Community Facilities District No. 2026-1
Station East Facilities and Services
Agenda Item 6.1
2 § Adopt Resolution for Amended and Restated Goals and Policies per Mello-Roos Community Facilities Act of 1982 § Adopt Resolution declaring intent to form the CFD 2026-1 § Adopt Resolution declaring intention to incur a bonded indebtedness for CFD 2026-1
Three Resolutions Proposed to Initiate CFD Process
3 What is a Community Facilities District (CFD)?
§ Also called a Mello Roos District – a special purpose district created under the Mello-Roos Community Facilities Act of 1982
§ Finances public infrastructure and services for a specific area § Property owners within the CFD pay a special tax
§ City has a CFD (CFD 2006-1, formed in 2007) for City services 4 Station East
Development
Plan
5 Station East Background
§ Lennar has purchased the for-sale portion approved for 386 residential units and submitted a petition to form the CFD § Development Agreement approved in 2021, amended in
2023, establishes following priorities for financing:
1. Services and maintenance costs
2. Offset the temporary fiscal impact due to Redevelopment Project Area bonds until 2038
3. Remaining capacity - financing developer capital facilities
4. Remaining capacity - finance agency fees
6 Amended and Restated CFD Goals and Policies
§ Mello-Roos Community Facilities Act of 1982 requires local goals and policies
§ Proposed amended and restated goals and policies:
§ meets current requirements
§ ensures fairness
§ protects the City’s creditworthiness
§ Provides that applicants pay all costs associated with any CFD formation
7 Resolution of Intent to Form the CFD
§ Includes the Rate and Method of Apportionment (RMA) for the Facilities Special Tax and the Services Special Tax § Establishes types of facilities and services proposed to be financed by the CFD
§ Establishes Improvement Area No. 1 and Future Improvement Areas
§ Sets July 14, 2026 as date for public hearing on
establishment of the CFD
8 Two separate special taxes created by the CFD
Facilities Special Tax
• Sewer system facilities
• Storm drain improvements
• Street and traffic
improvements
• Park improvements
• Cost of planning & designing
the above facilities
• All CFD formation, bond
issuance, and administration
costs
Services Special Tax
• Supports On-going public
services required due to the
new development, such as:
• Police services
• Fire projection & suppression
• Paramedic / emergency
medical services
• Park maintenance
• Other services needed due to
Station East growth
9 Boundary
Map
10 Resolution to Incur a Bonded Indebtedness
§ Establishes an intent to incur bonded indebtedness not to exceed $38 M
§ $20M for Improvement Area No. 1
§ $18M for the Future Improvement Area
§ Sets July 14, 2026 for the public hearing to consider incurring bonded indebtedness
§ Property owners of the proposed CFD will be fully responsible for paying and fees and expenses, including all debt service payments and a special tax for services
11 CFD Formation Process
May 26, 2026
Step 1: Initiation
Adopt three resolutions:
• Updated Goals &
Policies
• Intent to Form CFD
• Intent to Incur Debt
Sets the boundaries &
schedules public hearing
July 14, 2026
Step 2: Public Hearings &
Election
City Council holds public
hearings on CFD formation
& bond issuance
A special election of
qualified voters is held
(currently only Lennar
Homes)
City declares election
results
Future
CFD Formed & Bonds
Issued
CFD officially formed.
Special taxes are levied.
Bonds issued up to $38M
when certain conditions
are met
1 2 3
12 City’s CFD Team
§ NBS Government Finance Group
§ Jones Hall, Bond Counsel
§ Columbia Capital Management, LLC
§ Raymond James, Financial, Inc.
13 Staff Recommendation
§ Resolution Adopting Amended and Restated Goals and Policies Regarding Use of Mello-Roos Community Facilities Act of 1982 § Resolution Declaring Intention to Form the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services), Designate an Initial Improvement area Therein and Establish a Future Annexation Area, and to Levy Special Taxes Therein to Finance Certain Public Services and the Acquisition and Construction of Certain Public Facilities
§ Resolution Declaring Intention to Incur a Bonded Indebtedness in and for the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services), in an Amount Not to Exceed $38,000,000 to Finance the Acquisition and Construction of Certain Public Facilities