Report to City Council
ID: 24-0387 Page 1
TO: Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of
the Moreno Valley Community Services District (CSD)
FROM: Launa Jimenez, Chief Financial Officer
AGENDA DATE: June 4, 2024
TITLE: ANNEXATION OF CERTAIN PARCELS INTO CFD NO.
2021-01 (PARKS MAINTENANCE)
TITLE SUMMARY: Pursuant to Landowner Petitions, Annex Certain Parcels Into Community Facilities District No. 2021 -01 (Parks
Maintenance) (Reso. Nos. CSD 2024-_ )
Recommendation(s)
That the City Council and CSD:
1. Adopt Resolution No. CSD 2024 -__, a Resolution of the Board for the Moreno Valley Community Services District of the City of Moreno Valley, California, ordering the annexation of territory to City of Moreno Valley Community Facilities District No. 2021- 01 (Parks Maintenance) and approving the amended m aps for said District, for the specific properties as listed in the Discussion section of this staff report and as previously approved by the Landowner and certified by the City’s Election Official (Amendment Nos. 150, 161, 162, 165, 166, and 169).
SUMMARY
Adoption of the resolution (Attachment 1) will certify the annexation of 6 parcels into Community Facilities District (CFD) No. 2021 -01 (Parks Maintenance) (“District”). This action impacts only the property owners identified below, not the general citizens or taxpayers of the City.
DISCUSSION
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As a condition of approval for th e development projects identified below, the applicants are required to provide an ongoing funding source for maintenance of certain public facilities (e.g., parks). The funding is used to mitigate the cost of the impacts creat ed by the proposed development.
Property Owner
Project
ACP Record #s
Amendment
No. APN(s) Location
Elite Premier Investments
Accessory Dwelling Unit (ADU)
BFR23-0211/SCP23-0076
150 486-093-002 25081 Juanita Ave.
Derrick Brando Arellano and
Alejandra Arellano
Accessory Dwelling Unit (ADU)
BFR23-0239/SCP24-0022
161 304-410-003 27280 Arla St.
Johnny Valdivia
Jr. Accessory Dwelling Unit (ADU)
BFR23-0227/SCP24-0034
162 479-132-066 13361 Tacoma Dr.
Giovanni Rubio
Accessory Dwelling Unit (ADU)
BFR23-0247/SCP24-0038
165 479-262-016 12891 Shiray Ranch Rd.
Andrew and Rebecca Boganwright
Accessory Dwelling Unit (ADU)
BFR23-0167/SCP24-0041
166 479-421-018 12324 Kasota Ct.
Siyuan Zhou
Jr. Accessory Dwelling Unit (ADU)
BFR24-0009/SCP24-0035
169 316-092-012 24897 Citadel St.
On June 1, 2021, the CSD Board formed CFD No. 2021 -01, pursuant to the Mello-Roos Community Facilities Act of 1982. The District was created to provide the development community with an alternative funding tool to mitigate the impacts of their proposed development. If a property owner elects to annex the parcels of their development into the District, they also authorize the CSD annually levy a special tax, collected on the annual property tax bill, against property in the development project. Thus, satisfying the condition of approval.
On December 21, 2021, the CSD Board adopted Ordinance No. 56, which designated the entire territory of the City as a future annexation area for the District. With the future annexation area designated, annexations can occur without an additional public hearing as long as the annexing landowner provides unanimous consent. Once annexed, parcels are subject to the annual special tax to fund the service they are receiving.
An applicant has two options to satisfy the condition(s) of approval:
1. The property owner submits a Landowner Petition unanimously approving annexation of the property into the District. Approval of the petition and special tax
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rate allows the City to annually levy the special tax on the property tax bill of the property. This option is only available if there are fewer than 12 registered voters living within the proposed annexation area; or
2. The applicant funds an endowment in an amount sufficient to yield an annual revenue str eam that meets the annual obligation and provides for the ongoing operation and maintenance of parks facilities.
The Property Owners listed above elected to annex their property into CFD No. 2021-01 and have the special tax applied to the annual property tax bill. The office of the Riverside County Registrar of Voters confirmed the number of registered voters residing at each property, allowing a special election of the landowner. Adoption of the resolution (Attachment 1) amends the District and adds the property to the tax rate area identified in the Fiscal Impact section of this report. The resolution also directs the recordation of the boundary maps ( included in resolution) and amended notice of special tax liens for the amendments. The Election Official confirmed the Property Owners unanimously approved the annexation of their property into the District (Attachments 2-7).
ALTERNATIVES
1. Adopt the resolutions. Staff recommends this alternative since it will annex the properties into CFD No. 2021-01 at the request of the Property Owners and satisfy the condition of approval for the proposed developments.
2. Do not adopt the resolutions. Staff does not recommend this alternative because it is contrary to the request of the Property Owners, will not satisfy the condition of approval, and may delay development of the projects.
3. Do not adopt the resolutions but rather continue the item to a future regular scheduled City Council meeting. Staff does not recommend this alternative as it will delay the Property Owners from satisfying the condition of approval and may delay development of the projects.
FISCAL IMPACT
Revenue received from the special tax is restricted and can only be used to fund the services for each tax rate area within the District. The specia l tax can only be applied to a property tax bill of a parcel wherein the qualified electors (i.e., landowners or registered voters, depending upon the number of registered voters) have previously provided approval. If the projected revenue from the maximum special tax exceeds what is necessary to fund the services within the tax rate area, a lower amount will be applied to the property tax bill for all of the properties within the affected tax rate area. The maximum special tax rates are detailed below.
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Property Owner
Project
ACP Record #s
Amendment
No. Property Type
FY 2023/24
Maximum
Special Tax Rate
Elite Premier Investments
Accessory Dwelling Unit (ADU)
BFR23-0211/SCP23-0076
150 Single Family $335.22/unit
Derrick Brando Arellano and
Alejandra Arellano
Accessory Dwelling Unit (ADU)
BFR23-0239/SCP24-0022
161 Single Family $335.22/unit
Johnny Valdivia
Jr. Accessory Dwelling Unit (ADU) BFR23-
0227/SCP24-0034
162 Single Family $335.22/unit
Giovanni Rubio
Accessory Dwelling Unit (ADU)
BFR23-0247/SCP24-0038
165 Single Family $335.22/unit
Andrew and Rebecca Boganwright
Accessory Dwelling Unit (ADU)
BFR23-0167/SCP24-0041
166 Single Family $335.22/unit
Siyuan Zhou
Jr. Accessory Dwelling Unit (ADU)
BFR24-0009/SCP24-0035
169 Single Family $335.22/unit
The maximum special tax rate is subject to an annual inflation adjustment based on the change in the Consumer Price Index (CPI) or five percent (5%), whichever is greater.
However, the annual adjustment cannot be applied unless the CSD Board annually authorizes such adjustment. The increase to the maximum special tax rate cannot exceed the annual inflationary adjustment without a two -thirds approval of the qualified electors within the affected tax rate area.
NOTIFICATION
Subject Landowner Petitions were emailed to Property Owners on 4/16/24, 4/22/24, 5/7/24, and 5/10/24.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Isa Rojas Launa Jimenez
Management Analyst Chief Financial Officer/Treasurer
Concurred By:
Felicia London
Special Districts Division Manager
CITY COUNCIL GOALS
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Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
Objective 4.2: Develop and maintain a comprehensive Infrastructure Plan to invest in and deliver City infrastructure.
Objective 5.2: Promote the installation and maintenance of cost effective, low maintenance landscape, hardscape and other improvements which create a clean, inviting community.
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Report Approval Details
Document
Title:
STAFFREPORT_FMS_SD_ANNEXATIONS_INTO_CFD_2021-
01.docx
Attachments: - Resolution Ordering Annexations - 6.4.24.docx - Certificate of Election Official - Amendment No. 150.pdf - Certificate of Election Official - Amendment No. 161.pdf - Certificate of Election Official - Amendment No. 162.pdf - Certificate of Election Official - Amendment No. 165.pdf - Certificate of Election Official - Amendment No. 166.pdf - Certificate of Election Official - Amendment No. 169.pdf Final Approval
Date:
May 28, 2024
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Felicia London, MPA
No Signature found
Jeremy Bubnick
Natalia Lopez
Launa Jimenez
Brian Mohan
Mike Lee
No Signature - Task assigned to Jane Halstead was completed by assistant Patty Rodriguez
Jane Halstead