from an existing local agency’s jurisdiction (e.g., a park or water district)
• Governed by the Cortese-Knox-Hertzberg Act (CKH Act)
• Reviewed and approved by the Local Agency Formation Commission (LAFCO) • It is expected that LAFCO will require Prop. 218 vote for North and South District What is
Annexation?
Initiation of
Proposal
(30 days)
Application
Filing with
LAFCO
(120 days)
LAFCO
Review &
Hearing
(120 days)
Protest
Proceedings
(60 days)
Prop. 218
Vote if Req.
(8 months)
Final
Certification
(60 days)
Total Timeline: 18-24 Month Process
Proposition 218 Vote Process
Right to Vote on Taxes Act (1996)
• LAFCO required a Prop. 218 vote with previous annexation request for districts with maintenance zones outside of city limits
• Each District is comprised of multiple zones, each zone requires a separate Prop 218 vote • Per zone maps there are 25 total zones (North 10; South 15) –Total 6,240 Homes • Additional guidance from LAFCO would be requested if vote is unsuccessful in 1 or more zones • Potential fiscal impact resulting from general benefit nexus • The City may conduct community outreach to inform public about the voting process however support for (or against) annexation cannot be promoted
• Cost to administer vote estimated to be $40,000 -$100,000 each district.
Additional Considerations/Risks
Formal
Consent
Received
from Valley-
wide
Engineer’s
Report
(120 days)
Determine
Special vs
General
Benefit
Public
Notification
& Ballot
(90 days)
Public
Hearing
and Ballot
Tabulation
(30 days)
Levy of
Assessment
Due August
of Each FY
Process Timeline: 8-12 Months
Annexation Overview
Operational & Service Considerations
• Local Control: Brings all park operations under City oversight, increasing responsiveness and accountability • Service Consistency: Standardizes maintenance, signage, rules, and hours across all Menifee parks • Resident Access: Enables City programming and events at parks in annexed communities • No Change to Existing Assessments: Residents would continue to pay their current park taxes Financial & Procedural Considerations
• Communication & Outreach: Requires messaging to approx. 6,240 homeowners in North and South zones on Prop 218 vote process, with 13,440 parcels affected across all three districts • Financial Risk:
• One-time annexation costs: $40,000 - $200,000 depending on Prop. 218 process • Annual General Fund impact if successful: Estimated at $1,500,000+ • Prop. 218 requires a study to determine how much benefit is general vs. parcel-specific, findings could reduce recoverable costs and increase City funding obligations • Procedural Risk:
• Potential for Prop. 218 vote failures, which could lead to service disruptions and legal complexity Questions?
Thank You.