Report to City Council
ID: 24-0518 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: August 20, 2024
TITLE: ANNEXATION OF CERTAIN PARCELS INTO CFD NO.
2021-01 (PARKS MAINTENANCE). (REPORT OF:
FINANCIAL AND MANAGEMENT SERVICES)
TITLE SUMMARY: Pursuant to Landowner Petitions, Annex Certain Parcels Into Community Facilities District No. 2021 -01 (Parks
Maintenance) (Reso No. CSD 2024-_)
Recommendation(s)
That the 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 Moreno Valley Community Services District Community Facilities District No. 2021-01 (Parks Maintenance) and approving the amended maps 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 Electio n Official (Amendment Nos. 168, 190-195, and 198)
SUMMARY
Adoption of this resolution (Attachment 1) will certify the annexation of 10 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 the 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 created by the proposed development.
Property Owner
Project
ACP Record #s
Amendment
No. APN(s) Location
Bryan Crespo
Accessory Dwelling Unit (ADU)
BFR23-0208/ SCP24-0028 168 482-304-005 14674 Wilma Sue St.
Bruce Norris, Starlite Mgmt III
Accessory Dwelling Unit (ADU)
BFR22-0161/ SCP22-0103 190 263-180-071 13479 Barbara St.
Alejandra Moreno-Aguilar and Maria
Leticia, Steve and Andres Mariscal
Accessory Dwelling Unit (ADU)
BFR24-0025/SCP24-0045 191 486-025-004 15123 Charlee Ct.
Moreno Beach Hospitality
MV Home 2 Hilton Hotel
BFC23-0126/ PEN22-0256/ SCP23-0063 192
488-400-041
488-400-042
488-400-043
North of Eucalyptus between Fir
Ave. and Moreno Beach Dr.
Sandra Broussard Davenport
Accessory Dwelling Unit (ADU)
BFR23-0075/ SCP24-0061 193 484-201-008 14597 Cochiti Dr.
Charles A Maciel
Accessory Dwelling Unit (ADU)
BFR23-0055/ SCP24-0063 194 482-152-032 24858 Corley Ct.
Sigma Beta XI Inc.
Accessory Dwelling Unit (ADU)
BFR24-0027/ SCP24-0052 195 316-133-034 16679 Perris Blvd.
Lady Kristia Alexander
Junior Accessory Dwelling Unit (Jr. ADU)
BFR23-0188/ SCP24-0055 198 474-703-004 11118 Los Olivos Dr.
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 an nually 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
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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 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 stream 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 specia l 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 (Attachment 2).
ALTERNATIVES
1. Adopt the resolut ions. 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 special 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
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the property tax bill for all of the properties within the affected tax rate area. The maximum special tax rates are detailed below.
Property Owner
Project
ACP Record #s
Amendment
No. Property Type
FY 2024/25
Maximum
Special Tax Rate
Bryan Crespo
Accessory Dwelling Unit (ADU)
BFR23-0208/ SCP24-0028 168
Single Family $351.98/unit
Bruce Norris, Starlite Mgmt III
Accessory Dwelling Unit (ADU)
BFR22-0161/ SCP22-0103 190
Single Family $351.98/unit
Alejandra Moreno-Aguilar and Maria
Leticia, Steve and Andres Mariscal
Accessory Dwelling Unit (ADU)
BFR24-0025/SCP24-0045 191
Single Family $351.98/unit
Moreno Beach Hospitality
BFC23-0126/ PEN22-0256/ SCP23-0063 192 Commercial $22.56/1,000 feet of building square footage
Sandra Broussard Davenport
Accessory Dwelling Unit (ADU)
BFR23-0075/ SCP24-0061 193
Single Family $351.98/unit
Charles A Maciel
Accessory Dwelling Unit (ADU)
BFR23-0055/ SCP24-0063 194
Single Family $351.98/unit
Sigma Beta XI Inc.
Accessory Dwelling Unit (ADU)
BFR24-0027/ SCP24-0052 195
Single Family $351.98/unit
Lady Kristia Alexander
Junior Accessory Dwelling Unit (Jr. ADU)
BFR23-0188/ SCP24-0055 198
Single Family $351.98/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 6/13/24, 6/28/24, and 7/11/24.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Angelina Astorga Launa Jimenez
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Management Assistant Chief Financial Officer/Treasurer
Concurred By: Concurred By:
Felicia London Jeremy Bubnick
Special Districts Division Manager Parks & Community Services Director
CITY COUNCIL GOALS
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.
See the Discussion section above for details of how this action supports the City Council’s Strategic Priorities.
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Report Approval Details
Document Title: STAFFREPORT_FMS_SD_ANNEXATIONS INTO CFD 2021-
01.docx
Attachments: - Resolution Ordering Annexations - 8.20.24.docx - Certificate of Election Official - All Amendments.pdf Final Approval
Date:
Aug 12, 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
Patty Rodriguez
Natalia Lopez
No Signature - Task assigned to Launa Jimenez was completed by assistant Kimberly Ganimian
Launa Jimenez
Brian Mohan
Mike Lee
Patty Rodriguez