Report to City Council
ID: 25-0395 Page 1
TO: Mayor and City Council
FROM: Dena Heald, Chief Financial Officer/City Treasurer
AGENDA DATE: September 16, 2025
TITLE: ANNEXATION OF CERTAIN PARCELS INTO CFD NO.
2023-01 (PUBLIC SAFETY SERVICES) (REPORT OF:
FINANCIAL AND MANAGEMENT SERVICES)
(DISTRICTS: 1, 2, AND 3)
TITLE SUMMARY: Pursuant to Landowner Petitions, Annex Certain Parcels into Community Facilities District No. 2023 -01 (Public Safety Services) (Reso No. 2025-___)
DISTRICT: DISTRICTS: 1, 2, AND 3
Recommendation(s)
That the City Council:
1. Acting in 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 annexation of territory to the City o f Moreno Valley Community Facilities District, for the specific properties as listed in the Discussion section of this report and as previously approved by the Landowner and certified by the City's Election Official (Amendments Nos. 97, 99, 100, 102-104, 107-109, and 112).
SUMMARY
Adoption of the resolution (Attachment 1) will order the annexation of a total of 10 parcels into Community Facilities District (CFD) No. 2023 -01 (Public Safety Services) (the “District”). This action impacts only the property owners identified below, not the general citizens or taxpayers of the City.
ID: 25-0395 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 the City formed CFD No. 2023 -01 (Public Safety Services) to provide alternative funding tools for the development community to mitigate the impact of their proposed development. Annexation into the District provides property owners a mechanism to fund public safety services, through an annual special tax.
On March 5, 2024, the City Council adopted 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(s) and the City Council approves the annexations, the City is authorized to levy special tax(es) 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(s)
Project
ACP Record No(s).
District Amendment
No(s). APN(s) Location
Benny and Elsa Ivarra Revocable Living
Trust and Benny Ivarra
Accessory Dwelling Unit (ADU)
SCP25-0101/BFR24-0242
CFD 2023-01 97 474-064-008 25013 Fran Lou Dr.
Jairo Alba
Jr. Accessory Dwelling Unit (ADU)
SCP25-0126/BFR25-0079
CFD 2023-01 99 256-320-022 21428 Shakespeare Ct.
Vidal Sanchez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0123/BFR25-0093
CFD 2023-01 100 484-103-007 25297 Valleywood Ct.
ID: 25-0395 Page 3
Liliana Amaya
Jr. Accessory Dwelling Unit (ADU)
SCP24-0125/BFR24-0141
CFD 2023-01 102 259-490-001 9970 Sofia Ct.
Ana Y . Rivera Aleman
Accessory Dwelling Unit (ADU)
SCP25-0132/BFR25-0035
CFD 2023-01 103 479-302-010 12267 Lorez Dr.
Gentry Phillips and Steven Phillips
Jr. Accessory Dwelling Unit (ADU)
SCP25-0094/BFR25-0044
CFD 2023-01 104 291-531-010 12790 Lambeth St.
Manuel Gomez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0117/BFR25-0042
CFD 2023-01 107 484-271-007 25378 Renoir Ave.
Pitt Phitsamay Boonleuth
Accessory Dwelling Unit (ADU)
SCP25-0128/BFR24-0181
CFD 2023-01 108 256-291-009 11382 Morton Rd.
Arturo Rivera and Angelina Rivera
Accessory Dwelling Unit (ADU)
SCP25-0121/BFR25-0030
CFD 2023-01 109
475-141-040
11499 Perris Blvd.
Arturo Rivera and Angelina Rivera
Accessory Dwelling Unit (ADU)
SCP25-0067/BFR25-0015
CFD 2023-01 112 475-141-039 24948 Kalmia Ave.
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) amends the District and a dds 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 Districts (Attachment 2).
Successful completion of the annexation process satisfies the project’s conditions of approval requirements 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 conditions 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.
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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 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 neces sary 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 2025/26
Maximum Special Tax Rate1
Benny and Elsa Ivarra Revocable Living
Trust and Benny Ivarra
Accessory Dwelling Unit (ADU)
SCP25-0101/BFR24-0242
CFD 2023-01 97 Accessory
Dwelling Unit $216.30/Unit
Jairo Alba
Jr. Accessory Dwelling Unit (ADU)
SCP25-0126/BFR25-0079
CFD 2023-01 99 Accessory
Dwelling Unit $216.30/Unit
Vidal Sanchez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0123/BFR25-0093
CFD 2023-01 100 Accessory
Dwelling Unit $216.30/Unit
Liliana Amaya
Jr. Accessory Dwelling Unit (ADU)
SCP24-0125/BFR24-0141
CFD 2023-01 102 Accessory
Dwelling Unit $216.30/Unit
Ana Y . Rivera Aleman
Accessory Dwelling Unit (ADU)
SCP25-0132/BFR25-0035
CFD 2023-01 103 Accessory
Dwelling Unit $216.30/Unit
Gentry Phillips and Steven Phillips
Jr. Accessory Dwelling Unit (ADU)
SCP25-0094/BFR25-0044
CFD 2023-01 104 Accessory
Dwelling Unit $216.30/Unit
Manuel Gomez
Jr. Accessory Dwelling Unit (ADU)
SCP25-0117/BFR25-0042
CFD 2023-01 107 Accessory
Dwelling Unit $216.30/Unit
Pitt Phitsamay Boonleuth
Accessory Dwelling Unit (ADU)
SCP25-0128/BFR24-0181
CFD 2023-01 108 Accessory
Dwelling Unit $216.30/Unit
Arturo Rivera and Angelina Rivera
Accessory Dwelling Unit (ADU)
SCP25-0121/BFR25-0030
CFD 2023-01 109 Accessory
Dwelling Unit $216.30/Unit
ID: 25-0395 Page 5
Property Owner(s)
Project
ACP Record No(s).
District Amendment
No(s).
FY 2025/26
Maximum Special Tax Rate1
Arturo Rivera and Angelina Rivera
Accessory Dwelling Unit (ADU)
SCP25-0067/BFR25-0015
CFD 2023-01 112 Accessory
Dwelling Unit $216.30/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 on August 15, 20, 21, and August 27, 2025.
PREPARATION OF STAFF REPORT
Prepared by: Department Head Approval:
Kaitlyn Choma Dena Heald
Management Assistant Chief Financial Officer/Treasurer
Concurred by: Concurred by:
Isa Rojas Shanna Palau
Interim Special Districts 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
ID: 25-0395 Page 6
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: 25-0395 Page 7
Report Approval Details
Document Title: STAFFREPORT_FMS_SD_ANNEXATIONS INTO CFD 2023- 01_09.16.25.docx
Attachments: - RESOLUTION ORDERING ANNEXATION_CFD 2023- 01_09.16.25.docx
- CERTIFICATES OF ELECTION OFFICIAL_CFD 2023-
01_09.16.25.docx
Final Approval
Date:
Sep 10, 2025
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Kaitlyn Choma
No Signature found
Isa Rojas
No Signature found
Shanna Palau
Natalia Lopez
Dena Heald
Launa Jimenez
Brian Mohan
Patty Rodriguez