CITY OF MENIFEE
SUBJECT: First Reading and Introduction of an Ordinance for Annexation No. 38, Menifee Valley Business Park – Building 4, into Community Facility District 2017-1, Maintenance Services MEETING DATE: August 19, 2026
TO: Mayor and City Council
PREPARED BY: Mandy Stephens, Management Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution calling an election to annex territory, including Tract Map (TM) 38303, Menifee Valley Business Park – Building 4, located between Highway 74 and McLaughlin Road, east of Menifee Road, and west of Malaga Road, into Community Facilities District (CFD) No. 2017-1 Maintenance Services and to levy a special tax on that land; and
2. Adopt a resolution declaring the results of the special landowner election; and
3. Introduce an ordinance, amending Ordinance No. 2017-231 and levying and apportioning the special tax in CFD 2017-1.
DISCUSSION
On July 15, 2026, the City Council adopted Resolution No. 26-1748, declaring its intent to annex territory to CFD No. 2017-1 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 38. The next steps in the annexation proceedings are to hold a public hearing on August 19, 2026, to conduct an election for the landowners and to declare the results of that election. Notice of the public hearing was published in the Press Enterprise and mailed to the property owner in accordance with the Mello-Roos Act.
The area within Annexation No. 38 is included in TM 38303 and is approximately seventy-four gross acres of industrial vacant lot within the City. The property is located between Highway 74 and McLaughlin Road, east of Menifee Road, and west of Malaga Road, as shown in the attached Project Location Map. The proposed maintenance services would include items such as landscaping, lighting, streets, and drainage.
City of Menifee Staff Report
CFD 2017-1, Annex 38 – Menifee Valley Business Park – Building 4 August 19, 2026
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Per the request of IV4 Menifee Valley Business Park BLDG 4, LLC (Owner), the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 38 to pay for those services.
Annexation No. 38 would have a maximum annual tax of $2,338 per acre and would be included in CFD No. 2017-1 as “Tax Zone 38.” This tax rate includes a Maximum Special Tax A of $1,339 per acre per year for maintenance services of public facilities and a Maximum Special Tax B (Contingent Tax B) of $999 per acre per year. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.
The Owner submitted Consent and Waiver forms on file in the City Clerk’s Office to:
•hold the election and declare election results; and
•consent to the shortening of election time requirements; and •waive analysis and arguments; and
•waive all notice requirements relating to the conduct of the election immediately following the public hearing.
A copy of the boundary map entitled “Annexation Map No. 38, Community Facilities District No. 2017-1 (Maintenance Services)” was recorded on July 21, 2026, in Book 99 of Maps of Assessment and Community Facilities Districts at Page 75, in the office of Riverside County Recorder. Annexing the parcel into CDF No. 2017-1 would cover the costs of maintenance of public improvements associated with the development.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. Upon full completion of the tract development, there would be an annual collection of Special Tax revenues of approximately $89,684, not including Contingent Tax B, to be used to pay for maintenance costs.
On June 1 of each year, every taxable unit for which a building permit has been issued 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 38 – Menifee Valley Business Park – Building 4 August 19, 2026
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ATTACHMENTS
1. Project Location Map
2. Resolution Calling the Election
3. Resolution Declaring Election Results
4. Certificate of Registered Voters
5. Ordinance
6. Signed Petition, Waiver and Consent Annexation
7. CFD Maintenance Site Plan Exhibit