CITY OF MENIFEE
SUBJECT: First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
MEETING DATE: August 19, 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 establishing Community Facilities District (CFD) No. 2026-2, Quail Hills, located between Williams Drive and Goetz Road; and
2. Adopt a resolution determining the necessity to incur bonded indebtedness for CFD No. 2026- 2, Quail Hills; and
3. Adopt a resolution certifying election results for CFD No. 2026-2, Quail Hills; and
4. Introduce an ordinance authorizing the levy of special taxes within CFD No. 2026-2, Quail Hills.
DISCUSSION
On July 15, 2026, the City Council adopted Resolution 26-1744 (Resolution of Intention), declaring its intent to commence the formation of CFD 2026-2. The next step in the proceedings is to hold a public hearing on August 19, 2026, to conduct an election in CFD No. 2026-2 and to declare the results of the election.
Quail Hills, LP, a California limited partnership, intends to develop the property in CFD 2026-2 with 130 homes on approximately 16.79 net acres. The Developer requested that the City form CFD 2026-2 in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (Mello-Roos Act), to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds in an amount not to exceed $6 million.
City of Menifee Staff Report
Proposed Formation of Community Facilities District 2026-2, Quail Hills August 19, 2026
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The Developer has requested that the boundaries of CFD No. 2026-2 include the area described in Exhibit A of the Resolution of Intention, and that special taxes be levied within the boundaries of CFD 2026-2 in accordance with the Rate and Method of Apportionment (RMA) as described in Exhibit C to the Resolution of Intention, which is included as an appendix to the attached Public Hearing Report.
The Resolution of Intention called for a public hearing to be held on August 19, 2026, for the City Council to formally consider the approval of the formation of CFD 2026-2 and the approval of the levy of the special taxes within CFD 2026-2. Notice of the public hearing was published in the Press-Enterprise and mailed to the Developer in accordance with the Mello-Roos Act.
In connection with the public hearing, Spicer Consulting Group has prepared a Public Hearing Report that describes and analyzes the facilities to be financed by the CFD and the estimated costs of such facilities. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt which, together, approve the formation of the CFD and the levy of the special taxes within the CFD in accordance with the RMA and determines the necessity for the CFD to issue bonds in an amount not to exceed $6 million. Such Resolutions call for an election to submit to the qualified voters in the CFD ballot measures on the approval of the special taxes, the issuance of the bonds and an appropriations limit for the CFD.
In addition, the Resolution of Formation approves the execution and delivery of the Funding Agreement with the Developer. The Funding Agreement sets forth the terms, among others, pursuant to which the CFD will finance improvements to be constructed by the Developer.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of the CFD. Accordingly, under the Mello-Roos Act, only landowners in the CFD are eligible to vote at the election with each owner having one vote for each acre (or portion thereof) that they own within the CFD. The landowner in the CFD has executed a consent and waiver of certain election procedures for the election within the CFD, including certain timing requirements with respect to the election in accordance with the Mello-Roos Act. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt, the City Clerk will conduct the election. The City Clerk will announce the elections results and the City Council will be asked to adopt the Resolution Certifying the Election Results. Based on certification that two-thirds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results directs the City Clerk to record a notice of special tax lien on the property within the CFD.
The City Council will then be asked to introduce the Ordinance authorizing the levy of the special tax within the CFD in accordance with the RMA.
STRATEGIC PLAN OBJECTIVE
Regular City Business
City of Menifee Staff Report
Proposed Formation of Community Facilities District 2026-2, Quail Hills August 19, 2026
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FISCAL IMPACT
The CFD will be required to annually levy special taxes on all the taxable property within the CFD in order to pay for the costs of facilities, debt service on bonds and administration of the CFD.
Any bonds issued by the CFD are not obligations of the City and will be secured solely by the special taxes levied in the CFD. The Developer has made a deposit to pay for the costs of forming the CFD. The Funding Agreement includes a provision for reimbursement of most of these costs to the Developer if and when bonds are issued for the CFD.
ATTACHMENTS
1. Location Map
2. Resolution of Formation CFD 2026-2
3. Resolution of Necessity to Incur Debt CFD 2026-2
4. Resolution Certifying Election Results CFD 2026-2
5. Ordinance CFD 2026-2
6. CFD Report CFD 2026-2
7. Funding Agreement CFD 2026-2
8. Registrar of Voters Certificate CFD 2026-2