Report to City Council
ID: 25-0117 Page 1
TO: Mayor and City Council
FROM: Launa Jimenez, Assistant City Manager
(Administration)/Chief Financial Officer/City Treasurer
AGENDA DATE: March 4, 2025
TITLE: ANNEXATION OF CERTAIN PARCELS INTO C FD NO.
2023-01 (PUBLIC SAFETY SERVICES) (REPORT OF:
FINANCIAL AND MANAGEMENT SERVICES)
TITLE SUMMARY: Pursuant to Landowner Petitions, Annex Certain Parcels into Community Facilities District No. 2023 -01 (Public Safety Services) (Reso No. 2025-___)
Recommendation(s)
That the City Council:
1. Acting as the legislative body of Community Facilities District No. 2023-01 (Public Safety Services), adopt Resolution No. 2025-___, a Resolution of the City Council of the City of Moreno Valley, California, ordering the annexation of territory to City of Moreno Valley Community Facilities District No. 2023 -01 (Public Safety Services) 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 Election Official (Amendments Nos. 41, 43, 44, 45, 47 and 53).
SUMMARY
Adoption of the resolution (Attachment 1) will order the annexation of a total of 6 parcels into Community Facilities District (CFD) No. 2023-01 (Public Safety Services) (“District”).
This action impacts only the property owners identified below, not the general citizens or taxpayers of the City.
ID: 25-0117 Page 2
DISCUSSION
As conditions of approval for the development projects, property owners are required to provide an ongoing funding source for certain public services (i.e. public safety services).
The funding mitigates the costs of impacts created by the proposed development.
On November 21, 2023 formed CFD No. 2023 -01 (Public Safety Services) to provide alternative funding tool s for the development community to mitigate the impact of their proposed development. Annexation into the District provides property owners with a mechanism to fund public safety services through an annual special tax.
On March 5, 2024, the City Council ado pted Ordinance No. 1007, which designated the entire territory of the City as a future annexation area for CFD 2023 -01. With the future annexation areas designated, annexations can occur without an additional public hearing as long as the annexing landowners provide unanimous consent.
A property owner has the following options to satisfy the development conditions requiring a funding source for certain public services:
1. Annex the territory into the applicable CFD(s). (This option is generally only available if there are fewer than 12 registered voters living within the proposed annexation area); or
2. Create a permanent, prefunded, and irrevocable endowment that will yield an annual revenue stream to meet the annual obligation and provide for the ongoing operational services.
If a landowner elects to annex their property into the District and the City Council approves the annexation(s), the City is authorized to levy special tax onto the annual property tax bill to fund the services related to or impacted by their development.
The following property owners have elected to annex into the District to satisfy their condition(s) of approval:
Property Owner
Project
ACP Record No(s).
Amendment
No(s). APN(s) Location
Starlite Mgmt II
Accessory Dwelling Unit (ADU)
SCP22-0106/BFR22-0166
41 263-131-005 13179 Gina Ave.
LCG MVD
Quick Quack Car Wash
SCP24-0154/BFC24-0058, -0146
/PEN23-0035
43 481-090-018 Northeast corner of
Davis St. & Hemlock Ave.
Jesus Salvador & Laura Theresa Avila
Accessory Dwelling Unit (ADU)
SCP24-0160/BFR24-0107
44 482-633-031 13851 Robin Nest Ct.
ID: 25-0117 Page 3
Property Owner
Project
ACP Record No(s).
Amendment
No(s). APN(s) Location
Patricia Carranza
Accessory Dwelling Unit (ADU)
SCP24-0165/BFR24-0149
45 479-601-016 25553 Sand Creek Tr.
Alberto Martinez & Pedro
Martinez Menchaca
Accessory Dwelling Unit (ADU)
SCP24-0176/BFR24-0192
47 482-652-020 24647 Ormista Dr.
Carlos & Joanna Alvarez
Accessory Dwelling Unit (ADU)
SCP24-0170/BFR24-0240
53 479-615-017 25643 Onate Dr.
The Office of the Riverside County Registrar of Voters confirmed there were less than 12 registered voters residing at each property, allowing a special election of the landowner.
Adoption of the attached resolution (Attachment 1) amend s the District and adds the property/properties, with a special tax rate based on property type, in the Fiscal Impact section of this report and directs the recordation of the boundary maps and amended notices of special tax lien for the amendments. The City Clerk received and reviewed the Landowner Petitions and confirmed the Property Owners unanimously approved the annexations of their property into the District (Attachment 2).
Successful completion of the annexation process satisfies the project’s conditions of approval requirement to provide a funding source for public safety services.
ALTERNATIVES
1. Adopt the resolution. Staff recommends this alternative as it will annex the property/properties into CFD 2023 -01 at the request of the Property Owners and satisfy the condition of approval for the proposed developments.
2. Do not adopt the resolution. Staff does not recommend this alternative as it is contrary to the request of the Property Owners, will not satisfy the conditions of approval and may delay development of the projects.
3. Do not adopt the resolution but rather continue the item to a future regularly 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 taxes are restricted and can only be used to fund
ID: 25-0117 Page 4
services 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. The maximum special tax rate is detailed below. If the projected revenue from the maximum special tax exceeds what is necessary to fund the services, a lower amount will be applied to the property tax bill.
Property Owner(s)
Project
ACP Record No(s).
District Amendment
No(s).
FY 2024/25
Maximum Special Tax Rate1
Starlite Mgmt II
Accessory Dwelling Unit (ADU)
SCP22-0106/BFR22-0166
CFD 2023-01 41 Accessory
Dwelling Unit $206.00/Unit
LCG MVD
Quick Quack Car Wash
SCP24-0154/BFC24-0058, -0146
/PEN23-0035
CFD 2023-01 43 Non-Residential
Property
$56/1,000 Feet of
Building Square
Footage
Jesus Salvador & Laura Theresa Avila
Accessory Dwelling Unit (ADU)
SCP24-0160/BFR24-0107
CFD 2023-01 44 Accessory
Dwelling Unit $206.00/Unit
Patricia Carranza
Accessory Dwelling Unit (ADU)
SCP24-0165/BFR24-0149
CFD 2023-01 45 Accessory
Dwelling Unit $206.00/Unit
Alberto Martinez & Pedro
Martinez Menchaca
Accessory Dwelling Unit (ADU)
SCP24-0176/BFR24-0192
CFD 2023-01 47 Accessory
Dwelling Unit $206.00/Unit
Carlos & Joanna Alvarez
Accessory Dwelling Unit (ADU)
SCP24-0170/BFR24-0240
CFD 2023-01 53 Accessory
Dwelling Unit $206.00/Unit
1The special tax applied to the property tax bill will be based on the needs of the District. The applied special tax rate cannot exceed the maximum special tax rate.
The maximum special tax rates are 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 City Council annually authorizes such adjustment. The increase to the maximum special tax rates cannot exceed the annual inflationary adjustment without a two -thirds approval of the qualified electors.
NOTIFICATION
The Landowner Petitions were provided to the Property Owners between 2/7/25 and 2/14/25.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Isa Rojas Launa Jimenez
Management Analyst Assistant City Manager (Administration)/Chief Financial Officer/City Treasurer
ID: 25-0117 Page 5
Concurred by: Concurred by:
Felicia London Shanna Palau
Special Districts Division Manager Public Safety Contracts Administrator
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.
ID: 25-0117 Page 6
Report Approval Details
Document Title: STAFFREPORT_FMS_SD_ANNEXATIONS INTO CFD 2023- 01_03.04.25.docx
Attachments: - RESOLUTION ORDERING ANNEXATION_03.04.25.docx - CERTIFICATES OF ELECTION OFFICIAL_03.04.25.docx
Final Approval
Date:
Feb 26, 2025
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Felicia London, MPA
No Signature found
Shanna Palau
Natalia Lopez
Launa Jimenez
Brian Mohan
Patty Rodriguez