Report to City Council
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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: 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
DISTRICT: All Districts
Recommendation(s)
That the CSD:
1. Acting in its capacity as the Board of Directors for the CSD and as the legislative body of Community Facilities District No. 1, Adopt Resolution No. CSD 2026-XX, a Resolution of the Bo ard for the Moreno Valley Community Services District of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 1 Maximum and Applied Special Tax Rates for Fiscal Year 2026/27, and Calculation Thereof.
2. Acting in its capacity as the Board of Directors for the CSD and as the legislative body of Community Facilities District No. 2021 -01, Adopt Resolution No. CSD 2026 -XX, a Resolution of the Board for the Moreno Valley Community Services District of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District
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No. 2021 -01 Maximum and Applied Special Tax Rates for Fiscal Year 2026/27, and Calculation Thereof.
3. Authorize the Chief Financial Officer to adjust the pro posed 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, provide d 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 each district.
SUMMARY
This report recommends adoption of the resolutions (Attachments 1 and 2), which approve the calculation and set the maximum and applied special tax rates against real property included within certain Community Facilities Districts (CFD) administered by the CSD and authorizes the levy of the applied special tax on the fiscal year (FY) 2026/27 property tax roll. Adoption of the resolutions also acknowledges the filing of an annual report for each CFD. This is a routine process that occurs each year.
The proposed special tax is a continuation of the special tax currently, or author ized to be, levied on the property tax roll. There is no increase proposed to the maximum rate other than an annual adjustment, as previously approved by the qualified electors (i.e., landowners or registered voters, depending upon the number of registered voters).
Revenue received from the special tax funds the maintenance and operation expenses for the CFD facilities.
The Finance Subcommittee reviewed the annual inflationary adjustments proposed to be applied to the maximum rates at its April 28, 2026 meeting.
DISCUSSION
The Mello-Roos Community Facilities Act of 1982 (the “Act”) allows the formation of CFDs to fund the operation and maintenance of public improvements. The qualified electors within the boundaries of the CFDs approved the Rate and Meth od 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.) a nd 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 applied rates, as authorized by the qualified electors, unless the CSD Board 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 lev y the special tax on the FY 2026/27 property tax roll.
The Report for each CFD includes a description of the formation proceedings, a
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description of the park facilities, boundary maps and list of parcels in the CFD, estimated operational and administrative costs to provide the services, and the proposed maximum and applied special taxes per parcel to be levied on the property tax roll for FY 2026/27.
Boundary maps for each CFD are included as Attachment 3. The Reports are on file with the Chief Financial O fficer/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. The qualified electors have previously authorized an annual inflationary adjustment to the maximum rate. Therefore, the Reports recommend adjusting the maximum rate by the adjustment.
The applied special tax rate is the amount that is used to calculate the special tax actually levied on the propert y tax roll. The applied special tax is the amount necessary to fund the services of each CFD, including administration and reserves for the upcoming fiscal year. The special tax is calculated as described in the RMA for each CFD. 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 Membe r. Although 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 thems elves. 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 decisio n 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 the services of each CFD. It is also consistent with the Act.
2. Do not approve the reco mmended actions . Staff does not recommend this alternative as it may prevent the City from levying the special tax on the FY 2026/27 property tax roll and leave the CFDs without sufficient revenue to fund services each CFD was created to provide. Selection of this alternative may require a contribution from the General Fund . Furthermore, failure to file the Report is a violation of the Act.
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3. Continue the item to a future regular CSD Board 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, 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 of each district. The table below provides a summary of the proposed special tax rates for FY 2026/27.
NOTIFICATION
Publication of the agenda.
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: Concurred By:
Patty Yhuit Jeremy Bubnick
Deputy Finance Director (Operations) Parks and Community Services Director
CITY COUNCIL GOALS
No. of Dwelling Units
Single Family 980 $ 369.57 $ 369.56 $ 388.05 $ 388.04 18.48$ $ 380,279.20 Multi-Family 716 $ 369.57 $ 369.56 $ 388.05 $ 388.04 18.48$ $ 277,836.64 Mobile Home 0 $ 369.57 $ 369.56 $ 388.05 $ 388.04 18.48$ $ - No. of Sq. Footage
Commercial 467.92 $ 23.69 $ 23.69 $ 24.87 $ 24.87 1.18$ $ 11,636.88 Office 0 $ 39.44 $ 39.44 $ 41.42 $ 41.42 1.98$ $ - Industrial 494.37 $ 11.50 $ 11.50 $ 12.07 $ 12.07 0.57$ $ 5,966.92 $ - -$ $ - -$ -$ $ - Per Dwelling Unit
Proposed Annual Special Tax Rates
228.31$ 228.30$
Per Dwelling Unit
Undeveloped Property
Non-Residential Property 1,000 Ft. of Building Sq. Footage Parcel
Per Dwelling Unit
221.64$ 217.96$
Special Tax
RevenueMaximum2 Applied District No. of
Dwelling Units
FY 2025/26 Adjustment to
Maximum
Per Dwelling Unit
Maximum2
Change in
Applied
FY 2026/27
1Maintenance services outlined in the Rate and Method of Apportionment for each CFD. 2Maximum rates are based on a predetermined formula as outlined in the Rate and Method of Apportionment for each CFD. 3Annual 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 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 2.0%. 4Annual 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%.
3.01%3 10.34$ 2,393,643.24$ CFD No. 11 (Park Maintenance) 10,485
CFD No. 2021-011
(Parks Maintenance)
All
1,000 Ft. of Building Sq. Footage
Parcel
5.00%4
Residential Property
Applied
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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_FOR CSD CFDs_05.19.26.docx Attachments: - Resolution Approving Annual Levy for CFD 1.docx - Resolution Approving Annual Levy for CFD 2021-01.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
No Signature found
Jeremy Bubnick
Natalia Medina
Felicia London, MPA
No Signature - Task assigned to Launa Jimenez was completed by assistant Angel Galache
Launa Jimenez
Brian Mohan
Patty Rodriguez