Community Facilities District No. 2026-1
Station East Facilities and Services
Agenda Item 3.1
2 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 (PD/FD services, Landscape maintenance)
3 Station East
Development
Plan
4 CFD 2026-1
• Two Components
§ Services CFD. Yearly assessment of $564 per unit; City can increase by up to 5% per year
§ Facilities CFD. Yearly assessment between $1,530 -
$2,496 per unit (varies by Unit type/size; broken down by Plan Area); City can increase by up to 2% per year
§ Lennar is proposing to utilize $12.5 Million in bond
funds for construction of new or upgrade to existing
streets to serve the development
5 • Adopted Resolution for Amended and Restated Goals and Policies per Mello-Roos Community Facilities Act of 1982 • Adopted Resolution declaring intent to form the CFD 2026-1 • Adopted Resolution declaring intention to incur a bonded indebtedness for CFD 2026-1
May 26, 2026 City Council Meeting Actions
6 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
7 Boundary
Map
8 Resolution 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
• Approves the Acquisition Agreement with Lennar
Homes
9 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
• Property owners of the proposed CFD will be fully
responsible for paying all fees and expenses,
including all debt service payments and a special
tax for services
10 Resolution to Call Special Election
• Three propositions to the qualified electors: special tax levy, appropriations limit, bonded indebtedness
• Requires 2/3 vote of electors (i.e., property owners) • Currently only one property owner: Lennar Homes,
who holds all 22 votes
• Electors waived the 90-day waiting period –
Election held at City Council Meeting
11 Resolution Declaring Election Results
• City Clerk will tabulate the ballot(s) received
• City Council adopts Resolution certifying election
results
• Requires two-thirds approval of votes cast
• Notice of Special Tax Lien will be subsquently
recorded with Alameda County
12 Ordinance Levying Special Taxes
• First reading of the Ordinance – July 14, 2026
• Authorizes the annual special tax levy per the RMA
§ Facilities tax – FY 2026-27 through the final RMA
year
§ Services tax – may be levied in perpetuity
• Second reading and adoption: July 28, 2026
13 Staff Recommendation
Staff recommends the City Council:
• Open and close the Public Hearing
• Adopt the following three Resolutions:
§ Formation of CFD No. 2026-1 (Att.1)
§ Deem Necessary to Incur Bonded Indebtedness in an
Amount Not to Exceed $38,000,000, to Finance the
Acquisition and Construction of Certain Public
Facilities (Att. 2)
§ Call for Special Election for CFD No. 2026-1 (Att. 3) 14 Staff Recommendation
After ballot tabulation by City Clerk, staff further
recommends the City Council:
• Adopt Resolution certifying the Special Election Results (Att. 4); and
• Waiver of full reading and Introduction by Title only of the Ordinance Levying the Special Taxes within the
CFD (Att. 5)