Item Number: 17
City Council / Board of Directors
Written Communications
Meeting of: November 18, 2025
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Consideration of Resolution No. 25-079, Accepting the Unanimous Approval of the Property Owner and Annexing the Raising Cane’s Development into Community Facilities District No. 2024-01 (Annexation No. 1)
Recommendation:
That the Honorable City Council:
Adopt Resolution No. 25-079, to accept the unanimous approval of the landowners and make the findings necessary to annex portions of Parcel Nos 3106-201-24-0000, 3106- 201-25-0000, and 3106-201-27-0000 to Community Facilities District No. 2024-01 of the City of Victorville (Municipal Services) and to order the levy of Special Taxes to pay for municipal services and maintenance of certain facilities associated with the Raising Cane’s Development (Annexation No. 1).
Fiscal Impact:
The adoption of Resolution No. 25-079 will offset the financial impact necessary for the operations, maintenance, and improvement of public infrastructure and public safety associated with the Raising Cane’s Development.
This annexation is occurring after the property tax levy deadline for FY25-26. This establishment will be levied the rates listed in Resolution No. 25-079 as part of the FY26- 27 tax year. Funds received will be deposited into Fund 380 – CFD Tax A, Public Safety and Fund 381 – CFD Tax B, Municipal Services.
Pursuant to the Rate and method of apportionment (RMA), the current Maximum Special Tax A for Commercial Property is $0.058 per Building Square Footage. The current Maximum Special Tax B for Tax Zone 2 will be $1,199.51 per acre. On each July 1, commencing on July 1, 2026, the Maximum Special Tax A and Maximum Special Tax B for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the 4 4
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percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%). Special Tax A will be used for Public Safety services including Police, Fire and Code Compliance. Special Tax B will be used for road maintenance and graffiti abatement, as well as administrative expenses.
Strategic Plan Goal:
This item aligns with Goal A Financial Sustainability, Goal B Public Safety, and Goal E Invest in Infrastructure in the City of Victorville Strategic Plan 2023-2026. The proposed annual levy will support the expenses for operations, maintenance, and improvement of the public infrastructure and public safety associated with the Raising Cane’s Development.
Background:
The City’s Strategic Plan was last updated in August 2023, outlining goals for the next three years. Among them, Goal A - Financial Sustainability, was carried forward from the 2020 Strategic Plan and intended to ensure fiscal health through disciplined long-term planning, cost control, increased revenues, and cost recovery. In evaluating the City’s needs and expense obligations for each of the funds it manages, City staff analyzed unique funding mechanisms to provide for long-term municipal services.
The current options for mitigating the cost of additional municipal services for new development include, annexing into or forming a Landscape Maintenance Assessment District (LMAD), Drainage Facilities Assessment District (DFAD), Maintenance Assessment District (MAD), Street Light Assessment District (SLAD), or the development may form its own Homeowners Association (HOA). However, the maintenance districts allowed under the Landscape and Lighting Act of 1972 do not cover such items as road maintenance and graffiti abatement, two maintenance items that are allowable under a Community Facilities Districts (CFD).
In December 2021, staff began exploring CFDs and the possibility of forming a district within the City as one means to require new development to mitigate the costs associated with the provision of additional municipal services attributable to such development. A CFD is governed by the Mello-Roos Community Facilities Act of 1982, California Government Code Section 53311 et seq (the “Mello-Roos Act” or the “Act”) and is a special tax district formed when property owner(s) within a geographic area agree to impose a tax to fund infrastructure improvements and/or services.
The Mello-Roos Act authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. With the help of the City’s CFD Consultant, Webb Municipal Finance, LLC (Webb), the City developed and applied a new condition of approval to all applicable project entitlements beginning in August of 2022, requiring such projects to mitigate their ongoing economic impacts that require the City to provide additional municipal services, either through annexation into a citywide services CFD if one was formed, or by an alternate, comparable funding mechanism. 4 4
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In May 2024, Webb and City staff provided an overview of what a Citywide CFD would look like, what the tax rate might be given the estimated property values in the City, and the next steps required to move forward in establishing a Citywide CFD. The Citywide CFD would be annexable, and all future developments (with some limited exceptions) would be required to annex into such Citywide CFD or provide another comparable funding mechanism to pay for certain City services.
The proposed Citywide CFD would be structured to have two special taxes components:
Special Tax A for Public Safety and Special Tax B for Maintenance Services. Special Tax A would be based on the land use and current amount as adopted by the City Council, and Special Tax B would be the Maintenance Service rate that would vary depending on the improvements associated with each development that the City would be required to maintain (resulting in the creation of a unique tax zone number designation for each).
These tax rates would help offset the cost the City incurs as a result of new development.
After holding the requisite public hearings and landowner election, adopting resolutions of intention and formation, approving a boundary map, and conducting other proceedings required by the Mello Roos Act, on December 17, 2024, the City Council formed the City of Victorville Community Facilities District No. 2024-01 (Municipal Services) (“CFD No. 2024-01”) and adopted Ordinance No. 2453, allowing for the levy of the Special Taxes.
In addition, Resolution of Formation No. 24-102 outlined the proposed boundary map for TM 14525 (as the initial project) and the Future Annexation Area, as allowed by Act. The Future Annexation Area includes the entire City, and therefore allows future development parcels to annex into CFD No. 2024-01 (Citywide CFD), but only upon receipt of the written Unanimous Approval of the owner(s) of such parcel(s) at the time of annexation.
Discussion:
On October 9, 2024, the Victorville Planning Commission unanimously approved Planning Case No. PLAN24-00001, which included an entitlement for the development of an approximately 2,900 square foot Raising Cane’s restaurant on Roy Rogers Drive, just west of Civic Drive (Attachment B – Vicinity Map). One of the Conditions of Approval for the project was to annex into the Citywide CFD or otherwise mitigate the economic impacts of the development.
On November 10, 2025, the owner of the Raising Cane’s property (AMROYCIV LCC), submitted its signed petition to the City, constituting its Unanimous Approval to annex into the Citywide CFD and agreement to the levy of the Special Taxes. Said petition is Exhibit B to Resolution No. 25-079 (Attachment A).
To ensure a transparent and well-documented annexation process, staff will bring forth to the City Council for adoption a resolution for each annexation (or group of annexations) to CFD No. 2024-01. Said resolution(s) and accompanying staff report(s), will outline the project(s) initiating the annexation(s) and contain all other pertinent information needed for the City Council to approve the annexation.
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To complete this first annexation (Annexation No. 1), the City Council will need to consider approval of attached Resolution No. 25-079 and adopt a boundary (Annexation Map), Exhibit C of said Resolution. Resolution No. 25-079 outlines the following:
Identity of the property owner and legal description of parcels being annexed; Receipt and acceptance of the property owner’s Unanimous Approval (petition); Findings that the public convenience and necessity require the annexation; Adoption of the boundary map (Annexation Map);
Types of services that will be funded through the special taxes; Rate and method of apportionment (RMA);
Creation of a new Tax Zone 2 (See Appendix A of the RMA); Authorization/direction to staff to record the Annexation Map and an amendment to the Notice of Special Tax Lien.
Should the City Council move forward with adoption of Resolution No. 25-079, staff will record the Annexation Map and the Amendment to the Notice of Special Tax Lien with the County, and the annexation will be complete.
Moving forward, CFD Annexations will be considered routine in nature and brought forth as Consent Calendar items. Given that this was the first Annexation into CFD No. 2024- 01, and the CFD was first formed nearly a year ago, staff thought it prudent to bring this Resolution as a Written Communication item. In addition to these routine Annexation items, staff will present the annual CFD report prior to June of each year, which report will include a summary of all annexations and proposed rates for the annual levy process, as outlined in the CFD Administrative Policy adopted last year.
Staff respectfully recommends that the Honorable City Council adopt Resolution No. 25- 079 to annex territory to Community Facilities District No. 2024-01 of the City of Victorville (Municipal Services) and to levy the Special Taxes to pay for municipal services and maintenance of certain facilities associated with the Raising Cane’s Development (Annexation No. 1).
Staff is available for any questions Council may have.
Prepared By:
Melissa Krejckant, Public Works, and Water Administrative Manager Attachments: A. Resolution No. 25-079
B. Vicinity Map