TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Jennifer Terry, Finance Manager
SUBJECT:
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Public Hearings to Form Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta and to Annex into Community Facilities District No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-S (Safety Services)
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ABSTRACT
Staff recommends that the City Council open each of the three (3) public hearings regarding the formation of Community Facilities District (CFD) No. 2026-1 (Gierson Ranch), authorizing up to $8 million in bonded indebtedness, and annexing the Gierson Ranch project into CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services) and continue the public hearings to June 2, 2026.
The proposed 107-unit single-family residential development, located between Washington Avenue and Adams Avenue, would finance public infrastructure, Development Impact Fees (DIF), and eligible maintenance and safety services through the levy of special taxes under the Mello-Roos Act. The recommended actions continue the public hearings to June 2, 2026.
RECOMMENDATION
recommendation
Open the public hearing regarding the formation of Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta and continue the public hearing to June 2, 2026.
Open the public hearing as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta regarding the annexation of territory to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (Annexation No. 3-Gierson Ranch) and continue the public hearing to June 2, 2026.
Open the public hearing as the Legislative Body of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta regarding the annexation of territory to Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (Annexation No. 1-Gierson Ranch) and continue the public hearing to June 2, 2026.
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PRIOR ACTION/VOTE
On May 6, 2025, the city formed Community Facilities District No. 2025-2 (Maintenance Services) (Vote 5-0).
On July 15, 2025, the city formed Community Facilities District No. 2025-S (Safety Services).
On March 17, 2026, the City Council adopted a Resolution of Intention to Establish Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta and a Resolution of Intention to Incur Bonded Indebtedness for Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta and set a public hearing for April 21, 2026.
On March 17, 2026, the City Council adopted a Resolution of Intention to Annex Territory to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (Annexation No. 3-Gierson Ranch) and set a public hearing for April 21, 2026.
On March 17, 2026, the City Council adopted a Resolution of Intention to Annex Territory to Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (Annexation No. 1-Gierson Ranch) and set a public hearing for April 21, 2026.
STRATEGIC ALIGNMENT
The City Council’s goal of maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency is associated with this administrative priority.
DISCUSSION
The Gierson Ranch Project and Community Facilities District No. 2026-1
The property owner of the proposed Gierson Ranch project within the City is Century Communities of California, LLC, a Delaware limited liability company (Property Owner), and the Property Owner has submitted a petition requesting that the City form Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta (CFD No. 2026-1). The property to be included in the proposed CFD No. 2026-1 (Property) is located between Washington Avenue and Adams Avenue, near the corner of Washington Avenue and Ivy Street. The Gierson Ranch project is proposed to include approximately 107 single-family homes at full buildout and will be developed by the Property Owner.
The Property Owner has requested that the City form CFD No. 2026-1 to encompass the Property, in accordance with the Mello-Roos Act, to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $8 million. The proceeds of bonds issued by CFD No. 2026-1 are expected to be used to finance public facilities to be owned and operated by the City, as well as financing the payment of DIF owed by the Property Owner to the City, and to finance fees and public facilities to be owned and operated by the Murrieta Valley Unified School District and Western Municipal Water District.
On March 17, 2026, the City Council adopted a Resolution of Intention to Establish CFD No. 2026-1 and a Resolution of Intention to Incur Bonded Indebtedness for CFD No. 2026-1 and called for a public hearing to be held on April 21, 2026, regarding the proposed formation of CFD No. 2026-1.
At the request of the Property Owner, and due to the complexity of the proposed CFD No. 2026-1, staff recommend that the City Council open the public hearing on the formation of CFD No. 2026-1 at this meeting and continue the public hearing to the June 2, 2026 City Council meeting. At the June 2, 2026, City Council meeting, the City Council will be asked to conduct the public hearing and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2026-1. Staff will provide an updated agenda report for the June 2, 2026, City Council meeting.
Annexation to CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services)
New development projects (such as the Gierson Ranch Project) meeting certain design criteria are required by the City’s Community Facilities District Goals and Policies, as amended in December 2023, to annex into Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta and Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta.
On March 17, 2026, the City Council adopted two (2) separate resolutions declaring the City Council’s intention to annex the Property into CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services), respectively, and called for public hearings to be held on the proposed annexations on April 21, 2026.
Like the proposed formation of CFD No. 2026-1, at the request of the Property Owner, and due to the complexity of the proposed annexations into CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services), staff recommends that the City Council open each of the public hearings regarding the proposed annexations and continue the public hearings to June 2, 2026. At the June 2, 2026, City Council meeting, the City Council will conclude the public hearings and hold elections on the approval of the special taxes within CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services). Staff will provide an updated agenda report for the June 2, 2026, City Council meeting.
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). Notice of the public hearing was published on April 6, 2026, in the Press Enterprise and mailed to the Owner.
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 made a deposit of $65,000 to pay for the costs of the formation proceedings, which may be reimbursed to the Property Owner from proceeds of a future bond issuance in accordance with the reimbursement agreement with the Property Owner. If established and subject to necessary City Council and voter approvals, each of the CFDs will annually levy special taxes on all the taxable property within the applicable district in accordance with the applicable rate and method of apportionment. Such special taxes will be used to pay for the costs of services or facilities, administration of the CFDs, and, in the case of CFD No. 2026-1, debt service on bonds. Any bonds issued by CFD No. 2026-1 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2026-1. The levying of special taxes for services is expected to alleviate some of the financial impact of the new development on the City's costs of providing such services to the Property.
Additionally, the Property Owner provided additional deposits of $30,000 to cover the annexation costs associated with the property annexing into CFD No. 2025-2 (Maintenance Services) and CFD No. 2025-S (Safety Services).
ATTACHMENTS
None.