TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
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Formation of Community Facilities District 2026-1 The Meadows.
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RECOMMENDATION
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1) Conduct a Public Hearing regarding the formation of Community Facilities District 2026-1 (The Meadows) of the City of Chino (CFD No. 2026-1) and Improvement Area Nos. 1, 2 and 3 therein (the Improvement Areas); 2) accept tax consultant’s report; 3) adopt Resolution No. 2026-014 establishing CFD No. 2026-1 and the Improvement Areas, authorizing the levy of special taxes and calling an election within each Improvement Area; 4) adopt Resolution No. 2026-015, determining the necessity to incur bonded indebtedness for CFD No. 2026-1 and each Improvement Area therein; 5) conduct a special election of the property owners within CFD No. 2026-1 and each Improvement Area therein; 6) adopt Resolution No. 2026-016, declaring results of the special election and directing recording of a Notice of Special Tax Lien on taxable property within CFD No. 2026-1 and each Improvement Area therein; 7) approve the introduction of Ordinance No. 2026-002, authorizing the levy of a special tax within CFD No. 2026-1 and each Improvement Area therein, to be read by number and title and waive further reading of the ordinance; and 8) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
The City will receive City Services Tax revenue of approximately $332,962 per year upon build out of CFD No. 2026-1 and the Improvement Areas therein. This revenue is intended to offset the cost of providing City services to the homes within CFD No. 2026-1 and the Improvement Areas therein.
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:
• Financial Stability
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BACKGROUND
Tri Pointe Homes Inc. (Tri Pointe) is developing the property within the proposed boundaries of CFD No. 2026-1 and the Improvement Areas therein. CFD No. 2026-1 is currently planned to be developed by Tri Pointe into a single family residential development of 516 homes to be known as “The Meadows.” Tri Pointe is using a land bank, KL LB BUY 3 LLC, a Delaware limited liability company (Landbank), as a financing vehicle for The Meadows development. The location of the proposed development within the City is located at the southwest corner of Bickmore Avenue and West Preserve Loop. See attached map.
Tri Pointe has requested the City initiate the formation of CFD No. 2026-1 and the Improvement Areas therein to finance the City’s development impact fees and required infrastructure improvements related to storm drain, water, sewer, street, lighting and landscaping improvements as a result of the development (collectively, the Facilities). The proposed CFD will also provide the City financing for certain municipal services of the City to be provided within the boundaries of CFD No. 2026-1 and the Improvement Areas therein, including maintenance of parks, parkways, and open space; flood and storm protection; operation of storm drainage systems; and public safety services.
On January 20, 2026, City Council adopted Resolution No. 2026-006, declaring the City of Chino’s intention to establish CFD No. 2026-1 and the Improvement Areas therein, and to authorize the levy of special taxes in each Improvement Area. In addition, the City Council adopted Resolution No 2026-007, declaring the City’s intention to incur bonded indebtedness for each of the Improvement Areas, and established March 3, 2026, as the Public Hearing date. A Notice of Public Hearing was published in the local paper on February 21, 2026. Additionally, the full notice was mailed to all the owners of the subject property prior to the Public Hearing, March 3, 2026.
ISSUES/ANALYSIS
The Mello-Roos Community Facilities Act of 1982 (the Act), Section 55318 of the Government Code, establishes the specific proceedings for creating Community Facilities Districts and Improvement Areas therein. These proceedings require the City Council to conduct a public hearing to hear testimony of all interested persons for or against the establishment of CFD No. 2026-1 and the Improvement Areas therein, and the furnishing of specific types of public facilities or services. At the conclusion of the hearing, the legislative body may determine to proceed with establishing CFD No. 2026-1 and the Improvement Areas therein.
By adopting Resolution No. 2026-006, pursuant to Section 53321.5 of the Act, the Council ordered the responsible officers for the proposed CFD No. 2026-1 and the Improvement Areas therein to study said CFD No. 2026-1 and the Improvement Areas therein and prepare a report for the Council. The Special Tax Consultant, Webb Municipal Finance, has prepared and submitted this report to the City Council on behalf of the officers for the City to review. The report contains a brief description of the public facilities and services by type, their estimated cost, establishes the rates and methods of apportionment of the special taxes to be levied upon the parcels of taxable property within each Improvement Area required to fund the acquisition and/or construction of said public facilities and the provision of said services, as well as the amounts and costs associated with the issuance of bonds to finance acquisition and/or construction of said facilities.
After the legislative body determines to establish CFD No. 2026-1 and the Improvement Areas therein, it shall adopt a resolution authorizing the formation of CFD No. 2026-1 and the Improvement Areas therein and the levy of a special tax within each Improvement Area and calling for a special election within each Improvement Area, and it may immediately hold the special election. An official ballot, including a waiver of the time limit pertaining to the conduct of the election, and any requirement for notice of analysis and arguments with respect to the ballot measure, were provided to the property owner(s) within each Improvement Area prior to the March 3, 2026 City Council meeting. The City Clerk must also concur with the shortening of various time periods applicable to the said landowner election.
The City Clerk shall then canvass the returns of the election and total the number of ballots cast for and against the measures in each Improvement Area. After the canvass of returns of any election, pursuant to Section 53326, the legislative body may levy any special tax as specified in the resolution of formation in the territory of CFD No. 2026-1 and the Improvement Areas therein, if two-thirds of the votes cast are in favor of levying that tax. The legislative body shall then approve the introduction of an ordinance levying a special tax within CFD No. 2026-1 and the Improvement Areas therein.
Following formation, bonds would be authorized to be issued in an amount not to exceed $32,000,000, including $17,000,000 within Improvement Area No. 1, $6,500,000 within Improvement Area No. 2, $8,500,000 within Improvement Area No. 3. Staff is not moving forward with the remaining documents required to sell the bonds until development in any Improvement Area is sufficient to justify the bond issuance. When development is sufficient to justify the bond issuance, the City will then process the documents necessary to sell bonds. These documents will include the Resolution approving the Preliminary Official Statement, Fiscal Agent Agreement/Indenture, Bond Purchase Agreement and District Continuing Disclosure Agreement. These documents will be scheduled for consideration at a future City Council meeting.
Attachments: Resolution No. 2026-014 Resolution No. 2026-015
Resolution No. 2026-016
Ordinance No. 2026-002
Tax Consultant’s Report
CFD No. 2026-1 Boundary Map
Rate and Method of Apportionment (RMA)
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