CITY OF MENIFEE
SUBJECT: Intention to set a Public Hearing to Establish Fiscal Year 2026/2027 County Service Area Charges Within the City
MEETING DATE: May 20, 2026
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 declaring the City’s intention to continue County Service Area charges within the City for Fiscal Year 2026/2027 and notice a public hearing for July 15, 2026.
DISCUSSION
When the City of Menifee incorporated in October 2008, it assumed responsibility for the existing County Service Areas (CSAs) within the City’s jurisdictional boundaries. Since then, the City has been responsible for the services and charges provided by CSAs 33, 43, 84, 86, 138, and 145. Additionally, during the formal incorporation on October 1, 2008, the City adopted all Riverside County Ordinances 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. Additionally, a public hearing must be conducted to complete the process of establishing the CSA charges for the upcoming fiscal year.
Each of the six CSAs identified above has annual assessment charges levied against the parcels contained within its service area boundaries. The charges are set each year based on the formula specified within Riverside County Ordinance No. 573. The annual charges are assessed and included on the property tax bill for each affected parcel and are collected and transferred to the CSA/City on the same schedule as the normal property tax payments.
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 CSAs fund balance. Historically, the exception has been CSA 145, which maintains streetlights, landscaping and parks and provides recreation services to 7,743 properties in Sun City and western Menifee.
When this CSA was formed, the assessment increases were limited to 2% annually, which has
City of Menifee Staff Report
Intention to set a Public Hearing for Fiscal Year 2026/2027 CSA Charges Within the City May 20, 2026
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resulted in maintenance costs rising faster than revenues. Staff continue to look for ways to proactively manage costs. However, with the limitation of adjustments to revenues, and increasing costs in key elements like utilities, labor costs, and supplies, it will become progressively more challenging to cover all expenses without additional funding support.
If the resolution is adopted, a public hearing would be set to complete this process, which would be held during the July 15, 2026, City Council Meeting.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
If authorized, the total combined levy for all of the applicable CSAs would be approximately $1,958,803 and would be included in the Fiscal Year 2026/2027 budget.
ATTACHMENTS
1. Resolution of Intention CSAs
2. Preliminary CSAs Annual Levy Report for FY 2026-2027