TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Evan Crockett, Management Analyst - Finance
SUBJECT:
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Resolution Declaring Intent to Annex Territory: Community Facilities District No. 2025-S (Safety Services): Annexation No. 2 (Jefferson Apartments)
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ABSTRACT
The City Council is being requested to consider the adoption of a Resolution of Intention to annex approximately 2.09 acres into Community Facilities District No. 2025-S (Safety Services) (CFD No. 2025-S) as Annexation No. 2 (Jefferson Apartments). The annexation area consists of APNs 909-030-032 and 909-030-033 and is proposed for development as the Jefferson Apartments affordable housing project, comprising 82 multifamily residential units.
The annexation will authorize the levy of a special tax to fund public safety services within CFD No. 2025-S, including police protection services, fire protection and suppression services, paramedic services, operating reserves, and administrative expenses. The proposed Maximum Special Tax for Affordable Housing Property is $156 per residential unit for Fiscal Year 2026-27 and is subject to annual escalation as provided in the Rate and Method of Apportionment.
RECOMMENDATION
recommendation
Adopt Resolution No. 26-4981, entitled: Resolution of the City Council of the City of Murrieta Acting as the Legislative Body of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta, Declaring its Intention to Consider Annexing Territory to Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (Annexation No. 2 - Jefferson Apartments); and
Set the Public Hearing for December 1, 2026.
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PRIOR ACTION/VOTE
On April 5, 2016, the City Council adopted Resolution No. 16-3536 amending the Land Secured Financing Policy (Vote: 5-0).
On October 3, 2023, the City Council considered amendments to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).
On December 5, 2023, the City Council held a workshop on Community Facilities District Goals and Policies and adopted Resolution No. 23-4717 (Vote: 5-0).
On June 3, 2025, the City Council adopted Resolution No. 25-4838 declaring its intention to establish Community Facilities District No. 2025-S (Safety Services) and setting a public hearing for July 15, 2025 (Vote: 5-0).
On July 15, 2025, following a duly noticed public hearing and landowner election, the City Council formed Community Facilities District No. 2025-S (Safety Services) and established a Potential Annexation Area for future annexations (Vote: 5-0).
STRATEGIC ALIGNMENT
This item aligns with the City Council goal to maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency. The item is listed on the City Departments’ Top Projects List and advances implementation of Community Facilities Districts to support public safety. Annexing the Jefferson Apartments project into CFD No. 2025-S (Safety Services) is consistent with the City’s adopted Community Facilities District Goals and Policies (Resolution No. 23-4717) and ensures that affordable housing projects contribute to sustainable service delivery without impacting the General Fund.
DISCUSSION
Community Facilities District No. 2025-S (Safety Services) was formed pursuant to the Mello-Roos Community Facilities Act of 1982 to provide a funding mechanism for police protection services, fire protection and suppression services, paramedic services, operating reserves, and administrative expenses associated with serving new development within the City.
On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies, establishing updated requirements and procedures for the formation and administration of Community Facilities Districts. Among other provisions, the policy provides for the use of public safety financing districts to help fund the increased demand for public safety services generated by new development.
CFD No. 2025-S was established as a future annexation district, allowing properties to be annexed as development projects are approved and become subject to the City's public safety financing requirements. Properties located within the Potential Annexation Area may subsequently be annexed into CFD No. 2025-S through annexation proceedings conducted pursuant to the Mello-Roos Community Facilities Act.
The proposed Annexation No. 2 consists of approximately 2.09 acres identified as APNs 909-030-032 and 909-030-033 located along the west side of Jefferson Avenue, north of Murrieta Hot Springs Road and south of Los Alamos Road. The property is proposed for development as the Jefferson Apartments affordable housing project, consisting of 82 multifamily residential units.
Consistent with the City's Community Facilities District Goals and Policies, the project is participating in CFD No. 2025-S to assist in funding the increased demand for public safety services generated by new development. The property owner has petitioned to annex to CFD No. 2025-S to levy a special tax to fund the services. The annexation will subject the property to the Rate and Method of Apportionment adopted for CFD No. 2025-S and establish the authority to levy special taxes within the annexation area.
The authorized services funded by CFD No. 2025-S include police protection services, fire protection and suppression services, paramedic services, operating reserves, and administrative expenses. These services are limited to those provided within CFD No. 2025-S for the benefit of properties within the district and are intended to supplement, and not replace, public safety services provided prior to the formation of CFD No. 2025-S.
The proposed Maximum Special Tax for Affordable Housing Property within Annexation No. 2 is $156 per residential unit for Fiscal Year 2026-27. Pursuant to the Rate and Method of Apportionment, the Maximum Special Tax is subject to an annual escalation factor of four percent (4%).
The Resolution of Intention initiates the annexation proceedings and establishes December 1, 2026, as the date for the required public hearing. Following the public hearing, the landowner election required by the Mello-Roos Community Facilities Act will be conducted. Upon approval by the landowner election, the City Council may adopt a resolution declaring the results of the election and introduce an ordinance authorizing the levy of the special tax within Annexation No. 2.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.
FISCAL IMPACT
The property owner has deposited funds with the City that are sufficient to reimburse all costs associated with processing the annexation proceedings.
The Resolution of Intention to annex this development into CFD 2025-S is the first step of the CFD annexation proceedings. Once the CFD annexation is completed, Annexation No. 2 will authorize the annual levy of special taxes within the annexation area in accordance with the Rate and Method of Apportionment for CFD No. 2025-S. The Maximum Special Tax for Affordable Housing Property within Annexation No. 2 is $156 per residential unit for Fiscal Year 2026-27 and may increase annually by four percent (4%) as authorized by the Rate and Method of Apportionment.
Revenues generated by the special tax will be used solely for authorized public safety services, operating reserves, and administrative expenses of CFD No. 2025-S. The annexation is not anticipated to have a fiscal impact on the City's General Fund, as the costs of providing growth-related public safety services to the development will be funded through the special taxes levied within CFD No. 2025-S.
ATTACHMENTS
ATT 1 - Project Location Map
ATT 2 - Resolution No. 26-4981