Intention to Form Community Facilities
District No. 2025 -1, 2025 -2, 2025 -3
Discovery Village
Item No. 6
February 4, 2025
R e c e i v e d A f t e r A g e n d a P r i n t e d 2 / 4 / 2 0 2 5 - R e g u l a r M e e t i n g
D I S C U S S I O N - I t e m N o . 6
P r e s e n t a t i o n
Agenda
Presented by
City of Murrieta Staff
Javier Carcamo, Director of Finance
David Chantarangsu, Director of
Development Services
City Consultants
Shane Spicer, Special Tax Consultant – Spicer
Consulting
Brian Forbath, Bond Counsel - Stradling
Developer
Derek Hicks, VP Land Development -
Argent Management
Agenda
Agenda
- Background
- Prior Actions
- Discovery Village Development Overview
- Community Facilities District Formation Process
- Facilities, Maintenance Services, and Safety Services CFDs - Future Actions
- Recommendation
Background
What is a Community Facilities District (CFD)?
• Special district authorized by the Mello-Roos Community Facilities Act of 1982.
• Financing mechanism for the construction of public facilities and infrastructure improvements and the provision of municipal services. • City has established 15 CFDs
CFDs within the City
CFD 2000-1 GREER RANCH
CFD 2001-1 MURRIETA HIGHLAND
CFD 2003-2 BLACKMORE
CFD 2003-4 BLUESTONE
CFD 2000-2 THE OAKS
CFD 2003-1 MURRIETA SPRINGS
CFD 2003-3 CREEKSIDE
CFD 2004-1 BREMERTON
CFD 2004-2 MURRIETA FIELDS
CFD 2005-1 SPRINGBROOK
CFD 2001-1 IA B HIGHLANDS
CFD 2000-2 IA B THE OAKS
CFD 2004-3 MEADOWLANE
CFD 2005-5 GOLDEN CITY IA A
CFD 2005-5 GOLDEN CITY IA B
Agency Name Total
City of Murrieta 15
Murrieta Valley USD 25
Eastern Municipal WD 3
Rancho California WD 3
Elsinore Valley WD 2
County of Riverside 1
Total 49
Previously formed City CFDs
Prior Actions
• The City of Murrieta adopted the Land Secured Financing Policy in 2003.
• Policy Amendments
• April 5, 2016,
• October 3, 2023
• December 5, 2023
• Workshop and adopted an amendment
• Tract Map Approval
• Planning Commission - 2023
• TR No. 38228 – Recorded December 13, 2024
Discovery Village
Development
Location: Southwest corner of the intersection of Whitewood Road and Baxter Road, east of Interstate 215
Acres: 54 gross acres with
22.97 planned for development
Units: 363 Residential Mix Homes
• Court Homes 105
• Townhomes 153
• Triplex 105
CFD Formation Process
1. Property owner petitions to form CFD; City
Council has 45 days to estimate costs
needed to form CFD and demand deposit
of funds from petitioner (governed by
Deposit and Reimbursement Agreement)
2. City Council commences CFD proceedings
by adopting Resolution of Intention (ROI)
to form CFD (consultant needed to develop
Rate and Method of Apportionment; bond
counsel needed to draft formation
documents)
3. Public Hearing (at least 30 days after ROI
approved)
4. Adoption of Resolutions forming CFD and
determining necessity to incur bonded
indebtedness
5. Election to authorize special tax levy and
authorize bond issuances
CFD Formation Process
6. Introduce Ordinance Authorizing the
levy of the Special Tax
7. Record Notice of Special Tax Lien with
County Recorder
8. Enact Ordinance Authorizing the levy
of the Special Tax
9. Proceedings to issue bonds (bond and
disclosure counsel needed to prepare
bond documents, Appraisal of
properties in CFD)
10. Special Taxes levied to pay debt service
on the bonds, pay-go, and services, if
applicable
11. Project costs funded or reimbursed
12. City administers CFD until bonds
mature
Community Facilities District
2025 -3 (Discovery Village)
• Form CFD 2025-3 in accordance with the Mello-Roos Act • Special Taxes range from $3,087 to $4,772, with overall ETR of 2.0% • Maximum Bonded Indebtedness $27.5 million
• Bond proceeds to Finance the construction and acquisition of public facilities
• Public Facilities such as streets, sidewalks, drainage, lighting • Water and sewer facilities
• City and Water District mitigation fees
Community Facilities District
2025 -2 (Maintenance Services)
• Form CFD 2025-2 in accordance with the Mello-Roos Act • Special tax on parcels of residential property to finance public maintenance services • Enhanced public maintenance services to include landscape maintenance, lighting, street sweeping and pavement management, park and trails maintenance, drainage and stormwater maintenance, and graffiti abatement • Tax Zone Original tax rate - $274 per unit of single-family residential property • Annual Escalator: Greater of two percent (2%) or year-over-year percentage increase for the month of March in the Consumer Price Index • CFD 2025-2 is a citywide annexable District and will allow for future developments to annex to pay for additional public maintenance caused by those projects.
Community Facilities District
2025 -1 (Safety Services)
• Form CFD 2025-1 in accordance with the Mello-Roos Act • Levy a special tax on parcels of residential property to finance Public Safety services • Public Safety Services eligible to be financed include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
• Special Taxes for CFD 2025-1 $250 per unit of affordable housing residential property, $468 per unit of multi-family residential property, and $580 per unit of single-family property. • Annual Escalator: Four percent (4%) for SFR and MFR, (0%) for Affordable Housing Property • CFD 2025-1 is a citywide annexable District and will allow for future residential developments to annex to mitigate their impacts to safety services caused by those projects.
Future Actions
Future Actions
• Resolution of Intention February 4, 2025
• Hold a Public Hearing April 1, 2025
• Hold Property Owners Election/Introduce Ordinance April 1, 2025 • Approval of the Ordinance April 15, 2025
Recommendation
Adopt four separate Resolutions entitled:
A Resolution of the City Council of the City of Murrieta Declaring its Intention to Establish Community Facilities District No. 2025-1 (Safety Services) of the City of Murrieta, to Authorize the Levy of a Special Tax on Property Within the District to Pay the Costs of Providing Public Safety Services;” A Resolution of the City Council of the City of Murrieta Declaring its Intention to Establish Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, to Authorize the Levy of a Special Tax on Property Within the District to Pay the Costs of Providing Public Maintenance Services; Resolution of Intention of the City Council of the City of Murrieta to Establish Community Facilities District No. 2025-3 (Discovery Village) of the City of Murrieta, to Authorize the Levy of a Special Tax to Pay the Costs of Acquiring or Constructing Certain Facilities and to Pay Debt Service on Bonded Indebtedness; Resolution of Intention of the City Council of the City of Murrieta To Incur Bonded Indebtedness in an Amount Not to Exceed $27,500,000 Within Proposed Community Facilities District No. 2025-3 (Discovery Village) Of The City Of Murrieta; and
Approve a Reimbursement Agreement regarding the Community Facilities District No 2025-3 (Discovery Village) and authorize the City Manager to execute the agreement.