Report to City Council
ID: 26-0372 Page 1
TO: Mayor and City Council
FROM: Felicia London, Chief Financial Officer/City Treasurer AGENDA DATE: October 6, 2026
TITLE: ANNEXATION OF CERTAIN PARCELS INTO CFD NO.
2014-01 (MAINTENANCE SERVICES) AND CFD NO.
2023-01 (PUBLIC SAFETY SERVICES) (REPORT OF:
FINANCIAL AND MANAGEMENT SERVICES)
(DISTRICT: ALL APPLICABLE)
TITLE SUMMARY: Pursuant to Landowner Petitions, Annex Certain Parcels into Community Facilities District No. 2014-01 (Maintenance
Services) and Community Facilities District No. 2023-01 (Public Safety Services) (Reso No. 2026-XX and Reso No. 2026-XX).
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Acting as the legislative body of Community Facilities District No. 2014-01 (Maintenance Services), adopt Resolution No. 2026-XX, 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. 2014-01 (Maintenance Services) and approving the amended map for said District, for the specific property 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 (Amendment No. 99); and
2. Acting as the legislative body of 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, ordering the annexation of territory to the City of Moreno ID: 26-0372 Page 2
Valley Community Facilities 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. 75, 174, 179, 180, 181, 189, 190, 192, and 193).
SUMMARY
Adoption of the resolutions (Attachments 1-2) will order the annexation of a total of 16 parcels into Community Facilities District (CFD) No. 2014-01 (Maintenance Services) and Community Facilities District (CFD) No. 2023-01 (Public Safety Services) (the “Districts”).
This action impacts only the property owners identified below, not the general citizens or taxpayers of the City.
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 street lighting, street and drainage maintenance services, as well as public safety services). The funding mitigates the costs of impacts created by the proposed development.
On March 25, 2014, pursuant to the Mello-Roos Community Facilities Act of 1982, the City Council formed CFD No. 2014-01 (Maintenance Services), and on November 21, 2023, they 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 Districts provides property owners with a mechanism to fund public street lighting, streets & drainage services, and public safety services, through an annual special tax.
On April 20, 2021, the City Council adopted Ordinance No. 980, which designated the entire territory of the City as a future annexation area for CFD 2014-01, and 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.
CFD 2014-01 also offers the option of establishing a homeowner or property owner ID: 26-0372 Page 3
association to provide ongoing operation and maintenance of the improvements.
If a landowner elects to annex their property into the Districts and the City Council approves the annexation(s), the City is authorized to levy special taxes 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 Districts to satisfy their condition(s) of approval:
Property Owner(s)
Project
ACP Record No(s).
District Amendment
No. APN(s) Location
Miguel Pedrogo
TR 38363, 8 Single-Family
Dwellings (SFDs) and
8 Accessory Dwelling Units (ADUs)
SCP26-0025/BFT24-0339/
PEN22-0056
CFD 2014-01 99
316-221-038
316-221-039
316-221-040
316-221-041
316-221-042
316-221-043
316-221-044
316-221-045
North of Angella Way and
East of Indian St.
Yeru Ma and Richard Du
Accessory Dwelling Unit (ADU)
and Jr. ADU
SCP25-0065/BFR24-0028/
BFR24-0073
CFD 2023-01 75 479-060-019 25432 & 25430 Todd Dr.
Linwood Rose, LP
The Linwood Rose Affordable
Housing Community, 36 Units
SCP26-0071/BFR25-0220/
PEN23-0150
CFD 2023-01 174 481-130-023 24108 Fir Ave.
Juan G Reyes and
Claudia Reyes
Accessory Dwelling Unit (ADU)
SCP26-0073/BFR25-0195
CFD 2023-01 179 479-281-023 25130 Silver Arrow Dr.
ID: 26-0372 Page 4
Property Owner(s)
Project
ACP Record No(s).
District Amendment
No. APN(s) Location
Miguel Pedrogo
TR 38363, 8 Single-Family
Dwellings (SFDs) and
8 Accessory Dwelling Units (ADUs)
SCP26-0027/BFT24-0339/
PEN22-0056
CFD 2023-01 180
316-221-038
316-221-039
316-221-040
316-221-041
316-221-042
316-221-043
316-221-044
316-221-045
North of Angella Way and
East of Indian St.
Gabriel Rivas
Accessory Dwelling Unit (ADU)
SCP26-0020/BFR25-0229
CFD 2023-01 181 482-633-048 13885 Covey Quail Ln.
Jesus Gomez Mercado and
Esmeralda Gamez Bolanos
Accessory Dwelling Unit (ADU)
and Jr. ADU
SCP26-0100/BFR26-0018/
BFR26-0092
CFD 2023-01 189 475-031-013 24316 & 24318
Chippewa Tr.
Julio C. Calderon
Accessory Dwelling Unit (ADU)
SCP26-0092/BFR26-0023
CFD 2023-01 190 485-153-004 24175 Poppystone Dr.
Estuardo Munoz Ruiz Raul and
Jacqueline Vargas Lezama
Jr. Accessory Dwelling Unit (ADU)
SCP26-0110/BFR25-0137
CFD 2023-01 192 474-454-007 24163 Barley Rd.
Dvega Builders, Inc.
Accessory Dwelling Unit (ADU)
SCP26-0090/BFR26-0013
CFD 2023-01 193 482-080-038 24417 Atwood Ave.
ID: 26-0372 Page 5
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 resolutions (Attachments 1-2) amends each 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 that the Property Owners unanimously approved the annexations of their property into the Districts (Attachment 3).
Successful completion of the annexation process satisfies the project’s conditions of approval requirements to provide a funding source for the operation and maintenance of public services, including street lighting, landscaping, streets and drainage, and public safety services.
ALTERNATIVES
1. Adopt the resolutions. Staff recommends this alternative as it will annex the property/properties into CFD No. 2014-01 and 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 resolutions. 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 the development of the projects.
3. Do not adopt the resolutions 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 in satisfying the conditions 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 each 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.
ID: 26-0372 Page 6
Property Owner(s)
Project
ACP Record No(s).
District Amendment
No.
Property
Type
FY 2026/27 Maximum
Special Tax Rate1
Miguel Pedrogo
TR 38363, 8 Single-Family
Dwellings (SFDs) and
8 Accessory Dwelling Units (ADUs)
SCP26-0025/BFT24-0339/
PEN22-0056
CFD 2014-01 99 Single
Family
SL-01A2
$359.68/
parcel
SD-012
$1,165.78/
parcel
$3.20/
curb foot
Yeru Ma and Richard Du
Accessory Dwelling Unit (ADU)
and Jr. ADU
SCP25-0065/BFR24-0028/
BFR24-0073
CFD 2023-01 75
Accessory
Dwelling
Unit
$227.12/Unit
Linwood Rose, LP
The Linwood Rose Affordable
Housing Community, 36 Units
SCP26-0071/BFR25-0220/
PEN23-0150
CFD 2023-01 174 Multi Family $227.12/Unit
Juan G Reyes and
Claudia Reyes
Accessory Dwelling Unit (ADU)
SCP26-0073/BFR25-0195
CFD 2023-01 179
Accessory
Dwelling
Unit
$227.12/Unit
Miguel Pedrogo
TR 38363, 8 Single-Family
Dwellings (SFDs) and
8 Accessory Dwelling Units (ADUs)
SCP26-0027/BFT24-0339/
PEN22-0056
CFD 2023-01 180
Single
Family $266.81/Unit
Accessory
Dwelling
Unit
$227.12/Unit
ID: 26-0372 Page 7
Property Owner(s)
Project
ACP Record No(s).
District Amendment
No.
Property
Type
FY 2026/27 Maximum
Special Tax Rate1
Gabriel Rivas
Accessory Dwelling Unit (ADU)
SCP26-0020/BFR25-0229
CFD 2023-01 181
Accessory
Dwelling
Unit
$227.12/Unit
Jesus Gomez Mercado and
Esmeralda Gamez Bolanos
Accessory Dwelling Unit (ADU)
and Jr. ADU
SCP26-0100/BFR26-0018/
BFR26-0092
CFD 2023-01 189
Accessory
Dwelling
Unit
$227.12/Unit
Julio C. Calderon
Accessory Dwelling Unit (ADU)
SCP26-0092/BFR26-0023
CFD 2023-01 190
Accessory
Dwelling
Unit
$227.12/Unit
Estuardo Munoz Ruiz Raul and
Jacqueline Vargas Lezama
Jr. Accessory Dwelling Unit (ADU)
SCP26-0110/BFR25-0137
CFD 2023-01 192
Accessory
Dwelling
Unit
$227.12/Unit
Dvega Builders, Inc.
Accessory Dwelling Unit (ADU)
SCP26-0090/BFR26-0013
CFD 2023-01 193
Accessory
Dwelling
Unit
$227.12/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.
2The applied Special Tax Rate for Street Lighting for Single Family Residential, Perimeter and Interior Street Lighting (SL-01A) is $31.50/parcel, and the Applied Special Tax Rate for Street Maintenance and Drainage (SD01) is $800/parcel and $0/per curb foot.
ID: 26-0372 Page 8
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 an 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 28, August 29, September 9, and September 15, 2026.
PREPARATION OF STAFF REPORT
Prepared by: Department Head Approval:
Isa Rojas Felicia London
Management Analyst Chief Financial Officer/City Treasurer Concurred by: Concurred by:
Valerie Arenas Rey Mayra Gonzalez
Special Districts Division Manager Public Safety Contracts Administrator Concurred by:
Patty Yhuit
Deputy Director Finance (Operations)
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 that 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 the 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 2.5: Develop partnerships with local businesses and warehouse operators to reduce traffic-related issues.
Objective 2.6: Enhance operational excellence and efficiency in the delivery of Police services.
ID: 26-0372 Page 9
Objective 2.7: Fully integrate Fire Prevention activities into the City’s Development Services processes to provide swift, seamless service.
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, lowmaintenance landscape, hardscape, and other improvements which create a clean, inviting community.
ID: 26-0372 Page 10
Report Approval Details
Document Title: STAFFREPORT_FMS_SD_ANNEXATIONS INTO CFD 2014- 01_AND_CFD 2023-01_10.06.26.docx
Attachments: - RESOLUTION ORDERING ANNEXATIONS_CFD 2023-
01.docx
- RESOLUTION ORDERING ANNEXATION_CFD 2014-01.docx
- CERTIFICATES OF ELECTION OFFICIAL_CFD 2014-01 AND
CFD 2023-01.docx
Final Approval
Date:
Sep 30, 2026
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Isa Rojas
No Signature found
Valerie Arenas Rey
No Signature found
Patty Yhuit
No Signature found
Mayra Gonzalez
Anna Chacon
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez