Report to City Council
ID: 26-0191 Page 1
TO: Mayor and City Council
FROM: Felicia London, Chief Financial Officer/City Treasurer
AGENDA DATE: May 19, 2026
TITLE: APPROVAL OF THE MAXIMUM AND APPLIED
SPECIAL TAXES FOR CERTAIN COMMUNITY
FACILITIES DISTRICTS FOR FISCAL YEAR 2026/27
(REPORT OF: FINANCIAL AND MANAGEMENT
SERVICES) (DISTRICT: ALL DISTRICTS)
TITLE SUMMARY: Approval of FY 2026/27 Special Taxes for Certain Community Facilities Districts (All Districts)
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. As the legislative body of Moreno Valley Community Facilities District No. 5, Adopt Resolution No. 2026 -XX, a Resolution of the City Council of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 5 of the City of Moreno Valley Maximum and Applied Special Tax Rates for Fiscal Year 2026/27, and Calculation Thereof.
2. As the legislative body of Moreno Valley Community Facilities District No. 7, Adopt Resolution No. 2026 -XX, a Resolution of the City Council of the City of Moreno Valley, California, Approving the Con tinuation of the Improvement Area No. 1 of Community Facilities District No. 7 of the City of Moreno Valley Maximum and Applied Special Tax Rates for Fiscal Year 2026/27, and Calculation Thereof.
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3. As the legislative body of Moreno Valley Community Faci lities District No. 4 - Maintenance, Adopt Resolution No. 2026-XX, a Resolution of the City Council of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 4 -Maintenance of the City of Moreno Valley Maxim um and Applied Special Tax Rates for Fiscal Year 2026/27, and Calculation Thereof.
4. As the legislative body of the Community Facilities District No. 2014 -01 (Maintenance Services), Adopt Resolution No. 2026-XX, a Resolution of the City Council of the Ci ty of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 2014-01 (Maintenance Services) Maximum and Applied Special Tax Rates for Fiscal Year 2026/27, and Calculation Thereof.
5. As the legislative body of the Community Facilities District No. 2023-01 (Public Safety Services), Adopt Resolution No. 2026-XX, a Resolution of the City Council of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 2023-01 (Public Safety Services) Maximum and Applied Special Tax Rates for Fiscal Year 2026/27, and Calculation Thereof.
6. Authorize the Chief Financial Officer to adjust the proposed special tax rates in the event there are any parcel changes, clerical errors, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax does not exceed the maximum special tax and is in compliance with the Rate and Method of Apportionment of Special Tax for the district.
SUMMARY
This report recommends adoption of the resolutions (Attachments 1 through 5), which approve the calculation and set the fiscal year (FY) 2026/27 maximum and applied special tax rates against real property included within certain Community Facilities Districts (CFD) administered by the City and authorizes the levy of the applied special tax on the property tax roll. Adoption of the resolutions also acknowledges the filing of annual reports for each CFD. This is a routine process that occurs each year.
The proposed special taxes are a continuation of the special taxes currently, or authorized to be, levied on the property tax roll. There are no increases proposed to the maximum rates, other than an annual adjustment, provided the qualified electors (i.e., la ndowners or registered voters, depending upon the number of registered voters) previously authorized such adjustment. Revenue received from the special tax funds maintenance and administrative expenses for the service CFDs or debt service and administrativ e expense requirements for the bonded CFDs.
The Finance Subcommittee reviewed the annual inflationary adjustments proposed to be applied to the maximum rates, if previously authorized by the property owners, at its April 28, 2026, meeting.
DISCUSSION
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The Mello-Roos Community Facilities Act of 1982 (the “Act”) allows the formation of CFDs to fund the operation and maintenance of public improvements and/or finance the construction of public infrastructure improvements by the issuance of bonds. The qualified electors within the boundaries of the CFDs approved the Rate and Method of Apportionment (RMA) and authorized the levy of a special tax on their properties to fund the services of the district or as security for repayment of bonds. The RMA establishes the special tax formula (e.g., rate of annual adjustment, if any, etc.) and how the special tax is apportioned to properties included in each CFD.
The special tax cannot be levied on the property tax roll, nor can adjustments be made to the maximum and ap plied rates, as authorized by the qualified electors, unless the City Council authorizes such actions. Adoption of the resolutions sets the maximum and applied special tax rates, approves the calculation of the rates, and approves an Annual Special Tax Report (“Report”) for each CFD. The resolutions also authorize the County to levy the special tax on the FY 2026/27 property tax roll.
The Report for each CFD includes a description of the formation proceedings, boundary map and identification of parcels included in the district, and the proposed maximum and applied special taxes per parcel to be levied on the property tax roll for FY 2026/27.
Reports for the service CFDs also include a description of the improvements being maintained and estimated operation al and administrative costs to provide the service.
The reports for the bonded CFDs include debt service and administrative requirements.
In addition, the Reports for the bonded districts include the Annual Bond Accountability Reports, a requirement of Cal ifornia Government Code Section 53411 (“Government Code”). Boundary maps for the CFDs are also included (Attachment 6). The Reports are on file with the Chief Financial Officer/City Treasurer and accessible from the City’s website (www.moval.org/sd).
The maximum special tax rate is the maximum amount that can be used to calculate the special tax levied on the property tax roll. If the qualified electors have previously authorized an annual inflationary adjustment to the maximum rate, the Report recommends adjusting the maximum rate by the adjustment. Otherwise, it remains unchanged.
The applied special tax rate is the amount that is used to calculate the special tax actually levied on the property tax roll. It is the amount necessary to fund the services of each CFD, including administration and reserves for the upcoming fiscal year. The applied special tax rate cannot exceed the maximum special tax rate.
Conflict of Interest Analysis
Section 18702.2 of the Fair Political Practices Commission (FPPC) Regulations provides that if a Council Member has a financial interest in a parcel of land (other than a leasehold interest) within any of the subject assessment districts, the Council Member must recuse him or herself from voting on any proposal that would impose, repeal, or modify any taxes, fees, or assessments that apply to the parcel owned by the Council Member. Although
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there is an exception, the City Attorney recommends that in the abundance of caution, that if any Council Member who owns real property within any of the districts affected by the recommended assessment, that they should consider recusing themselves. If necessary, the Rule of Necessity may be implemented in the event we lose a quorum to vote on any of the assessments. The Rule of Necessity allows the City Council to randomly select which Council Members are allowed to participate in the decision regarding the assessments, even if they have a potential conflict of interest based on property ownership within the respective district.
ALTERNATIVES
1. Adopt the resolutions and recommended actions as presented. Staff recommends this alternative as it will allow for the collection of revenue necessary to fund services or satisfy debt service obligations of the CFDs. It is also consistent with the bond covenants, if applicable, Act, and Government Code.
2. Do not approve the recommended actions. Staff does not recommend this alternative as it may prevent the City from levying the special taxes on the FY 2026/27 property tax roll and leave the CFDs wi thout sufficient revenue to fund services or satisfy debt service obligations. This alternative may require a contribution from the General Fund. It will also require use of reserve funds to make debt service payments, which will trigger a “significant event” and affect the City’s reputation in the bond market. Furthermore, failure to file the Reports is a violation of the Act and Government Code.
3. Continue the item to a future regular City Council meeting. Staff does not recommend this alternative as it may prevent the City from meeting the County of Riverside’s deadline to include the special taxes on the FY 2026/27 property tax roll.
FISCAL IMPACT
Property owners pay the special tax as part of their annual property tax bill. The special tax, including annual adjustments where applicable, has been approved by the affected qualified electors through prior proceedings. Funds received for the benefit of each CFD are restricted and can only be used to fund the services and obligations of each district.
The tables below provide a summary of the proposed maximum and applied special tax rates for FY 2026/27. Only those tax rate areas with annexed parcels are shown in the table for CFD 2014 -01 and CFD 2023 -01. The complete schedule can be found as part of the Report.
ID: 26-0191 Page 5
NOTIFICATION
Posting of the agenda.
Maximum1 Applied Maximum1 Applied
$ 15,517.87 $ 14,274.38 $ 15,828.22 $ 14,651.24 2.00% 376.86$ 22 443,199.78$ $ 15,517.87 $ - $ 15,828.22 $ - 2.00% -$ - - $ 3,500.00 $ 2,699.65 $ 3,500.00 $ 2,741.5529 0.00% 41.90$ 3 202,025.00$ $ 3,500.00 $ - $ 3,500.00 $ - 0.00% -$ - - CFD No. 5 (Stoneridge)2
Developed
1 Maximum rates are based on a predetermined formula as outlined in the Rate and Method of Apportionment for each CFD. The Annual Adjustment Rate was approved by the Qualified Electors (landowners or registered voters). 2 Subject to an annual adjustment of the Maximum Special Tax equal to two percent (2%).
Proposed Annual Special Tax Rates
Undeveloped
IA No. 1 of CFD No. 7
Developed
Undeveloped
FY 2025/26
Bonded CFDs
per acre
District
No. of Parcels
Levied
Adjustment to
Maximum1
Change in
Applied
Special Tax
Revenue
per acre per acre
FY 2026/27
per acre
$ 0.015198 $ 0.012824 $ 0.015970 $ 0.013328 5.627% 0.000503$ 17 $ 97,099.74 CFD No. 2014-01 (Maintenance Services)4,5
Tax Rate Area6
Special Tax
Revenue
Service CFDs
per square footCFD No. 4-M (Centerpointe)2,3
Maximum1 Applied Maximum1 Applied
FY 2025/26 No. of Parcels
Levied
Change in
Applied
Adjustment to
Maximum1
No. of Dwelling
Units
Proposed Annual Special Tax Rates
FY 2026/27
per square foot
District
SL-01A $ 342.55 $ 31.50 $ 359.68 $ 31.50 -$ 1,442 $ 45,423.00 SL-01B $ 107.65 $ 8.28 $ 113.03 $ 8.28 -$ 997 $ 8,255.16 SL-02 $ 5.57 $ 2.50 $ 5.84 $ 2.50 -$ 72 $ 111,813.98 LM-01A $ 24.55 $ - $ 25.78 $ 25.76 25.76$ 236 $ 6,079.36 LM-01B $ 73.82 $ 73.80 $ 77.51 $ 77.50 3.70$ 65 $ 5,037.50 LM-01C $ 135.43 $ 135.42 $ 142.20 $ 142.20 6.78$ 99 $ 14,077.80 LM-01D $ 221.63 $ 221.62 $ 232.72 $ 232.70 11.08$ 401 $ 93,312.70 LM-01F $ 468.01 $ 102.62 $ 491.41 $ 102.62 -$ 395 $ 40,534.90 LM-01G $ 628.15 $ 195.20 $ 659.56 $ 204.96 9.76$ 416 $ 85,263.36 LM-01H $ 812.93 $ 417.56 $ 853.58 $ 438.42 20.86$ 55 $ 24,113.10 LM-01K $ 1,515.11 $ 782.90 $ 1,590.86 $ 832.90 50.00$ 86 $ 71,629.40 LM-02A $ 18.90 $ 9.26 $ 19.85 $ 9.26 -$ 12 $ 24,725.48 LM-02B $ 9.43 $ 5.39 $ 9.90 $ 5.39 -$ 18 $ 17,982.60 TC-01A $ 29.25 $ 29.24 $ 30.72 $ 30.70 1.46$ 179 $ 5,495.30 TC-03 $ 45.11 $ 45.11 $ 47.36 $ 47.36 2.25$ 9 $ 49,731.96 SD-01P per parcel $ 1,110.27 $ 1,007.06 $ 1,165.78 $ 800.00 (207.06)$ 913 $ 730,400.00 Residential Property7
114 $ 216.30 $ 216.30 $ 227.12 $ 227.10 10.80$ 105 $ 25,889.40 131 $ 254.10 $ 254.10 $ 266.81 $ 266.80 12.70$ 131 $ 34,950.80 0 $ 216.30 $ 216.30 $ 227.12 $ 227.10 10.80$ 0 $ - 0 $ 254.10 $ 254.10 $ 266.81 $ 266.80 12.70$ 0 $ - $ 58.80 $ 58.80 $ 61.74 $ 61.74 2.94$ 7 $ 7,263.84 $ 58.80 $ 58.80 $ 61.74 $ 61.74 2.94$ 0 $ - $ 58.80 $ 58.80 $ 61.74 $ 61.74 2.94$ 0 $ - All $ - -$ $ - -$ -$ - $ - per proportional front footageNon-Residential Landscaping 5.00%per proportional front footage Traffic Circle Landscaping Without Monument/Signage
Features for Property Other than Single-Family Residential Traffic Circle Landscaping Without Monument/Signage
Features for Single-Family Residential7
Residential Landscaping
per angularly allocated landscape
foot
per parcel
per proportional front footage
per parcel
CFD No. 2023-01 (Public Safety Services)8,9
Tax Rate Area6
Street Maintenance and Drainage for Single-Family
Residential
5.00%
Parcel Parcel
1,000 Ft. of Building Sq. Footage 1,000 Ft. of Building Sq. Footage Per Dwelling Unit Per Dwelling Unit
Residential Street Lighting
Non-Residential Street Lighting
Undeveloped Property
1Maximum rates are based on a predetermined formula as outlined in the Rate and Method of Apportionment for each CFD. The Annual Adjustment Rate was approved by the Qualified Electors (landowners or registered voters). 2Maintenance of certain storm drain facilities.
3Subject to an annual adjustment based on the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year, which ends in the previous fiscal year. 4Maintenance & operation of street lights, public landscaping, and streets and drainage. 5Subject to an annual escalation factor based on the greater of the increase in the annual percentage change in the Los Angeles-Long Beach-Anaheim Regional Consumer Price Index (CPI), as published by the Department of Labor's Bureau of Labor Statistics (3.01%) or five percent (5%). 6Only those Tax Rate Areas that have parcels annexed into it are shown. See the Report for a complete schedule. 7CFD 2023-01 levy calculation for residential property is based on the number of dwelling units, not number of parcels. 8 Public safety services include police protection, fire protection and suppression, and paramedic services. 9Annual adjustment to maximum rate as approved by qualified electors (landowners or registered voters). Based on the greater of the percentage change calculated for the prior year in the Riverside-San Bernardino-Ontario County Regional Consumer Price Index (CPI), as published by the Department of Labor’s Bureau of Labor Statistics (3.28%) or 5.0%. per parcel
per proportional front footage
per angularly allocated landscape
foot
per parcel
Accessory Dwelling Unit
Single Family
Multi-Family
Mobile Home
Non-Residential Property
Industrial
Commercial
Office
ID: 26-0191 Page 6
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Valerie Arenas Rey Felicia London
Special Districts Division Manager Chief Financial Officer/City Treasurer
Concurred By:
Patty Yhuit
Deputy Finance Director (Operations)
CITY COUNCIL GOALS
Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an excellent i mage 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 v ariety 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: 26-0191 Page 7
Report Approval Details
Document Title: STAFFREPORT_FMS_SD_FOR CITY CFDs_05.19.26.docx Attachments: - Resolution Approving Annual Levy for CFD 5.docx - Resolution Approving Annual Levy for CFD 7.docx
- Resolution Approving Annual Levy for CFD 4M.docx
- Resolution Approving Annual Levy for CFD 2014-01.docx - Resolution Approving Annual Levy for CFD 2023-01.docx - Boundary Maps.pdf
Final Approval Date: May 13, 2026
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Valerie Arenas Rey
No Signature found
Patty Yhuit
Natalia Medina
Felicia London, MPA
No Signature - Task assigned to Launa Jimenez was completed by assistant Angel Galache
Launa Jimenez
Brian Mohan
Patty Rodriguez