City Council Staff Report Page 1 of 3 July 28, 2026
Staff Report
Agenda Item No. 4.13
DATE: July 28, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Waive Further Reading and Adoption of an Ordinance of the City Council of the City of Union City Levying Special Taxes within City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)
EXECUTIVE SUMMARY
Staff recommends that the City Council waive further reading and adopt an Ordinance of the City Council of the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) (Attachment 1).
The City Council held a public hearing and voted 5-0 to introduce the Ordinance on July 14, 2026.
STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with:
- Goal C. Economic, Community Development and Public Safety - Institute forward-thinking business, land use development, housing, social services, and public safety strategies that promote community growth and innovation. - Strategy 3: Promote housing development for all income levels in the community by implementing the Housing Element, updating the zoning ordinance to include objective standards for new multi-family residential development to streamline the review of applications for housing developments, and other measures.
BACKGROUND
On May 26, 2026, the City adopted Resolution No. 2026-074, setting forth the City’s intention to establish Community Facilities District No. 2026 (Station East Facilities and Services) (“CFD-2026-1”), designate Improvement Area No. 1 therein, establish the Future Annexation Area, and authorize the levy of special taxes. The City also adopted Resolution 2026-075 to incur bonded indebtedness to finance the acquisition and construction of certain public facilities in order to mitigate the impacts of development Agenda Item No. 4.13
City Council Staff Report Page 2 of 3 July 28, 2026
within the proposed CFD No. 2026-1. In addition, the City Council approved Resolution No. 2026-073, adopting the “Amended and Restated Statement of Goals and Policies Regarding Use of the Mello-Roos Community Facilities Act of 1982,” which had not been updated for several years. These documents are archived and can be accessed on the Union City Public Records Archive Portal Webpage.
DISCUSSION
On July 14, 2026, the City Council held a public hearing on the proposed CFD. The City Council did not receive any public comments.
The City subsequently adopted the following resolutions and waived full reading and introduced by title only the following ordinance related to the formation and financing of City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services): (1) a resolution forming City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services), designating Improvement Area No. 1 therein, establishing a future annexation area, and authorizing the levy of special taxes to finance certain public services and the acquisition and construction of certain public facilities; (2) a resolution deeming it necessary to incur bonded indebtedness in and for 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; (3) a resolution calling a special election in and for City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services); (4) a resolution declaring the results of the special election for City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services); and (5) an ordinance levying special taxes within City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services).
FISCAL IMPACT
All costs of forming the CFD are being funded by a deposit from the applicant, Lennar Homes. Going forward, the special taxes levied for Facilities and for Services will be used by the City to pay any fees, expenses, or debt service associated with the Facilities or Services to be financed. The special taxes will offset the City’s costs of providing the Facilities and Services to the new development planned within the CFD. If and when special tax bonds are issued in the future to pay for the Facilities, debt service on the bonds will be payable solely from the special taxes levied for the Facilities within the CFD and not from the City’s General Fund or any other funds or accounts of the City.
RECOMMENDATION
Staff recommends that the City Council waive further reading and adopt an Ordinance of the City Council of the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) (Attachment 1).
Prepared by: Carla Violet, Consulting Planner
Submitted by: Carmela Campbell, Economic and Community Development Director Agenda Item No. 4.13
City Council Staff Report Page 3 of 3 July 28, 2026
Attachment
1. Proposed Ordinance