March 18, 2025
TO: The Honorable Mayor and Members of the City Council FROM: Erika Gomez, Finance Director
SUBJECT: Annexation of Territory commonly known as Lennar's Canterwood Tract 38202 into Community Facilities District No. 2020-1, Submitting the Levy of Special Tax to the Qualified Electors, Declaring Results of the Election, and Authorizing the Levy of Special Taxes for Annexation No. 11
RECOMMENDATION
Staff recommends that the City Council:
1. Hold the Public Hearing related to the Annexation of Territory into CFD 2020-1;
2. Adopt Resolution No. 4062, calling a Special Election and authorizing the annexation of territory into CFD 2020-1 and the levy of a Special Tax, and submitting the levy of Special Tax to the Qualified Electors;
3. Call upon the City Clerk to conduct the Special Annexation Landowner Election;
4. Adopt Resolution No. 4063, declaring the results of a Special Annexation Landowner Election and directing the recording of an amended Notice of Special Tax Lien; and
5. Introduce Ordinance No. 25-02, levying a Special Tax within CFD 2020-1, including Annexation No. 11, for a first reading:
Ordinance of the City Council of the City of San Jacinto authorizing the levy of Special Taxes in a community facilities district, including certain annexation territory identified as Annexation No. 11 (Tax Zone No. 12), into San Jacinto Community Facilities District No. 2020-1.
DISCUSSION:
The City Council and Planning Commission have identified the need for a financing mechanism for maintenance and services on improvements related to new development within the City. In response to the need for additional funding for such maintenance and services, the City Council formed Community Facilities District 2020-1 (the "CFD") and approved the levy of special taxes therein. The CFD provides funding for services including, but not limited to, the maintenance of landscaped areas, parkways, and median improvements throughout the CFD and the maintenance and servicing of streetlights, traffic signals, and appurtenant facilities (the "Services").
The Rate and Method of Apportionment ("RMA") of the CFD defines multiple types of property that may be levied a special tax and utilizes tax zones to allow future development to annex to the CFD rather than forming a new CFD for each new development. The RMA also defines a Contingent Special Tax, which would be levied only if the developer failed to perform landscape maintenance to the City's standards.
The City will utilize the CFD as a tool to tax new development for the direct costs associated with the Services. The use of the CFD provides additional funds to mitigate the added cost of providing the Services to new development. Based upon a petition from the property owner, the City Council declared its intention to annex this territory – commonly known as the site of Lennar Homes’ Canterwood residential development (181 SFR units) located north of Cottonwood Avenue, west of Marilyn Drive, east of N Lyon Avenue and south of Monte Vista Middle School – into CFD 2020-1 by adopting Resolution 4057 at their meeting of February 4, 2025, which also established the Public Hearing date to tonight.
The City Clerk has received the ballots necessary to declare the results of the Special Election.
FISCAL IMPACT:
The annexation of territory into the CFD will assist in mitigating the cost of providing the Services. Based on calculations from Fiscal Year 2024/2025, it is anticipated that the CFD will collect $192,403 in special tax revenue upon full project buildout. There is no Contingent Special Tax revenue.
ATTACHMENTS:
Resolution No. 4062
Resolution No. 4063
Ordinance No. 25-02