CITY OF MENIFEE
SUBJECT: Public Safety Community Facilities District
MEETING DATE: May 20, 2026
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Director of Strategic Programs and Initiatives
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution authorizing staff to proceed with the formation of a Public Safety Community Facilities District (CFD); and
2. Adopt the amended City Council Policy CC-20 Special Assessment and Community Facilities District Goals and Policies.
DISCUSSION
Prioritizing both a thriving economy and safe and vibrant community as strategic priorities, the City Council discussed and provided feedback on the City moving forward with establishing a Public Safety Services CFD at a special workshop held on January 21, 2026. The purpose of the CFD is to help fund essential City services for residential development.
At the workshop, the City Council received a presentation on the legal requirements for establishing a CFD under the Mello-Roos Community Facilities Act of 1982 (Government Code §53311 et seq.), the fiscal impact analysis completed to determine recommended annual rates for single family residential, and multi-family residential projects, annual adjustments to the rates, and information on implementation steps that would be required to move forward. The City Council expressed support for moving forward with the formation of a public safety CFD to provide needed funding for increasing costs of public safety resulting from new developments within the City.
The resolution presented for City Council consideration would formalize authorization for staff to proceed with the necessary steps to establish a Public Safety Community Facilities District (CFD).
A summary of the formation process is outlined on the following page.
City of Menifee Staff Report
Public Safety Community Facilities District (CFD)
May 20, 2026
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TABLE 1: FORMATION PROCESS
Step Description Council Action
Cornerstone residential
project identified
An initial residential project
identified as eligible for
participation into the public
safety CFD will go through
the formation process.
Public Hearing,
Ordinance/Resolution(s)
adopted establishing/forming
CFD with initial boundary.
Future residential project
annexations
Future residential projects will
be annexed into the public
safety CFD as they are
either:
- Conditioned by
Conditions of Approval
(non-entitled projects)
- Agreed/negotiated with
respective development
(entitled projects)
Individual Public Hearing(s)
annexations similar to
maintenance CFD.
Summary of Proposed Public Safety CFD Rates & Annual Adjustment Based on the fiscal impact analysis completed and presented at the January workshop, the proposed Public Safety CFD would include the following parameters:
•Applicable to future residential developments (single family residential: $525 per unit, and multi-family residential: $411 per unit)
•Annual rate adjustment of: Greater of CPI or 4% (City would retain the discretion each year to determine how long and whether to levy at the maximum rates) •Proposed rates would be applied at the indicated amounts, including affordable housing units.
Amendments to CC-20 Special Assessment and Community Facilities District Goals and Policies
Staff also recommend amending existing Policy No. CC-20 Special Assessment and Community Facilities District Goals and Policies to revise existing language within Section 5, Procedure, as follows:
“The City will condition the financing of city facilities through a facilities CFD or through participation in a JCFA agreement on the applicant’s agreement to participate in a public safety CFD.”
City of Menifee Staff Report
Public Safety Community Facilities District (CFD)
May 20, 2026
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0 7
Participation in a City Facilities CFD or Joint Community Facilities District (JCFA) is optional, and at the request of the developer. Through a Facilities CFD or JCFA CFD, the developer can finance infrastructure improvements through the issuance of bonds which are repaid through special taxes levied on units within the development, generally over 30 years. Including participation in the City’s Public Safety CFD as a requirement for Facilities CFDs will provide the City with a mechanism to negotiate and prioritize the CFD as a component of new residential projects.
Next Steps
If approved, the next steps would include the following actions:
1. Public Hearing for Public Safety CFD formation with the first residential project to be included in the CFD;
2. Subsequent residential projects would be annexed through respective public hearings to annex into the CFD;
3. Annual levy, maximum and applied tax rates would be calculated and presented for City Council adoption and submittal to the County of Riverside Tax Collector’s office.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
FISCAL IMPACT
If approved to move forward, there would be various one-time initial CFD formation costs including staff time required for the various ordinance(s), resolution(s), and CFD set-up steps. While the residential project identified as the cornerstone CFD zone development would cover some of the formation costs, the City would share some of the associated costs. Future annexations into the Public Safety CFD would cover all associated annexation costs. The Public Safety CFD would provide the City with an ongoing and dedicated restricted revenue stream to help support public safety needs year over year.
ATTACHMENTS
1. Resolution
2. Redlined Policy
3. CFD 2026-S (Safety Services) - RMA