TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
title
Annexation No. 9 of Territory into Existing Community Facilities District No. 2003-03 Improvement Area 5.
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RECOMMENDATION
recommendation
1) Conduct a Public Hearing, continued from the May 20, 2025 City Council meeting; 2) adopt Resolution No. 2025-017 calling a special election for the purpose of approving an annexation into Improvement Area 5 of the Community Facilities District No. 2003-3; 3) adopt Resolution No. 2025-018, declaring results of the special election; and 4) authorize the City Manager to execute all documents on behalf of the City.
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FISCAL IMPACT
Annexation of the property will initially add an additional $2,102.50 of Special Taxes annually, to be levied within Improvement Area 5 of CFD 2003-3 to be used for certain municipal services described in the Resolution of Formation for CFD 2003-3. As the balance of the property develops, additional revenues from the planned multi-family development will be levied annually for the same purpose. The projected revenue from the planned multi-family development will be between $108 and $138, per developed unit. The aggregate projected annual revenue will vary based upon the final number and size of multi-family units constructed.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Financial Stability
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Revenue: 1001000-51200 |
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BACKGROUND
The City’s General Plan requires the City to ensure that new development within the City has a fiscally neutral effect on the General Fund. That principle has been applied to all new developments in The Preserve.
The City formed CFD 2003-3 in The Preserve to pay for certain public facilities and necessary ongoing municipal services authorized by the Mello-Roos Community Facilities Act of 1982 and the formation documents with respect to CFD 2003-3. In addition, the City formed Improvement Area 5 of CFD 2003-3 for the purpose of levying special taxes exclusively for payment of municipal services and administrative expenses for Improvement Area 5 (note: no public facilities are authorized to be financed through Improvement Area 5 and no CFD bonds will be issued payable by Improvement Area 5 Special Taxes). The Rate and Method of Apportionment for Improvement Area 5 (RMA) includes the Special Tax rates for residential and non-residential properties. Authorized municipal services payable from Improvement Area 5 Special Taxes include maintenance of parks, parkways and open space, flood and storm protection, operation of storm drainage systems, and public safety services.
On April 15, 2025, City Council adopted Resolution No. 2025-013 declaring the City of Chino’s intention to annex territory into Improvement Area 5 of Community Facilities District No. 2003-3 for municipal services and establishing May 20, 2025 as the Public Hearing date. The City Council may either conclude the Public Hearing on May 20, 2025, or may continue the Public Hearing for up to 30 days. At its meeting on May 20, 2025, the City Council opened the Public Hearing and unanimously voted (4-0-1, with Mayor Ulloa absent) to continue the matter to the next regular meeting on June 3, 2025, at 6:00 PM, to ensure noticing requirements are met for the publication of the public hearing notice.
ISSUES/ANALYSIS
The property owner petitioning the City Council to annex into Improvement Area 5 is Chino Preserve Development Corporation, a California corporation (the “Owner”), which is controlled by Lewis Management Corp., a Delaware corporation (“Lewis”). The Landowner is seeking to annex into Improvement Area 5 of CFD 2003-3 as a condition of Resolution No. 2005-14 and subsequent resolutions, which require that all development projects within The Preserve annex into an existing CFD to fund necessary municipal services.
Upon adoption of Resolution No. 2025-013, a notice of Public Hearing was published in the local newspaper on May 17, 2025, and the continued public hearing notice was posted at the Council Chambers. Additionally, the full notice was sent to the Landowners as required by law. The Ballot and waiver form was sent to the Landowner. The waiver form allows the Landowner to waive the standard 90-day waiting period between the calling of the special election and the actual election, along with certain other procedures. The Landowner has signed the waiver to ensure the election occurs on an expedited basis.
The annexation into Improvement Area 5 of CFD 2003-3 shall be subject to approval of the qualified electors within the territory proposed to be annexed into Improvement Area 5 of CFD 2003-3 at a special election.
After the public hearing has been conducted, an election is held for the Landowner to cast its ballot. The ballot is tallied, and if the annexation is approved by the Landowner, the City adopts a resolution declaring the result of the special election and ordering annexation of the property into Improvement Area 5 of CFD 2003-3.
Attachments: Resolution No. 2025-017, Exhibit A
Resolution No. 2025-018
Annexation Boundary Map